How To Use Relationship Building as a Key Sales Tactic

Building healthy relationships isn't just a tool for getting through the day; good relationships are a key factor in success in the sales industry. Beyond knowing your product or service inside out, mastering your office technology, and honing your sales pitch, relationship building is one of the fundamental skills that allows you to build trust and develop lucrative long-term partnerships.

So upping your relationship building game really is a key skill for any sales person. With that in mind, we recently interviewed Josh Wilson, Capital Market Advisor at Greentree Financial Group and renowned podcast host, to get the lowdown on how to build relationships that provide value (for both the staff member and the potential customers) and establish long-term loyalty.

Our conversation focused on the importance of relationship building in the podcast industry (Josh has interviewed over two thousand guests, so he really know what he's talking about). But don't turn away just yet; our tips and tricks are essential for anyone looking to forge stronger relationships in the sales industry.

Read on to discover what relationship building really means in sales, why it's so important, and FOUR crucial steps to building valuable relationships in sales.

What exactly do we mean by 'workplace relationships'?

Often, when people talk about having 'good workplace relationships', what they mean is that they get on well with their co worker(s). They feel a sense of community and enjoy working together toward common goals. They respect each other and feel respected in turn.

And this is essential for constructing a healthy workplace that functions smoothly. But when we talk about building relationships in sales, we can't afford to leave out relationships with customers and partners - literally: the Customer Lifetime Value (CLV) of referred customers is an impressive 16% higher than non-referred ones.

So there's a business incentive to explore this topic. Creating strong relationships between sales people and clients is critical for everything from receiving good reviews, building your reputation, and partnering with customers who come back again and again.

Why are strong relationships so important in sales?

Not only do better relationships create more efficient business environments, but they also have significant business implications, too. Don't believe us? Check out these statistics:

• 73% of decision-makers favor working with sales people referred by a trusted colleague
• 84% of buyers today actually start their buying process with a referral
• 86% more revenue: that's how much businesses with 'formalized referral programs' made compared to those without

Impressed? Same here. That's the business advantage of effective relationship building.

Oh, and the power of good relationships isn't limited to revenue results either; sales professionals can personally benefit and advance their careers by mastering this essential skill. Those who are proactive in getting referrals can earn up to five times more than those who aren't.

How to build relationships that convert: four tips

So, you're probably convinced by now that good seller-customer relationships are well worth the time. Let's take a look at some general principles you can follow to start benefiting from better communication today.

Focus on quality over quantity

In Josh's experience in the podcast space, he found that success is often measured in numbers: how many followers do you have? How many listens are you on? But he explained that when it comes to securing sales through his podcast, such figures are irrelevant. In fact, Josh hosted a show which hit the top of the iTunes charts and went broke in the process.

He explained that that's because he was working under the assumption that big followings will naturally attract big investors. But here's the reality check: that never happened. And building a following costs a lot of money.

The 'secret sauce', as Josh puts it, is taking the time to build a connection with his guests. By engaging in open communication with high-value prospects, paying attention to their perspectives, and spending time advancing the conversation, he was able to spark ideas for worthwhile collaborations and secure profitable sales.

In other words: don't chase numbers (whether they're followers or sales quotas) - chase close connections.

Identify the right people

This is really what effective lead generation is all about, and is a great rule of thumb to follow: one good relationship is worth ten temporary ones.

One of Josh's biggest pet peeves as a podcast host is guests who simply use his platform to advertise to his audience without exchanging anything of value. He calls this being 'worked through' rather than 'worked with.'

And although this is a podcast-related example, it highlight a fundamental truth about professional relationship building in sales: good business is all about reciprocity. Engaging in social interactions with the self awareness to recognize that both parties need (and deserve) something of value from them is key to creating strong, respectful relationships.

So don't waste time with poor relationships. It can be tempting for a sales rep to pursue quick, short-term sales targets, but quality leads are much more valuable. And if you really want to stand out in your market, it's worth learning how to build good relationships, as only 26% of sales people are happy with their lead quality. Simply by paying more attention, you can give yourself a serious competitive advantage.

Network like a pro

'You have to network': you've heard it a million times. But networking doesn't just mean finding a connection which could advance your personal career. In a sales context, it also means staying interested in other people and investing time to maintain productive relationships. Every group you belong to, every company event you partake in, every lead you build rapport with can lead to future sales.

And as with all relationship building techniques, networking must be reciprocal. Josh says that the guests who made the effort to send a gift or a handwritten note, or to reach out when they were in town, were the ones he was most likely to close a deal with.

This is such a fundamental concept in today's business operations that a huge majority of executives agree that they'd lose 28% if they were to stop networking.

Practice active listening

Active listening isn't just crucial for improving your information retention and fulfilling your work quota more efficiently, it's also super important for negotiation.

Many sales people make the mistake of simply repeating other aspects of their sales pitch over and over when confronted with a sales objection. Paying attention to what the other person - say, the customer - actually wants is pivotal for advancing a conversation and building trusted relationships.

After all, these days, 75% purportedly prefer an in-person meeting before making a purchase. So if you want to ace that meeting and work toward other future meetings with the same client, active listening, body language, self awareness, and a sense of having a common goal is fundamental.

Build relationships that convert and last

For all this, there's actually no secret to communication success. What underscores a sales rep who consistently forms lucrative, long-term sales relationships is a set of soft skills which you can work on today.

Realize that sales relationships, just like relationships between all human beings, rely on trust, respect, and a mutual commitment to a shared goal. Only develop relationships with clients to whom you can provide genuine value, invest in building long-term partnerships with them, and always stay attentive to the emotions and points of difference between you. Active listening is a fundamental skill to achieve this.

So if you're a business leader or a sales professional looking to skyrocket your relationship building ability, we recommend checking out Josh Wilson on LinkedIn. His experience and advice are second to none when it comes to networking and building sales relationships.

And if you're interested in boosting your revenue pipeline with experienced sales development teams who will not only source and verify high-quality leads, but use all the skills mentioned today to give the best impression and stay in customers' books, see what Leadium can do for you. We're ready to help you build great relationships today.