Don’t be Afraid to Help Clients Reach Financial Justification
Don’t be Afraid to Help Clients Reach Financial Justification
Most clients struggle with getting to the “real value” of a recommendation. While they will quite possibly move forward with your recommendation, they tend to accept it at face value and stop short of understanding its ROI to their business’ bottom line. This results in a lack of financial justification in their own minds as they evaluate your recommendation.
Clearly, this lack of financial justification can hurt your chances of closing the sale – especially in today’s market.
Without a strong business case, your client may choose to evaluate competitive bids, do it himself, or do nothing at all. Your opportunity can easily evaporate into thin air.
Unfortunately, many of us are fearful of delving too deeply into our client’s business, either because the client may refuse to answer our questions, or he might become belligerent about why we’re asking for detailed, personal business information.
In reality, it’s our job to know – and help our client to understand – that asking detailed questions will help us both get to the root of the business problem. Failure to do so may result in a recommendation that the client won’t be able to justify financially, and have a negative effect on their confidence in us.
Pete, one seller I was working with, was trying hard to close a medical office on a solution that would allow the doctors to off-load their computer system responsibilities to his firm. No more unexpected computer system outages or interruptions to patient care. While the doctors recognized that they had a problem they needed to address, they weren’t looking at the full impact unexpected downtime was having on their practice. Consequently they couldn’t justify the added monthly expense of Pete’s solution.
The doctors were focused on their bottom line expenses, without seeing the hit they were taking to their top line revenue.
Pete had to build a business case by helping the doctors expand their thinking. Together, Pete and the doctors considered all aspects of the impact to their business from their unexpected computer downtime. The doctors discovered that they were experiencing a multitude of issues every time their system was inaccessible: patients couldn’t schedule appointments; same-day appointments dipped and revenue dropped; insurance billings were missed, and more.
Pete helped the doctors discover they were losing far more money than the solution he was recommending would cost, and the doctors immediately signed up.
How can you build a business case for your clients? Ask questions that will help them consider their issue from multiple perspectives. Delve into the financial ramifications of the problem on their business. Clients will answer your questions because they want to solve the problem.
In his discussions, Pete uncovered a wealth of information to build a business case the doctors agreed with:
1. The daily rate of the receptionists to determine their productivity losses
2. The value of an average appointment that went unscheduled
3. The number of appointments the doctors were missing
Pete helped the doctors understand why they should be willing to pay money to solve the problem, and what their ROI will be by removing the problem that was negatively impacting their practice.
As we question and help our clients better understand the situation being caused by their business issues, their respect for us will rise and our ability to make more informed and complete recommendations will increase. Clients will look to us to build their business cases and stop seeking competitive comparison bids. And isn’t that every sellers dream?
Dont be Afraid to Help Clients Reach Financial Justification - To learn more about this author, visit 's Website.
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Most sellers know the technique behind a conversation that will gather the needs required to make a strong solution recommendation. But, to be a true consultant to your clients and stop the competition in their tracks, the conversation must evolve into much more. It must build a business case for investing in your recommendation and providing the client with a strong feeling of confidence in the return on investment (ROI) your solution will bring.
Most clients struggle with getting to the “real value” of a recommendation. While they will quite possibly move forward with your recommendation, they tend to accept it at face value and stop short of understanding its ROI to their business’ bottom line. This results in a lack of financial justification in their own minds as they evaluate your recommendation.
Clearly, this lack of financial justification can hurt your chances of closing the sale – especially in today’s market.
Without a strong business case, your client may choose to evaluate competitive bids, do it himself, or do nothing at all. Your opportunity can easily evaporate into thin air.
Unfortunately, many of us are fearful of delving too deeply into our client’s business, either because the client may refuse to answer our questions, or he might become belligerent about why we’re asking for detailed, personal business information.
In reality, it’s our job to know – and help our client to understand – that asking detailed questions will help us both get to the root of the business problem. Failure to do so may result in a recommendation that the client won’t be able to justify financially, and have a negative effect on their confidence in us.
Pete, one seller I was working with, was trying hard to close a medical office on a solution that would allow the doctors to off-load their computer system responsibilities to his firm. No more unexpected computer system outages or interruptions to patient care. While the doctors recognized that they had a problem they needed to address, they weren’t looking at the full impact unexpected downtime was having on their practice. Consequently they couldn’t justify the added monthly expense of Pete’s solution.
The doctors were focused on their bottom line expenses, without seeing the hit they were taking to their top line revenue.
Pete had to build a business case by helping the doctors expand their thinking. Together, Pete and the doctors considered all aspects of the impact to their business from their unexpected computer downtime. The doctors discovered that they were experiencing a multitude of issues every time their system was inaccessible: patients couldn’t schedule appointments; same-day appointments dipped and revenue dropped; insurance billings were missed, and more.
Pete helped the doctors discover they were losing far more money than the solution he was recommending would cost, and the doctors immediately signed up.
How can you build a business case for your clients? Ask questions that will help them consider their issue from multiple perspectives. Delve into the financial ramifications of the problem on their business. Clients will answer your questions because they want to solve the problem.
In his discussions, Pete uncovered a wealth of information to build a business case the doctors agreed with:
1. The daily rate of the receptionists to determine their productivity losses
2. The value of an average appointment that went unscheduled
3. The number of appointments the doctors were missing
Pete helped the doctors understand why they should be willing to pay money to solve the problem, and what their ROI will be by removing the problem that was negatively impacting their practice.
As we question and help our clients better understand the situation being caused by their business issues, their respect for us will rise and our ability to make more informed and complete recommendations will increase. Clients will look to us to build their business cases and stop seeking competitive comparison bids. And isn’t that every sellers dream?
Dont be Afraid to Help Clients Reach Financial Justification - To learn more about this author, visit 's Website.
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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