Thursday, March 25, 2010

Networking as Marketing Strategy - It's All Attitude

This morning's micro-seminar "Networking for Increased Sales" reinforced some key points about the "why" and "how" of networking, and how the fundamental attitude drives everything else.

The why?  Honestly, often to avoid cold-calling. Starting relationships at networking events is a lot more comfortable, and effective (when done well). One source has 60% of new business contacts come through networking, and referrals from networking are 80% more effective than cold calls.  Choosing between attending 3 networking events to get 6 quality referrals and calling 600 strangers?  Not a hard choice!

The how?  Remember your purpose in networking is not to close deals, nor give out business cards, nor "pitch" to anyone who'll listen.  Your purpose is to meet new people, learn who they are, and (when appropriate) start enough of a relationship to earn a follow-up meeting.

The attitude that's important in networking is to be real.  Be curious, be genuinely interested in what the people you meet say and do, to learn all you can about them.  Listening skills are much more important than presentation skills!  A willingness to share your network, to give what you can without tallying the score, to make introductions even at the event - these eventually start to build relationships that matter.

Monday, March 22, 2010

Networking as Marketing Strategy - Efficient?

Doing a micro-seminar this Thursday on "Networking for Increased Sales" spurs reflection on Return On Effort (ROE)  for the many events I've attended, and where there are familiar faces and oh-so-familiar situations.

A colleague in the RAC network in PA told me that she now gets so many invitations to events (Business Networks Internationa; (BNI), Chambers of Commerce, BNI-emulators, Firestorm groups, Meet-Up groups, etc.) that if she could accept them all, it would be a 60-hour per week job. She finds that job doesn't pay well...  Unless she improves the odds of success.

Can going to networking events be part of an effective, efficient marketing strategy?

Well, it depends.

If you go to everything you're invited to, it can be a "black hole" of time and resources. ROE for "shotgun" approach?  Very low.

If you know who's in your target market, and know where they gather, and get invited?  Better ROE.

If you know who you're looking to meet as a prospective client or a referral source, and find events where several people like that are present?  Positive ROE.

And when you get to the event, and that moment of truth happens, when you get that one chance to make a first impression, some people launch their sales pitch.  ROE for pitching? Very, very low.  Can even do harm.

If you press to qualify, trying to smoke out if they're a decision-maker, have a need, and have money?  Very low ROE - can do reputation harm and make people avoid you.  Who wants their arm twisted by someone they just met?

If you are genuinely interested in the people you meet, curious about how their world works and where they find joy in it?  Positive ROE.

Networking, randomly?  Low ROE.

Networking, purposefully, with the right goals and attitudes?  Better ROE.

More in the coming days.

Wednesday, March 10, 2010

Selling Strategy

Last post mentioned that if sales isn't working, the rest of strategy doesn't matter. Since writing that, in conversations with dozens of entrepreneurs and small businesses, I'm hearing universal agreement - and concern.

A refinancer said whatever deal she puts together today might not be possible in a month. A mortgage broker said he expects his business to shift dramatically this year when interest rates start to rise. A fellow consultant said most are stuck in a "wait and see" mode, unwilling to commit. A banker said conditions for making loans are tighter than ever before, and he has to tell his prospects "No" most of the time.


Of course it's all true, and it misses an important point: No matter what happens with interest rates, with taxes, with credit, with unemployment, with rapidly changing rules and conditions, with the random fluctuations of Wall Street, an effective sales strategy has to do just three things:

  1. Find willing & able customers
  2. Offer help with what they experience as a problem/opportunity
  3. Make buying easy and satisfying.

When a business offers a good solution to a priority problem, or the means to sieze a perceived opportunity, the sales strategy becomes getting it "out there" in front of those with that problem/opportunity and make buying a reasonable and easy choice.

How?  Depends on the customer, and how they want to buy.  The customer is in control; all a business can do is facilitate their awareness, confirm their wants & needs, anticipate and answer their questions, inform them of their choices in ways that help them decide -- however they decide.

And once a willing customer decides to buy, the rest of the strategy becomes important.

More on that next time.

Wednesday, March 3, 2010

Strategy - Learning As You Go

The "Learning School" holds that organizational learning is how to keep strategy flexible and adaptive to rapidly changing environments.

"Walking the talk," I'm applying some practices of organizational learning to the sales microseminar series strarting on 3/11 (see www.effectivelearningforgrowth.com for details). Reflecting on what's been done before, challenging my assumptions about why and how, deliberately doing some things differently and watching for effect, cycling back through the reflective process.

(I'm noticing that organizational learning in an organization of one is, well, different, yet the same because it's quite practical.  At least, the discussions are shorter.)

Microseminars are one component of my marketing strategy, which is in turn one component of my own overall business strategy for Effective Learning for Growth.

The marketing strategy - how one attracts clients - may be the most essential part of any overall strategy, since no clients means no business. Even if every other part of the whole strategy works beautifully, if this part doesn't, it's "game over."

Challenging the why - these are primarily to help other entrepreneurs, who often struggle from not knowing how to sell. But they're also to showcase the content of sales training for potential corporate clients and individual coaching clients.  The why stands, but changes the how because the intended results from last year's sessions were less than anticipated.

Changing the how - Have marketed these through social media, primarily using Linked-In Chamber of Commerce and other groups.  This time, continuing what worked, but adding two elements: cold-calling businesses in Chambers, and (thanks to a great idea from Tom Majewsky) started a Meet-Up group, as well. Also adding in social media more actively.

Real-time strategy adjustment through reflection-in-action - how might it translate for larger organizations?