Global Marketing Plus

The more generally you describe your business, the more difficult it is for others to know how to refer people to you. 

Recently I attending a networking meeting and there were two dentists there.  One said that she worked with anyone with teeth.  The other dentist said that he specialized in seeing patients who have dental anxieties.  Which dentist will you more likely refer friends to?

Or suppose you meet two chiropractors.  One says he is a holistic practitioner and can treat anyone from 10 months to 100 years old.  The other says she specializes in treating women with PMS-related problems.

Or suppose you meet two professional speakers.  One who says he speaks on any motivational topic and the other says that he talks on how to save money on business travel.

A bookkeeper who specializes in serving doctors’ offices and is recognized for having designed special systems for medical/patient tracking will find it much easier to get referrals that someone who does general bookkeeping.

In order to make a referral, most people need some “hook” that sticks in their minds.  Once they get that hook, you will be someone who comes to mind when there is a need for what you do. 

What niche can you fill to develop a hook in peoples’ minds?

Find out who your clients use for other services that could make a good strategic alliance with you.  For example, since I do website design, I ask my clients who they use for computer repair.  Computer repair people find that their clients ask who can build websites.  They could refer those people to me. 

When I get the name of their computer repair person, I call that person.  I do not ask for business.  This would appear presumptuous or imply that I am desperate for business.  Anyone appearing too hungry raises the question as to why they don’t have more business.

Instead, I call to find out two things:  More information about what the business is and when and how I can refer clients to them.  If they are interested in networking with me, they will ask about my services as well. 

Unless the person can open big doors for you, don’t waste your time with a contact who isn’t responsive to your offer.  Spend your time looking for others who are eager to network.

Your most reliable source of business is your existing client base.  They know better than anyone what you can do.  If you approach them properly, they can become a walking, talking sales force for you.  Here is how you can get them to do that:

Make sure that every experience customers have is positive.   If you want referrals, “The customers is always right.”

On the average, a satisfied customer will tell three people about his positive experience with you within a month.  An unhappy customer will tell seven people of a bad experience within a week!  So a positive experience with you company should be a goal you strive for.  Do the best quality that is in your power to provide and if anything is wrong on your end, take responsibility for it and fix it fast!  Stand behind your product or service.

If you want customers to make referrals, you must quickly fix any problem to the customer’s satisfaction.  Often it is how you handle a problem with a customer that will create the most loyal customers.

Many years ago, I had an associate that had a fantastic marketing company.  He produced coupon books for radio stations to give to listeners.  He also ran the marketing and call center that distributed those coupon books.  For $25.00 each he sold over a hundred books a day, making him $2500 a day!  Out of those 100 sales each day, one or two would call and want their money back.  He refused.  Not politely, I might add.  Well word spread and his reputation become such that the radio station dropped his account.  So while making $2500 a day, over just $50 to $75 a day, he lost the account!

So while you can’t let customers walk all over you, you must find amicable ways to resolve any misunderstandings or conflicts.  When no amicable soulution can be found, let a lawyer, business manager, or collection agency be the bad guy for you.

Make customers so happy they want to go out and shout about it.  Nothing sells like results.  Don’t just leave customers feeling positive, leave them feeling ecstatic!  A customer who is thrilled can’t stop telling others about how great you are.  Whenever such customers hear of someone else who has a need for your service or product, they can’t wait to suggest you.  This often involves going the extra mile to exceed your customers’ expectations.  In business, it is true that the more you give, the more you will get.

Let your clients know you want referrals.  Many times clients do not realize that they can provide you with referrals!  And often they won’t refer without some gesture from you.  Don’t beg, pressure, or imply an obligation to refer, but is is important that you convey to your customers that your business is based on referrals by saying something like, “I get most of my business by referrals.  It’s the best way I know to spread the word about what I do, so your recommendations are important to me.”

Tell them how and when to refer.  Some business owners actually prepare a “When to Refer” sheet that spells out how to recognize when someone needs their service.  One client of mine wrote a newspaper article titled, “When Does a Child Need Professional Help Through The Trauma of Divorce?”  Then he had reprints made up of the article and gave them away to clients.

Provide easy opportunities for people to provide you with names of potential customers.  Some provide gift certificates where you customer can just fill in the name of the person they are referring to you.  They can then give the certificate to the friend.  This gift certificate has your name and phone number on it to make it easy for them to contact you.

