Partnering for profit.

Do you wonder why some of your competitors seem to do such a super job of selling to certain companies and developing very close relationships with them? The answer just might be they have latched on to the concept of partnering with their customers.

A key reason for their success is that they give more than lip service to the principles of being customer oriented. Instead of simply assuming the role of being only another casting source, the more adept foundries have become good listeners, strategists and problem solvers who know almost as much about their customers' casting requirements as the customers do.

And sometimes even more.

These foundries have come to realize that developing close customer relationships requires innovative programs in quality assurance, inventorying, machining and design services and pricing. Building strong customer dependence through such programs is based on shared values and compatibility of goals. And such strategic alliances are almost impossible to achieve when the customer has little risk or cost involved in switching casting sources.

It is a fact that most major and many minor casting buyers are endeavoring to shrink their supplier base--to limit their purchasing to foundries that are the most capable, best understand their needs and are in a position to respond positively to these.

Despite general opinion, these customers are not always concerned primarily with the lowest price, but rather with the best value. What many of our customers are really looking for is a sort of unofficial partnership with their key casting sources.

New Wave in Marketing

If you are not with this new wave in marketing--which some refer to as partnering--you should be, since it can contribute importantly to increasing sales, improving profits and adding stability to your foundry's future.

At this point, you may conclude this kind of marketing applies only to big accounts. However, many smaller customers are just as interested as the big ones in establishing close supplier relationships. You probably can point to some good examples within your present customer base.

It Pays to Listen

Even though we might be convinced of the merits of partnering and the advantages of building close customer relationships, we must recognize that it won't happen automatically. Salespeople are going to have to be retrained. And the "get close to your customer" idea is much different and more difficult to learn than traditional casting sales methods.

Probably the most important requirement for selling the partnering concept is being able to listen. If you are a good listener, you'll hear what the customer or prospect wants. Contrast this to the normal approach in our industry of spending most of our time describing our facilities and capabilities. Listening helps build rapport. And the customer feels more comfortable when he or she is doing the talking.

Such consultive selling efforts also require more time and preparation because you have to ask all those intelligent questions and properly interpret the answers. Thus, it requires better trained, more sophisticated salespeople.

If your customer's reaction to what you are telling him is, "Uh, huh, Uh, huh," is it an indication of interest or agreement? According to one leading sales trainer, it is neither. The person simply is not listening. Unfortunately, most of our salespeople tend to be talkers and not listeners. This is what makes it difficult for them to get a complete picture of what a customer or prospect really needs.

Interactive Selling

One of the currently popular buzz phrases is "interactive selling." One sales trainer, Learning International, provides a course titled, "Interactive Listening for Salespeople," devoted entirely to developing listening skills. The course teaches that:

* Listening involves a dialogue, a mutual exchange of ideas, opinions and information with the customer. Keeping up a dialogue also demonstrates respect for the customer.

* Nonverbal behavior, such as making eye contact and changing facial expressions, can telegraph strong signals of interest. Like most of us, customers are good at reading nonverbal signals.

* One way to demonstrate to the customer that he's being heeded is to clarify and confirm what he says, even when the listener is sure he understands.

* A salesperson is in real trouble when the customer shows any of these signs: she stops talking, fidgets with her pen or starts doodling on her desk pad. These are sure indications that she's the one who isn't listening anymore. Another aspect of interactive selling is that often the salesperson's closeness to his customer makes him an adviser in dealing with his own company. Frequently, the customer wants the foundry to alter its normal production, quality control, billing or shipping procedures to better accommodate his requirements. So, the salesperson goes back to the foundry, identifies its needs and then sells to those needs.

It is a back-and-forth process of compromise in which the salesperson artfully uses his selling skills at both ends. The new breed can do this balancing act very adeptly, even though it is a very complex type of selling. This is especially difficult for the many salespeople in our industry who are either production or technology oriented.

Any progress you can make in getting your marketing efforts switched to more partnering with your customers is bound to be a good investment in your foundry's future growth and profitability.