Industry Trends: The New Age of Marketing and BD for AEC SMPS Fairbanks, Alaska Thursday, January 15, 2015 CONFIDENTIAL ©2013.
Download ReportTranscript Industry Trends: The New Age of Marketing and BD for AEC SMPS Fairbanks, Alaska Thursday, January 15, 2015 CONFIDENTIAL ©2013.
Industry Trends: The New Age of Marketing and BD for AEC SMPS Fairbanks, Alaska Thursday, January 15, 2015 1 CONFIDENTIAL ©2013. All Rights Reserved Your Presenter Ronald D. Worth, CAE, FSMPS, CPSM, Assoc. AIA Chief Executive Officer Society for Marketing Professional Services 2 Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. Defining Business Development Who Is Involved in BD? Market Research & Strategic Planning Networking Getting in the Door Client Relationship Management Unique Value Proposition Proposals/Presentations Wrap-up 3 Adapting Leads Speed Expectations 4 ACOO Accomplishments Challenges Opportunities Outlook 5 1 | Defining Business Development 6 Defining Marketing, Business Development, and Sales Marketing • Promoting your firm through words and images Business Development • Identifying and developing project opportunities for work Sales • Closing the deal; getting a signed contract 7 Different BD Staffing Models Seller/Doer Model Dedicated BD Staff Consultant Approach • Use a strategic marketing firm or individual 8 Business Development Involvement Develop Relationship Project Completion Business Development Operations 9 The Building Business Track Make Interview Presentation Win the Job! Submit Proposal Negotiate Agreement Do the Project Position and Promote the Firm Good Job! Get Shortlisted Be handed another project by YOUR client! Make Go/No Go Decision Get RFP Develop the Relationship Analyze the Deal 10 2 | Who Is Involved in BD? Who Should Be Involved in BD? EVERYONE should be! 12 Marketing/BD Culture: Do you have it? All rainmakers Information gathering Perception building Idea generating 13 Networking Rules 3 Orders 8 Prospects 36 Leads 14 Why Get Everyone Involved? What is the value of BD to the firm? A good technical staff is worthless without work P = I – E (Profit = Income – Expense) • “I” is a lot more fun to work on than “E” Follow-on work stems from good relationships • The more people involved in BD, the more relationships the firm will have “Qualifications get us into the game that relationships win.” —Peter Kienle, FSMPS, CPSM, MBA 15 How to Get Everyone Involved Get buy-in from top to bottom • Gain agreement that everyone should have BD awareness and responsibilities Talk to technical staff about advancing within the firm • Reinforce why BD is the best way to add value to the firm • Teach how to turn communication into business • Know how to deal with “push back” Create simple goals for each person to meet • “Follow up with three past clients this month” • “Take one current or past client to lunch this month” Take staff with you on BD activities • Show how to find opportunities for business 16 How to Get Everyone Involved (cont.) Review their efforts • Provide positive reinforcement to those who meet goals • Increase goals of those who show interest/ability Inform management of staff members’ commitment • Identify who is willing to help grow the business Keep management informed of your efforts • Be recognized for your leadership 17 Activities Points Hand out/secure business cards 1 Attend business seminar 3 Meet with a client 4 Make a presentation 5 18 Activities Time off One hour One Week Money Points 10 400 1 point = $1 19 Marketing Culture (Hunton Brady Arch) 20 Sasaki Associates, Inc. Watertown, MA 21 TowerPinkster Grand Rapids, MI 22 The HNTB Companies Kansas City, MO 23 3 | Market Research & Strategic Planning 24 How Is Market Research Done? Identify your target markets • Market sector • Geography Qualify your target markets • Project potential Use your resources • Internet • Business journals • Industry publications • Networking 25 Client Research Understanding potential clients • What’s important to them? • What drives their business? Who is the decision-maker? Who are the influencers? What is their buying cycle? Who else is likely to compete for the work? What is their selection process? • Public procurement or Private RFP or