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Winning Business
and Loyal Financial Services Clients in Invoice Factoring - #
VI, Part 2
(cont'd)
Advice Desk
I have received numerous positive comments on this receivables
factoring information from our financial services clients. Equally
important, the cover letter discretely reminds the new funding
client to remember to think about our invoice factoring firm
for referrals. Referrals from existing clients are a very
valuable but often overlooked source of new business. |
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Toll Free Phone
877.894.UCFC (8232)
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 We
have seen our referrals from existing clients increase
dramatically in the past 2 years, after we started this
correspondence with our invoice factoring and working capital
funding clients. No doubt that our level of service on a day
to day basis is a critical variable in this growth; but simply
asking for the referral is also a big part, I believe in this
inexpensive but very effective marketing tool for our
professional cash flow and working capital services.
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The New Marketing Model for the
Factoring Segment of the Financial Services Industry
Having completed the SWOT, a Mission and Vision/Value
Statement, it is now the time to build an effective Marketing
Model. I believe the correct starting point is to discuss what
this financing model needs to look like taking into account
the business environment that exists today relative to the
global economy and finance.
To appreciate the new Marketing Model for factoring
receivables, I think it is important to first step back a
moment and present the “old” model. Only after we understand
the “old” model [and see why I believe it no longer is viable]
can we appreciate how and why we, as a commercial factor, need
to embrace a different, client centered approach.
The old model was simple and straight forward. The 3 steps in
the process were: |
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Create a
product |
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Build
out operations |
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Go to
market |
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Client
bought the product or funding service |
The functions that drove each step of the process were: |
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Create a
product [Suppliers, Manufacturers, Research & Development] |
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Build
out operations [Delivery, Infrastructure] |
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Go to
market [Marketing, Sales] |
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Client
bought the product or financial service |
Here is an illustration of the Old Model; or “We build it and
the funding client will buy it” approach. |
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In the
new model, unlike the old, I believe the cash flow
client/prospect, not the producer, is the starting point. In
the old model, the invoice factoring client was the end point.
This is the critical difference between the two approaches. In
the new model, the client/prospect is at the center
[literally] of the process, not at the very end, as can be
seen above. Again, the new model in illustration form: |
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Reference Source: Leapsoft.com
The differences between the old and new financial services
models are like night and day. Why does the “new” work and not
the “old” model. What are the critical differences between the
two models when we apply these concepts to the accounts
receivables factoring industry?
Let’s focus our discussion primarily on the new financial
services model, as it is the framework for our future plans
and strategy. In the New Model, marketing is no longer an
isolated business function, but is the core driver of products
and operations for the enterprise. In this approach, marketing
efforts extend beyond prospecting, sales and branding to
include client management, partner and channel acquisition
and, for public entities, investor relations. The model also
includes new channels, information protocols [the Internet,
for example], and new variations in product and service
delivery to receivables management clients. It is client and
prospect, not operation driven.
This article
continued (#IV, part 3):
Winning Business and Loyal Clients in Invoice
Factoring
View and Print this Article (pdf version):
Winning Business and
Loyal Clients in Invoice Finance (part VI)
In this
series of articles to assist you in winning business and loyal
clients, Mark Mandula offers his guidance from the viewpoint
of an experienced business finance professional based in the
US.
Winning Business and
Loyal Clients in Invoice Finance (part I)
Winning Business and
Loyal Clients in Invoice Finance (part II)
Winning Business and
Loyal Clients in Invoice Finance (part III)
Winning Business and
Loyal Clients in Invoice Finance (part IV)
Winning Business and
Loyal Clients in Invoice Finance (part V)
Winning Business and
Loyal Clients in Invoice Finance (part VI)
Winning Business and
Loyal Clients in Invoice Finance (part VII)
Winning Business and
Loyal Clients in Invoice Finance (part VIII)
Other Invoice Factoring Articles of Interest
Trust Based Financial Services
in Factoring of Accounts
Receivables:
How to build a sustainable
trust based financial services firm
Winning Business
and Loyal Clients in Accounts Receivable Factoring "How to Sell More to Your Existing Clients"
Winning Business
and Loyal Clients in Accounts Receivable Factoring "Work
Smarter, Not Harder"
Factoring: Fact vs.
Myth: What types of companies use factoring?
Factoring: Fact vs.
Myth: Will factoring negatively affect your
customers perception of your company?
Factoring Company
Corporate Overview
Apply for Factoring Online
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