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Do you manage your inbound leads effectively?
With the amount of money companies spend on marketing these days, it's vital that
when you receive a phone call enquiring about your services you know how to handle
it.
Be prepared for
inbound calls. At SSW we have a script our phone operators keep close at
hand to make sure we ask the necessary qualifying questions. Qualifying a lead means
categorizing them - we use a 1 - 5 scale, just like hurricanes. 1 means a client
who wants a $500 website, and 5 means a custom application solution for a large
company. The aim is to determine if we are a good match with the prospect - that
way we don't spend time on dead ends and can give all time to the most likely leads.
Once you have qualified the lead, your aim for the remainder of the call will be
to arrange a face-to-face Initial Meeting with the client. Our preference is for
the Client to come to us. Think of this office as our showroom. Seeing it will reinforce
for the client that we are a real business, not just a voice on the other end of
the phone. If its more convenient for the Client for us to visit them, we are happy
to accommodate. Send this email Pre Initial Meeting
Once you have agreed on a time for the appointment, you send an appointment to the
client and everyone who will be attending the meeting, including the notes from
the phone call in the body of the appointment request.
On the off chance that the client wants to commence ad-hoc work (e.g. Consulting)
without a meeting, you will immediately enter
a contract with the client.
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- Figure:
Send an appointment for your initial meeting
Make sure you enter the contact information for the lead into your corporate database.
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Are you prepared for the initial meeting?
Be prepared for the initial meeting because first impressions are the most important.
Preparation cements your professionalism and underscores SSW's eye for detail and
capacity to deliver. Preparing for the meeting includes:
- Selecting the appropriate SSW Architect to attend the Initial Meeting with you.
You will consider whether a business or technical focus is appropriate for the meeting,
and the likely technology of the project to ensure you align skills
- Having a short meeting with the selected SSW Architect to discuss your preliminary
understanding of the clients requirements so the SSW Architect can consider technology
options
- Reviewing the clients website or other available information, taking special note
nature of the clients business. It's also useful to remember the office locations
(e.g. one office, nationwide or international) and the year of commencement of business
- Reviewing any specification documents the client may have provided. You may conclude
the current specs are incomplete and further work is required to develop a Release
Plan
- Have the standard SSW sample apps VPC to show SSW developed websites, windows apps
and our products (Client Demo VPC)
- Having a wireless card to access the Internet if you cannot connect to the clients
network. In fact it is preferred you do not connect to the clients network due to
time and security issues
- Having the SSW standard sales presentation. Remember, while clients don't want to
think this is you first job, they rarely like to listen to how many CommBanks, NRMAs
or Pfizers you've done work for. Clients generally prefer the focus of the meeting
is their business. You will however consider any previous projects which bear similarities
to the project on offer, you do need to prove our competency
- Have all the information recorded during the
initial call
- A hard copy of the
Consulting Order Terms and Conditions may be useful for them to review when
the meeting is concluded
- Plenty of business cards (that haven't been sitting in your wallet for three months!)
- Turning up early!
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Do you know how to conduct an initial meeting?
The first meeting is on us. While SSW has 1 - 2 hours to provide the prospective
client with enough information to decide whether to pursue a Spec Review, the focus
of the initial meeting is to be the client, their problem, and how SSW might build
a solution. The best way to action this is to ask questions, listen and take notes:
clients appreciate someone genuinely considering their needs. A brainstorming session
is a fantastic way to give and receive feedback immediately. Even if the client
decides not to use SSW we like to leave them with useful information and a positive
impression.
The purpose of the initial meeting is to:
- Understand the clients motivation for engaging software consultants. We all know
clients 'want some software application built', but understanding the motivation
for getting that software built will assist you in making a successful bid for the
project. Three examples could be: to replace an outdated, hard to maintain existing
system core to the business; building new 'nice-to-have' functionality to allow
the client to offer a new service to the market; or assisting a start-up company
with a speculative venture. This also allows you to prioritise the clients importance
- Understand the 'pain level' of the client
- Determine whether scope, time, quality or cost has the highest priority for the
client and what level of project management they require. E.g. if a project must
be delivered by June 30, a high level of management will be required to ensure enough
resources are supplied to achieve this
- Understand as much as you can about the processes/business rules the system has
to manage. Every level of detail you can correctly comprehend and confirm back builds
your credibility as a good communicator, and supplier!
- Assess the overall scope of the project, i.e. is this is 'small', 'medium' or 'large'
project. The attending architect will start guessing how many man months this project
might be. This information will help you assess how long the spec review will be.
These initial thoughts will not be shared with the client at this stage as they
are most likely incorrect!
- Determine the clients budget and who controls that budget. E.g. are you dealing
with the business owner or a line manager in a corporation? Do they have a fixed
amount to spend? Do they have a time period to spend it in?
- Consider technology options
- Introduce the SSW team, show the presentation if appropriate, offer how our involvement
can help them, and whether we have a 'good fit'.
