You may be saying to yourself “if I knew the answer to that question, I’d be very wealthy!” However, the answer isn’t really all that elusive.

The CEO of a technology company recently offered the following insight to his sales and marketing team. “I’m the one who signs the cheques. For me to buy, you need to solve the two things that keep me awake at night - net profitability and getting our product to market faster than our competitors. If you can prove to me that you will improve either of those, I’ll sign the cheque … and I don’t really care what you’re selling !”

It’s easy to forget this simple principle: people buy to meet their needs or solve their problems. To get them to buy from us, we need to clearly address whatever matters most to them. In other words, we need to show them a clear value proposition - WIIFM or What’s In It For Me?

Some of the reasons your clients will buy your services include:
• seeing a positive impact on their business
• improved financial performance
• increased market share
• higher client/customer retention rates
• improved market position
• automation of labour-intensive processes
• to beat a competitor to an important commercial advantage
• to avoid or reduce unacceptable risk
• regulatory compliance.

There are many other objective. To sell effectively, it is critical to identify their objective - the issues that keep your client awake at night.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

Given the choice of reading 10 pages, 40 pages, or a 200 page proposal, which would you choose to read first? For most of us, it’s not a hard decision to read to the short document first.

Which raises a question we’re often asked: “what should we include in our proposal?”

Many are tempted to throw everything in, hoping something strikes a chord with their prospective client. So what to include and what to leave out?

To make it easy, ask yourself if your content addresses one of these four key questions that your client will be asking.

• Is this the right solution?
• Can they really do it?
• Is it a fair price?
• Will it deliver a good return on our investment?

These questions will help you determine what to include in your presentations or proposal by deciding what matters to your client and what doesn’t. If an item doesn’t compellingly address one of the four key questions, leave it out.

You need to include the following kinds of content:

• A clear restatement of your client’s needs, issues, challenges or objectives. For example, a short set of bullet points in the Executive Summary. The more specific your restatement, the more helpful it will be. Restating your client’s needs lowers decisionmaker anxiety about wasting money, wasting time, and losing reputation.
• A recommendation for a solution that will eliminate their problems or meet their objectives. Strangely, many proposals do not recommend anything - they merely describe products or services. Tie the features of your solution to your client’s needs, showing why each is important or relevant to them.
• Evidence to support your claim that you will deliver the solution on time, and on budget. Good evidence includes references, testimonials, case studies, third-party evaluations, certifications or accreditations, and reviews. It may also be appropriate to include project plans, methodologies, team resumes, details of facilities and resources, and summaries of experience.
• A reason to proceed with your recommendation. Without some kind of value proposition - ROI, payback, total cost of solution - the buying decision may come down to price. Base your value on your differentiators, or your competitors will be able to say “me too”.

When deciding whether to include specific content, ask yourself whether it fits clearly into one of these four categories. If not, leave it out.

• Your team leader, his/her credentials for the role, and how s/he will relate to the client
• What you plan to contribute to the relationship, besides technical expertise
• Where you can add distinct value to the client’s organisation: the network of useful contacts to whom you will facilitate introductions and related services which the client will access through you
• “Feel good” aspects of being a client of your firm - and how that differs from the alternatives
• Value-added services you will offer - and deliver
• Techniques you propose to obtain client feedback
• How you’ll evaluate you client’s satisfaction - measures or indicators you will use
• How the client satisfaction feeds into your internal appraisal, recognition, and reward systems
• How you will deal with problems and issues which arise
• What action you promise if your client is dissatisfied
• What else you’ll do to establish a relationship with the client which ensures they derive maximum value
• Examples of other clients with whom you’ve developed similar relationships and evidence of the benefits to these clients of your relationship - testimonials, references, case studies
• What this relationship means to you and the “price” you’re prepared to pay for it - how important the client will be to you
• How far you’ll go to protect and advance your client’s interests
• The difference they’ll notice in dealing with you and your firm.

Be clearly and convincingly painting a picture of the working relationship you have in mind, demonstrating that you’ll constructively engage problems, and showing downstream benefits your client will derive, you will vastly improve your prospects of success.

