Financial Services Provider
K&R’s client turned a $150K annual loss into a $50K annual profit, while at the same time raising their own client’s satisfaction with the service.
Industry: Finance Industry Company
The transaction: "Free" on-site technical skills provided
Revenue forecast before attending the K&R Workshop: Zero revenue, and continued cost for providing "free" support.
Expected transaction close timeframe before attending the K&R Workshop: Second Quarter
Client’s narrative: We were providing "free" on-site technical skills support for our client with no contractual obligation. The cost of the resources to our company was in excess of $150K per year. We needed to either reduce the cost or generate revenue to cover the expenses.
Actual results: $200K in services revenue, increased customer satisfaction.
Actual closing timeframe: Second Quarter (agreement started July 1st)
K&R Tools and Techniques: We prepared for the negotiation with our client using the K&R Leverage Circle™ (specifically: Gathering Information, building our Confidence, and understanding the Value of our offering to the client). The K&R Value Matrix™ was used to understand the steps we needed to take to Define, Articulate, Quantify and gain Agreement from the client as to the value of the services we were providing. We emphasized the Unique Value of our technical support to circumvent the possibility that the client would select an alternative source for the service. We understood our Leverage in the situation and used it wisely. When the client clearly understood the value of the service, they agreed to pay our asking price.