May 22, 2006 The Power of Relationship Management Prepared For: M ARKETING M ANAGEMENT AND R ESEARCH...

May 22, 2006

The Power of Relationship Management

Prepared For:

MARKETING MANAGEMENT AND RESEARCH GROUP

2© 2006 Stonegate Strategic Advisors - Proprietary & Confidential

Agenda for Discussion

About Stonegate Strategic Advisors, LLC

What is relationship management?

How do I manage relationships?

How can I maximize my chances for success?

What are the benefits?


Our Problem Solving Continuum

Because of strong client demand, Stonegate launched a unique product to allow our customers to benefit from the research and analytics that are fundamental to our strategic service offerings.

Fact& Data

Gathering

Data Synthesis & Presentation

Interpretation of Data &

Information

Strategic Growth& Business

Planning

Stonegate Advisors Problem Solving Continuum

Strategic growth and business planning, built on a solid analytical fact base, presented with Board level sophistication

A one stop, on demand, custom research resource that provides presentation ready market, competitor, and customer intelligence.


What is Stonegate Intel?

Stonegate Intel was developed as a practical, cost-effective solution for decision makers providing:

Objective, reliable data gathered from trusted information sources, verified and analyzed by industry professionals

Highly-specific facts to support critical business decisions

A variable resource for locating, organizing, verifying, analyzing, synthesizing and packaging information

The opportunity to focus on strategic thinking and decision making

A business intelligence resource that delivers rigorously researched, thoroughly analyzed, and presentation ready information, around the

clock.


Relationship Management Defined

Relationship management is about cultivating and building friendships.

Networking Making Friends

Something You Do

Something You Are

Just A Sales Approach

An Everyday Life Approach

-vs-

-vs-

-vs-

While some may choose to take methodical approach, don’t consider relationship management a “task” or “chore”


The Power of Connecting

The true power in relationship management is connecting…

…and never keep score!


The Central Engine for Building a Relationship

The principal requirement for establishing a strong relationship is committing to “take care” of your contacts.

Caring is a commitment to the other’s growth and development and a set of actions driven by that commitment.

Your contacts will decide to meet with you and work with you when they believe:

You have their best interests in mind.

You are capable of doing something valuable for them on a high priority issue.

The central engine for building a relationship is caring.


Developing Your Personal Business Plan

Many of us have written business plans for a company, but have you ever written one for yourself?

Keith Ferrazzi, author of “never eat alone”, suggests a personal business plan will help:

Articulate your relationship management goals.

Identify who you want to meet and in what time frame.

Define your value – what you have to offer to others.

Relationship management begins with the development of your own personal business plan.


The Multiple Hats We Wear

Liaison

SolutionDeveloper

Sounding Board

Facilitator

Expediter

Implementer

Negotiator

Innovator

Scapegoat

Matchmaker

ProblemSolver

Researcher

Interpreter

Simply defined, value is something you deliver that your contact needs.

Source: The Power of Consultative Selling, Bryce Webster


The Facets of Value

“Muchness”

“Soonness”“Sureness”

How much value you will add.

How quickly you can deliver value.

How certain you are that you can add value.

AddedValue

The level of value provided is a function of muchness, sureness, and soonness.

Source: Consultative Selling, Mack Hanan


Developing your own personal

board of advisors

Understanding the Role of Your Relationship Management Target

Role: To give final approval.Focus: Bottom line and results.Asks: “What return will we get?”

Target Description

DECISION MAKER

INFLUENCER

USER

ALLY / COACH

Role: To critique and recommend modifications.Focus: Validation.Asks: “Will this work?”

Role: To make judgments about impact.Focus: Day to day impactAsks: “How will this impact what we do day to day?”

Role: To advise or guide.Focus: Your success.Asks: “How can we ensure this solution happens?”

Not every relationship management “target” is a decision maker. You must understand their role and tailor your approach accordingly.


Cultivating Sparking

BridgingBuilding

Classifying Relationship Targets

New Customer

Existing Customer

Existing Relationship New Relationship

Relationship targets can be classified into 4 quadrants.

Core Focus:

Consistent Delivery

Consistent Communication

Core Focus:

Communicating Value

Delivering Quick Wins

Core Focus:

Defining Value

Identifying Opportunities

Core Focus:

Confirming Value

Delivering on Past Promises

Understanding and Validating

Needs


Relationship Management Cycle

Unsure?

Perform internal fact finding

Listen, interpret, probe, and

confirm

Pre-Meeting Meeting Post Meeting

Understand your client and what you have to offer

Identify your client’s needs or issues and position yourself to help

Develop your recommendations, and/or deliver

Unsure? Unsure?

Request additional meetings

Relationship management is more than a single serving encounter. It consists of ongoing planning, execution, and follow-up.