Previous eTips have suggested possible selling points which will help you to positively differentiate your proposal in a crowded market. Increasingly, astute clients value law firms and other expert professional services providers who show that they are both fully aware of and respond appropriately to concerns about commercial sensitivities and conflicting interests.

This quick checklist will help you to develop the key selling arguments you will use to position your proposal.

• Your understanding of this client’s sensitivities to commercial confidentiality issues and conflicts
• Protocols to maintain confidentiality (no, don’t just treat this as a “given”)
• Systems and processes you use to recognise potential conflicting interests
• Due diligence you have conducted to establish that there is “no conflict”
• Real life examples of commercial sensitivities you have recognised and your response to these
• Examples of actual and possible conflicts - and what you would propose to do about them
• On-going input and collaboration from your client on these areas, and how you propose to obtain it
• What work/other clients you would be prepared to relinquish in order to establish and maintain a long-term relationship with this client - that is, how much this relationship does/will mean to you and what “price” you’re prepared to pay for it
• How far you’ll go to protect and advance your client’s interest.

By proactively and constructively dealing with your client’s commercial sensitivities, and any possible conflicts, you will advance your prospects by reducing perceptions of risk in accepting your proposal and establishing a business relationship with you.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

Julian Midwinter & Associates has done extensive research among key consumers of legal services on the subject of newsletters. Here’s a quick summary of what we’ve found that works, what doesn’t, what clients value, and some techniques to ensure that your newsletters deliver maximum business development.

• General newsletter deliver poorer return than short, tightly-focused, single issue client advisories or newsflashes
• targeting client advisories or newsflashes on the basis of need or interest works best
• comprehensive, multi-page newsletters are still valued, especially if timely and incorporating incisive analysis
• “client alerts” which very briefly deal with a single issue, and outline advice about managing a risk or taking action, work well
• paper newsletters are better received when well-designed and produced
• eNewsletters are increasing in popularity over tree-Newsletters - particularly when in short, single-page, single-issue style.

To ensure your newsletter is well targeted, apply these tests (from the point of view of the recipient):
• why are you telling me this?
• Why now?
• Why should I care?
• What should I do about it?

You’ll probably find that your:
• single issue
• single page
• industry or area specific client alerts
• quick advisories and newsflashes

pass the tests above more often than full-blown, multi-subject newsletter.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

We’ve all had the experience of watching a TV commercial and wondering “what was that all about?” … or reading a sales promotion letter and thinking “so what? why should I care?”

Or even worse, receiving a proposal and groaning at the thought of reading the whole document …

Persuasive messages can be characterised by the four Cs:

Clear
Compelling
Concise
Convincing

Next time you are writing a proposal, preparing a presentation, or pitching for business, test your key messages against these four Cs to be certain you will persuade your audience.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

Sorting through what’s important to your prospective client and determining what will differentiate you from your competitors can be a daunting task. In hard-fought competitions, how we deal with even minor issues can make the critical difference between winning, and losing.

This list is a useful starting point in determining how best to position your proposal to maximise your probability of success.

• Credentials and evidence of your experience in each area or field required
• Evidence of successfully handling routine matters in each are of interest
• Evidence or examples of successfully handling unusual or high-risk matters in each field
• Depth of your team
• Specialisations of your firm or practice group
• Participation, representation, and profile of your firm in each service area required and the client’s industry or markets
• Any special techniques or strategies used/developed by your firm
• Evidence of the effectiveness of your recommended strategies and approaches
• How can you best demonstrate your track record of success?
• How many files will each lawyer handle?
• What is the right number of files for this type of work?
• Geographical coverage - appropriateness of the location/s at which you offer service
• How you’ll handle regional matters and work outside your normal home patch
• How you” manage the account
• Who will be your key liaison point?
• What service or client satisfaction guarantees will you offer?

This checklist will help you work through issues of fees, pricing, and billing when developing your proposal.

