Get More Business From Your Next Networking Event

At networking events, many entrepreneurs stand in the middle of the crowd not recognizing that there is a great deal of business waiting for them…if they only knew how to get it.

The skills necessary for getting appointments and business from networking events are learnable…it doesn’t matter if you’re shy or unsure, you can learn how to make networking events work for you.

One of the key purposes of my Free “Let’s Get Connected” networking events is to provide a networking environment that has been staged to give you a practice field that is fertile, safe and fun. Many people use the Mr. Bob’s “Let’s Get Connected” events to practice and hone their networking skills and I devote a good deal of my time there to help people get connected and get more business.

The next “Let’s Get Connected” event is September 14 at the South Shore Community Centre in Barrie. I challenge everyone to make it a goal to go to this networking event with the conscious decision that they will practice their networking skills and get appointments from the event. I will be there to do whatever I can to help you succeed with networking.

As you plan on going to a networking event, you may be asking yourself “What do I need to do to get ready and get more business from it?”

The best thing you can do is PREPARE! You want to go to the networking event with the mindset of someone out to find new business.

Here are some suggestions to help you go to the event prepared to get more business:

(1) Set an objective: This not an event, it is beginning of a process.

For example my goal is to find businesses: that are looking to grow, want new sales, find effective ways to promote their business, and pay less for advertising.

So, my objective is to set up 10 appointments.

(2) Go Ready. What do I bring to the event? I am shocked about how many business owners tell me they forgot their cards and brochures. This is what I bring: Business cards, my appointment calendar and fliers for the free networking table.

(3) Be Approachable. While you’re at the event, I am wandering around. I find that being easily identified makes me like a sign. Other attendees come up and speak to me because they now know who I am. That I am approachable and I can connect them with what they need.

In advance of your next networking event, I’d be happy to mentor you on going ready and with a “Get More Business” mindset. The people I’ve worked with on their networking skills find that not only do their apprehensions about networking fade away, but that they get more business!

40% Growth in New Referrals

J.C. Mitchell Insurance experienced just that: a 40% growth in new referrals... largely attributed to listening carefully to their customers.

Mitchell worked with The Cassels Corporation to develop a customer survey that not only developed a better understanding of client needs, but also played a role in developing the company’s future direction. The follow-up utilizing a call centre (Simcoe Message Centre) allowed customers to express more and resulting in a growth in new referrals.

“Customers are made to feel wanted. In the fast-paced world of financial services, if you’re not taking the step of linking with your clients, you’re missing the boat, “ says Mitchell in an interview in the June 2000 edition of Huronia Business Times.

“Companies lose customers in 68 per cent of cases due to an attitude indifference”, says Bob Cassels, President of The Cassels Corporation. “If a customer really knows what you do, they can tell other people. People buy from people, not because of product. The majority of people deal with someone they like” (Relationship Marketing).

Besides getting feedback from customers, an independent Cassels Corporation Customer Survey is an opportunity to share information about other services and products that the business can provide.

BONUS: 35% growth in additional sales comes from better-informed customers buying more and 40% increase new clients through referrals.

Customers are fighting back. They are demanding better service, and if you don’t provide it, your competition will.

Who Should You Spend Time With?

"There are so many prospects to call on! I really don't know where to start! If only I had a system that I could handle." Jane was tossing and turning in bed at 4 a.m. Her husband sat straight up in bed and said, "enough, you're driving me crazy. Tomorrow I will take you to Mr. Bob who knows about systems for crazy people like you. Now let's get some sleep."

After breakfast Harry phoned Mr. Bob to find if he could spend time with his sleep-deprived wife. At 10:30 am they had settled down in Mr. Bob's deli and were sipping on their double Turkish coffee. Mr. Bob walked over and commented, "You must be really desperate to be drinking that stuff."

Jane started by explaining that in her financial services business she was spending too much time running around doing a lot yet still producing few results. She knew that she had to simplify her efforts to build and grow her business.

Mr. Bob thought for a moment, smiled and recounted a true story of someone with a similar problem whom he had helped.

