Networking
Author:
Mort Murphy
Word-of-mouth and referrals are, more than ever, critical to the success of accountancy practices. Competition is intense and increasing, and clients are becoming more knowledgeable and demanding. Conversely, prospective clients seek out recommendations from their peers and contacts on who to do business with. They do this to reduce the risk of dealing with someone new or unknown. So how do we align our desire to grow our client base with our prospects' desire to appoint a service provider as a result of a recommendation or referral?
Hit & Miss
Networking is a vital activity but can be a bit of a hit and miss. Not only that but when you go to a networking event, your competitors are likely to be there also. You see potential prospects but may lack a support structure in which to engage comfortably with them or to arrange follow-up. This frustrates a lot of decision makers. Anecdotal evidence suggests that the biggest gripes of those attending events are: "I met nobody", "There were only the same faces there", "I never got the chance to speak to the one person I really wanted to talk to".
We all know those people who love mixing with the crowd and look as if they were born to be hosts, but for the rest of us mortals it's not so easy. Yes, we know we should just go on over and talk to that "stranger". Yes, we know we should organise a follow-up meeting with someone we've just briefly met. But let's face it - when we are on the spot it isn't so easy, is it? We have all heard the success stories but how can we ensure that we are part of that business success?
Building on Your Current Contacts
Potential clients are referred from various sources, as well as from existing clients. Taking clients out to lunch is always a good idea, but do you ever feel like you could be getting a little more from the relationships you already have?
Once you have developed a relationship with someone, maintaining it becomes the key. A good way to do this is to participate in networking groups that allow you to meet on a regular basis and have a structure in place that will encourage you to pass business to each other. This allows you to formalise the relationship and gives you a way to stay in regular contact.
Identify & Strategise
Do you know what a good referral is for you? Do you tell your contacts what kind of business you really want? These may seem like flippant questions, but very often people do not clearly define who exactly would make a good referral for them. Is it someone setting up in business, an owner-manager, someone looking for venture capitalâ?¦?
Once you have identified precisely the type of person you are targeting, the next step is to make it easy for your contacts to refer you. Let your contacts know how you have helped your clients recently. Did you save them money on their tax bill? How much money? Give specific examples without giving away confidential information. It is not what you do for your client that's important, but how you helped them.
The next part of the process is to strategise on how best someone can refer you to their contacts. Is it as simple as them picking up the phone and asking their clients to meet with you? Would it be better to attend a networking event together and introduce each other to your respective contacts? When introducing two people, why not suggest that it would be worth their while arranging a follow-up meeting. It is easier and perceived as less 'pushy' for the individual who knows both parties to suggest this than for the people who have just met.
Engage & Evaluate
Once the introduction is made, ensure that you take the time to evaluate its success. Did you get the result you wanted? If not, don't be afraid to go back and begin the strategising stage again. Was the referral strong enough? Is there a better way to make the introduction or was it just bad timing?
Remember if you are to make your networking count, you need to forge strong relationships with people who can refer you business and who you can refer to. To sustain profitable relationships, referrals need to be reciprocated. Ensure that there is a structure in place, either by joining a networking group or organising your own meetings, whereby passing referrals is nurtured and encouraged and make sure you are getting the most out of your networking time.
Mort Murphy is a Director of Business Network International (BNI),"the" business referral organisation. www.bni.com.