• Structure of fees: hourly rates, day rates, fixed fees, event costs, capped fees, fee estimates, volume discounts, project budgets, success or “at risk” components, retainers, client satisfaction components, other fee alternatives and hybrids
• Predictability and certainty of fees - for the client
• Controllability of fees - for the client
• Protocols for managing time spent (in the interests of the client)
• Reporting on fees and progress on project budgets
• Reporting on services availed under retainer arrangements
• Disbursements: what is classified as a disbursement?
• Overhead (e.g. photocopying, faxes) disbursements: no charge, charged at notional cost, charge rate, outsourcing arrangements
• Other disbursements: at cost, at cost plus mark-up
• Disbursements control mechanisms and reporting
• Billing frequency
• Billing styles and options: level of detail, management summary, electronic billing
• Payment terms: within x days of billing, deferred payment, pre-payment of disbursements, hybrids
• Discounts: on time payment, rebates on volume use of services, etcetera
• Pricing validity period
• Pricing/fee review frequency and mechanisms
• Value-added services: free value adds and chargeable add-ons
• How the pricing arrangements you propose serve to align your rewards with your client’s interests.

Sophisticated clients buying behaviour increasingly reflects the value they place on expert professional services providers who can deftly manage relationships and who are sensitive to personal and organisational dynamics.

This short checklist will help you to work up selling arguments centred on relationship dynamics.

• Your team leader, his/her credentials for the role, and how s/he will relate to the client
• What you plan to contribute to the relationship, besides technical expertise
• Where you can add distinct value to the client’s organisation: the network of useful contacts to whom you will facilitate introductions and related services which the client will access through you
• “Feel good” aspects of being a client of your firm - and how that differs from the alternatives
• Value-added services you will offer - and deliver
• Techniques you propose to obtain client feedback
• How you’ll evaluate you client’s satisfaction - measures or indicators you will use
• How the client satisfaction feeds into your internal appraisal, recognition, and reward systems
• How you will deal with problems and issues which arise
• What action you promise if your client is dissatisfied
• What else you’ll do to establish a relationship with the client which ensures they derive maximum value
• Examples of other clients with whom you’ve developed similar relationships and evidence of the benefits to these clients of your relationship - testimonials, references, case studies
• What this relationship means to you and the “price” you’re prepared to pay for it - how important the client will be to you
• How far you’ll go to protect and advance your client’s interests
• The difference they’ll notice in dealing with you and your firm.

Be clearly and convincingly painting a picture of the working relationship you have in mind, demonstrating that you’ll constructively engage problems, and showing downstream benefits your client will derive, you will vastly improve your prospects of success.

Previous eTips have suggested possible selling points which will help you to positively differentiate your proposal in a crowded market. Increasingly, astute clients value law firms and other expert professional services providers who show that they are both fully aware of and respond appropriately to concerns about commercial sensitivities and conflicting interests.

This quick checklist will help you to develop the key selling arguments you will use to position your proposal.

• Your understanding of this client’s sensitivities to commercial confidentiality issues and conflicts
• Protocols to maintain confidentiality (no, don’t just treat this as a “given”)
• Systems and processes you use to recognise potential conflicting interests
• Due diligence you have conducted to establish that there is “no conflict”
• Real life examples of commercial sensitivities you have recognised and your response to these
• Examples of actual and possible conflicts - and what you would propose to do about them
• On-going input and collaboration from your client on these areas, and how you propose to obtain it
• What work/other clients you would be prepared to relinquish in order to establish and maintain a long-term relationship with this client - that is, how much this relationship does/will mean to you and what “price” you’re prepared to pay for it
• How far you’ll go to protect and advance your client’s interest.

