Have you been networking and not getting many new clients?
Business to business networking is one of the most powerful ways to gain new customers. But not all networking is equally effective. You can dash from one networking event to another, spamming people with your business cards, and end up tired and frustrated.
To get new clients from networking, you have to know where and how to network. Here are three tips for networking that brings results:
1. Find the right network. Are you looking for business from small business owners, or large corporations? Do you specialize in a specific industry, such as financial or healthcare? Finding the right network is crucial to making connections that bring you business. Otherwise you can spend a great deal of time connecting with the wrong market.
2. Invest in your network. Once you find a great network for you, invest time and energy in it. Join the executive, volunteer to help with fundraisers, and invite individual members for lunch or coffee. People join these organizations because they want to connect. Go with the view of helping people in the network, and they will help you as well.
3. Have patience. If you are networking with people from large organizations, it takes a great deal of patience and persistence to get work. Eventually it pays off, often when you least expect it to. For example, I met a director of corporate communications from a very large company who said she needed a freelance writer in my field. She gave me her card and asked me to call her. After many phone calls and a few e-mails that received no answer (but leaving phone messages only occasionally) I was about to give up when she actually answered the phone. This lead to a meeting, and a great deal of ongoing work with this company.
Networking is a business tool that works when you do it properly. It’s more effective than cold calling, and a lot more fun as well!
Relationship Marketing. If you are in business, then chances are you have heard this term. What does it mean? I am going to quote my friend and relationship marketing expert Bob Burg and say that the definition is: “The cultivating of mutually beneficial, GIVE and take, win/win relationships.” Now, Bob has used this definition when talking about networking in general, but I think it applies here equally as well. You see, relationship marketing, or referral marketing (which I use interchangeably) is about building relationships, not selling. When you place an ad, you are selling, but when you place a phone call and ask about someone’s family, you are using relationship marketing. See the difference? As you build and cultivate these relationships, you are becoming someone that the other person truly knows, versus knows about. Again, to refer to Bob Burg in his infinite wisdom, “All things being equal, people will do business with, and refer people to, those people that they KNOW, LIKE, and TRUST.” Remember that quote, and LIVE it. Don’t just do something because it will work, do it because it is the right thing to do…that will bring you true long term success.
Ok, now that we have that out of the way, on to the list! I believe relationship marketing is truly the king of marketing, and if done correctly, will allow you virtually unlimited success. Here is why:
1. Practicing relationship marketing removes client objections- Think about one of your good friends for a minute. If they sold a product or service you needed, would you choose to do business with them, or someone you didn’t know? How about if the person you didn’t know offered that product or service at a slightly lower price? If you are like most people, you value that relationship more than the few dollars in price difference. This holds true for other objections as well. Establish a solid relationship, and you will get more business and more referrals from that person.
2. Relationship Marketing is more inexpensive than virtually any other marketing activity-How much does it cost to have a conversation? Nothing. That is the cost of relationship marketing. Keep in mind that I am talking about acquiring clients, but perhaps even more importantly, building the relationships with referral sources. The same principles apply to both and while developing a great relationship with your clients is vital, doing so with other business owners and potential referral sources can really explode your income.
3. Customer retention-According to many surveys, acquiring a new customer/client costs 5-7 times as much as keeping an existing one. Many have heard this fact before, but how many truly pay attention? Think about your current marketing efforts. Are you spending your time and money keeping your current customers happy, or trying to get new ones? If you spent all your time making your current customers feel valued and opening yourself up to referrals from them, your marketing budget would go down, and your income would go up. Any reason you can think of to NOT do that???
4. Customer insight is an invaluable resource-People that know you well will often tell you what they think, especially if you ask them, which you definitely should do. How can you get better at what it is that you do unless you get feedback on how you are doing? The best people to get this from are those that you have established strong relationships with. They know you and can be candid. The feedback we receive is not always what we want to hear, but as a business owner, it is what you NEED to hear. Customer surveys are a great way to get this feedback. Pay attention to what your clients and referral sources are saying and heed their suggestions. Chances are, if they are feeling a certain way, others are as well.