"I have a good friend named Bruce," he said. "We both like systems that make our lives simple. With our collective knowledge we came up with Bruce's Funnel system."

"In essence, we took all of Bruce's market and put them at the top of an imaginary funnel. As members of this market became more and more interested in Bruce's products, they became hotter and hotter prospects as they reached the spout at the bottom of the funnel."

"These prospects then became customers. That is the model of how we qualified his potential market. The reason for this model was to put in place promotions that would move a prospect towards being a customer. Newsletters, seminars and articles accomplished this for Bruce."

Bruce was now free to spend more time on productive things. Of course, he spent time working with his customers but he recognized that he needed to build better relationships and turn customers into clients. Customers just buy stuff whereas clients have a stronger relationship.

"Bruce also recognized that there was a third category. These categories produced referrals and in some cases were not customers or clients. They could be friends, family and associates. He recognized that this resource was his most profitable."

"Bruce's strategy was to concentrate on building more word of mouth referrals from his existing referral partners and spending time to increase this referral network to others."

"The results of his efforts were quite interesting. He found that the promotional activities became a liability, and the real revenue producers were his word of mouth referral networks."

Jane just sat there stunned.

"You mean that Bruce spent most of his time working with people who gave him referrals, and converting clients and identifying other natural referral producers? How did he do it?"asked Jane.

Mr. Bob replied that, in Bruce's case, he loved to play golf and he built relationships by playing golf with people who were likely to give him referrals. Others, he took to plays or sent them tickets, took to dinner and, to some, he just said "thank you" and mean it, the results are huge.

The point is people like to be recognized and appreciated for helping you. When you say thank you and mean it the results are huge.

In summary:

• Identify your referral producers
• Set up a system to monitor referrals
• Say thank you for referrals
• Don t waste time with non-referral-generating pastimes

Mine Your Assets

Mr. Bob had a visit from a small business owner who owned a residential cleaning company. She wanted to build her business and had budgeted another $2,000 for advertising. She wanted guidance on how best to promote her business.

Mr. Bob asked the business owner what she had done in the past, and she replied that she had spent $2,000 on advertising. Mr. Bob asked if the advertising had worked.

"What do you mean, did it work? When you buy advertising there are no guarantees. You place an ad and hope that it works. It is just part of doing business," was her reply.

"Well, let's try and work out what results you got from the advertising. Let's measure your advertising success. How many clients do you have and how much revenue do they generate?"

The owner responded that she had 39 clients, each of whom paid her $45.00 a month or approximately $600.00 a year.

To Mr. Bob's next question, "Out of those 39 clients, how many became clients as a result of your $2,000 of advertising?" the owner replied that the advertising had brought one new client to her.

"So why do you think advertising is the way build your business?" asked Mr. Bob. "You have 39 customers, of whom only one came directly as a result of advertising. Where did the other 38 clients come from?"

She replied that they had come from friends, family, word of mouth and referrals.

"Well, then," said Mr. Bob said, "Let's look at how best to build your business. Your greatest success in gaining new customers comes by word of mouth referrals. What do you think would happen if you developed an incentive program for giving you referrals? For example, if one of your customers gave you a referral, you could acknowledge that referral and show your appreciation by giving your customer a gift -- flowers, a dinner out, a free cleaning up to the value of $45, or if the referral generated a larger contract, you could give a larger gift. What do you think would be the result of that type of advertising?"

"I would get lots of new customers," she said.

In summary:

• Does your advertising work?
• Is advertising the method to build your business?
• Ask yourself, what approach gets your best clients
• Identify and act on the strategies that make sense, not nonsense

More Than Just a Place to Buy Stuff

Henry Miller, a car salesman, was not having a good day. As a customer service representative and sales associate for a large company, he dealt with clients and looked for new prospects on a daily basis. But today, nothing seemed to be working. He had used his regular sales pitch of emphasizing the value of the products his company offered, the reasonable prices, and the easy payment policy. No one was buying and he couldn t understand why. He was relatively new to this company, and didn't want to lose his job, but he couldn't see how he'd be able to make any commissions selling products that everyone else seemed to carry. Thoroughly frustrated, he put his head into his hands and tried to think of what he'd been doing wrong.

