FROM THE MOUTHS OF CUSTOMERS
Word of mouth—it’s the strategy most small businesses leverage to go after new business, but it’s the strategy many pay the least attention to for lack of a formalized process.
“Most businesses are winging it. They know word of mouth is important, but they think it’s a bit like the weather—there’s not much they can do about it,” says Dr. Ivan Misner, president of BNI International Inc. (www.bni.com), a networking organization with over 72,000 members worldwide, based in Upland, CA.
On the contrary. Misner and other networking experts contend there’s a lot small businesses can do to institute good networking tactics and make referrals a core part of how they attract and win over new customers.
John Jantsch, a marketing coach and author on the topic as well as president of Duct Tape Marketing (www.ducttapemarketing.com), in Kansas City, MO, advocates taking a systematic approach to cultivating referrals. One of the first steps, Jantsch explains, is to identify a target referral market and educate that market on who exactly is your optimal client audience.
Diversifying the groups a small-business owner belongs to is a surefire way to broaden a potential referral constituency. Joining a local Chamber of Commerce is not enough, experts say. There should be a variety of organizations— the Chamber, different social groups, networking organizations, etc.—and business owners should work each with respect to the audience. “Most small-business owners are cave dwellers, but networking is a contact sport. You’ve got to belly up with people to talk about their business and yours to generate repeat, reciprocal referrals,” says BNI’s Misner.
Misner also recommends cultivating contact spheres or circles where groups of business professionals in compatible areas can leverage each other’s contacts by working together. Examples of this all-in-one packaging: A florist, travel agent, caterer, and photographer for weddings, or a financial planner, accountant, and attorney for business issues. Both Misner and Jantsch also suggest developing incentives to reward those who pass on your business—these can be as simple as a thank-you note or something more substantial like discounts on your services.
In the end, networking is more about farming a long-term relationship than looking for the big win. Says Misner: “This is not a get-rich-quick scheme, but rather a way to build a solid foundation for a long-term, successful
business.”
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