Listen for and act on referral flags.  You have heard these before when someone said, “I have a friend who…” or “So-and-so tried something like this, but…”.  Sometimes we hear these flags and just assume the referral will follow.  Most of the time, however, nothing will become of it unless you pick up on the flag and take the initiative to suggest the next step.  Offer to help by saying something like, “Perhaps I could be of help to them”  or “I could probably help them with that.”  Then suggest a next step such as, “I would be happy to call them.”  or “I would be glad to send them a brochure.”  Arrange to be the one to make the contact.

Provide an advantage for making referrals.  Offer an incentive in the way of discounts, gift certificates, and specials to those who refer new customers to you.  This is a common practice among many businesses.  I helped a dentist develop a gift certificate to a local restaurant.  Whenever a patient referred someone who became a new patient, he would give the referring patient one of the gift certificates.  Over 80% of his new business is a result of referrals.

Get frequent feedback.  To make sure your customers are happy, let customers know that customer satisfaction is important to you and you want to know about any complaints.

Research shows the majority of dissatisfied customers never report their dissatisfaction to the company.  They do, however, feel free to express their unhappiness to everyone else!

Offer guaranteed satisfaction on your products or services.  Another thing you can do is to use feedback forms or to ask directly whether someone is satisfied.

Whenever someone who has been a regular client suddenly stops doing business with you, take time to contact the client and find out why.  This will give you a chance to fix any problem and simply let your client know you are thinking of them.

A common myth about business is that if you do a good job with your product or service, the referrals will come automatically.  Usually a self-sustaining business is a result of focused effort to build referral momentum.   Work at your marketing efforts long enough and hard enough, and the referral business will begin to flow.

Even after producing excellent results year after year, you still may get very few referrals unless you are in a high-demand business.  If you concentrate on ways to bring in referrals, you can speed up or even jump-start the referral process.  Once small business owners learn how to develop and generate referrals, they begin coming in.  The product or service is still the same.  What is changed is how these people go about turning the business they have into more business.

Another common myth is that once your business becomes self-sustaining, it will remain so.  However, many  things can interrupt a well-established, steady flow of customers.

• The market can change, making what you offer in less demand.
• Your client base can change, and clients begin seeking features you don’t provide.
• Technology can change, rendering your service obsolete.
• Key personnel who purchase from you may leave the company.
• Your competition may undercut your prices.

Keeping a steady referral-generating effort underway will enable you to pick up on such changes quickly.  By responding to them immediately with necessary adjustments and additional marketing activities, you can often short-circuit any drastic drop in your business.  In fact, as a  small business owner, the ease and quickness you can respond to keep pace with the marketplace is one of your strongest assets.

In short, you must jump-start your referrals to receive them consistently.  Then you must always work at keeping them coming!

The creative professional should be able to get 80% or more of his new business from referrals, follow-ups, or add-on business from existing clients.

Once you reach this goal, you have a self-sustaining business, which is the goal of all people who start a business.  All of your efforts, whether networking, promotions, advertising, or other efforts, should be focused toward ultimately attaining the goal of becoming self-sustaining.

According to a recent survey, many businesses relied heavily on word-of-mouth referrals from business associates in purchasing business services. 

• 44% chose a lawyer by word of mouth. 
• 45% chose an accountant by word of mouth. 
• 45% chose an advertising agency by word of mouth. 
• 42% chose a business consultant by word of mouth. 
• 42% a marketing firm

So how do you develop referrals?  Find out tomorrow.

 Have a profitable day!

If you need business fast, try this approach:

Identify people in a position to know who needs what you offer.  Make face-to-face contact with these people for the purpose of gathering information about who is buying what you’re selling.  Ask permission to use the name of the person you talk with.  Then make contact with the companies or people you learn about.

For example, in my business of website design and repair, I talk to business coaches because they know people who need new websites or update their existing website to reach their goals.  I would find out from the city or chamber of commerce who is obtaining a new business licence.  A new business may be more in need of a website then one who has been around for a while.  I can also contact bankers to see who is getting a new business loan.  Almost any sales man who contacts businesses could be a good source of leads.  And the list goes on and on!

When you contact any of your “sources” as above, and they become good sources of contacts and referrals, these are your strategic alliances!

You might be surprised — they may be right under your nose!  I bet there are several people you already know that you have overlooked who would make excellent sources of help!  Or maybe you are just too shy or timid to ask them.

Think about:

• Who have you done a good job for at some time?
• Who has given you encouragement in your business?
• Who have you helped through a tough time?
• Who helped you through a tough time?
• Whom do you know that has done what you want to do?

Look at these as a short list of people to look for:

• Previous employers
• co-workers
• relatives
• distant relatives
• friends
• friends of the family
• teachers
• ministers
• neighbors

This is only a very short list of people who are possible mentors and strategic alliances.

