Relationship-Based Selling: How 1 Seller Closed 300 Deals in 6 Years

It’s easy to overlook the importance of building authentic relationships. Yet, the power of connection remains a fundamental part of successful sales strategies. That’s why we’re delving into the often underestimated but critical aspect of sales: Relationship-Based Selling.

This blog will guide you through the nuances of relationship-based sales, a strategy that goes beyond one-time transactions and focuses on cultivating long-term professional relationships. We’ll take into account the inherent challenges in implementing this sales strategy, particularly for salespeople working towards quotas. The need for immediate results can sometimes clash with the time-consuming nature of relationship building. However, we will also emphasize that integrating elements of relationship-based selling into existing sales strategies can lead to rewarding long-term benefits.

So if you’re looking to dive into the details of relationship-based selling, revealing its potential to transform your sales approach and create lasting, profitable relationships. This is more than just a sales strategy; it’s a comprehensive approach to forging connections that matter.

What is Relationship-Based Selling?

Defining relationship-based selling can be viewed from two different perspectives. The first and most apparent interpretation aligns with the name itself. At its core, relationship-based selling revolves around building authentic and personal connections with prospects to drive sales. The emphasis is on investing time and effort to nurture a relationship that will, in turn, make a positive impact on your sales figures. 

However, there is another equally important aspect of this sales strategy. Sales Assembly has found immense success in building relationships primarily to foster new connections in the form of referrals from existing relationships. Thus, relationship-based selling also becomes a powerful tool for network expansion.

This second perspective might sound a bit unconventional at first. Conventional wisdom would suggest focusing on building relationships primarily to close sales. However, our experience shows there is great value in leveraging relationships to create additional connections. Each new relationship formed has the potential to lead to a sale or, perhaps even more importantly, create yet another relationship. 

This might seem like a challenging process, especially when starting from scratch. Yet, it’s this very approach that has contributed significantly to the growth of Sales Assembly to over 300 deals in just 6 years as a bootstrapped organization. In the end, relationship-based selling is not just about closing a single sale; it’s about creating a network that continues to generate leads and opportunities over time.

Taking a Long-Term View of Relationships

While it’s crucial not to overlook the opportunity to close the initial sale from a relationship, it’s equally important to view this relationship through a long-term lens. Rather than perceiving the immediate sale as the ideal end result, consider what the relationship might evolve into beyond just one sale. By planting the right seeds from the onset, you may end up generating three or four successful transactions from a single initial relationship.

So, how do you establish these fruitful relationships, especially when starting from scratch? The approach is fairly similar to starting any business, whether it’s software or services. The key lies in identifying an individual who might have a need for your offering. Simply put, you identify a prospect whom you believe will resonate strongly with the solution you’re building. Your objective is to turn this individual into a champion for your product or service. 

The goal is not to directly pitch your solution to the identified prospect. Instead, start by offering something of value. 

When first starting Sales Assembly, for example, the primary offering was the modest yet valuable network. This network proved to be a significant asset when we did not have a clearly defined product or service to sell. We could tell potential prospects, “We have a network of sales VPs you might want to connect with, either for networking and idea exchange or because their company could be a potential customer for your products or services.”

It’s important to note that we’ve found the most success not through cold outreach, but rather by leveraging existing relationships to generate referrals. The key is to create champions, even among non-clients, who will happily introduce you to potential buyers within their network. This relationship building is typically achieved by consistently providing value, regardless of whether or not they’re a paying client. 

When the time comes to ask for a referral, ensure that you’ve built up enough credibility with the potential referrer. Remember, the process should be as straightforward as possible for the individual making the introduction. This way, your relationships will become self-sustaining, generating new leads and sales opportunities organically and over the long term.

Scaling Relationship-Based Sales

When it comes to establishing new relationships in the sales world, the key is to make the process as frictionless as possible. 

Let’s walk through a typical scenario.

You identify someone connected to your existing contact on LinkedIn, and you want an introduction. 

Be candid with your request. 

Make it clear that you hope to sell your product or service to this new contact, but also express how you can add value to their professional network. 

Crafting a simple, straightforward email that leads with value significantly increases your chances of a successful referral.

For instance, if the new contact is a VP of Sales or Chief Revenue Officer at a particular company, you could offer to introduce them to potential customers within your network. While being transparent about your intent to discuss the possibility of their organization joining yours, always emphasize the value you can bring, regardless of whether they become a client.

Most times, people within your network will opt to assist in making these connections. In our experience, about 80% of introductions we request, we receive.

While relationship-based sales can be more time-consuming than cold outreach, they offer significant advantages. Referrals lead to higher lifetime values for clients and faster closing times. For instance, the lifetime value of a client acquired via referral is typically 17% higher than one that isn’t. Furthermore, prospects that enter a sales cycle via referral tend to close around 60 to 70% faster than those acquired through other methods. 

Although leveraging your social capital and asking others in your network to do the same can be daunting, the higher quality clients and expedited sales cycles make it worth the investment.

The turnaround time for referral requests can vary widely. In many cases, a referral request could yield results within 24 hours, but on average, expect a turnaround time of about a week. Despite this slight delay, the long-term benefits of relationship-based sales are substantial. By focusing on building and nurturing relationships, you can create a sustainable sales process that delivers more valuable clients.

