I was just reading some of the feedback from the 90 Day Networking Event last week.

Thanks Robert Williams from Your Brand Unleashed for this one.  Comments like this make all the hard work worth while!

“I must say, this was by far, the best networking event I have been to in quite some time. It was conducted really well, had some great speakers, and have some really great time to connect with others and also bring benefit to others. I would highly recommend to anyone interested in B2B networking to attend and find out for yourself Brenda's difference in her approach to networking. Far better than the rest! Great job!” Robert Williams Your Brand Unleashed www.yourbrandunleashed.com.au 1300 MY BRAND

 But the one I want to talk about today is this one:

 “It was a great day but I could have got so much more out of it if I had been better prepared”

 One of the biggest mistakes I see people making in their networking is not being prepared.

 So here are my top five tips for being prepared for a networking event :
(and you won't find anything about perfect elevator pitches and lots of business cards....)

 1.  Leave your elevator pitch in the office.   No  one goes to a networking event to buy so why do so many people insist on introducing themselves with a sales pitch?

2.  Know exactly what it is you want to achieve: Your networking efforts should be directly linked to your business objectives.

3.  Know who you want to meet.  No I’m not talking about clients. Remember no-one goes to a networking event to buy!  Network to connect with the people who share your target market. The people with whom you can create alliances partnerships and referral networks.   Which leads on to #4.

4.  Be crystal clear on exactly who your target market is. And no they are NOT everyone!  Niche, niche, niche.

5.  Be prepared to give in order to receive. Have a set of questions prepared that will help you focus in on the important aspects of the other person’s business, who they help, how they help them, what they are looking for help with.  That way you will be able to easily identify useful connections for them and other ways that you can help and support them.

 Networking World provides networking training for small business owners and runs regular networking events where elevator pitches are strictly forbidden and the focus of each event is on creating WIN WIN outcomes for everyone. To receive regular event updates and networking tips go to www.networkingworld.net.au

Not exactly about networking but such a fantastic article I wanted to share it with everyone in my network.

I often talk about using alliance strategies to attract new customers but after reading this article you may want to think about how you can use alliance strategies to reward and recognise your current customers and the other people in your network.

Are You Loyal to your Customers? 

By Martin Grunstein

There is always talk among businesspeople about how price preoccupied and how disloyal customers are these days. Many businesspeople complain that some of their long term customers switch  brands or providers when they are offered only a slightly better deal by their competitor. “Where is the customer’s loyalty?” they cry.

Guess what?

I think most businesses are LESS loyal to their customers than their customers are to them!

How often do you see companies offering a special deal to get new customers or win back old customers when very little has been done to nurture the relationship with the existing customers.

One of my workshop participants said “I used to be a loyal customer of XYZ retailer until they started having massive sales advertised in the newspaper. They are offering 30% off to people who have never done business with them before while I have been paying full price the whole time and have never received any recognition from them. They are not very loyal to me so why should I be loyal to them?”

 It is very well known that if you approach your telecommunications provider and tell them you have been made an offer by their competition, they will match that price to keep your business. So who are the people on the worst deals? The people who never complain and just continue to do business with that telco. In other words, their truly loyal customers.

Years ago my wife used to subscribe to MARIE CLAIRE magazine and she always used to renew her subscription when she received the first notice from the publisher asking her to do so. One year she forgot to renew her subscription and she received a letter offering her a make up kit if she renewed. She didn’t respond to that offer and a couple of weeks later came an offer of a make up kit and a voucher to be spent at a well known retail store. We decided to see how much they would offer her if she was “disloyal” and didn’t renew until the last minute and she eventually received over $100 worth of goods to renew. Needless to say, in future years she waited till the last minute to renew and got all the goodies.

This is ridiculous but it is the norm in the industry. The less loyal you are, the more we will give you.

Can I propose an alternative that can save money and create loyalty instead of disloyalty? When the loyal customers renew at the first opportunity (which is what the publisher wants), how about sending them a card saying “thank you for renewing, we appreciate your loyalty” and throwing in a make up kit or some other token of appreciation. That way there is an incentive to be loyal rather than to be disloyal and basically, people will do what gets rewarded – works in parenting, works in business.

I say to my clients that instead of yelling at the people who don’t pay, why don’t you reduce bad debts by recognizing the people who do pay? Get your accounts receivable person to identify all the people who have paid their account on time every month and, at the end of the financial year, send out a card saying “I notice you paid your account on time every month this year. Thanks so much for that. You made my job so much easier. I hope you’ll accept this bottle of wine as my way of saying Happy New Financial Year”.

Next year when I have 12 bills to pay each month and I am only going to pay six of them on time, yours will be the first bill I’ll pay on time every month. It’s easy to not pay a computer, it’s hard not to pay a person, it’s almost impossible not to pay a person who thanked you for paying last time. $15 spent on wine could save you $15,000 of bad debts. It all depends where you place the focus.