If you are timid about approaching them, remember that most people are flattered and even honored to be helpful to others as long as you are courteous and respectful of their time and talents.

If you are asking for something that would take a lot of effort or you are asking for advice from those who provide that advice or service as part of their business, you should offer to pay them or at least offer to take them to lunch.

Remember, too, that when you get advice or help from others, act on it.  If you get a referral, call that referral immediately — or if you were told to contact them at a certain time, do so then.  Then follow up with the person that provided the help and let them know what happened with the referral.

A good mentor will not want to be a mentor very long if you never follow his or her advice!

Now make today profitable!

Networking is not just a great way to get new business, it also is a great way to meet people who can help you get business and to grow your business with their expertise and support.  I believe that the more support and assistance you have, the better.

A mentor is a trusted counselor or influential supporter who takes a personal interest in your success.  One great source of mentors is SCORE (Service Corps of Retired Executives).  SCORE is free and you can have one-on-one counseling for your business and build a long term mentor.  I like to think of SCORE as a board of directors for a small business that cannot afford one.  I know small businesses who have several counselors, each with his or her own expertise.  One might be a marketing professional, one an accountant, one a retired banker, and so on.  When you need advise and help with marketing, you call on your marketing professional.  SCORE is a great resource that you never have to pay for.  And you never have to worry about confidentiality because to be a SCORE counselor, you have to sign a contract with the SBA. 

You can contact me if you would like to find a SCORE office near you.

A strategic alliance is someone who is in a position to open the door to resources and contacts.

In my web design business, I found it very difficult to find those business owners that currently needed my services.  So I have created several strategic alliances with other professionals who already either have a large clientele of business owners or contact business owners on a regular basis.  When they come across someone who needs a website either built or fixed, the refer them to me.  They give me their contact information so I can follow up on them.

Running a small business on your own can be daunting and difficult.  A mentor or a strategic alliance can ease your way through the tough, competitive times.  Mentors and strategic alliances opens doors for you to knowledge, skills , referrals and contacts you might otherwise need years to access.

How can you develop these resources for yourself?  We will discuss that tomorrow.

So today, go out and create a profitable day!

Even though most successful home-based businesses are built on word-of-mouth marketing, I have found that networking is usually overlooked and sometimes even avoided.  Too often a home-based business will try to compete with larger competition on their level with advertising and direct mail.  Unfortunately, many home-based businesses find that normal advertising techniques do not result in immediate business and require a lot of money, which most small businesses do not have.  Not only that, but a prospective customer has a hard time knowing how such a business could serve them better than all the competition that is also advertising.  And without knowing a prospective customer and his or her needs, you do not know how you can best serve them until you talk with them to find out what unmet needs they may have. (for a discussion of how to remedy that problem, read my other blog on websites and how they can help)

That is where networking comes in.  Networking gives you the opportunity to find out what they need and show how you can serve them better.  In the process, the prospective customer will also have a chance to find out what they like about you, and most people want to do business with someone they know and like — particularly when they need a service.

So why is there such a resistance to networking since it is such a useful marketing tool?   According to the “Almanac of American People”, going to a party with strangers is the most frequently mentioned source of anxiety in social situations.  Could that be the reason many small business owners avoid it?

Here are six common excuses I hear for not using networking and a new way to look at them.

