Any salesperson or company will tell you that their objective is to become a strategic partner. What does it take to become a strategic partner? We all know that revenues and margins are higher when you have that coveted distinction. What does it take to move your product or service away from the “commodity” label?
Below are three levels of customer relationships and the differences between them.
1. Approved Vendor – At this level, you are a viable option when customers have a specific need. Your price and service are acceptable but you really have not differentiated your service from another company. Your product or service was chosen based on a need and a price. The customer’s motivation is utilitarian and event-driven. Once their need is fulfilled or over, the customer moves on.
2. Valued Service Provider – At this level, you are perceived as an industry expert. Your expertise regarding a variety of potential solutions is both valued and sought-after. You understand your customer’s needs and what they are looking. You understand how your service interacts with your customer’s corporate objectives.
3. Strategic Partner – As a Strategic Partner, you do more than understand the customer’s needs, you plan for them and anticipate them. You help your customer forecast for future events and changes in their business. You continually work to find better solutions for them. This is one of the greatest payoffs for customers who develop strategic partners. The solution you sold keeps improving. At this level, customer loyalty peaks and pricing becomes less of an issue.
The later you enter the buying process, the less likely you become a strategic partner. The key reason is that your customer has determined their specifics needs already probably after a conversation with one of your competitors. You have some influence about what level you attain but ultimately it is your customers decision. Your chances of becoming a strategic partner greatly increase if you become involved at the start and develop a relationship with C-Level executives.
Having trouble becoming a strategic partner? Not sure how to accomplish it? Contact us, we are the staffing industry experts!