Quite often, firms that struggle with marketing seek out a new hire…a “closer.”
The strategy is this:
1. Hire somebody dedicated to bringing in new business and new business only
2. Tie their compensation to their success
3. If they don’t work out, they get cut within a year or two; if they do, we’re in the money!
This Business Development specialist is essentially a sales person. I’m actually not saying “never”, but here is why, when this position is filled as knee-jerk reaction to tough times, it very rarely works out.
The A/E/C industry is a professional services industry…not professional product. Our project lifecycle is generally MUCH longer than our sales cycle and in such, more emphasis is placed on the personal relationship with the architect, engineer, Principal, project manager, etc.
When dealing with products, it is the norm to buy from one place/person and seek out support from a completely separate one (maybe even one in a call center halfway across the world). When dealing with a service, the person that delivers the service should either be incredibly knowledgeable about the service or the one actually doing the work.
Think about the doctor as an example. The doctor checks you out, looks over your records, tells you what’s wrong, prescribes medicine and you’re all better. When you later have a follow up question about your health, you wouldn’t expect a completely separate doctor to answer it…and definitely not the person in accounting.
Professional services such as architecture are very similar, but there is usually a team of acceptable people to call on. However, once the project kicks off, that team almost never includes the Business Development lead. They are off focusing on bringing in other new business and generally don’t even know what happened to the project once the contract was signed.
In the end, when people choose your firm, they choose to work with the people in it. Potential clients need to be marketed to (not reeled in) and then communicated with by the team of professionals that will deliver for them at the end of the day.
When business developers are a strategic part of the marketing and project team, they have a much better chance for success. When they’re hired in a reactionary manner and used as an auxiliary sales force, it isn’t likely to improve your client relationships…or hit rate.
How do you help firms with business development since you are saying it's relationship based?