By proactively and constructively dealing with your client’s commercial sensitivities, and any possible conflicts, you will advance your prospects by reducing perceptions of risk in accepting your proposal and establishing a business relationship with you.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

One of the first things you must remember is that to market to tech, you need to be part of the community. However, simply not wearing a tie does not make you part of that community!If you want to reach tech clients, follow a few of these rules and notice a few of the trends …

• They think they are every bit as smart or smarter than some of your best professionals. A lot of them can battle you for pedigrees anytime: do not place too much emphasis on this beyond necessary demonstration of experience and quality.
• They love ot see that you have done this for other tech companies. Know their names and their products - not just “we did IPO for…”
• They cluster. A lot. Their culture almost encourages cooperation more than most industries. Want to talk about a “boys club”? This is one of them. Referrals are huge, but they want professional advisers who have a big presence. This is where marketing comes in: they like to brag about the great lawyer or adviser they have. They also like to see a press article, an ad or airport display and say, “that’s OUR firm!”
• Paint a picture. Guess how many firms in this area can do patent work? A whole bunch. The winner is the one that can paint a picture for a tech CEO of how your firm can put him/her on the beach due to the incredible success of his patent.
• They like one stop shops. The less they have to worry about like screening and hiring ten different law firms, the better.
• They like revolutionary thought. Stand out. Be creative. Emphasize personality. Remember, many of these folks started their companies to change the world. Don’t look too much like a part of that old world they left behind.
• Realise that a lot of emerging tech firms view hiring a law firm as a necessary evil. If they could do without, they probably would. The main thing they worry about is that a firm will slow them down. While we know these things take time, you need to be able to communicate a constant state of movement towards the end goal.
• They are very worried right now. Help them see the light at the end of the tunnel, not just the long road to get there.

This eTip has come to you by courtesy of Daryl Cross of DFW TechBiz in Dallas For Worth, Texas.

A few years ago, a high technology vendor surveyed 400 sales reps, asking what was the most important factor in winning a deal. Overwhelmingly, the answer from the salespeople was “price”.

At the same time, the company surveyed 400 clients and potential clients, asking the same question. Their number one answer: “reliability”. In fact, price ranked only sixth on the list.

The high-tech company’s proposals, of course, were focusing primarily on price. Even though the vendor had a great story to tell on their reliability, with several important differentiators which clearly set them apart in the industry, the most important factor in client decisionmaking wasn’t highlighted.

In a competitive market, it can be very difficult not to feel that price is the most important factor. (And, sometimes, price is very important). But don’t ever just assume that price is what matters most.

The best way around the “price trap” is to clearly determine what differentiates you from your competitors - and then offer an alternative vision.

Copyright 2001 Julian Midwinter & Associates Pty Ltd

Our extensive research confirms that most substantial clients value - and expect - periodic frank relationship reviews.

• clients want predictability and controllability of price - they also want economy, but economy alone won’t make up for unpredictable prices
• clients want to clearly understand the basis of your charges
• it follows that many clients want to use that understanding to take action to control their expenditure with you

We are often asked how to conduct an effective client relationship review meeting. Getting these meetings right is very important. Feedback obtained is essential input to:
• improvements service delivery
• future proposals
• reveal risks for you to address
• uncover further business development opportunities

So first, the basics
• have a clear agenda
• plan a series of “open questions”
• record the details of your review meeting
• take note of client’s attendees and their titles/roles
• thank attendees for taking time to participate in this process.

Next, agree clear objectives for meeting. For example:
• we want to understand how we’re going …
• we want your full and frank feedback …
• we want to understand exactly what you need and expect from us so we can advise and serve you better …
• we want to know if there are problems which we need to work on …

From here, move to specifics.  Include topics such as:

Our understanding of your business
• how well do we understand your business, the industry environment in which you operate, and the challenges you face?
• Do we properly understand your concerns, your problems, and your priorities?
• What work do we need to do on our understanding of your business and your industry?

The quality of advice we give you
• do we consistently provide the right advice to you?
• do you find that our advice is practical and tailored to your particular situation?
• does our advice help you to achieve your objectives?
• what improvements do we need to make in the area of advice quality?

The quality of our relationship with your people
• do our people take a keen interest in your matters and treat you as an important client?
• are our people always straightforward, direct, and honest with you and is their behaviour always completely ethical?
• have our people formed productive working partnerships with key players in your organisation?
• do you feel that we consistently work in your interests?
• how should we work to improve our relationships with your people?
• this is the starring point.