- Explain SSW rates, including pre-paid
- Explain the strengths and challenges of a Time and Materials or Fixed Price approaches
- Explain our development method including the importance of a Specification Review
- Take exceptional notes
- Ask for the sale: "This project is right up our alley and we'd love to be involved,
is there anything stopping us from scheduling a spec review?" will focus the mind
of client on the next step
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Figure: Do you listen?
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What are the outcomes from your initial meeting? Spec Review or Ad Hoc work?
Schedule a Specification Review
For almost all projects, there is a need for additional requirements gathering.
Some clients don't have any kind of specification, while the specifications we are
given are sometimes lacking in detail or incomplete. Accordingly, before SSW can
provide a ballpark price for completing the project there is a another step which
requires engagement of SSW resources - the specification review.
It is the responsibility of the Account Manager during the initial meeting to present
the benefits for the prospective client of an SSW specification review. Following
the initial meeting the Account Manager will send a Post initial meeting through to the prospective client for
SSW to conduct a specification review.
SSW will not offer a fixed price at the conclusion of an Initial Meeting or the
Specification Review.
More on the
Specification Review.
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Figure: Send a brief proposal
Ad-Hoc work/Consulting
In the event the work is thought to be less than 3 developer days and the scope
is well understood, it may be worthwhile for the developers to commence work straight
away without a Specification Review. Normal standards for work will be followed,
such as morning
goals. This type of work is called 'ad-hoc' work. If during the course of
ad-hoc work it is discovered the work will take longer than 3 days, work must stop
immediately with a written request for a specification review, even if it is only
brief.
We may also immediately commence ad-hoc work if the client is a technical client
and SSW is providing resources for an existing project under the sole direction
of the client.
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Do you enter into a binding written contract with a client before doing any billable
work?
Before SSW engages in any billable work the two parties must enter into a binding
written contract. This ensures contractual obligations are clear on both sides,
mitigating the potential for disagreements down the line and protecting both SSW
and the client in the event of a disagreement. Binding contracts can take the form
of Terms and Conditions, Proposals, Emails and Instant Messenger and or even verbal
agreements.
- Terms and Conditions
A signed copy of
SSW standard Terms and Conditions are mandatory before billable work commences
as they explain the terms on which SSW works and the rates which will be billed.
Some clients may also have their own set of Terms and Conditions which SSW will
consider signing if agreeable to SSW. It is also common for clients to ask SSW to
sign a Non-Disclosure Agreement (NDA) which SSW will always consider.
Long term clients will resign the Terms and Conditions every year. Signed Terms
and Conditions will be given to SSW Accounts department for record keeping.
Generally speaking a signed set of Terms and Conditions authorizes SSW to conduct
a Specification Review.
- Proposals
At the conclusion of a Specification Review SSW will provide an Initial Release
Plan proposal to the client. The proposal will include all the relevant information
SSW has discovered during the Specification Review process. The proposal may take
the form of a Word doc or an Extreme
Email Release Plan.
The Specification Review standard is located on
Rules to Successful Project Management.
Before a project proceeds beyond the Specification Review stage this proposal requires
a client signature or a reply acceptance to an email. An approved proposal sits
alongside the signed Terms and Conditions, it does not supercede them.
- Ad Hoc Emails, Instant Messenger and Verbal Agreements
Electronic communication such as email and Instant Messenger are extremely useful
in getting decisions confirmed quickly but it is important to follow strict standards
to ensure any agreements are clear to everyone. SSW does not generally rely upon
verbal agreements, always confirming anything agreed verbally in writing. The following
are important rules to follow:
Email, Instant Messenger and (confirmed) verbal agreements are utilized extensively
during a project where newly discovered work, delays, or other work outside the
initial scope is required. SSW may use Extreme Emails
to manage this process.
Next - now run your project better with
Rules to Successful Project Management.
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Do you cut the scope of a project to get it started at a smaller price?
When a customer is slapped in the face with a quote for a large sum of money, they
are often reluctant to sign up for the project. With the concept of an "Introductory
Package" you quote a smaller project for the first release for a lower amount. e.g.
Rather than quote $100K for a large project for the client's first project, you
quote a smaller project for $20K. This concept allows you to get your foot in the
door. However, not all customers will continue to the next stage due to the fact
that you initially quoted at a lower price.
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Do you aim for an advancement rather than a continuance?
Once you have completed the initial meeting and provided a quote, you have to be
careful to keep moving towards your goal of making the sale. In business, everyone
is busy. The prospect you met with has a million things to do, and they may be relying
on a decision from someone who also has a million things on their plate. It's easy
to get stuck in a 'continuance cycle'. A continuance basically a stalling tactic.
A prospect will tell you that they're still interested, but they haven't gotten
around to making a decision for one reason or another. An advancement is a step
that takes you closer to closing the sale. You will always aim for an advancement
rather than a continuance. An advancement might be an agreement to complete
mock-ups for the application. Often, small financial commitments will lead to bigger
ones.
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Do you realize the value of your existing clients?
