IT companies regularly approach me to seek advice on how to expand their business.
The simplest guidance might be: become “customer obsessed” like Amazon. Jeff Bezos repeated this motto in a recent Lex Fridman podcast*. Study how they manage this.
But you might say, “I am a relatively small company by comparison. How am I supposed to replicate this giant company’s customer strategy?”
Here’s some advice based on 25+ years of experience in the IT outsourcing and consulting industry:
Secure a small client base, maybe even one customer at first. See below how current giants started.
Make sure to impress your new client: over deliver.
Going forward, deliver consistent quality. Be reliable.
Don’t strive to become indispensable. Clients don’t like vendor lock-in. Ensure clients want to stay with you rather than having to stay with you because of some dependency. Let them go when it’s time. If they like you they will return.
Ensure you’re solving relevant client problems. Don’t waste your time and their money on insignificant issues.
Clients have enough problems of their own. Don’t become their next problem. Be the solution.
Ask for feedback after project completion.
If the feedback is negative: follow up, seek to understand the root cause and resolve the issue at your own expense. Unless the client is toxic. If so, cut ties immediately.
If the feedback is positive: ask if your client is willing to become a reference or okay with publishing the feedback on platforms like LinkedIn, in relevant industry publications or on your company website.
Let the feedback spread a positive vibe around your company.
Repeat step 1-10.
How to secure your first client?
Although I’d be cautious with overpromising you’d be in good company if you would.
Apple may not have existed in its current form if Steve Jobs wouldn’t have been so bold when he secured his first order. The story goes that he bluffed his way into a deal for 50 fully assembled “Apple I” computers for $500 each paid upfront. Steve Wozniak then obviously had to work day and night to deliver on the (nearly impossible) deadline.
The start of Accenture (originally named Andersen Consulting) is similar. Their first major client was General Electric (GE). When Andersen Consulting initially approached GE in the early 1950s, they did not have a pre-existing solution for the complex payroll processing challenge GE had, and the technology required to address it was still in its infancy. Andersen Consulting took a risk by presenting a solution that was not fully developed at the time. Their ability to deliver on its promises and provide innovative solutions ultimately solidified its position as a leader in the consulting industry.
Let me know if these tips are helpful. Or maybe share other tips that have helped you so that others can learn from them.
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If you are looking for guidance related to managing outsourcing contracts, consider scheduling a free consultation.
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Extra
Clip from the Lex Fridman podcast with Jeff Bezos on customer obsession.
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