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Forging Long-Term International Relationships with Customer Visits
A taste for travel has always been an advantage for credit managers. And, with the growing globalization of business, it's become almost prerequisite. Sales people can begin your company's relations with foreign customers, but to make these relationships long-term and loyal, you have to be out there to meet with and get to know them. "Two years ago, during the Asian crisis, a lot of United States companies walked away from a lot of business there," notes John P. Catera, CCE, credit manager for ConMed Corp. (Utica, N.Y.). "Today, they no longer have that business. We were willing to work with our customers in Asia, and we emphasized that we'd be there with them through the 'bumpy road,' although we kept a somewhat tight leash." Certainly one reason these Asian customers believed that ConMed would "be there" was that Catera himself was there in the flesh. Customer visits--so helpful in solidifying and nurturing domestic relationships--are, in his view, even more critical in the international arena. "International customers especially appeciate the opportunity to talk with someone other than just the salespeople," he explains. "This lets them know that you take them seriously and that you want to hear their concerns." The practice of visiting these customers can give you a "leg up" on your competitors, who may not take the time to visit these customers.
Visiting these companies, he continues, can also give you a "flavor" for the way they do business. "You learn things such as why customers in Northern Europe tend to pay a little better than customers in Southern Europe." One of the keys to success in international credit is taking more than just company risk into account. It is essential to consider country risk, political risk, and economic risk as well. "Visits allow you to gain a lot of this information firsthand," he notes. "If, for example, you sell on extended terms, and if currency fluctuates, the dollar you sold them may take significantly more of their currency to equal that dollar 60, 90, or 120 days from now. Visits can help you plan for these eventualities. "I've found that people all over the world enjoy doing business more with people they know personally," he continues. One advantage to visiting international customers is developing personal relationships. "If political or economic risks are being forecast, you can often learn this sooner from customers whom you know in person," he adds. Furthermore, if and when you call customers for this information, they are more likely to provide you with accurate and comprehensive information. Just as in domestic customer visits, the key to getting the most out of your international visits is to prepare as much as you can before you visit. Catera spends time reading everything he can about the business customs of the countries he plans to visit. He also spends time talking with the salespeople, not only to gather general business culture information, but also specific business information on the customer as well as personal likes and dislikes the customers may have. In all cases, he tends to place a lot of emphasis on personal relationships, which tend to be almost universally important worldwide. "In the Far East, for example, you have to build up a lot of mutual respect before you can begin doing business," he explains. Bare Knuckles Recently, he spent four days visiting a customer in Istanbul, Turkey. "During the first three days, we spent all of our time getting to know each other," he recalls. "It was very cordial and friendly. On the last day, though, when we sat down to negotiate, the gloves came off quickly and they began engaging in 'bare-knuckle boxing.'" Catera was admittedly a bit taken aback at first. "The moment the negotiations were over, though, they went back to their original cordial and friendly relations," he continues. "I realized that, during the first three days, they were sizing me up and trying to decide if I was someone they wanted to do business with. "Loyalty plays such a strong part in international business success. Our company is beginning to see the benefits of its loyalty to these customers. We've forged relationships that will last a long time." Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000. All Rights Reserved. Reproduction without permission prohibited. |