New business is the lifeblood of your business. Without a consistent flow of new prospects, your sales team can’t close deals and bring in new customers.
Of course, new business development is also a challenging and time-intensive process. Many organizations strategically choose to outsource this part of business development to outside partners. However, how do you know when you need to start shopping for a new collaborator or maybe a completely different approach?
1. High Turnover of Business Development Representatives
Does it feel like you are working with someone new every month? Do you feel like you are hitting the reset button often? If your business development partner has high turnover, it is a direct reflection of how the vendor treats their employees and ultimately, how they conduct business. This can disrupt workflow and harm your business. Remember to ask your vendor from time to time, “What is the average retention of your BDR’s?”
Business development is no simple matter; neither is your business. If you are always getting inexperienced representatives assigned to your company, you will spend as much time training them as you do working your leads.
3. Unclear Return on Investment
Business development is all about return on investment. If you can’t clearly point to the ROI from your business development partner, it’s time to hit the brakes. Understanding your sales cycle starting from the first meeting with a new prospect to a signed PO is crucial in tracking ROI, in addition to your close ratio.
While ramping up time is to be expected early on, don’t wait around for results to suddenly improve if you are well beyond your sales cycle with no hope of closed wins. This could be your vendor, your sales reps ineffectiveness working the opportunities or a combination of the both.
4. Lack of Personal Attention
Many vendors try to spread their customer management team thin to drive more revenue by adding too many clients to their portfolio. If you are not receiving frequent attention from your vendor, it’s possible you have dropped on their priority list. Interactions with your vendor should be occurring on a daily, weekly basis.
5. Transparency & Accountability
Business development comes at a premium, and that should equal premium work. Is your vendor willing to provide call recordings on demand? Do you have access to see real-time activity, either in your CRM or theirs? If not, this can indicate your vendor may not be comfortable with “pulling back the curtain” on their deliverable.