Frank Simes was Henry's supervisor. He'd been monitoring Henry's calls and watching Henry's frustration mount and, deciding to do something about it, called Henry into his office.

"This is it. I'm going to be canned," Henry thought, as he followed Frank into the inner office. Surprisingly, instead of being fired, Henry found himself being invited to lunch.

As they walked to lunch, Frank asked about Henry's family and how he liked working for the company. Henry talked animatedly about his wife and children and more cautiously about his job.

"Here we are," Frank said, stopping suddenly in front of a corner grocery store. The store was small and well kept, with bright signs proclaiming, "Welcome" and "Come on in".

For the second time that day, Henry was confused. He hadn't even known the grocery store was there. He usually went to the larger chain grocery store around the corner. And he never would have thought that they served lunch.

Looking around curiously, Henry saw that, even though it was a small store, the cashier's line was full and people were milling around filling their baskets. Henry couldn't believe that this store had such a steady clientele. He would have thought the larger store around the corner would have drawn all the customers away.

Settling down at the cafe tables near the deli counter, Frank began to talk. "I'm sure you're wondering why I brought you here for lunch," he began.

"It had crossed my mind," Henry said, swallowing nervously.

"When you look around, what do you see?" Frank asked. Sensing a trick question, Henry hesitated, trying to find the "right" answer.

"Let me tell you what I see," Frank said, letting him off the hook.

"I see rows upon rows of neatly arranged, and easily obtained food products. Products that can be purchased at the larger chain store around the corner, and are probably cheaper than here. I see nothing special or significantly different in the layout of the store, or the quality of the produce. Yet the store is full of happy and purchasing, customers." Henry listened quietly, his eyes following Frank's hands as they gestured about the store.

"You have to ask yourself then, as a sales professional, how this small, ordinary store has survived the appearance of a larger, flashier chain store around the corner." Frank paused to take a sip of his drink.

"Let's look again and try to figure it out. See there, near the cashier. That sign on the wall that says "Ask about our Birthday Club". There's a clue for you."

"A clue? The Birthday Club is a clue? What is The Birthday Club?" Henry asked, amused and a little intrigued.

Frank smiled. "So glad you asked. The Birthday Club is a program the owner set up to give a little something to his customers on their birthday. Mr. Bob, that's what everyone calls him, collects his customers' information, what they buy and sends them a gift and a gift certificate on their birthday. Sometimes it's a little bookmark or other such trinket, but always something he feels the customer will like. He includes a gift certificate for a certain amount and chooses a birthday card to go with it. It's been a big hit with the customers, and it gives Mr. Bob something valuable at the same time."

"What does Mr. Bob get in return? He gets to know his customers, their likes and dislikes, and their buying needs."

"How is that information valuable?" Henry asked.

"Once the chain store moved in a few years ago, Mr. Bob knew he'd have to offer something to his customers that they couldn't get in the other store. He realized that people today were not buying products in the same way any longer. Many stores carried the same products with minor variations. So how did customers choose whom to buy from? He determined that people were buying personality, not product. He began to get to know his regular clients, and to try to reach his occasional ones. He tries to greet them by name, if possible, and suggest products that match their interests. A funny thing happened when he started doing this. He noticed that more and more people were discovering his store.

He hadn't spent anything more than usual on traditional advertising, but his sales had increased. He began to send thank you cards out to people who referred their friends and family to his store. Little things that didn't cost him very much, but that made the customers feel good about shopping here and remembering his store."

"So, what you're saying is, instead of concentrating on attracting the customers to what the products had to offer or which of them he carried, he concentrated on how his customers felt about shopping in his store?" Henry asked, wondering if it was that simple.

"Exactly!" Frank said, smiling. "He knew that he would never be able to compete by only emphasizing his products and prices. But if he could establish a relationship with the customers, and make them feel good about where they bought their products, then they would want to come back."

Henry thought back to the frustration he had felt earlier. Had he been looking at things the wrong way?

