Vintage Filings Business Blog

Following up on our online networking series of blog posts, I thought this Friday I would share ten practical tips for successful networking.  With the current economic challenges, professionals are taking advantage of this low-cost ways such as networking to build new relationships that can lead to business opportunities.

Business networking’s purpose is to build solid relationships, “which is more than just an exchange of handshakes at events,” according to Jania Bailey, President and COO of FranNet. “The best business relationships are when everyone can exchange ideas, information and support, and possibly allow everyone to learn a new skill.” Here are some tips to maximize your networking efforts:

1. No immediate Gains. The purpose of networking is to build mutually beneficial relationships that will form out of more than one event.

2. Best networking tool: listening! This sounds easy but you really need to listen to the person and really hear how you could help them which will in turn help you.

3. Be yourself. You want to build relationships and a rapport with fellow networkers. They want to meet genuine, trustworthy contacts as much as you do.

4. Size does not matter! Surprisingly enough, small groups will be more likely to send you referrals than larger groups -focus on quality not quantity!

5. Not a contest. Just collecting business cards is not a networking game. You cannot build a relationship by just handing out your business card.

6. Focus on building relationships. Networking is a long term project that can build your list of contacts over time that will last long after the network group.

7. Follow up! You need to follow up with contacts soon after the event. This is when you can meet with the person to really find out what they need and how you can help them.

8. Ask open-ended questions. Make sure to ask questions that cannot be answered with just one word and questions that allow longer explanations.

9. Be a good networker. Share referrals and ideas with people. Sometimes you will need to be the first one to get the ball rolling.

10. Secret formula: listen and follow up. These two tips were previously mentioned but collectively are key to successful networking.

Have you taken advantage of the power of Twitter yet for your company? (Make sure to foll us on Twitter here: http://twitter.com/vfilings) It seems like everyone, especially in the media, is answering that question in 140 characters or less with a “tweet” and letting their “followers” know what they are up to each hour of the day. But is Twitter something that is in its infancy, something that is just a media darling or has it already experienced its fifteen minutes of fame?

Opinion of Twitter

Just under half of advertisers (45%) say that Twitter is something is in its infancy and its use will grow exponentially over the next few years, while one in five (21%) believe Twitter will not move into the mainstream and is something mostly young people and the media will use. Just under one in five advertisers (17%) believe Twitter is already over and it’s time to find the next best thing while 17% of advertisers say they don’t know enough about Twitter to have an opinion on it.

Among consumers it is a different story altogether, as over two-thirds (69%) say they do not know enough about Twitter to have an opinion about it. Just over one in ten say it is just at its infancy (12%), 12% also say it is just something that young people and the media will use and 8% of consumers say it is already over and it’s time to find the next best thing.

As might be expected, there is also an age divide on opinions of Twitter. Younger advertisers are more likely to have an opinion on Twitter than their older counterparts (only 11% of 18-39 year olds do not know enough about Twitter to have an opinion compared to 20% of advertisers 40-49 years old and 21% of advertisers 50 and older). Among consumers, the same applies and only half (55%) of adults, 18-34 years old say they don’t know enough to have an opinion, compared to 80% of those 55 and older.

Effectiveness of Twitter

Among those who have an opinion regarding Twitter, feelings about the effectiveness of it for promoting products and ideas are lukewarm among both consumers and advertisers. Among advertisers, just 8% say Twitter is very effective for promoting products and ideas while half (50%) say it is somewhat effective. One-third (34%) of advertisers say it is not that effective and 8% believe it is not at all effective for promoting products and ideas. Among consumers, 8% also say it is very effective for promoting ideas and products and 42% believe it is just somewhat effective. Three in ten (31%) consumers say Twitter is not that effective and 19% feel it is not at all effective for promoting products and ideas.

Although those of us who watch cable newscasts can’t help but notice their proclivity to invite us to follow the show or host on Twitter, it does not seem as though Twitter has made it mainstream yet, let alone to its edge. While advertisers and marketers expect Twitter to grow, its effectiveness as a marketing tool will most likely hinge on consumer education: consumers need to learn more about what it is, why they should pay attention to it, and why they should “tweet.” It is the advertisers and marketers who should play the lead role in promoting consumer education if they truly want to move Twitter beyond infancy and into its “tween years.”