Negotiated 26 What Do Clients Always Want? Client Sweet Spot 27 Lead Sources Associations and Professional Organizations • Join SMPS, ACEC, AGC, AIA, NAIOP, SAME, SCUP, ULI, etc. • Be active: Serve on a committee, take on a leadership role • Don’t just trade business cards – talk about opportunities! Referrals/Referral-Based Leads • Chambers of Commerce • Chair the Real Estate Committee Social Clubs/Groups • Peers, colleagues, clients Rotary Club, Lions Club, VFW, alumni association Leads Group 28 Lead Sources (cont.) Partnerships • Team with other firms o Increase/enhance project experience o Enhance geographic presence o Acquire unique skill set o Enhance client knowledge/history 11/7/2015 29 Lead Resources Publications, Periodicals, and News Alerts • Scan regularly for information on new project opportunities • Set up electronic news alerts (e.g., Google Alerts) Internal Databases • Use customer relationship management (CRM) software Subscription Service • Market and opportunity intelligence subscriptions Search Engines and Directories • Utilize Yahoo, Google, MSN • Gather information on competition, past consultants • Identify potential JV partners, sub-consultants, DBEs, WBEs, 8(a)s, veteranowned, HUB Zone businesses 30 Lead Resources (cont.) FedBizOpps • Locate federal government opportunities with various agencies. • Look for pre-solicitation/sources-sought notices. • Search by geographic location, agency, NAICS codes. Government Set-Aside Opportunities • Relationships with small, 8(a), woman-owned, veteran-owned, HUB-Zone businesses. Economic Reports/Forecasts • Federal agency annual procurement forecasts/open houses. o NASA, USACE, GSA, NAVFAC, Veterans Administration, DOE • Follow the money! Strategic Marketing Firms • Projects in Print 31 What is a Strategic Plan? Serves as a road map or blueprint for improving the performance of your firm. The plan generally includes: • A vision of what the organization aspires to be • A mission stating the purpose of the organization • The values that guide organizational behavior and culture • Goals for achieving the vision and mission • Strategies and tactics that form the action plan for achieving goals • Champions for each goal and strategy • Tactics with timelines • A follow-up plan 32 Foundation of a Strategic Plan: SWOT Analysis External Internal Helpful Harmful S W T O W Strengths Weaknesses Opportunities Threats 33 How the Strategic Plan Supports BD Efforts Defines your target markets and clients (screening) Is different for different in-house services Allows efforts to be measured against the plan (metrics) Aligns the efforts of technical and non-technical staff Maintains focus in a multi-office firm 34 The Role of BD in Strategic Planning Provides: • Research into promising markets • Feedback on likely projects and clients • Definition of what “can” be done • Establishment of “effort” goals • Roles for all personnel involved • Reality check on likelihood of success…and by when 35 Seven-Sentence Plan 1. Purpose 2. Approach 3. Target clients 4. Marketing vehicles 5. Niche 6. Identity 7. Marketing budget (% of gross sales) 36 Use SMART Goals for the Strategic Plan S M A R T Specific Measurable Attainable Relevant Time Sensitive 37 Sample SMART Goals Firm Goal • In the coming year, we are going to grow healthcare fees from 10% to 15% of the firm’s revenue Office/District/Region Goal • Over the next 12 months, we are going to initiate and implement four new strategic alliances with top developers/architects/CMs Personal Goal • I will schedule 30 client meetings each month 38 4 | Networking 39 Rule of 250 If you know 250 people, you can find out anything in any city in three calls or fewer. Source: Chapter 3.2, “Marketing Handbook for the Design and Construction Professional” 40 Benefits Professional and personal Make friends Make contacts Gain insights Learn information Advance your career People do business with people they like and trust. 