Ensuring Relationships Don’t Become Transactional

Relationship-based selling is a cornerstone of successful business practices, particularly in the world of sales. A crucial aspect of this concept is that relationships should not be treated as mere transactions. They require continuous investment over time to maintain their strength and vibrancy. A transactional approach to relationships can often lead to disengagement and loss of trust. Therefore, one must strive to establish genuine connections and cultivate them consistently.

When dealing with referrals, for instance, an expression such as “it’s been a long time since we chatted” might raise a red flag. For a successful referral, the conversation should never have been left idle for long. Regular touchpoints throughout the lifecycle of your relationship can help ensure a smoother, more efficient sales cycle.

To avoid this pitfall, it’s advisable to increase communication before even asking for a referral. Engaging with your connections on various platforms can go a long way. Be it an appreciative comment on their LinkedIn post or a casual mention of their recent achievements, these gestures build up to a strong, healthy relationship over time.

In addition to these touchpoints, there are other basic opportunities that should not be ignored. Platforms like LinkedIn provide notifications for occasions like birthdays and work anniversaries. Instead of relying on automated LinkedIn messages, which can easily get lost in the noise, take a more personal approach. Send them a thoughtful email or make a phone call. This simple act of recognition can significantly strengthen your relationship.

Taking notes on personal details about your connections can also be extremely useful. Leveraging a CRM (Customer Relationship Management) tool to its fullest extent is highly recommended for this purpose. Details about an individual’s personal life, such as their marital status, children, hobbies, or recent travels, can provide valuable touchpoints to nurture the relationship further.

Establishing long-term relationships requires time and effort, but the potential payoff is substantial. Treat these relationships as you would with your friends, remembering their birthdays or checking in on their life updates. These small gestures throughout the year can lay a solid foundation for you to capitalize on the relationships you’ve built.

When attempting to connect with a prospect through a mutual connection, one might wonder about the appropriate amount of touchpoints required to avoid appearing transactional. While there is no definitive answer to this question, an interval of one to two months with 3 or 4 touchpoints is generally considered sufficient.

Lastly, it is important to remember that authentic engagement is key. There is a difference between a relationship not being transactional and merely appearing not to be transactional. Taking a genuine interest in the lives of your connections, engaging with their posts, and offering value beyond business can help you maintain authentic relationships in the long term.

Challenges to Relationship-Based Sales

A common pitfall in sales is undervaluing the power of permission. What does this mean? It’s as simple as seeking consent before launching into a request. For example, if you’ve just started a new role or launched a company, you might come across several connections on LinkedIn who could be beneficial. Instead of immediately asking for introductions, ask for permission to scan through these connections first and identify potential referrals. It’s not quite asking for the referral, but rather asking for permission to ask for a referral in the future. This softer approach can yield surprising dividends. 

In situations requiring forthrightness, such as asking a blunt question during a discovery call, using a similar strategy is recommended. You could preface the question by seeking permission and reassuring the other party that they’re free to respond however they feel comfortable. In most cases, you’ll find that individuals appreciate this approach and are more receptive to the question. 

However, it’s important to acknowledge that relationship-based selling is an investment. It requires a significant amount of time and strategic planning. This method is particularly suited to enterprise deals, where the stakes are higher, and a deeper level of connection is often needed. It can also be beneficial if you work in a partnerships department, where long-term relationships are key to success. 

A crucial aspect of this sales approach is keeping track of your interactions. Using a CRM system to log your activities can be extremely beneficial in maintaining organization. This becomes all the more essential as your sales strategies shift in response to the changing market dynamics. 

Undoubtedly, implementing a relationship-based selling strategy presents its own set of challenges. For salespeople who have quotas to meet, this approach may seem impractical or too time-consuming. The pressure for short-term results can often overshadow the potential long-term gains of building relationships. Nevertheless, it’s worth considering that sales strategies are not one-size-fits-all. There’s no need to replace your entire approach, but integrating elements of relationship-based selling can offer valuable pay-offs down the line. 

Remember, incremental investments in time today can lead to significant dividends in the future. The power of relationships in the sales process should never be underestimated. Building and nurturing these connections may take time, but the potential returns make it a worthwhile endeavor.

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Sales success is often measured in numbers – quotas hit, deals closed, revenue generated. While these indicators are undoubtedly important, they can sometimes overshadow an equally crucial aspect of sales: relationships. The art of sales involves more than just transactions; it is about creating and nurturing connections that bring value over time. 

The strategy of relationship-based sales, as we’ve discussed in this blog, may not offer immediate results. It’s a long game, requiring an investment of time, strategic planning, and tracking via a CRM system. However, it’s these seemingly small actions – seeking permission, showing respect, asking thoughtful questions – that can lead to more substantial, long-term gains.

This approach may appear daunting, particularly when short-term results are the priority. However, remember that it isn’t about uprooting your existing strategies but rather integrating these relationship-based elements to create a more well-rounded approach. It’s a matter of striking a balance between hitting quotas and establishing valuable connections.

Incorporating relationship-based selling into your sales toolkit doesn’t have to be an all-or-nothing decision. You can start small, by asking for permission before making a request or gradually becoming more strategic in your investments of time. The vital thing to remember is that each investment you make now can pay significant dividends down the road.

In the ever-evolving world of sales, staying adaptive and embracing new strategies is key. By placing value on relationships, not just results, you open up a new dimension of sales success. Remember, the true power of sales lies not just in the deals closed, but also in the relationships built along the way. So, why not start investing in those relationships today? The rewards can be truly remarkable.