Advertisers continue to rely on a mix of media types, although print is clearly suffering, partly at the expense of Internet and digital advertising.

The Media Mix

There is a divide in what types of advertising are being used in media campaigns. On one hand, more than nine in ten advertisers (92%) are typically incorporating Internet advertising into their media campaigns while 88% say they are incorporating print advertising. At the same time, less than half say they typically incorporate radio advertising (46%), television advertising (46%) and digital advertising, such as through cell phones (39%). There is a regional difference here as advertisers in the South are more likely to use radio advertising (57%) and television advertising (56%) while those in the West are least likely to use both (39% each).

Among those advertisers who are using each of these types of media, there is a difference in the level of their usage since last year. Three-quarters of those who use Internet advertising (74%) say they are incorporating it more often while 69% of those who use digital advertising are incorporating that more often when compared to a year ago. Just under half (48%) of those who use television advertising are using it the same amount as last year, but 38% are using television less. Those who use radio advertising are split, 46% are using it the same amount while 43% are using it less often. The largest drop is with print advertising as half (49%) of those who use it are using it less often relative to a year ago while 41% are using it the same amount.

Internet Advertising

Among those who use Internet advertising, just 14% say they only use it as a standalone digital campaign, while over half (54%) say they use it in an integrated campaign with other media and 33% use Internet advertising in both types of campaign equally.

More specifically, Internet advertising is used in a broad number of ways. Four in five advertisers who use Internet advertising use it as a branding device (79%) and two-thirds use it to drive information gathering for an offline transaction (65%). Slightly less than three in five advertisers (58%) use Internet advertising to drive online transactions while 57% say they use it to promote community around their brand, through such things as message boards, memberships and fan clubs.

Consumers, however, find many characteristics of Internet advertising very frustrating. Four in five consumers (80%) say they find ads that expand on the page and cover the content very frustrating while 79% say ads where they can’t find the close or skip button are very frustrating. Three-quarters of consumers (76%) find Internet ads that automatically pop up very frustrating while two-thirds (66%) say ads that open if they are “moused over” are very frustrating. Three in five consumers find both animated ads that automatically start playing and ads that play music and/or have loud soundtracks to be very frustrating (60% for both).

So What?

Given that half of all advertisers are using print media less as compared to a year ago, it is not surprising that so many magazines and newspapers are folding. Nor is it surprising that some of the survivors are publishing less frequently or instituting employee furloughs.

Although the trend among advertisers is clearly towards the Internet, advertisers have to walk a fine line. At least three in five consumers are very frustrated with six of the main Internet advertising characteristics, and there is the potential to see a backlash forming. To be successful, those that advertise on the Internet will need to come up with more engaging ways to connect with consumers.

These are some of the results of a new LinkedIn Research Network/Harris Poll of 1,015 advertisers from agencies or corporations who are involved in the advertising decision making process surveyed online between June 22 and 30, 2009 and 2,025 U.S. adults surveyed online between June 24 and 26, 2009.

Americans are continuing to tighten their belts with almost two-thirds of Americans saying they are spending less overall and two-thirds saying they are less likely to take out a loan. They are also weaning themselves from plastic with one-third saying they are using their credit card less often than before.

Other changes in how Americans are spending, saving and borrowing behaviors include:

• Americans are saving their money in safe havens. One in five (21%) of those with personal savings and one in 10 (10%) of those with retirement savings have added bank savings and CD’s to their portfolios in the past six months.
• When it comes to their equity investments, Americans are staying the course. People are as likely to have added to stocks and mutual funds in their personal savings (8%) as to have moved personal savings out of stocks and mutual funds (9%). With their retirement savings, 10% have moved their retirement funds out of stocks and mutual funds and 7% have added to stocks and mutual funds.
• In spite of this fiscal restraint, many Americans have no cushion to weather a downturn, now or in their retirement years. Almost one-quarter of Americans (22%) say they have no personal savings and three in ten (30%) have no retirement savings.
• Middle aged and upscale Americans are cutting back most on their credit card spending. More than 4 in ten 40-49 year olds (45%) and 50-64 year olds (41%) year olds say they have used their credit cards less in the past six months. Four in ten of those earning $75,000 or more (41%) have used their credit cards less.