It's often quoted in marketing circles that it costs between 60% and 600% more to
sell to new clients as opposed to existing ones. It makes sense then to nurture
your existing client relationships. There are two strategies that need to be employed
here:
Keep your current clients happy
We have received feedback from larger clients in the past that they expect regular
checkups and guidance from senior staff. A nice informal way to arrange this is
to buy your client lunch one a month. You can review the project for half an hour,
then grab a bite to eat. The review will cover the project as a whole, any niggling
problems, and discuss any upcoming projects. We do this review free of charge.
As a Project Manager, one of the most important things you will focus on to keep
clients happy is communication. For active clients, a week must not pass
without a phone call or some other contact. A lot of the time this will be emails
from the developer. Almost all disputes arise when you don't speak to a client for
a period of time. This allows any annoyances to fester and any misunderstandings
can turn into real problems.
A "client relationship problem" is when you have said "no" to
a client and and they let you know that they strongly disagree. In that case:
- Tell them the reasons for your stand
- Tell them that developers will sometimes do the wrong thing - clients have different
opinions of what that is
- Tell them you are authorized to split a problem and offer them that ask if they
are happy with that solution
If they're still not happy you may need to refer them up the chain of authority.
Stay in touch with past clients
At SSW we have a system in place that allows us to stay in touch with past clients,
even ones we may not have spoken to in a while. Firstly we send a regular newsletter
to our subscribers so that SSW stays fresh in their mind. That way when they suddenly
realise that they need some work done, we're right at the top of the list. Secondly,
we have a follow up system in place so that the client get's a call 3 and 6 months
after a job is completed. This will be a friendly call, not a pushy sales call.
You will use a line like 'I'm just checking in to see if everything is still running
smoothly.' Setting up a system like this will result in more repeat business and
less need to spend money on marketing.
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Do you know how to manage objections?
When attempting to sell a solution to a potential client, you will invariably come
up against some objections. It is essential that you are prepared to handle these
objections so the client is confident in your skills and has no reservations about
choosing you over someone else. The main reason clients raise objections is because
they have concerns about your experience "fit" with their needs.
We recommend you use this objection handling model.
- Ask the question - "What concerns do you have about working with us?"
- Acknowledge the objection - say, "Thanks for raising that", or, "Thanks for letting
us know about that"
- Probe - ask, "Can I ask you a few questions about the concerns that you have?"
- "If I could resolve this issue for you, could we move forward?"
- You can't always solve objections on the spot - it's ok to say, "is it alright if
i speak to one of my developers about it and let you know about that today?"
- Answer - Pick the best response to their objection (see below)
- Confirm that they are happy with your answer - "Do you now feel comfortable with
our approach towards your project?"
Because we follow extreme programming, a typical objection we get is - "Why do you
put 2 developers on the project? This is going to be more expensive isn't it?".
This is basically how we handle this question:
- Explain the benefits:
- "We can typically complete the project sooner. Is that important to you?"
- You get more expertise ?One guy is more focussed on UI, the other guy is stronger
with database
- You get better quality code because the guys are able to "put their heads together"
to solve a problem ?this saves maintenance costs down the track
- We can continue working if 1 guy gets sick
- If they are still unsure, you can offer a small discount off the hourly rate, or
offer some free support - it's all about managing risk.
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Has the client received recognition of our thanks for their business?
We will always treat our client well. If they are happy with us at the end,
we are more likely to win their future projects.
Always be aware of the client's interests and hobbies as this can be a very effective
ice breaker. Also, it provides the client with that extra personal touch.
Asking questions like "So do you have a busy weekend plan?", "How's your newborn
baby?" may help you to determine personal things about the client.
You may come up with an idea of what to get for the client. It may be a bottle
of wine, movie tickets, a box of nice chocolate, or even a cute baby album.
Get it approved by Adam and get him to write the Thank You card, then send.
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Do you review your team member "Client Love" every Friday?
Developers carry out Client Love every week. Check their time sheets on Friday for
this.
Praise each team member when they are creative and relationships improve.
See Rules
To Being Software Consultants Dealing With Clients.
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Do you know when and when not to give away products?
We DON'T charge clients when an SSW developer uses an SSW product as part of the
he takes to his toolkit (e.g. we use Upsizing PRO when doing an upsizing job). This
is because it's just like a plumber
using his wrench. The developer takes it away with him when he leaves.
We DO charge clients when an SSW developer installs or provides an SSW product for
the ongoing use of the client e.g Code Auditor, Team Calendar or Extreme Emails,
which the client's staff will use after SSW leaves. This is just like a plumber
buying a particular piece of pipe to fix a sink. SSW
SSW does not discount product prices to clients. This devalues the product.
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Do you avoid giving discounts?
We will try to never discount our price at SSW. Instead we will be adding value
to the offering for the client.
If a client asks for a discount you can add value by offering:
- All our products to our clients at no charge
- Adam and Tim for 2 hours a
month to complete the following tasks:
- Code Review
- UI Review
- Help implement the SSW Checklist
- Tickets to our tech breakfasts for 3-6 months for 2 employees
- SSW Membership
program at no charge