Benefits of networking for businesses (part 1)

Preface

I’ll be the first to admit that I don’t regard myself as an expert in networking, so don’t take this as advice or recommendations in any form. In this 4-part article on networking for businesses I’ll be sharing some of my personal thoughts and experiences on the topic of business networking. It’s been beneficial to my business, obviously limited by my own abilities and availability, but at least I hope it will give you food for thought when considering how it can benefit you in your business as well.

Word of mouth Marketing

Regardless of how much money a business might spend in marketing and advertising, one of the best sources of business is through personal referrals, or word of mouth marketing. Word of mouth marketing is as old as history itself, but its effectiveness is not lost even today in its modern interpretation, namely social media.

The power of testimony – “I’ll have what she’s having”

Do you know the scene from When Harry Met Sally? After Sally shows her ‘enthusiasm’ in the restaurant, another diner across from her chooses to order the same dish with the words “I’ll have what she’s having”. But why would she say that and what does it mean?

Aside from having experienced a product or service yourself, the next best thing would be to receive someone’s personal testimony or recommendation, even more so when it comes from someone that you trust. Isn’t it natural to think if someone has had a good experience with that product or service, then you might as well? The recommendation might be from a family member, a friend, or someone who is or is perceived to be trustworthy or credible (ie, do you feel more compelled to listen to someone who wears glasses and a white coat?) but on receiving that recommendation, I’m sure you would be more likely to buy that product or service yourself, right?

Likewise, if someone you knew or trusted made a complaint or raised concerns with a certain product or service, would you be more likely to avoid it? I think you would. But let’s assume for the moment that you’ve got a good product or service, how do you get the message out so that you can get the recommendations or testimonials that push business your way?

Viral marketing – indirectly marketing to the masses

Marketers are always trying to come up with different strategies to spark word of mouth marketing, and this often brings to mind viral emails or viral Youtube videos. When it works, it spreads like wildfire and with the internet, it’s easy to see the number of hits or interest shown as it can quickly soar into the millions and continue to grow exponentially.

Sure – large scale viral marketing is great for mass exposure. It’s like standing on a box in the middle of the street with a megaphone and shouting at the crowd, however it still doesn’t beat the power of face to face networking, especially when it comes to building a relationship or connection with your consumers rather than just drawing attention to yourself. Without a relationship or connection, drawing attention to yourself is just that – it’s there for a moment and gone the next. Retaining public attention requires more commitment and with commitment comes a relationship.

The reality is that we all prefer to do business with businesses/people that we know or are familiar with – and even more with those that we have a relationship with or even like . Big brands rely heavily on this and that’s why we’re constantly bombarded with their branding in every aspect of our lives. They become part of us and so we trust them (to varying degrees). But what if you’re not a big brand?

Stay tuned… there’s more coming

In the second part of this article, I’ll be discussing the benefits of small business when it comes to business networking and some of the options available to you if you’re in small business when it comes to networking for business.

Author: Ern Phang

Ern Phang is the solicitor director of Phang Legal and has practised law since 1998. He has extensive experience in providing legal assistance to small and medium businesses, developing business policies and procedures, and improving corporate management and governance.