I’ve recently sat down with other business developers and managers to discuss business strategies for selling design and software development services. It was an insightful discussion about the drivers of success in finding new deals and businesses.
We delve into the industry's practical intricacies, debating the strategies and challenges encountered by business developers and managers. We went from the importance of identifying your ideal type of client passing by the different collaboration models we have available and the ones that work better, as well as the approaches towards outreach and finding new businesses.
In general, we were able to identify some core principles for business development strategies. We have also dove into how agencies have adapted the business during the current economic crisis, foreseeing changes in how agencies work.
Here are the main tips you should have in mind when selling design and engineering work:
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Having your ideal type of client well-established will help you fine-tune your strategy.
Well, this is business development one-one. If you are selling a service, a product or whatever, you need to know to whom you will be selling. Knowing well what is your ideal type of client allows you to speak their language. This fosters a stronger connection and understanding between your business and potential clients.
More than that, this will help you come up with a clear set of criteria to qualify leads. This will make it easier for you to make informed decisions on which leads to prioritize and pursue. It will ultimately also mean less need for client education about your services or convincing about their relevance, leading to shorter sales cycles and a smoother relationship.
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You must ensure the client is a good fit for you beyond budget and technical requirements.
You must thoroughly evaluate a potential client beyond their budget and technical requirements to ensure they are a good fit for your company. For instance, if your team thrives on fast pacing, iterations, and feedback, you must choose a client willing to do the same. Social compatibility can also significantly affect your business relationship with the client.
While it may be challenging, it is crucial to guarantee that the client will not cause any future stress or negatively impact your team's morale. Now and then, you will have to make exceptions, so ensure this new relationship aligns with your company's values and culture as much as possible.
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Creating a relationship with a potential lead can be a better strategy for cold outreach.
A lot of agencies around the world focus on cold emails in order to find new business. Creating engaging cold emails and coming up with specific proposals for targeted leads will mean massive hours of work and investment, and it can be very frustrating.
This approach probably works for other industries, but when we are talking about hiring an agency, we have to think that this is like going into a marriage. You should have time to build a relationship and get to know each other.
Trying to approach a client for a first casual meeting over a coffee can help you establish a solid foundation for a fruitful relationship. This is why going to events and/or inviting your target customers to events can be a great way to cut the ice and start a relationship. Remember that you need to build and nurture this relationship; sometimes, it can take some time until you actually start working together.
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Open-source projects and awards are a great way to build a reputation and bring awareness to your agency.
As an agency, having a portfolio and customer reviews are essential to drive new business. But let's face it - it's not enough to build a solid reputation. You need to take things up a notch to stand out from the competition. One way to do this is by applying your projects to awards, especially for design.
Encouraging your team to build and contribute to open-source projects can be a good approach. This will help promote your team's work in the tech scene and improve their skills along the way. Plus, it might even give you a head start when approaching new potential clients or starting a new collaboration.
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Investing in a marketing team can be a strategic step toward achieving your business goals.
Working with a marketing team can be incredibly valuable for your brand. They can help you develop a strong positioning strategy and showcase your work in a clear and elegant manner. The value of a marketing team transcends the mere creation of promotional material; it extends to shaping the narrative that defines your agency in the eyes of potential clients.
It can be an important step towards building your agency's brand and reputation, ultimately making it easier for clients to come to you instead of you having to go after them. A well-crafted brand image will distinguish your agency from the competition and attract your ideal type of clients.
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Collaboration models that entail more flexibility and adaptability are better for digital product creation.
One thing that was evident among all agencies is that they all try to avoid working with fixed-price budgets as much as possible. Alternative pricing models, such as Time and Materials, offer greater flexibility and value for both agencies and clients. This approach accommodates evolving client needs, ensuring the final product maintains the highest quality.
In general, there are three main pillars for web product development: Money, Time and Scope. And you can’t fix all of them.
- Fixed Money and Time: When both budget and timelines are set, it implies that the project scope needs to be adaptable. This might involve prioritizing essential features, compromising certain functionalities, or adjusting the project's scale to fit within the allocated resources and time.
- Fixed Time and Scope: If the project's scope and timelines are fixed, it often requires a more flexible budget to accommodate the resources and efforts needed to meet the defined scope within the stipulated timeframe.
- Fixed Money and Scope: When there's a fixed budget and a specific project scope, it necessitates managing the time effectively. This might involve optimizing workflows, utilizing resources efficiently, or adjusting the project timeline to fit within the allocated budget without compromising quality.
Adapting and pivoting within these pillars enable agencies to deliver superior quality products while meeting client expectations effectively.
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Clear communication is critical to a successful delivery, a happy customer, and a long-term relationship.
Transparent and fluid communication will strengthen your relationship with your client, making it easier to manage expectations and avoid potential misunderstandings and issues. Try to deliver as often as possible so the client has something to see and work with. Never underestimate sharing your status and going on regular calls with your client.
Clear collaboration will minimize misunderstandings and facilitate the alignment of expectations with reality. By engaging in regular and transparent communication practices, agencies can manage expectations effectively and foster enduring and mutually beneficial relationships with their clients.
In the end, providing outstanding services usually means that your customers will continue to work with you, possibly extending the work you are doing and/or bringing more business deals for your agency.
This article was based on a roundtable event I moderated with João Figueiredo,
Also published here.