That four-word phrase is probably the most common statement we hear when we talk to sales people about their business. \u00a0It is even more common than the statement, “It’s a Price-Driven Market” – though more often than not those two statements travel closely together.<\/p>\n
![\"Relationship\"](\"http:\/\/theqmpgroup.com\/wp-content\/uploads\/2013\/01\/02\/six-common-sales-myths-3-sales-is-all-about-relationships\/Consulting-II-150x150.jpg\")
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Do You Have Brothers and\/or Sisters? The Limits of the Relationship<\/span><\/p>\n To challenge the assumption that businesses are primarily relationship-driven we ask salespeople the following questions. \u00a0Here they are, with the typical answers.<\/p>\n Q. \u00a0“Do you have a brother and \/ or a sister?” \u00a0 \u00a0 \u00a0A. “Yes.”<\/p>\n Q. \u00a0“Do you have a good relationship with your brother or sister?” \u00a0 \u00a0 A. “Yes”<\/p>\n Q. \u00a0“If your brother or sister tried to sell you something that would be detrimental to your business, would you buy it?” \u00a0 \u00a0 A. “No (expletive deleted) Way”<\/p>\n Q. “What if they threatened to would tell your Mom that you refused to buy from them, would it change your mind?” \u00a0 \u00a0A. Laughter. \u00a0“No”<\/p>\n Here’s the point: All relationships, even good ones, have their limits<\/em><\/span><\/p>\n Relationships are based on trust.<\/span><\/p>\n Any activity that violates trust, violates and detracts from the relationship.<\/p>\n Let’s look at the Trust Equation, developed by David Maister, Charles Green and Robert Galford in their wonderful book “The Trusted Advisor<\/a>“. \u00a0According to Maister et al, \u00a0T<\/strong>rust equals the sum of= (C<\/strong>redibility + R<\/strong>eliability + I<\/strong>ntimacy) divided by (S<\/strong>elf I<\/strong>nterest).<\/p>\n \u00a0T = (C + R + I) \/\u00a0SI<\/p>\n Anything a sales person or their company does to lower C<\/strong>redibility, R<\/strong>eliability or I<\/strong>ntimacy, lowers T<\/strong>rust and damages the business R<\/strong>elationship. \u00a0As you can also see from the equation, anything that blatantly demonstrates your, or your firm’s, S<\/strong>elf-I<\/strong>nterest also damages T<\/strong>rust and thereby the\u00a0R<\/strong>elationship.<\/p>\n Nothing in the equation can affect T<\/strong>rust more than the amount of your self-interest perceived by the customer. \u00a0The higher the S<\/strong>elf-I<\/strong>nterest perceived, the lower the T<\/strong>rust.<\/p>\n Here’s the point. Depending on the R<\/strong>elationship alone can be perceived by the customer as inherently demonstrative of high S<\/strong>elf-I<\/strong>nterest. \u00a0In R<\/strong>elationship terms, “They want me only for my money.”<\/em><\/span><\/p>\n What Relationships Can and Can’t Do<\/span><\/p>\n Relationships can:<\/p>\n Relationships can’t:<\/p>\n Here’s the Point: Don’t get complacent because you have good relationships.<\/span><\/em><\/p>\n Don’t Shoot Yourself in the Foot<\/span><\/p>\n Believing that your relationships give you enormous power is, for the most part, fallacious thinking, and can actually ill-inform you on what you and your company need to do. Here are some examples:<\/p>\n Here’s the point: Bragging about the customer relationships you have can simply provide unjustifiable cover for others in the organization to not execute their job as effectively as they should. \u00a0Remember, it’s still a very competitive world out there.<\/span><\/em><\/p>\n One More Point: The Fallacy of the Rolodex of Relationships<\/span><\/p>\n More often than is advisable, a client will enthusiastically recruit a sales person based on the contacts that sales candidate has amassed during their illustrious sales career. \u00a0Sales people treasure and protect to the death, their sales contacts and consider that list as a strategic personal asset. \u00a0It becomes a key feature in the personal selling proposition they use in seeking a new job.<\/span><\/p>\n Rolodex provides a great tool for managing those. \u00a0However, even the best list of Rolodex or CRM-managed contacts, can rarely, for the long term make up for business shortcomings in product, service, delivery, quality, competitiveness and value.<\/p>\n Let me illustrate. \u00a0In 1970, General Motors had roughly a 50% share of the US auto market. \u00a0That market share was supported by an incredibly, well-established national network of dealers and sales people. \u00a0Everyone knew everyone.<\/p>\n Since 2000 General Motors had lost roughly 50% of that 50% share.<\/p>\n Here’s the Point: Relationships aren’t everything.<\/em><\/p>\n Recommendations:<\/span><\/p>\n As much as has been written in this blog about the fallacies and dangers of dependence on customer relationships, let me make a final few points.<\/p>\n *****<\/p>\n Copyright 2013 The QMP Group, Inc. \u00a0 All Rights Reserved<\/p>\n Click to learn more about standard and tailored\u00a0QMP Sales Skills and Process Workshops<\/a>\u00a0or Contact Us<\/a> at 503-318-2696 to discuss your sales and sales management challenges<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":" It’s a Relationship Business! That four-word phrase is probably the most common statement we hear when we talk to sales people about their business. Read this QMP Insights blog post to understand, and avoid, the hidden risks associated with that belief.<\/p>\n","protected":false},"author":5,"featured_media":3229,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,105,21,9,10,95],"tags":[103,38,41,104,106,108,14,60],"yoast_head":"\n\n
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