1. I don’t have enough time to network.  Networking does take more time than answering the phone and setting up appointments to do business.  But if the phone is quiet, networking is an excellent way to make it ring. Networking also allows you to do market research while you are trying to fill your pipeline of potential customers.  You can rub shoulders with prospects and find out what they need and what needs are not being met.  You can also find out how your competitor provides their services, what they do that the prospect likes and what they do that the prospect does not like.
2. I am too shy to meet people in a large group.  What makes a successful net-worker is not a lack of being shy, but the recognition that everyone else in the room is shy, too!  If you focus your attention away from yourself and onto helping others feel more at ease, you’ll become more at ease, yourself. How do you feel when someone you have never met before comes up to you with a warm smile and says, “Hi! I’m so and so.  What’s your name?”  I am sure that you are more than happy when that happens.  It works the same way when you go up to someone you don’t know and greet them and show interest in them — genuine interest — you make them feel good.  If that person doesn’t need your product or service, they may know someone who does!
3. It takes me away from the office.  Some people work on their own because they like to work by themselves, plus those who work on their own have more than enough work to do in the office.  Networking usually does mean taking the time to go somewhere else.  To make it so you are not away from the office during business hours, many networking meetings are either early in the morning so you can be back before the phone starts to ring, or they are at noon when customers will understand if they get a answering machine that says you are at lunch until 1:00.If you do not keep the pipeline full of potential customers, soon you will not have enough work to keep you busy… you don’t want that!
4. I don’t like to mix business with pleasure.  Another version of this is that people feel guilty if they enjoy working too much.  Yet how often does someone at a social activity ask you, “What do your do?”  And how often do you ask others what they do?   Each such question is an open invitation to network.  Most people are eager to talk about themselves and are flattered when someone else takes an interest.Don’t think only small businesses network!  Many large deals are made by the largest companies over a game of golf or at other functions.
5. I don’t want to be a pushy sales person.  Networking is not selling!  Let me repeat that, because it is important.  Networking is NOT selling!  Then what is networking?  Networking is a means of finding new people who are interested in and of themselves.  It is also an opportunity to find out whether or not the people you meet are potential prospects without the pressure of a sales situation.I advise to never sell while networking.  That is what gives networking a bad name.  Any selling that is to be done will come later.  If you find someone that could be a prospective buyer of your services, you won’t have any of the problems associated with cold calling.  You have already opened the door to a relationship.  Simply get their card and withing a day, give them a call to make an appointment for a one-on-one.  Do this even if they would not make a good customer but may know someone who would.
6. I do not like to sell, period.  No business can exist without some selling.  Networking is an ideal way for someone who hates to sell to get business.  In networking, by the time you get the opportunity to sell, you have already built a relationship and determined the need for your product or service.Even if there is no sale from your efforts, if you continue to network, you will be able to stay in touch with the contact  without having to make any follow-up phone calls, which take a lot of time and we all dread making.

Remember that you should not try to depend on networking for immediate results.  Of course, you shouldn’t expect immediate results from other forms of advertising either.  It has been estimated that you need to make contact with a potential client 7 timesbefore they will even consider you as a supplier of what they need.  With direct mail, that can be very expensive!  Networking is far less expensive and the results are far more sure.

So if you want to get more business, start talking and have a fun time while you’re at it.

Now go out and have a profitable day!

Now that the networking meeting is over, there are some things you can do to insure your time at the meeting was worthwhile.  If you follow these steps, you will have success, if you don’t follow these steps, you will probably be disappointed at your results.

14. Follow up fast with a phone call.  If you meet someone at the meeting that showed interest in doing business with you, you need to follow-up immediately.  I call the next day to arrange a meeting.

You might not be able to make follow-up appointments with everyone you have met, but if there could be any future business value from these contacts, you can at least call the next day.  First meetings is where we can make first impressions, but following up by phone will cement them.

15. Arrange a one-on-one with everyone.  Begin with those contacts that you feel might use your services.  Then after you have met with all those, do one-on-ones with those that you think may be able to refer new business to you.  Then move on to one-on-ones with the rest.  You never know who might know someone who needs your services.

A one-on-one is a meeting you arrange to meet with each other.  Plan on at least a half-an-hour to perform these.  You could meet in your office or theirs.  You could also meet at a restaurant and pay for their lunch.  The important thing is to meet. 

When you meet, be the first one to begin the conversation and ask about their business!  Also ask them what kind of referrals they are looking for.  How can you help them!  You must show genuine interest in them and what they do.  By doing this, you will build a relationship and they will feel obligated to ask you about your business (in most cases).

If you can think of a referral to give them, so much the better.  I have found the more you give, the more you receive and the more successful your one-on-one will be.

If you are networking correctly, you should be doing two or three one-on-ones each week.

16. Put the names of your new contacts on your mailing list.  You should be sending out news clippings, reports, or announcements that you think will be of interest to your contacts.  Include information about your recent activities.

17. Always send a thank-you note or place a call to say thank-you to anyone who sends you a referral.  Then keep them informed as to how the referral is progressing.  When someone has sent you several referrals or one that is particularly profitable, give the person that referred them to you some additional acknowledgement.  Take the person to dinner or send flowers.

18. Don’t over do it.  Don’t try to cram in every event on the calendar;  you will get sick and tired of the effort. Keep your networking calendar to a manageable level.  Two well-selected events per week are ample for most full-time businesses.  Remember that networking takes more time AFTER the meeting than just the meeting.  You not only want to make contacts, you want to have time to follow them up and enjoy the process.  Pace yourself!  If you are too busy to do the follow up, you might be attending too many networking events.

There you have it, 18 tips to making your networking successful.  Tomorrow we will talk about overcoming the major misgivings about networking.

 Until then, have a profitable day!