The word loyalty is bandied about in business with great inaccuracy.

For example, many companies have “loyalty” programmes like FLY BUYS or Frequent Flyer programmes or “Get your 10^th coffee free cards”. Please understand, these are NOT loyalty programmes, they are incentive or, more correctly, bribery programmes. If you spend $17000 on petrol, you can fly to Melbourne. Getting every 10^th coffee free is effectively a 10% discount. How can you tell it’s not a loyalty programme? Because when you take away the programme, the customer often leaves too.

Let me tell you the very important difference between recognition and bribery. It is where it happens in the sales process. Recognition happens AFTER the sale and bribery happens BEFORE the sale.  Let me give you a couple of examples of recognition that are cheaper and more effective than bribery.

My financial planner rang me before Melbourne Cup day a few years ago and said he was having a FREE Melbourne Cup sweep for his best clients to thank them for their business. He told me what horse I drew and that there was a big hamper at the office that would be mine if my horse won.   I didn’t win….but I told about a dozen different people about my financial adviser and I think he picked up a client or two from my recommendation stimulated by the free Melbourne Cup sweep.

He could have run ten Melbourne Cup sweeps for 240 clients and generated ten times the goodwill. And perhaps he did. I don’t know and I don’t care. All I know is that I felt recognised and I was motivated to tell others about him.

One of my clients in the optometry has a friend who owns a book shop. Whenever he sells a pair of reading glasses for the first time, and the frames could be anything from $100 to $1000, he sends out a thank you card and a paperback novel he buys from his friend for $5. The card says “Thanks for buying your glasses from us. We really appreciate your business. I hope you’ll accept this book with my compliments and enjoy reading with your new glasses for the first time.”

The optometrist says he gest lots of word of mouth referrals from the $5 book and those people all pay full price for glasses when they do business with him. What is his competitor doing? BUY ONE, GET ONE FREE which has been decimating profits in the eyecare industry for over 20 years.

I am not saying that there is anything wrong with having an incentive for new customers to do business with you or for existing customers to do more business with you, just don’t call it a LOYALTY programme.

It is important to know that people are loyal to people, not companies or incentive programmes. If you want me to be loyal, remember my name, get to know me and ask me about what’s happening in my life when you see me, give me a call to see how my business is going or give me something  that is not linked to me buying from you.

That’s what creates loyalty!

The day telcos or airlines or retail stores start spending more on recognition for their existing customers than they do on bribery for potential new customers, that’s the day we will see more customer loyalty in the marketplace, but not before.

About Martin Grunstein

Martin Grunstein’s outstanding results with over 500 Australiasian companies across over 100 industries has made him this country’s most in-demand speaker on customer service. He is available to speak at your next conference or meeting and is contactable on 0296623322 or martin@martingrunstein.com.au or you can go to www.martingrunstein.com.au.

I tweeted this networking tip last week:

 “Set yourself a specific goal 4 each networking event you attend. Then measure your effectiveness.”

 Someone replied and said “ Love that idea but it's easier said than done, isn't it? How do you get conversations to happen as you would like?”

 What a great question!  And the answer is all in the goals you set.

 First of course you can set the standard highly achievable networking type goal… “Meet and exchange business cards with at least five people and follow up afterwards”

 Unless it is a very lonely networking event that’s not hard to achieve but in my view it’s not a very useful goal either.

 What 5 people do you want to meet?  What is your business objective?  When I first started networking those were the sorts of goals I set.  I attended a LOT of networking events and drank a lot of cups of coffee for absolutely NO result!

 Your networking goals need to be directly linked to your business objectives. Otherwise how do you justify the time and money you spend on networking events and how do you measure the ROI?.

 So lets talk about business objectives.

 The obvious networking objective for most people is “to get new clients”.  So traditionally we prepare our beautiful 30 or 60 second infomercial designed to captured potential client’s interest in the amazing results we will achieve for them.

 When I first started networking 8 years ago with my new web-design business my first step was to network for clients and armed with my well rehearsed 60 second infomercial that is exactly what I did. But I learned pretty quickly that that didn’t work. 

 No-one goes to a networking event to be sold to.  But there we all are with our yellow pages ads pinned on our foreheads exchanging the wonders of what we do and feeling like used car salesmen.  It’s what most small business owners think they have to do at a networking event.  They hate doing it.  They hate being on the receiving end of it.  But they still keep doing it.  It’s what gives networking such a bad name and worse still it doesn’t work!

 So what’s an alternative networking objective?