Mode of Interactions

Interactions can be both formal and informal. It is critical to partake in both. And regardless of the interaction, preparation is critical.

• Scheduled face-to-face meeting

• Scheduled phone conversations

• Facilitated sessions or group meetings

Formal Meeting

• Unplanned run-ins

• Ad-hoc phone calls

• Meals (breakfast, lunch, or dinner)

• Drinks or coffee

• Outside work entertainment venues (e.g. golf, play, etc.)

Informal Meeting

• E-mail

• Voice-mail

• Letters / notes

• Messages delivered by “others”

Enablers / Reinforcers


Maximizing Your Chances For Success

1. Lose your fears and inhibitions

2. Be GCI – genuine, confident, and interesting

3. Listen and empathize

4. Know more than your relationship target’s name

5. Prioritize

You degree of success is predicated on five guiding principals.


The Most Critical Skill In Relationship Management

LISTEN

INTERPRET

SYNTHESIZE

TREAT

ENGAGE

NEXT

Listen carefully. You should talk no more than 25% of the time.

Interpret what is said by observing the traits, behaviors, and mannerisms of your buyer.

Synthesize the data you have gathered, form hypotheses, and identify issues.

Treat objections as legitimate concerns.

Engage in the client’s thought process, and engage the client in yours.

Plan your next steps and get commitment to follow-through.

More important than your experience and expertise, is your ability to listen. Honest curiosity and an ability to be a good audience are critical.


RELATIONSHIP INFORMATION

Knowing More Than Your Contact’s Name

• Name (First, Last, Nickname)• Job Title• Job Responsibility• Department• Company• Address (Business, Home)• Phone (Business, Mobile, Home)• Fax (Business Home)• E-Mail• Direct Superiors• Assistant’s Name• Company Goals• Personal Goals

• Years With Company• Personal Style• Reputation• State/City of Residence• Birthplace• Spouse’s Name• Children’s Name(s)• Birthday• Anniversary• Spouse’s Birthday• Children's Birthday• Undergraduate Education• Graduate Education• Previous Places of Employment• Favorite Food / Beverage• Hobbies

CRITICAL INFORMATION

Get to know more than your contact’s name, title, and company. Show the client you care by taking the time to really know them.

Outlook and/or a handheld organizer (e.g. Blackberry) is invaluable in managing and tracking the above information and ensuring key data is always available.


Concentric Contact Circles (3Cs)

At any one point, you may 100’s of relationships you must manage. Prioritization is critical, but none can be forgotten.

Critical

Important

Nice-To-Have

Number: 10-20

Mode: Formal and informal meetings

Frequency: 1-2 times per month

Number: 20-40

Mode: Informal meetings and enablers/reinforcers. Infrequent formal meetings.

Frequency: 1-2 times per quarter

Number: 50+

Mode: Enablers/reinforcers

Frequency: 1-2 times per year


Win – Lose Scenarios

I Win

You Win

I Lose

You Win

I Lose

You Lose

I Win

You Lose

CLASSIFICATIONS OF “WINS”

Self-Actualization Income: Rewards such as new friendships, self fulfillment, and contribution to society

Psychic Income: Rewards such as power, prestige and promotion

Money Income: Rewards such as salary, bonus, and commissions

Customer Income: Rewards such as improved customer satisfaction and market share

Money Income: Rewards such as decreased costs, increased revenues, and increased profits

Competitive Income: Rewards such as improved competitive position and image

PE

RS

ON

AL

CO

MP

AN

Y

Successful relationships build on win-win scenarios.

Source: S. Heiman, D Sanchez, The New Strategic Selling; The Power of Consultative Selling, Bryce Webster


Summary

1. Relationship management is about cultivating and building friendships and caring about the interests of others.

2. Never keep score.

3. Build your own personal business plan and board of advisors.

4. Understand and communicate your value.

5. Treat relationship management as more than a “single serving encounter.”

6. Listen and be genuine.

Relationship management does require effort, but the benefits far outweigh the investment.


Contact Information

Marc E. Pierce

Founder

847-612-7995 Phone

[email protected]

Stonegate Strategic Advisors, LLC

466 Somerset Hills Court

Riverwoods, Illinois 60015

847-236-1132 Fax

www.stonegateadvisors.com

www.stonegateintel.com

Scott C. Dillingham

Principal

(773) 251-4749 Phone

[email protected]

Stonegate Strategic Advisors, LLC

466 Somerset Hills Court

Riverwoods, Illinois 60015

847-236-1132 Fax

www.stonegateadvisors.com

www.stonegateintel.com

May 22, 2006 The Power of Relationship Management Prepared For: M ARKETING M ANAGEMENT AND R ESEARCH...

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