The R Factor Theorem…How to build long term, profitable business relationships…
Barbara Streisand sang the R Factor theme song first…
“People. People who need People.. are the luckiest people in the world..”
We need people who are in need. We need people in need of our products and services. All we have to do is Radiate out our message. Then attract them towards our business.
We in business must understand the power of the R Factor. We in business must master the disciplines demanded by that same R Factor. Or ignore them at our peril.
1. Your business will only be as good as the quality of relationships you build.
Try business without relationships. It wouldn’t exist would it ? In fact it wouldn’t be any fun either.
That’s where all the joy and challenge comes in.
Searching out new relationships with new customers. Maintaining and building on the relationships you have already developed. Its like growing a garden.
In fact, a garden can be self generating if we use our seeds and bulbs carefully.
2. Closer or opener ?
Did you know closing sales could be dangerous to your business ?
More accurately, developing a love of closing sales could be dangerous.
The problem in some businesses is often the salespeople are more addicted to closing a sale than looking after the clients they already have.
Like a mad dog chasing its tail, these salespeople are constantly chasing new prospects rather than building on the strengths of their existing client base.
And worse still, even in the first few minutes of meeting a prospect, they’re more interested in setting up a close, than getting to know the person and they’re needs.. Ever been in that situation as a customer…. ? It makes you feel like throwing up.
In our R Factor workshops we ask the question “Do you want a quickie.. or do you want a long term relationship..?”
Its up to 600% less expensive for you to deal with a customer you already have, than to go out and win a customer who you don’t presently have….
Just think of the advertising costs, the sales persons time, travel etc… Believe me… its a lot cheaper to go for long term relationships… Much better for your financial health than chasing a lot of “one night stands..”
3. Be a relationship engineer
The smart operator knows “People like doing business with people they like…” The more someone likes you, the more they trust you and the more likely they are to buy from you.
The Relationship Engineer understands there are skills, techniques and systems they can practice and employ to be more successful.
- how to listen rather than speak
- how to go for win/win rather than win/lose
- how to show you’re interested in your prospect (because you really are interested)
- how to discover needs without prying
- how to close the sale without having to pressure
- how to get repeat business and referrals without really trying
- how to keep in touch without being a pain in the neck
4. How to build long term, profitable relationships
The secret to building long term, profitable relationships in business is to be constantly aiming to be of value and of service to your client.
People do not maintain business relationships just because you are a nice, friendly person who can tell a good joke or have a nice smile. Time is precious, so people prefer to do profitable business with people they like. That way, you can both have fun and profit at the same time.
Once you have been of service the first time, look for ways you can be of service again…. and again… and again.
People are ten times more likely to buy from someone they have already had successful dealings with. So don’t let the relationship slip…. keep in contact. Give people good reasons to come back and do business with you again…
5. Farnell’s R Factor Theorem
My R Factor theorem is as follows:
R = the strength of the relationship
F = Frequency of interaction
Q= Quality of interaction = (Friendliness x Value or Benefit)
R = F x Q
The R Factor theorem says
“ The strength of the relationship will equal the frequency of interaction multiplied by the quality of the interaction. Where quality will be friendliness times the perceived value or benefit derived from the interaction..”
The more times you deal with a person or company that gives you great value and service, the stronger will be your loyalty and relationship with that company.
In this way you might consider using a range of strategies to keep up your interaction frequency including:
- Sales calls
- personal telephone contact
- media advertising
- press editorial
- social functions (lunches, sundowners..)
- seminars, conferences
- information kits…etc
Each of these interactions should add value to your client or prospective client if they are to be successful. In particular they should be friendly in tone to evoke a positive emotional experience. Give your customers a good time each time you make contact. Make them “feel good” about doing business with you. Emotions are the things that move people, so use them..
6. Make regular contact part of your routine
We recommend keeping in touch with your clients at least once every 60 to 90 days…. You can do this by using a data base on your computer… It takes a little bit of effort, but once you build it into your system.. it becomes part of the routine…
Oh, by the way, that’s another R word…Routine…. but we’ll save that for another day….
In the meantime…. have fun becoming a Master Relationship Engineer. Singing the R Factor song….“People….. People who need people..”
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