 After I had been in business for about three months and having very little success with my networking our franchise company issued a newsletter about a franchisee in Ireland who had built a highly successful business using these things call “strategic alliances” .  Well I had no idea what they were but I wasn’t very successful so I thought I had better see what he had been doing.

It turned out that he had built his entire business working with printers from all around Ireland.  Whenever a printer came across a client who didn’t have a website (and back then there were plenty) he offered them a complementary  internet marketing assessment from his colleague the web-designer.

 So I changed my networking goal.  Instead of networking in the hope of meeting people who wanted a website I set the goal of either meeting or getting an introduction to at least three printers from every networking event I attended.  

 Instead of feeling uncomfortable “selling” myself I simply asked as part of the conversation.. I’m looking for a good printer that I might be able to create a working relationship with.  Can you recommend one?  

 Then I realised it wasn’t just printers I could work with but also graphic designers, photographers, computer repairers, business coaches, copywriters.. the list goes on.

 I stopped selling myself at networking events and started looking for connections with people that I could create WIN WIN relationships with.

 So what are your networking goals and how are you managing the conversations to achieve them?

If you have a networking question or challenge you'd like to ask the SMART Business Networker you can post you question to "Ask Brenda"  visit us on Facebook or Tweet your question to NetworkingWorld

 If you would like to learn more about how you can use strategic alliances to network and grow your business visit www.networkingworld.net.au for free resources and information.

If the answer is NO and I think it probably is because I have been to a LOT of networking events and never met anyone wearing one, then I have to ask.. Why do so many people wear a mask on Social Networking sites?

If you are using LinkedIn, Facebook or Twitter as a business relationship building tool then please don’t hide behind a mask by uploading a photo which is NOT of you or worse still not uploading a photo at all. 

How many people do you know who look like this?

Upload a quality professional photograph that reflects the business image you want to portray. 

 And on the subject of your profile photo on Facebook, LinkedIn and Twitter -  a few other things to think about.

Would you take your family to a business networking event?

Would you show up at a networking event in your bathers, gardening clothes, or the dress you wore to the ball last night?

Would you turn up at a networking event carrying your favourite motorbike, car, teddy bear or hat?

 If you are using Social Media as a business relationship and business development tool remember your best referral partners,clients or potential client could be watching!

Think about the image you portray, everything you say and everything you post as if you were at a live networking event with all your referral partners, clients and potential clients in the room.

Just read a great blog post “Goodbye, Facebook” suggesting that you save time and declutter by leaving Facebook.  Some great points. But here’s an alternative viewpoint.

 From a business (and even a personal) point of view Facebook is an invaluable networking tool for making new connections and keeping in touch.  The key is in how you manage your time on Facebook. 

 If you are constantly logged into Facebook, always checking updates and chatting to friends it pretty much the same thing as spending your entire day in the local coffee shop, chatting with everyone who comes in and keeping up with all the gossip, useful and NOT useful.  If you did that you would be wise to say “Goodbye” to the coffee shop.

 Instead schedule specific times of the day to spend on Facebook. Do specific activities while you are there. The GET OFF and get on with your life and your business. 

 So instead of saying Goodbye, Facebook.  Why not say “See you later, Facebook”

I was at a networking event the other day and one of the attendees exprerssed concerns at how difficult she was finding it to find new customers, not knowing where to advertise and who to create alliances with.   When we asked her who her ideal clients were she replied "Everyone" .

Therein lies the problem. 

One of the most common mistakes I see new small business owners make is thinking that they have to have "everyone" or "all business owners" as their target market. Contrary to what you may want to believe, the whole world is not your market. Even if everybody CAN use your product or service, there is a specific group with an intense need or desire for the benefits you offer.  
 Identifying your target market enables you to find opportunities and tap into them. It gives you the information needed to focus on the buyers that are interested in what you have to offer. This will save you both time and money and is absolutely critical in finding the right marketing opportunities and identifying and connecting with potential referral partners and forming powerful strategic alliances.. 

So if you are new in business, or even if you have been around for a while, if you find yourself saying "my potential clients are everyone or all small business owners, or all women..." etc.  Do yourself and your business a favour, STOP and work out exactly who your ideal client is..

How old are they?
Where do they live?
Are they male or female?
Are they married or single?
The list goes on..

The great thing is that once you have done that you will easily be able to work out where and how to advertise,  you will be able to spot other people who share that target market that you can create power alliance strategies with, and your referral partners will be able to easily recognise your ideal clients so they can refer them to you!

I was at a networking event last week and someone asked me for my business card.  Out of politeness I obliged and an exchange of business cards occurred.

All fine so far.

So how did she follow up? A “nice to meet you” postcard or letter? No. A friendly phone call?  No.  A polite email?  No.

Over the next two days I received TWO e-newsletters from that person.  Obviously I had been added to her mailing list.

