A whistle blows to mark the end of the four minutes allocated for each introduction and there is a scramble to find a new contact and sell yourself all over again.
It’s a format that will be familiar to anyone who has signed up for speed dating. This, however, is about a different kind of relationship.
With speed dating, the evening guarantees a large of introductions in a short space of time. It is one of the newest ways to meet a partner and has revolutionised the dating game.
However, at an exclusive club in Liverpool, it is not romance that nearly 30 participants are looking for, but developing valuable business contacts. And the organisers believe that speed networking for business will become as big as the speed dating idea that spawned it.
After being invited to see it for myself in the bar of the Racquets Club in Liverpool, beforehand a few people introduced themselves. Some had been before and acknowledged old acquaintances, but for many it was a step into the unknown.
In a large, upstairs room, everyone was seated while the master of ceremonies made the introductions.
Then, with the simple rules clearly outlined – find someone to talk to on the blast of the whistle; four minutes later, when another whistle blows, stop talking and meet someone new – it was off to do a bit of rapid networking.
The idea is not to hard-sell, but that didn’t stop one of my contacts from trying to flog me a deal to cut the price of my phone and utility bills. He was, however, the exception.
Overall, the evening is not about selling, but more about cultivating business contacts, though there are always a few who try.
To be fair, it was not a one-way street. Many were genuinely interested in what I did and were happy to talk about their own business. Four minutes is just enough to make the most cursory summary of each other, but everyone carried business cards to hand out after each session.
It was a fairly intense event, and a good idea in principle, although there were too many ‘suppliers’ eager to sell their products to other networkers who were not ‘buyers’ – an equal mix of buyers to sellers would have been ideal.
This brand of networking came about when Glenn Robertson was talking to a friend who had been on a speed dating evening. They realised the technique could be adapted, and 18 months ago the idea was born.
Unfortunately for them, with any innovative idea, it is not long before others catch on. They hold evenings once a month in both Liverpool and Chester, but similar events are being held nationwide as others follow the lead.
The speed networking is incorporated into a membership package offering online networking lead generation, which lets members know quickly about suitable business opportunities.
If somebody types in their business needs, then they are put in touch with providers via email and text messages. It has cost tens of thousands pounds to get the technology up and running, but it can be seen as a useful way forward for businesses.
Friday, 27 November 2009
Thursday, 12 November 2009
How To Use Word Of Mouth Advertising
Recently I flew with the Dutch airline KLM, and I had the worst flight I’ve ever had.
Halfway through the flight it came to light that behind us was sitting three Interpol agents who were extraditing a felon back to Ecuador. I cannot begin to tell you want is wrong with this scenario – especially when they gave him metal cutlery with his in-flight meal!
This was one in a long line of shortcomings which I haven’t got enough time to go into here.
Why am I telling you all this? Because this is a lesson that all firms – including KLM – should learn: that good old word of mouth advertising is still the best advertisement any business can generate even in this day of high technology.
Literally billions of pounds are spent by the huge corporations getting brands established in the public eye. Yet when all is said and done, a simple recommendation from a good friend or acquaintance will count for far more than any glitzy advertising campaign ever will.
Put simply, word of mouth advertising is the most powerful advertising medium any business can harness. In a world full of advertising noise and hype we become quite immune to the continual bombardment of the senses by the big spending companies and mostly ignore the message they are delivering.
This is why so much money is thrown at advertising by all business just to get themselves heard.
Did you know a full 80 to 90 percent of many company start-up budgets are directed into advertising? Spectacular failures have been witnessed in recent times as many Dotcom companies have failed to live up to the hype and glamour projected by the advertising agencies.
Often the collapse occurred after many millions of unwitting shareholders’ money was wasted.
In a conventional system of manufacturing and retailing the company produces the product for a known figure. Say the company is a vehicle manufacturer and a car they sell through a dealer is sold for (not worth) £10,000.
The manufacturer of that car would produce it for around £4,000 net cost which would include them making a profit from the car when sold to a dealer.
However this is just the start of the costs. To establish a strong position in the market place they then allocate perhaps 50% of the cost of manufacturing the car to advertising. So they have to make £6,000 to break even. On top of this they also have many hidden costs of running and maintaining expensive machinery and research and development projects.
This is all before the car even leaves the factory floor. So by the time the car is shipped to a dealer the actual price has been increased by a staggering 100 percent.
Then to top it all off, the dealer does their advertising so they can compete with all the other dealers vying for the customer. In all, 60 percent or more of the retail price of a car can be eaten up in distribution and marketing costs.
How much do you think a can of Coke would cost to manufacture? If you answered 5p or less you are close to the mark. It is somewhere under 5p to produce.
Yet that same can of coke after everyone has had a slice of the profits is sold to the public for about a pound. Now if someone tells someone else about this “great drink” do they get paid for it? Not on your life!!! The advertising agencies account for a great slice of the profit and the retailer makes the rest.
To harness the power of word of mouth is really the key for success in business nowadays, considering that consumers believe more about what other consumers advise than anything else.
Halfway through the flight it came to light that behind us was sitting three Interpol agents who were extraditing a felon back to Ecuador. I cannot begin to tell you want is wrong with this scenario – especially when they gave him metal cutlery with his in-flight meal!
This was one in a long line of shortcomings which I haven’t got enough time to go into here.
Why am I telling you all this? Because this is a lesson that all firms – including KLM – should learn: that good old word of mouth advertising is still the best advertisement any business can generate even in this day of high technology.
Literally billions of pounds are spent by the huge corporations getting brands established in the public eye. Yet when all is said and done, a simple recommendation from a good friend or acquaintance will count for far more than any glitzy advertising campaign ever will.
Put simply, word of mouth advertising is the most powerful advertising medium any business can harness. In a world full of advertising noise and hype we become quite immune to the continual bombardment of the senses by the big spending companies and mostly ignore the message they are delivering.
This is why so much money is thrown at advertising by all business just to get themselves heard.
Did you know a full 80 to 90 percent of many company start-up budgets are directed into advertising? Spectacular failures have been witnessed in recent times as many Dotcom companies have failed to live up to the hype and glamour projected by the advertising agencies.
Often the collapse occurred after many millions of unwitting shareholders’ money was wasted.
In a conventional system of manufacturing and retailing the company produces the product for a known figure. Say the company is a vehicle manufacturer and a car they sell through a dealer is sold for (not worth) £10,000.
The manufacturer of that car would produce it for around £4,000 net cost which would include them making a profit from the car when sold to a dealer.
However this is just the start of the costs. To establish a strong position in the market place they then allocate perhaps 50% of the cost of manufacturing the car to advertising. So they have to make £6,000 to break even. On top of this they also have many hidden costs of running and maintaining expensive machinery and research and development projects.
This is all before the car even leaves the factory floor. So by the time the car is shipped to a dealer the actual price has been increased by a staggering 100 percent.
Then to top it all off, the dealer does their advertising so they can compete with all the other dealers vying for the customer. In all, 60 percent or more of the retail price of a car can be eaten up in distribution and marketing costs.
How much do you think a can of Coke would cost to manufacture? If you answered 5p or less you are close to the mark. It is somewhere under 5p to produce.
Yet that same can of coke after everyone has had a slice of the profits is sold to the public for about a pound. Now if someone tells someone else about this “great drink” do they get paid for it? Not on your life!!! The advertising agencies account for a great slice of the profit and the retailer makes the rest.
To harness the power of word of mouth is really the key for success in business nowadays, considering that consumers believe more about what other consumers advise than anything else.
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