Our accessibility
• are our people readily accessible to you?
• do we return your calls, faxes, and emails promptly?
• do you feel that we are ready and willing to visit you and your facilities?
• how should we work on becoming more accessible to you?

Our responsiveness
• do our people respond in accordance with your priorities?
• do we keep you properly informed during the progress of matters?
• do our people give you clear explanations of legal matters in plain English?
• do you feel that we are easy to work with?
• what work do we need to do on our speed, our responsiveness, and becoming easier to deal with?

The tangibles in the relationship
• what is your opinion of what the quality of letters and documents which we present to you?
• is the format of opinions and advices clear and easy to follow?
• does the presentation of our premises meet your expectations?
• have you found that our technology and other facilities are up to the desired standard?
• are the people with whom you deal with from our firm consistently well presented?
• what aspects of the presentation of our people, facilities, premises, and documents do you suggest we work on?

Let’s review some recent cases
• I’d like to turn to a couple of matter which we have handled for you to get your detailed assessment of how we’ve done. Taking these cases on at a time, thinking back over the [name of case, outlining key points] case, what, if anything, do you think that we did especially well? (Probe out fully.)
• what aspects of our handling of this case fell short of your expectations? (Probe out fully.)
• what suggestions would you have as to how we could improve our performance on such matters in the future? (Probe out fully.)

This will help you to progress towards your objectives in this forum.

The value we provide for the fees you pay
• do you believe that the advice we provide represents good value for money to your organization?
• how do you rate us in terms of value for money compared with the other law firms and professional advisors with whom you deal?
• are you happy with the style, frequency, and presentation of our bills to you?
• what, if anything, should we do to improve performance in relation to the fees you pay for our work?

Opportunities for expanding the relationship
• are there any other areas of your business which need quality legal advice?
• Would you or others in your business like to know more about any of the services which we offer?
• How do you recommend that we promote our services to your organization?

Effectiveness of marketing initiatives
• is our newsletter helpful to you?
• do you find the seminars we offer to you interesting and valuable?
• is our website valuable to you?
• has the education we have provided for your staff been useful?
• do you find access to our library helpful?
• what has been your experience of our client research programme?
• how do you feel about the entertainment we offer to you and other key people in your organization?
• what suggestions can you offer to improve the effectiveness of our value added services and marketing?

How we can work together better in the future
• are there barriers or obstacles in working effectively together?
• What can we do to become easier for you to work with in the future?
• Is there anything else at all which you would like to add?

At the end of the interview, again it in important to remember the basics.

• Thank your client for his/her time and interest
• promise action on key items requiring further investigation or consideration, indicate time frame for feedback
• explain what will happen as a result of the interview
• again, thank client for time and input.

Copyright 2001 Julian Midwinter & Associates

Direct mail remains an important element of marketing communications strategies. Getting it right is the subject of books rather than just quick eTips. But we’re happy to share a few highlights from lessons we’ve learned through lots of research plus plenty of first-hand experience!

• personally addressed letters are far more likely to reach the right desk
• wherever possible, keep your letter to a single page - brevity increases readership
• keep line lengths, sentences, and paragraphs short - plenty of white space on the page will make your mail piece look easier to deal with
• carefully proofread your mailshot letter - enlist the help of a colleague who’s never seen it before
• hand signatures (preferably in blue ink) improve effectiveness
• a personalised, hand-written P.S. substantially increases impact
• avoid huge risks inherent in marrying up letter with personalised envelopes by using window faced envelopes - especially important when doing large mailshots
• if you choose to print personalised envelopes, have someone randomly sample enveloped letters to check for any mismatches before mailing
• avoid frustration and cost by test printing a few letters before sending the whole job through
• despatch your mailshot to reach readers desks early in the week - Mondays or Tuesdays - rather than near the weekend when it’s less likely to get attention.

Here are a few more pitfalls to avoid and ideas to increase impact.