I don’t know about you but I get far too many e-newsletters that I have subscribed to without receiving those that I haven’t subscribed to and have no interest in.

When someone gives you their business card at a networking event it is NOT automatic permission to add them to your mailing list. 

If you want to use networking as a direct means of growing your database here are a few legitimate ways of going about it:

1.  Send people you meet a friendly follow up email and offer them the option of opting in to receive your newsletter if they are interested. 

2.  Ask when the person gives you their card if they would like to receive your newsletter.  Please ONLY do this if they have already expressed an interest in your products or services as you are really putting them in an uncomfortable position if they are not genuinely interested.

 3. If the event lends itself to it you could try this method. I was at an event where everyone was doing a “sixty second infomercial”.  At the end of her infomercial one person suggested that if you wanted to receive her “very informative and useful newsletter that only comes out once a month” then please write “NEWSLETTER” on your business card when you give it to her. I noticed lots of people writing on their business cards before handing them over. 

4.  Ask the organiser if they would be happy for you to donate a prize of some sort so that people can give you their business card in order to win the prize.  Make sure that you make it clear that by entering your prize draw they are opting into your newsletter list.

There are THREE huge benefits to only adding people to your newsletter list when they have expressly given you permission to do so:

Firstly you will not upset people you meet at networking events which I think is rather important. After all once you have upset them how likely are they to ever buy from you or refer business to you? 

Secondly you will end up with a quality database of people who are genuinely interested in your products and services rather than a list of people who have NO interest in what you have to offer and are simply on your list because they were polite enough to give you their card when asked.

Third, if you do add people to your list without their permission you run the risk of them reporting your emails as SPAM.  Too many of those and your email newsletter provider may Black Ban you and you will find yourself with NO LIST at all.  URRGGHHH!

Have you been the victim of unscrupulous networkers adding you to their list without your permission?   Or do you have a great way of following up that encourages interested people you have met to subscribe to you newsletter?  Please share in the comments section below.

I was talking to someone a few weeks ago who said “I’m not ready to start networking yet, I haven’t got my business cards or my brochures ready.”  Big Mistake! A month later she was still waiting. Perhaps if she had started networking BEFORE she ordered her business cards and brochures someone would have helped her find a more reliable supplier.

Also how much other helpful and completely free advice could she have collected before her business really started?

Don’t wait until you have all your ducks in a row before you start business networking. Networking isn’t (or shouldn’t be) just about canvassing for new clients.  Networking is about working together to help and support one another.  Why not use that help and support to get those ducks all lined up instead of trying to do it alone?

What have been your experiences of networking before you felt you were really ready or did you wait till you had all your ducks neatly lined up?

 If you’re looking for a business network that focuses on how members can help one another and not on trying to sell to one another check out SMART Networking Forums. SMART Networking Forums are the result of what over 500 small business owners said they wanted (and didn’t want) in a networking group.

I don’t know about you but I don’t give referrals lightly. After all if I refer someone to another business I am putting my reputation on the line. I have to know you, trust you and have complete confidence in your ability to deliver to the highest possible standard before I will refer my friends, colleagues or clients to you.  

So I am constantly surprised when I hear people at networking events asking other attendees they have never met before to refer business to them.

Please if you want referrals, take the time to build a relationship. Get to know one another.  Focus on ways that YOU can help the other person. Work at becoming a trusted resource and advisor. Show that you are worthy of receiving referrals before asking others to trust you with them.

Let’s face it no-one goes to a networking event to be sold to.

When was the last time you heard someone at a networking event ditch their pitch and instead stand up and say.. I’m looking for a top quality widget seller. Can anyone recommend one? 

It doesn’t happen does it?

I don’t know about you, but if I’m in the market for a something and I am looking for a referral here’s what I do:

1.  I ring or email people who I think may be likely to know and whose opinion I respect to ask if they can recommend someone.

2.  I ask for recommendations through social media (well I suppose that’s pretty much like standing up at a networking event)

3.  Then if all that fails I search on Google and try and find one of those websites with endorsements from previous clients. Got two tradies that way last week. It worked like a charm and they both turned out to be fantastic. 

What I DON’T do is go to a networking event to listen to a heap of elevator pitches from people I have never met before in the hope that one of them will turn out to be selling what I am looking for. Do you?  If so there are hundreds of small business owners delivering their pitches every day at networking events who'd LOVE to meet you.  They might be able to make a sale.

So why do those people persist in delivering elevator pitches at networking events?  We’d be much better of saying what we are looking for or what we are facing a challenge with and seeing if anyone can help.  Try it sometime. You may be pleasantly surprised with the result.

Love to hear your thoughts?

 Want to be part of a networking group where elevator pitches are banned and everyone is there to help one another?  Check out SMART Networking Forums.