Transcript of a radio interview (Inside Communications Radio) hosted by Mike Baco with Susan Thomas, CEO of Traynor Communications (circa early 2012). The conversation focuses on business development strategies for 2012: listening versus pitching, doing research before client meetings, the value of networking (both online and in person), and knowing when to walk away from unprofitable prospects. The interview references Traynor Communications’ founding (1995) and an accolade in 2010.
Chapters
Welcome to Inside Communications Radio. I'm Mike Baco, and today we're joined by the CEO of Traynor Communications, Susan Thomas. Susan, thanks for joining us today.
Hi, Mike. Thanks for having me.
So, as we moved into 2012, we certainly been dealing with a lot of volatility in the business world over the last few years. But 2012, as you write, is the year of the dragon. So what are some of the best ways that people can pitch new business in 2012?
Well, I think the most important thing that a person needs to understand is that they need to know who their clients might be, their prospects might be, and they need to understand what they're interested in. So instead of pitching, they ought to be thinking about listening first. A good listener is always going to be a little bit better of a salesperson than someone that talks.
How important is it to with so much information out there now when you are making pitch to do your research beforehand? Obviously, as you mentioned, listening is important, but going into it with a framework of what it is that this client is working on, what they're developing, what they've been through over the last few years, how important is it to go in with this working knowledge of what they might be doing?
Research is incredibly important. And that actually touches on a couple of important points that I usually talk to people about. First of all, know the client, know what they've been through, know who their competitors are. In the PR business, we often stack up what their competitors have done from a social media perspective, how much coverage they've gotten over the past year, or how many news releases they've written. So there's some real quantitative metrics that we can compare the prospect that we're talking to against their competitors.
Let's talk a little bit about networking. We mentioned social media and trying to find out information, seeing what's going on. How important is networking not only on LinkedIn, Facebook, Twitter, or I should say with all those mechanisms out there, how important is it not only to do virtual networking but also to do in person networking?
It's incredibly important. And I think this is one of the hardest things for people to do. It's after hours generally, or it's a trip in the car that they don't want to take. Maybe it's a rainy day like today and people just avoid networking events altogether as well as sometimes the social media, because there's a lot of about what's really behind the people on social media. Are they really the people they suggest that they are. So all I can say is that networking has Been pretty much the sole feeder of Trainer Communications for the last almost 17 years now. And it's so incredible. If you have a network that works and you have people in it that are successful, then the chances of getting more like people like them are incredibly good. And that's my number one way to get new business above any other marketing technique.
And certainly it's worked for you. You mentioned Trainer communications, founded in 1995 and just as recently as 2010, named the best small agency in the U.S. top 10 agencies to work for in the U.S. so you're putting a lot of these principles to use, not only in bringing in key personnel that want to work there, but actually making it work from a business standpoint as well.
Absolutely. I think the network is basically our network has been the foundation of our business and we couldn't do it without a strong set of clients and referrals and prospects that all come from people we know.
You're listening to Inside Communications Radio. We're joined by the aforementioned Susan Thomas. One interesting thing that you talk about is knowing when to walk. How important is that? To not chase after bad business, not putting more time into something that isn't necessarily going to happen.
That's the hardest thing ever for a salesperson. I mean, think about it. You've done your research, you've identified the perfect company, you actually know the space, and you're a perfect fit for this company. And you've gone in, you've identified the right people and there's something going on. You can't quite figure it out, but they can't pull the trigger. They're asking you for more free consulting. They're asking you for steeper discounts. They're doing some crazy things from a business perspective. And each and every time you get the call or the email, there's something in the pit of your stomach that just kind of feels uncomfortable. That's a good time to walk. And at this point, you just have to realize that that type of business is going to be more costly to your company than it could ever bring you in profit.
That is interesting to talk about because we have been talking to people that work on that sort of basis, and they have their set fees, their monthly rates, whatever it may be, and the amount of time that they put in just to get that business almost engulfs that fee. And they're almost working at a loss because they spent so much time just trying to get that initial bit of business.
Exactly. That's a very common problem for people. And then when they get that piece of business, then they understand that it's not profitable and they'll never recruit, recoup the time that they spent trying to get the business. And that's just heartbreaking.
And it is. But how hard is it to. If you were consulting with someone, how hard is it to tell someone to walk away from business or chasing after that business? As we mentioned, you know, some. Some firms are doing well, some people are doing well, but overall economy is down and people are trying to get new clients wherever they can. So how hard is it to communicate that message that sometimes it's in your best interest to walk away from something?
Yeah, well, it's not as hard to say as it is to do, Mike, unfortunately. So I think it reminds me of that old saying that, hey, we're losing margin on every deal, but we'll make it up in volume. You can't make it up in volume with a bad client. Profit will never come back to you. And so I think you just have to decide if the client can pay the bills and how much time it's taking you and if you're willing to take that type of pay cut because you're likely working for a smaller hourly rate or you're selling your goods and services for a lesser amount. So those are business decisions you should make very carefully and not go into those hoping that it would get better. In fact, my business coach likes to say hope is not a strategy.
Well, you certainly outlined some strategies that hopefully people can implement as we move into 2012. Susan Thomas, CEO of Traynor Communications, joining us today on Inside Communications Radio.
