The role of the consultant is one of "productivity, performance
or profit improvement" specialist. You want to become a partner
in profit improvement with your client. You sell bottom line results,
or return on investment (R.O.I.).
You are a diagnostician and you must develop a strong understanding of the client's business. It is especially important to know how profits are generated and where costs originate. This is done by asking probing questions (refer to the "consulting questionnaire").
Highest Priority Approach:
The key is to identify highest priority areas where performance, productivity and profits can be increased and/or costs reduced. Make your strongest sales appeal where it can make the greatest financial difference in the shortest amount of time.
Success as a consultant is often determined by your ability to accurately pinpoint the area(s) where sales, revenues and bottom line results can be improved most immediately.
Consultative Selling:
Consultants must sell themselves as a problem-solver rather than as a vendor of products or services. Consulting requires empathy and common sense. You are selling your knowledge, wisdom, experience and most of all, your ability to effect your client's bottom line in a positive way.
Always talk to the client in financial terms. That is, what is the problem or the challenge they face and how much is it costing them? How much money could the client save or make with a solution to their problem?
Whenever possible, deal with the senior decision-makers in the company or the CEO. Talk in terms of how "we" will work cooperatively toward the mutual goal of increasing profits for the organization.
Types of Consultants:
There are two types of consultants. Depending upon the client's needs and objectives, you can determine which type of consultant is needed. You can then act in either capacity within the framework of profit improvement.
(1) Task Consultant - completes a specific, specialized task or project.
(2) Process Consultant - performs an organizational analysis and diagnosis and recommends a series of actions leading to the desired results. The process consultant then proceeds to implement the action plan, measure the results and monitor the follow through and follow-up.
Buyers of Consulting Services:
Types of Prospects
There are basically three types of prospects you will encounter.
(1) Contented Prospect - results are better than average, yet perceives that there may be room for improvement. You must demonstrate that you can produce sales and revenue increases above their current level.
(2) Discontented Prospect - results are below expectations. Show this person ways to produce measurable improvement closer to expectations.
(3) Perfectly
Satisfied Prospect - results exceed
expectations. A difficult person to convince. Be careful here.
They will rarely spend any additional money since they are already
exceeding expectations.
Why People Buy Consulting Services:
Clients buy consulting services primarily for the following reasons:
(1) To increase sales, revenues, cash flow and/or profits.
(2) To solve internal marketing, sales or personnel problems that impair or limit productivity.
(3) To turnaround a particular department or produce a "cultural" change.
(4) To meet the competitive pressures in the marketplace.
(5) If they perceive the company is operating inefficiently or ineffectively.
(6) To manage more progressively by embracing new and innovative ideas.
(7) When they are convinced that a new or
better way will produce results.
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