"People want to buy from someone they feel is attentive and honest. They don't want to be just another order number on someone's books. They can get that feeling anywhere," Frank said, finishing the last of his drink.

"Hello there, Frank, how have you been?" Mr. Bob approached them with a smile.

After introducing Henry and talking for a few minutes, Frank mentioned that they should be getting back to the office.

"Frank, thank you for bringing Henry in. Oh, and Henry, if you'd like to join The Birthday Club before you leave, here's the form. Have a wonderful day gentlemen." Mr. Bob produced a short questionnaire from the deep pockets of his apron.

"Look forward to seeing you again, gentlemen." He waved as he walked away.

Henry smiled and began filling out the form. "Hey Frank, I'd like to pick up some "Thank You" cards before we head back, if that's okay with you."

In summary:

• Build a database: collect your customers' information
• Research shows that many customers buy personality, not product
• Get to know your customers by name and what they like to buy
• Do little things like birthday cards and thank yous instead of advertising
• People want to buy from someone they feel is attentive and honest
• Say thank you to customers who have referred new customers

Who is making money while you argue?

One of Mr. Bob's favorite stories focuses on the famous legal cartoon of two defendants arguing over the ownership of a cow.

Each is pulling at one end and the lawyer is milking the cow while they argue.

Now,

Are you fighting with your competitors over the acquisition of NEW customers?

This fight for new customers is usually attained by advertising and promotions.

Now ask yourself, who is milking your cow?

or better still

Who is making money while you argue?

An interesting idea to think about

In business-to-business marketing, it costs approximately 10 times as much to acquire a single new customer as to keep an existing customer.

Many businesses lose about 25% of their customers to their competitors annually.

If you could cut 5% of that customer loss, you could add as much as 100% to your bottom line.

Let s say you allocate 6 times as much to advertising as you do for customer retention.

Suggested Formula

Acquisition Approach: you allocate $120 for advertising and acquire 6 new customers at $20 each and you spend $20 and retain 5 customers at $4 each.

Retention Approach: you allocated $60 of your advertising budget to acquire 3 customers and $80 towards customer retention for 20 customers. You could add as much as 100% to you bottom line.

Conclusion: higher revenue for the same expense, which translates to a higher revenue for the same cost.

How the numbers work!

Cost to acquire 1 new customer = $20 and to retain 1 customer = $4

Typical Customer Acquisition Formula

You acquire 6 new customer @ $120

You retain 5 customers @ $ 20

Same costs @ $ 140

Results 11 Customers

Customer Retention Formula

You you aquire 3 new customer @ $60

You retain 20 customers @ $80

Same Costs $140

Different Results 23 active customers

The Green Grocer of Yesteryear

You may remember the days of the corner grocery store. In my neighborhood, the green grocer was Mr. Jones. He called us by our first names and he knew our favourite foods. My mother preferred brown eggs, so Mr. Jones would always be sure to have them in stock for her. I preferred Black Balls as a candy, so Mr. Jones would always offer me some.

In other words, Mr. Jones, like most other merchants of his time, carried his customer database in his head. He kept track of everyone's needs and made everyone feel welcome when they stepped into his store.

Times changed and now, at the beginning of the 21^st century, we find ourselves shopping at the big box stores. Nobody knows our names or what we like and need. My mother can't always get brown eggs, so she settles for white and then complains on baking day that her cakes don't rise the way they used to.

We all miss the good, old-fashioned service the Mr. Jones gave his customers.

My name is Mr. Bob and I'd like to welcome you to my own version of the old green grocer's store. Mr. Bob's philosophy is to supply you with the same kind of personalized service, in the form of marketing advice and networking secrets that the old green grocer provided.

For example did you know that: it costs ten times more to gain a new customer than it does to keep an existing one?

Relationship marketing has been around for centuries, now businesses are focusing on gathering customer demographics to better identify market characteristics, this is called Customer Relationship Management (CRM). CRM sounds like it is designed to build customer relationships but is in fact a mass marketing tool. Some businesses have found CRM very expensive so they focus on advertising to bring in new sales. Both groups may have missed the point that they already have existing customers who will buy more and refer others. Many businesses do not realize they are sitting on this untapped gold mine.