• busy people are less likely to bin a personalised letter presented on high-quality stationery than an email - the “delete” button is far too tempting!
• signing the letter should be a quick quality-assurance step: check addressee, salutation, formatting
• chances are your intended readers already get lots of correspondence - improve focus on what you have to say by making your mail piece really easy and quick to read
• choose a serif font - a font like Times, Century Schoolbook, Garamond, or Footlight is better for most readers than a sans serif (no caps and tails on letters) font like Arial, Universe, or other “kindergarten printing”
• use an attention-getting heading - e.g. what’s important about news or the key benefit to the client
• bulleted lists are easier to comprehend than dense paragraphs
• keep language clear and simple - the reading age of the average Australian is around 10 years to 12 years
• end your letter by suggesting the next step or action: “please call” or “we’ll be calling you to discuss this” or “please return the survey enclosed” - don’t leave the recipient in doubt about what to do next!

Copyright 2001 Julian Midwinter & Associates Pty Ltd

Assuming that you’ve decided to take the plunge and improve your marketing effectiveness, networking is a good starting point, well within the comfort zone. Whatever your level - senior partner, or newly employed solicitor - you can make a positive contribution to business development through network contacts.

We’ve all heard other lawyer success explained in terms of their connections: “so and so is well-connected”. And that may be true. But you can take charge and build your connections into worthwhile networks too.

Business development through networking is low risk, low cost, and offers opportunities for high yields.

Networking success depends in large, on being discriminating about where you choose to expend your energy: it isn’t just how much you do that matters, it’s where you apply scarce time.

Possibly you already spend time networking - perhaps it’s already effective for you. But if your networking effort haven’t been fruitful, maybe you’re confusing networking with socialising and recreation.

Spend as much time as you want mixing with people you like and with whom you get on well. But don’t deceive yourself by calling it networking. Spend your networking time with people and organisations who are willing and able to introduce you to profitable business opportunities.

Rather, find a niche which you can dominate. Better still, create a unique niche.

A quick quiz to help you assess the value of a network contact.

First, think of contact. Now, grade the capability of the contact to introduce you to useful business opportunities.

• Does your contact have a disparate network of relevance? Does s/he have diverse contacts within appropriate industries or professional circles? - score out of 20
• How prominent is s/he within his/her own network? Eminent and seen as a leader within the circle? Or, insignificant and largely unknown? - again, score out of 20
• How large is his/her network? Just a few contacts, or does this person always know someone of relevance or value in just about any area you mention? - score out of 10

Now, assess the propensity of you contact to graft you onto his/her connections.

• Is s/he always willing to share news, ideas, industry gossip, knowledge about what’s going on, and business opportunities with you? - score out of 20
• To what extent does s/he feel an “indebtedness” to you to help you make the right connections? Is there a sense of “owing it to you” for any reason? - score out of 20
• Does s/he actively introduce you to useful contacts? And, do others seek him/her out for advice, ideas or opinions? - score out of 10

Now, add the scores to arrive at a percentage grading or ranking:

• 75% and above: this connection has a high probability of yielding valuable opportunities
• 65% plus: this contact may be worth working with
• Below 65%: possibly a great social connection, but don’t label it strategic networking!

If you’ve decided on networking as a technique to develop business for your practice, start with the networks your best clients are already connected into - clients are usually pleased to introduce you to their business associates.

Don’t fall into the trap of just networking at your own level: cultivate connections which will lead you upwards in the business decision making tree.

And, don’t expect instant results. Be patient, and be prepared to add value to the network as well as to extract advantage or opportunities from it.

Carefully analyse what you can do for a network contact.

• What ideas, information, introductions, opportunities, can you offer?
• Is this a way of creating or increasing any sense of personal indebtedness to you?
• How can you bring about the situation where your contact believes he or she “owes it to you”?

The best networking relationships are two-way streets: think about what you can get out of it, by all means, but also look for opportunities to contribute.

Long-lasting, high-yield relationships are the product of network contacts where the value you bring to the association is perceived to be of least equal worth to the benefit you derive from the connection.

Networking is an important component of business development: it is a low risk, low cost way of building strong, healthy, and enduring client relationships which can produce handsome dividends for all concerned.

Copyright 2001 Julian Midwinter & Associates Pty Ltd