5. Relationship Marketing will multiply your network exponentially-The average person has about 250 people in their personal and business network. As a business owner, you may have even more. The point here is that for every person you meet and establish a quality relationship with, you have the ability now to get to their 250 person network. If you have 250 people in your network, and they have 250 in theirs, that is 62,500 potential clients and referral sources. Spending your time building and establishing relationships with as many of these people as possible is literally ALL you would ever have to do to become as successful as you want to be. I am not saying you are going to convert all 62,500 to become clients, but, let’s just say it was 1000. 1000 people that became your clients or referral sources, might that make a little difference in your monthly take home pay? Oh yeah, if you DID make 1000 your goal, I hope it wasn’t lost on you that the network you are now working from is 250,000 (1000 people x 250 in their personal network) Online social networking sites take this principle to a whole other level. I know someone, they know someone, in turn, THEY know other people. For instance, currently, my personal network there is about 140 people. If you add up those people that are connected to them, and those THEY are connected to, my network is almost 5 million people. They key is to develop relationships with the 140, and then eventually, you will start to get to know their people as well. There is a RIGHT way to do it, and a wrong way though, so bear in mind the principles of relationship marketing and work on developing relationships, not just trying to get into their network.
There you have it. 5 reasons why relationship marketing is your key to unlimited success. Like all things that WORK, it is not just as easy as running out and trying to meet a bunch of people and turn them into clients or referral sources. There really is a right way, and a wrong way to becoming successful with these principles. I have devoted myself to helping others become successful and have spent considerable time creating resources for others to use in their efforts. The key thing to remember is, do things for the right reasons, and usually, the right results will occur.
Good luck, and I wish you much success in your relationship marketing efforts!
I recently received an e-mail from someone who read an article I wrote about collaboration and working together.He said, “The type of networking you talk about describes the way things should work, but in the real world most people seem to have an attitude of what’s in it for me?“He asked, “How can I prevent wasting my time and efforts on people, only to find that they have this kind of attitude?”
The short answer to his question is this—stop hanging out with the wrong kind of people and start actively seeking out the right kind of people.Trust me, I’ve been there and done that when it comes to getting stuck with the wrong people. Moving beyond that and building the kind of network that wants to help you (knowing that you also want to help them) is a journey—not a destination.
I have two suggestions to make finding the right networking partners easier.First look for some of the signs relating to people who fit the profile of good networkers.They include:
People who ask how they can help you or what they can offer you (and mean it) before they ask anything from you.
Individuals who show that they are willing to work on creating a professional relationship over a period of time because they understand that they must develop credibility with you before asking for your business or your referrals.
Those who make the time to go beyond the normal business interactions with those whom they want to be able to ask for support.
Professionals who understand that networking is more about farming than hunting and show it in their actions by making the effort to get to know you outside of the business environment whenever possible, knowing that the more of a friendship there is between you, the more expectations you can both have from each other’s networking efforts.
People who do what they can to bring business and contacts to you and their other networking partners, who share pertinent information with you, and invite you to business meetings that’ll position you favorably with others you need to get to know.
Individuals who give of their time and knowledge in order to help their referral sources succeed.
Second, immerse yourself in the process of relationship building.
A network that is a mile wide and an inch deep is not a strong network.Create a personal network that is both wide and deep.Meeting with people regularly is the key to making this happen.Participate in networking groups where you are going to see the same people on a regular basis. This will help you develop relationships and screen out the what’s in it for me? networkers.
How many times have you stood at the entrance to a networking mixer frozen in fear? “A root canal would be easier than this,” you say to yourself. Having to make small talk with strangers, trying to be interesting and charming, is not your strength nor your idea of a good time. But you believe that if you can just endure this for an hour, you might walk away with some valuable new contacts. The reality is that your discomfort often has negative results, and you don’t gain the new relationships you had sought.
In the 1930s, Swiss psychologist Carl Jung coined the term introvert as someone who tends to find his psychological energy within… in the world of thought, contemplation and reflection. This inward focus can result in a tendency to pull back and maintain a safe distance, especially around new people.
In the world of networking, introverts can face a long list of daunting challenges - not the least of which is sending nonverbal messages that may be misinterpreted as aloofness. And “aloof” is not a good message when your purpose is to mix, mingle, and foster new relationships.
As a card-carrying introvert myself (by Jung’s definition), I’ve developed some guidelines that have always worked well and have allowed me to be confident and outgoing at networking events. Practice these, and you will soon become the “master of the mixer”: Read more »
Turning contacts into allies is of critical importance for maximum results in your networking. Remember, though, it is always necessary to provide VALUE for others as well when networking.
The gradual relationship building process is not only about you and your needs, it is about the other person almost moreso.
Understand this, and your networking efforts will be greatly rewarded.
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About
NJBusinessNetworking.com was founded by Todd Schager as a valuable resource for NJ business professionals. Todd is a referral, relationship and network marketing expert who currently resides in Barnegat, NJ with his family.
The short answer to his question is this—stop hanging out with the wrong kind of people and start actively seeking out the right kind of people.