For example, did you know that each customer knows approximately 200 potential customers? Would it not make sense to develop a strategy to build referrals from existing customers?

Small businesses should spend less effort on acquiring new customers, and more effort on keeping existing customers. In order to succeed, modern 'green grocers' need to get to know their customers in order to build a strong relationship based on mutual trust.

Mr. Bob's Philosophy

My name is Mr. Bob and I’d like to welcome you to my own version of the old grocery store. Mr. Bob’s philosophy is to supply you with the same kind of personalized service, in the form of marketing advice and networking secrets that the old grocer provided.

For example did you know that: it costs ten times more to gain a new customer than it does to keep an existing one?

Relationship marketing has been around for centuries, now businesses are focusing on gathering customer demographics to better identify market characteristics, this is called Customer Relationship Management. CRM sounds like it is designed to build customer relationships but is in fact a mass marketing tool. Some businesses have found CRM very expensive so they focus on advertising to bring in new sales. Both groups may have missed the point that they already have existing customers who will buy more and refer others. Many businesses do not realize they are sitting on this untapped gold mine.

For example, did you know that each customer knows approximately 200 potential customers? Would it not make sense to develop a strategy to build referrals from existing customers?

Small businesses should spend less effort on acquiring new customers, and more effort on keeping existing customers. In order to succeed, modern “grocers” need to get to know their customers in order to build a strong relationship based on mutual trust.

People buy personality, not product, today!

This article appeared in Huronia Business Times

by Eric Skelton September 1996

"Forget mass marketing, business people are rediscovering that an attentive ear works better and costs less, says a leading exponent of relationship marketing."

"It costs five to six times as much to find a new customer as to keep an old one," Bob Cassels, President of The Cassels, told a business audience of approximately 70 exhibitors attending the Orillia Business and Consumer Show in August. The show was sponsored by the Orillia Area Community Development Corporation.

"The trick is to understand you've already got a gold mine in your existing clients," Cassels said. "Go and talk to them and find out what they need."

Cassels advocates customer surveys, which allow a firm to find out, from the customer's view, what makes the firm different and more valuable as a supplier. The results can be surprising.

In the case of one of Cassels' clients, a manufacturer, the survey showed that the firm's clients could just as easily buy the same goods elsewhere, but they chose to patronize Cassels' client because they felt the service was attentive and the advice honest.

"People do not buy products anymore," he says. "That's why the relationship with the client is so important. You're not in the business of selling stuff anymore. Instead, ask customers what they need. It's a novel concept, but the customer will tell you."

Cassels also encourages business people to ask, when the sale is complete, what they liked or didn't like about their service. "No client will be annoyed at being asked to express an opinion," he said.

If they want to be adaptable to their client's needs, business people also have to be different from their competitors. If a quirk of the entrepreneur's personality or some aspect of the business is especially unique and interesting, that's something to be promoted, not repressed.

"Why try to copy someone else? Why try to be the same? Why not take your personality and develop it, and put it into a brochure," Cassels queried.

Cassels concentrates on small businesses, many of which don't have the resources to on enough advertising to break through the clutter produced by bigger firms.

Instead, he encourages them to exploit word-of-mouth advertising by joining organizations as BNI (Business Network International), whose members cross-promote each other's businesses.

BNI has established chapters in Alliston, Barrie, Collingwood, Owen Sound, Orillia, Penetaguishine and Wasaga Beach. Each member carries a business card wallet containing the business cards of all the members of their chapter.

When a member hears of an opportunity, which could help another member, out comes the appropriate card.

"This kind of cooperative work produces more qualified referrals and re-sales than advertising that come from phone directories," Cassels says.

He states that only two percent of calls by phone pages inquiries actually lead to a sale because tire-kickers use the pages just to get the best prices.

"To be in business in the 2000's, unfocused advertising and promotions is expensive and a liability," Cassels says. "If yours is a little company trying to get by, it's an expense you cannot afford."