So what?

The economic crisis has profoundly affected consumers’ spending, saving and borrowing. Despite some shots of good news about the economy, consumers are not ready to start spending as they did before the economic crisis. But consumers don’t have to be alone during this crisis. Financial services firms can partner with them to help people save wisely and to borrow responsibly. Producers of consumer goods and services can help consumers economize by communicating value as well as small luxuries or simple pleasures. Companies might want to look into “giving back” to their communities at a time when Americans who do not have a cushion may be in need of help. It is especially important to communicate optimism so that Americans can begin to gain back confidence in their economic futures.

Does your company have a mobile marketing plan?  With the number of mobile subscribers expanding on a daily basis, setting up a strong wireless foundation is key to:

• Increasing market share
• Differentiating from the competition
• Opening up new revenue streams through mobile syndication

In today’s economy, where companies demand maximum results from invested marketing dollars, the mobile channel packs promising, powerful results. “Recent consumer surveys have shown that, on average, mobile marketing campaigns are showing remarkable response rates ranging from 2% to more than 20%,” said Tim Suther, Acxiom’s senior vice president for multichannel marketing services. “This high response rate, combined with a low cost of delivery, represents a highly effective channel for marketers.”

In a ravaged economy, salespeople are on the front lines, working harder than ever to keep merchandise moving despite vast reductions in spending and dwindling lines of credit.

Sales training needs have changed drastically due to the faltering economy, said Executive Professor Randy Webb, Director of Undergraduate Studies in The Program for Excellence in Selling at UH Bauer and former CEO of Uncle Ben’s Rice. The conference will address that landmark shift, with an emphasis on leading-edge issues in the theory and practice of sales management during a downturn.

“If you are a salesperson, you want to be well-prepared in a recession so that you have the knowledge, experience, determination and resilience to succeed,” Webb said.

Webb and Stephen Haines, Vice President of Sales and Marketing for Centex Homes Houston, recently spoke about some of the strategies they advocate in difficult times. “Before, it was pretty much just keep people lined up and take orders,” Haines said. “Now is when you need real sales people to be successful. Sometimes the best defense is a good offense.”

So, what constitutes a pro, as opposed to the “order takers,” sales people who are out in full force when the economy is great but who struggle in times like these?

“The better ones, despite the circumstances, are not likely to hunker down,” said Haines, who has managed sales teams for nearly 20 years. “They’re almost always out there thinking of a new way to generate sales.”

He and Webb recommend sales people get back to basics, offering these pointers:

• Accept, acknowledge and deal with the drastic change in the sales environment. “Face it head-on,” Webb said. “You can’t deny there’s a problem. People are going to be very wary about what they buy. First, they don’t have the money. And second, there’s fear. Look at the amount of wealth on paper that’s been lost.”

• Check your attitude if it’s negative and/or anxious. Attitude, more than ability, determines whether a salesperson will be successful, Webb said.

• Listen, then be a problem solver. This is not the time to market wants and wishes. “Your job is to uncover real needs. There has to be a real mutual benefit,” said Webb. Haines agrees, offering this perspective: “Don’t prescribe to your customer; discover the problem they’re having and come up with the solution.”

• Pay attention to details and don’t be afraid of repeating key points numerous times. Don’t assume a potential customer will remember what you say. “They can never hear it enough,” Webb said.

• Stay informed. “Read the Wall Street Journal; pay attention to what’s going on in Congress,” Haines said. Keep up on current local events such as company relocations, consolidations and other business activity, Haines noted. The information can then drive the way you or your customers do business.

• Conversely, don’t over-analyze all the negative news to the extent it keeps you from doing your job. One of Webb’s colleagues summed it up this way: “Close the newspaper, turn off CNN and go sell.”

Despite the fact that 77 percent of business technology decision-makers engage with social media on the job, most B2B marketers are not effectively using social technologies to influence the purchasing decisions of their customers, according to new research from Forrester.

“B2B buying is fertile ground for emerging community sites, social networks, and user-contributed content,” said Laura Ramos, vice president and principal analyst at Forrester. “But most B2B marketers miss the nuances of their audience’s preferences by jumping directly to deploying social technology without first profiling the social behavior of their customers. Knowing buyers’ behavior lets marketers set the most effective social media strategy instead of blindly trying every new technology that comes along.”

