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!
One of the best networking books I’ve come across is The Go Giver by Bob Burg and John David Mann and it gets our highest recommendation. This easy to read book does an excellent job of illustrating through parable, the new school approach to networking and building relationships.
Providing value first and foremost before ever expecting anything in return, be it business referrals or otherwise, is crucial in developing long-term business relationships.
Please watch the video book review below by Benjamin Bach
Looking for some valuable networking advice to carry with you to your next networking event? Watch this video by Andrea Nierenberg for some good thoughts.
Excellent customer service is virtually a necessity in today’s competition fierce business environment. As a product, service or solutions provider, you need to meet or EXCEED customer expectations… Do you?
In today’s world, relationships are more important than ever with your client base. You MUST make an impression. You MUST do your very best to be remembered. Keep in mind, that doesn’t have to mean some grandiose gesture. The little things really count. This is vital if you are looking for more repeat or referral business.
Learn a quick lesson from Frank the cab driver in the video below. Then go to the smart referral system to see the system he uses to make the lasting impression that you know you NEED to be making as well.
You can find more about Shep Hyken at his website.
Chris Brogan had a post on his blog last week called “Social in Real Space vs Social Networking”. This theme seems to be popping up a lot lately, and what I love about blogs, bloggers, and the blogosphere is that each of us is allowed and encouraged to continue the discussion on a variety of topics. His post is great, as it talks about how one can leverage their on-line networking activities with their in-person meet and greets. Read more »
Why is asking for referrals so hard to do sometimes? After all, word of mouth is the most effective form of advertising, so why do we jeopardize our own efforts by hesitating to talk about them? It’s almost like a dirty deed that we fear will make us look like aggressive salespeople rather than seasoned professionals.
Asking For Referrals Demonstrates the Following Important Elements:
1. Your Level of Confident Professionalism. The opposite is actually the truth. By not discussing, you are not showing the level of confidence required to build a successful business. While some people will be so impressed with what you do they will feel compelled to tell others, there are people that won’t be sure if you are receptive to new clients. How will they know you are open to referrals unless you start asking for referrals? Read more »
Pay it Forward (Warner Brothers Pictures, 2000), is one of my favorite movies. In it, a young boy has a remarkable idea that instead of paying someone back for a kindness they have given, you pay someone forward with a kindness you have to offer. The rules of paying it forward are simple:
#1 It has to be something that really helps people.
#2 Something they can’t do by themselves.
#3 I do it for them, they do it for three other people Read more »
Business networking events are ideal places to meet new clients. But it’s not enough to just show up. If you park yourself at a table, or gossip with your business partner, you won’t make any new connections.
The problem often lies in knowing what to say. For most people, it’s intimidating to approach a stranger, introduce yourself, and start a conversation.
Chances are, before heading out to a business or social event, you think about what you will wear, how you will get to the event, and even where you will park. How often do you plan what you will say once you get there?
This article gives you 7 tips to help you prepare for a networking event, so you never feel tong-tied or at a loss for words.
Before the event, use these ideas to plan three or four conversation topics : 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.
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 problem often lies in knowing what to say. For most people, it’s intimidating to approach a stranger, introduce yourself, and start a conversation.