The Only Shift that Matters: Moving from Transactions to Relationships

It was a masterstroke on the micro level. The sales rep noticed that the kids were fidgeting with the entertainment system installed inside the sultry SUV. As she demonstrated all the techy features for the preteens, the rep struck up a conversation with the two dads about parenting, soccer practices, family trips, and the rising cost of gas. Within a minute, the buyers and seller started swapping stories about the joys and struggles of Gen X parenthood. I watched. I listened. I smiled. I knew the family would drive off the lot with a new car that afternoon. I also assumed that when the time came for an upgrade or starter vehicles for the kids, maybe a few years down the road, the buyers would return to the dealership and ask for the seller who “gets us.” The skillful salesperson sold herself to her customers, not just a new vehicle. While a car dealership is typically a setting of transactional selling, the sales rep homed in on the power of relationship, establishing a connection for the present and future.

Many of us entered business when transactional selling was still the modus operandi for closing deals. We recognized our client’s immediate needs, identified our best solutions, and worked our asses off to get the sale. Rinse and repeat. In the transactional model, “what we offer” takes centre stage. Whether we’re marketing a shiny tech innovation or a superb back-office service, the goal is always to make our business solution a better value than the competitor’s and get the deal done ASAP. Transactional selling has its place. In high-volume settings where the customer makes one purchase and moves on, it makes sense to focus on the “item of desire” and do everything one can to ensure that the buyer walks out with it. Consider that family buying the car. Most likely, that big-ticket purchase won’t be repeated for a few years. If the family drives off in the SUV that day, it’s winner, winner chicken dinner for the seller… especially if she’s sold the SUV without significant discounts. Ah, but the seller is in it for more than the immediate sale. She recognizes that developing a relationship with her buyers is not only authentic, but also opens the door for repeat business, or, better yet, a slew of referrals. A little bit of empathy and vulnerability seeds a long-term, lucrative ROI.

The WHY of Relational Sales

For those of us in the B2B world, a relationship-based sales approach is not an option; it’s a necessity. The growth of the businesses we serve, and our own professional successes rely on more than a portfolio of one-time sales. The statistics show that 93% of businesses will do repeat business with companies that provide great customer experiences, while 84% of long-term B2B relationships begin with a referral.1 Repeats and referrals rely on relationships. Forbes contributor Andrew Faridani anecdotally notes, “When you improve customer experience by one point, you can boost revenue tenfold.”2 Relationship-based sales is not a hand-to-mouth enterprise. The sale is never as important as cultivating a strong connection with the buyer. Remember, when choosing from a sea of similar products and services, your customers will buy from the supplier that they like, that they trust, and therefore WANT to do business with.

Getting it Right

Anthony Iannarino of the “Sales Blog” reminds us that relational salespeople cultivate a “Long-term focus with ongoing customer engagement, with much time being used to understand the what and why of your client’s needs and building your relationships.3” I’ll take Iannarino’s definition a step further. In B2B sales, especially in the tech sector where I operate, it’s essential to identify the right clients to develop relationships and customer engagement with. Who are the right clients? I find that far too many salespeople in this space focus almost exclusively on a single technology buyer. However, it is the business leaders who set the strategy for the company, with technology as an enabler of those strategies. The business leader also OWNS the budget, so it would behoove the sellers to develop relationships with the business leaders to influence strategy, innovation and spending. In fact, in the book The Challenger Customer, first published in 2015 (Adamson, Dixon, Spenner and Toman), the authors showed research that for every purchasing decision, there are 5.4 stakeholders engaged. Given that this was researched and written almost a decade ago, and based upon my personal experience, I’d argue this number is now closer to 7. So, as you think about WHO to engage, understand all stakeholders, influencers and those who can help mobilize a decision in your favour.

Building the Connection

So, how does one build relationships with clients? There are many strategies, however some that rise to the top – effective communication as well as non-traditional engagement. When I say effective communication, it not only means listening but also transparent, truthful communication. Your clients don’t seek perfection from their providers; however, they do want ZERO BS. Be honest about the capabilities and limitations of your products and services. Don’t make excuses; just make it right. Don’t sacrifice the relationship for the sale. If you think a product is not the right solution or deliverables cannot be achieved on time or in budget, be honest about your concerns. When a client begins to seek your counsel because you’re always honest and focused on their best interest, the sales will multiply… because you’re trusted.

As for non-traditional engagement, be creative. In my own professional practice, I connect with clients at industry conferences, TED venues, community outreach events, the kids’ sporting events, the gym, etc. When your only interaction with a client occurs in her office or yours, you’ve set the conditions for a transactional relationship that may not fuel repeat business and referrals. Connect outside of a traditional business environment. And I’d be remiss if I didn’t discuss personal brand. My clients know my brand because I cultivate it. Call this passive engagement. From blog posts to interviews, speaking engagements to family photos, I put myself out there so current and future clients can get to know me outside of the “9 to 5”. The relationship will grow and strengthen when the client sees a bit of their humanity in yours.

The Shift

I’m not currently in the car market, but if you are, I know an excellent salesperson down at a dealership in Miami. I can’t tell you the make or model of the blue SUV she sold to the soccer family, but I can tell you how she made them feel. Heard. Respected. More than a sale.

Make the shift to relationships, embracing authenticity and building connections that stand the test of time, ensuring long-term success and mutual growth.