Who Are Your Strategic Partners?

Aug. 21, 2017

I will never forget the day in 1996 when I was ridiculed at my health club. It wasn’t because of my erratic jump shot, my uncontrolled racquetball moves, my lack of tempo in aerobics class or even my short shorts with tall white socks. I was ridiculed for cold calling.

Steve was a hotshot direct mail marketing guy who learned that we had recently started a coffee service company. “How are you getting new business?” he asked. “We cold call," I said proudly.Steve LOL’d at me before LOL even existed. This was the 90’s after all.

Fortunately, I did not tell Steve how I sold music and games accounts in the 80’s. Belly up to the bar at 2 PM, buy a round of drinks, chat with the owner – four weeks later, we were installing a juke box, a cigarette machine, a pinball machine, an Asteroids (a video game) and a pool table. That would have blown his mind.

I was a little haunted by Steve’s reaction. After all, my new business partner, Jon Fishman, arguably the best coffee salesman on the planet, was showing me the way. We would walk into a high-rise building, go up to the top floor, stop in at every large prospect, get the business card of the decision maker, learn who the existing service was and the employee count. Then, we would head back to the office and set appointments. People answered their phones back then, so we had more appointments than we could handle. We were closing 40 to 50 percent of deals and the company was growing fast.

We continued that process, rampaging through greater Los Angeles, buoyed by the dot-com bubble, until September 11, 2001. After the horrific terrorist attack in New York, everything changed. For the most part, we could no longer walk into high profile buildings without an appointment and prospecting as we knew it, was over. Today, a visitor is usually restricted to one floor in an office building.

We followed Steve’s advice and did a little direct mailing – usually postcards. The return was nothing compared to our “attack mode” prospecting approach. Ultimately, we returned to an old strategy that made our vending company grow like mad from 1985 to 1995. We developed strategic partnerships.

Finding Strategic Partners

There are two types of strategic partners:

1. A strategic partner that needs your company to provide a service so that they can secure the account as well.

Example: Before we were in the coffee business, Los Angeles operators like Secretary Coffee and Foodcraft had a serious need for a vending operator to serve their clients. It was a good thing, because prospects do not get very excited about changing vending companies unless they are unhappy. Coffee is a much more emotional product and drinking some coffee samples with a prospective client is a more likely appointment than sitting down to taste test a Snickers bar.

We were more than happy to fill that vending void. Over a ten-year period, our office coffee service strategic partners delivered ongoing leads and about two new accounts per month. That partnership obviously ended when Gourmet Coffee Service was born.

2. A strategic partner who is motivated by compensation.

This would be my favorite type of strategic partner. Consider it part of the account acquisition cost. Would you pay $250 -$400 for an account that will generate $12,000 or much more in annual sales? Usually, you find these strategic partners at trade shows or serving your existing accounts. I never hesitated to solicit them directly on LinkedIn. These strategic partners include:

· Commercial movers

· Office supply reps

· Janitorial companies

· Commercial real estate brokers

· Security companies

· Move planners (the best)

· Space planners

· Internet and telecom providers

These people know which companies are relocating, who is growing, who is unhappy and who makes the decisions. If they are a truly motivated strategic partner, the decision maker will be expecting your call. My deal was simple: “Get me the lead – if I secure the account – you get paid.” If you can develop a few strategic partners in this class, your sales team will be very busy.

The Best Strategic Partner

Your clients are the best strategic partners you have. Unfortunately, as much as your clients may love you, few are motivated enough to actively find you new accounts. Let’s face it – office managers and facility managers are trying to get their jobs done right and survive. Additionally, your customer service reps take the easy way out too often – they just don’t ask for referrals often enough. Does that sound familiar?

So how do we motivate a client to refer us to their friend at XYZ company, who is moving their company in four months and is looking for alternatives to their current service?

Don’t be like the insurance broker who puts their juicy incentive program after each e-mail signature.

“Get a $5 Starbucks gift card when you refer us to a new client.” Seriously – do they really think $5 is going to inspire anyone?

So, don’t be cheap about it. We offered a $50 gift card to our clients just for getting us a meeting. When we install the account – they get another $250 gift card. We outlined our Client Referral Program in a slick little brochure that was easy for our sales and client services people to hand out to clients.

Despite our generosity, this type of program does not motivate every client. When it works – it really works. When you find a client who loves gift cards and believes in your company, the results are astounding. Example – three years ago we landed multiple car dealerships because one motivated office manager opened the door for us at each location.

So, the next time you see your account executives spinning their wheels on the telephone, pounding the pavement in an industrial area (still viable for prospecting), glaring at LinkedIn or wringing their hands in frustration after a supposed networking function, ask them an important question:

“Who are your strategic partners?”

Their time will be better spent cultivating those lead generating relationships than chasing down longshot opportunities on their own.

Bob Tullio

I welcome your feedback - Cell 818 261-1758 - [email protected]

Visit the website - www.tullioB2B.com

Over the last 37 years, Bob has sold video games, cigarette machines, cranes and juke boxes to bars and amusement centers, full line vending to public locations and office environments, pay telephones to retailers, coffee service to thousands of office locations and of course, micro-markets. He has a very successful track record as key strategist, sales trainer and media manager under the title, "Director of Business Development" for World Wide Vending and Gourmet Coffee Service.