The Increasing Pressure to Protect & Increase Revenue Streams without Damaging Long-term Client Relationships

Evolution Of Business Development

In today's competitive market place there is an ever increasing requirement to protect existing margins whist continually looking for other opportunities to generate income.

The clients are well aware of the economic landscape and are continually putting pressure on service providers to reduce their margins and fees.

A regular strategy employed is to announce to the existing provider that they are considering putting the contract out to tender if the current provider can not find a way to reduce their fees.

A similar response greets service suppliers when they suggest that there will have to be an increase the following year due to inflationary pressures. The threat of losing the relationship soon pressurises the service provider into agreeing to absorb the increased in-put costs thereby reducing their net profitability.

These pressures are leading to the erosion of net profitability which could eventually lead to service providers pulling out of certain markets if they prove to be unprofitable.

If service providers are to remain in the market place they are required to be very innovative in how they can continually add value to the client relationship in order to create product and service differentiation which in turn enables them to maintain margins and develop other business opportunities.

For an institution to remain profitable they need to ensure that their sales force get close to their clients in order to understand their needs, demonstrate that the firm has the capability to deliver against requirements and ensure that they maintain clients trust and confidence by delivering on time to a standard beyond the clients expectations.

The skills required to do this are excellent relationship management skills complemented with effective negotiation skills.

David Howard Training has been working with Financial Institutions for over five years helping them to align their sales efforts with the requirements of the clients to ensure that they are continually delivering a value added service in a commercially viable manner.