41 Personal BD Audit Business cards Pen/Paper Name tag Professional wardrobe Good handshake Mint Hidden $20 bill 30-Second elevator speech Unique value proposition Marketing materials Active list of leading-edge business books 42 Office BD Audit Business paper subscription Business cards for everyone in the office Industry organization memberships Current marketing materials Trained receptionist Contact management plan Knowledge of largest firms: Architect, Engineer, Contractor, and Owner 43 After Meeting Follow-Up Send a handwritten note Put contacts in firm’s database Invite the person to an event as your guest Send them articles/information on a topic in which they’re interested Send an e-mail before the next relevant event (“Will I see you at…?”) 44 Speaking Opportunities Take advantage of every opportunity to speak publicly Position yourself as an industry expert Highlight past and present projects Invite clients to be panelists Provide the firm with extra publicity Expand your network Create an opportunity for yourself to grow Build the firm’s brand 45 5 | Getting in the Door 46 Follow-Up Styles Understand the prospect’s favorite form of communication (vs. yours): • E-mail • Phone • Texting • Through assistant Successful rainmakers have a plan and are disciplined to follow it – but their plans are all different! -Ford Harding 47 McCarthy Building Companies, Inc. 48 Persistence vs. Peskiness Persistence is key • Don’t fall prey to the old cliché: “Out of sight, out of mind” The difference between winners and losers is persistence Research indicates: • 43 percent of salespeople make one call and quit • 25 percent make two calls and quit • 12 percent make three calls and quit • 80 percent of all sales are made after the fifth call Source: Chapter 3.1, “Marketing Handbook for the Design and Construction Professional” 49 6 | Client Relationship Management 50 Client Relationship Management Approaches Client Relationship Management (CRM) is NOT just software— CRM is a business strategy. A variety of tools are used to facilitate a CRM strategy. The Human Memory The “Stack of Cards” The Rolodex The Spreadsheet The Database-Based CRM System 51 CRM’s Role in Business Development Mine data for lead prospecting and focus your efforts Manage the information most important to your BD efforts Centralize information for internal sharing, collaboration, and transparency Enhance time management and increase efficiency 52 Tips for Creating a CRM Culture Developing a supportive culture and buy-in from PMs and technical staff is key to long-term CRM success Develop CRM training for appropriate employees Give the data meaning by showing how it is used Highlight the benefits of CRM through internal marketing Identify a champion to advocate for CRM participation Develop and update a CRM Data Collection Plan 53 7 | Unique Value Proposition 54 Features vs. Benefits Features Benefits 55 Your Firm’s Unique Value Proposition What makes your firm different? • The only things you can guarantee that make your firm unique are your people and culture What does that mean to the client? • You need to translate your differentiators into how they benefit the client 56 8 | Proposals / Presentations 57 Go/No Go Formalizes the qualification process Keeps a record of why you pursued the project Facilitates targeting (rifle shot) Sample forms in Additional Resources section 58 Rifle and Shotgun Rifle Approach Shotgun Approach The best way to increase your proposal hit rate is to decrease your number of proposals. 59 Proposals 101 Quick research Pre- & post-debrief Include only relevant experience/information Rehearse Rehearse 60 9 | Wrap-Up 61 Three Fundamental Differentiators When you and your competition are equally qualified, these simple things can help you stand out: • Being a professional • Returning your phone calls • Doing what you say you’re going to do 62 Ethics of BD Don’t bash your competition directly, but make sure your strengths are lined up against their weaknesses. Don’t promise what you/your firm can’t deliver. “Whatever it takes to get the job” has to have limits. Understand “appropriate” entertainment. 63 Attributes of the Successful Business Developer Is personable Enjoys his/her job Shows initiative Is presentable Is knowledgeable Is fearless Is focused Is self-motivated Is optimistic Has integrity Has a plan and works the plan Reciprocates leads 64 Ron Worth, CAE, FSMPS, CPSM, Assoc. AIA [email protected] Twitter: @ronworth # I Thank You!