LITMIR.BIZ

CHAPTER 3 Where Clients Come From : Understanding the Key Client Pathways

      History doesn't repeat itself but it often rhymes.

      —Mark Twain, writer

      I received a knock on my office door today. It was a financial advisor from Edward Jones. Her name was Molly and she was prospecting door to door in an attempt to drum up business.

      “How long have you been with Edward Jones?” I asked.

      “About a month,” Molly replied.

      “How's it going?” I asked.

      “It's going all right, I suppose. I'm just getting started,” she explained.

      “Have you landed any clients?” I asked.

      “Yes, actually – I've landed two clients over the past four weeks,” Molly beamed, “a young guy who recently graduated from college who wanted to get started saving, and a middle‐aged woman who was looking to roll over her 401(k).”

      “Well, congratulations,” I said, “that's a good start.”

Molly's story may not be that familiar to many of us; most of us don't prospect door to door. But it does fit into one of the traditional client pathways; it just may look a little different in your profession. Understanding these traditional pathways is essential to understanding the importance of the five rainmaker skills that we'll soon discuss.

The Seven Most Common Client Pathways

      Over a cocktail at a dimly lit bar, I'll confess that I've spent more time than I care to admit thinking about where clients come from and how we can get more of them. Reflecting upon my own experiences and on hundreds of stories from others, I have discovered that clients arrive via seven predictable pathways:

These client pathways are ranked by their relative success rate. The first pathway, repeat business, has the highest success rate. The last pathway, cold prospecting (as in Molly's example), has the lowest success rate. Those pathways in between are arranged in an order of descending success rate. (See Figure 3.1.)

      Why does repeat business have the highest success rate? As we discussed in the previous chapter, clients hire people who they know, respect, and trust. If we've done great work for a client in the past, there is a much greater chance they'll hire us again in the future or recommend us to others.

      If you're cold prospecting, the prospective client doesn't know you, and has no reason yet to respect or trust you. They may eventually choose to work with you, but you'll have to allow time for the client to move through the milestones of the client's buying decision journey.

      For some of us, a prospective client may not know anything about what we do, or how our service is remotely helpful. Thus, we've got some work to do and this will take time. It doesn't mean that prospecting doesn't work in our lines of work. It can work when done right. It's just that the success rates will typically be lower and the sales cycles longer.

In a market survey my firm recently conducted with professional service providers, the data aligns with my experience and observations. As illustrated in Figure 3.2, referrals and inquiries represent roughly two‐thirds of all new client business.

FIGURE 3.1 The Seven Client Pathways

FIGURE 3.2 The Seven Client Pathways Pie Chart

Where Clients Come From: The Seven Client Pathways

      Every successful professional I speak with has stories about where their new clients come from. Each client story is different, but they have common themes. These themes are captured in these client pathways.

      Pathway 1: Repeat Business (from a Satisfied Client)

      This week I signed a new work agreement with a previous client for a coaching program for his consulting firm. I've known Paddy Fleming, the managing director, for about 20 years. We first met when we were both in our early 30s and my firm was doing some work with his.

      At the time, Paddy was just getting started with his organization. Years later, Paddy was chosen by his firm's board of directors to be the managing director. When How Clients Buy was published, Paddy reached out to me to see if I would lead a client development workshop with his team. That was about 18 months ago. Last month, Paddy reached out again with a more extensive coaching program in mind.

      The fastest work comes from those we have done good work for in the past. What I didn't appreciate earlier in my career is why this is so. Clients face a litany of risks they struggle to mitigate in hiring us: performance, cultural, reputational, financial, and career risks. These intangibles make it difficult in hiring us for the first time.

      There are exceptions to this pathway that we'll discuss later on. Some of us provide services that a client hopes they will never need – and hopefully will never need a second time. Think about the clients of a bankruptcy attorney or a crisis PR consultant. If you do great work, hopefully the client will never need your services again. Yet, doing great work – even for once‐in‐a‐lifetime services – can lead to referrals. This leads us to the second pathway.

      Pathway 2: Referrals (from a Satisfied Client, Trusted Colleague, Friend, or Acquaintance)

      What's a prospective client to do if they haven't hired someone for a specific service before? Maybe they are looking for a web designer, or a financial planner. More often than not, they will ask around to see if someone they trust has a recommendation.

Referrals are the leading source of new business according to my survey, representing 36% of all new clients. This is two times higher than any of the other new client pathways. If we come highly recommended by someone who knows us, we've moved from home plate to second base, maybe even third. In the absence of a repeat client, a strong referral is the next fastest pathway.

      The referral source is split roughly 60/40 between our client base (57%) and our professional network (39%). The leading source of referrals is from those we are currently working with or have worked with in the past. This, again, highlights the importance of doing great work.

      The next leading source of referrals is from our professional network,

Скачать книгу