According to the Forrester survey, technology decision-makers actively participate in social media as it relates to their job. The Social Technographics Profile segments buyers into six categories based on their social activities:

• Creators — 27 percent publish a blog, publish Web pages, create/upload video or music, or write articles and post them online.
• Critics — 37 percent post reviews of products or services, comment on someone else’s blog, or contribute to online forums.
• Collectors — 29 percent use RSS feeds, vote for Web sites online, or add tags to Web pages or photos.
• Joiners — 29 percent maintain a profile on a social networking site or visit social networking sites.
• Spectators — 69 percent read blogs, listen to podcasts, watch video from other users, or read online forums and reviews.
• Inactives — 23 percent do not participate in any social media activities for work purposes.

Despite these activities, social media has yet to effectively influence a large part of the technology buying process. Fifty-one percent of survey respondents feel social media doesn’t play an important role in the purchasing process, and 60 percent of survey respondents don’t find blogs more valuable than editorial content for informing purchase decisions. More than three-fourths of respondents said peers influence their purchase decisions more than any other media or information source.

Nearly half of all online shoppers plan to spend less this year, but a majority of those reluctant to make certain purchases (61%) can be positively influenced by online shopping resources, according to a new study based on a survey of over 800 consumers nationwide. The study shows that consumers are going online earlier when making purchase decisions on products and services and are finding significant value in online content tools that connect them to the opinions and behaviors of other shoppers. These tools are particularly relevant to shoppers who are cutting back, as those affected by economic conditions seek more validation for their purchase decisions.

The study found that online shoppers will be more reluctant to make purchases in the next 12 months primarily in the automotive sector (50%), travel (46%), and consumer electronics (43%). Consumers looking to reduce their spend are particularly diligent about shopping around – 42% visited 3 or more sites to research their last purchase – and nearly all consumers are spending more time online prior to purchase. In their 2008 Retail Consumer survey, JupiterResearch found that only 33% of online shoppers had made up their minds about the price they were willing to pay for their purchase in advance of going online to research. Even fewer began their research having made up their minds on which item or title to choose (31%); which brand to buy (23%); which store they would use (16%); or when to make their purchase (13%).

This shift in behavior provides retailers with an opportunity to engage shoppers through content that connects them to products and builds their confidence in these more carefully researched purchases. Following search, and manufacturer and store sites that connect consumers with products and services, shoppers who research their purchases online look to content sources that help inspire, discover, and confirm their choices, including user ratings and reviews (77%), and recommendations based on other consumers’ purchasing or browsing behavior (66% and 65%, respectively). The study also found that these content sources offer a good opportunity for developing long-term relationships by addressing consumer needs and concerns.

“Shoppers trust and use the opinions of others in making choices about products and brands,” said Brett Hurt, founder and CEO of Bazaarvoice. “As consumers head to the web to research online and offline purchases, companies have a tremendous opportunity to provide them with the authentic user-generated content that is proven to build confidence, increase satisfaction, and drive sales. The benefits of user-generated content are amplified in a bad economy, and this is why 9 out of 10 of the Internet Retailer Top 50 who outsource reviews choose Bazaarvoice.”

Let me introduce you to your best friend and sometimes worst enemy: social media marketing. You have heard the success stories of companies driving powerful consumer awareness via a viral video on Youtube or attaining expert credentials through relevant blog postings. However I want to talk about what happens when social media marketing gets ugly. If you purchase advertisements through an online ad network, there is a strong possibility that you do not know where your brand its being displayed. This has two negative components:

• Your business could be placed next to brand harming content
• Your banner ads could be simply filling in remnant inventory, which means you are practically guaranteed to lose your return on marketing investment

So what can you do to protect your brand’s reputation in the marketplace? Focus first and foremost on where your ads will be shown. This is where traditional advertising had it right. Companies paid based on placement, not solely on impressions. Secondly, experiment and choose innovative advertising mechanisms. If your marketing strategy has little to no risk, then you will produce little to no results. Good examples of fresh advertising placements are:

1. Sponsored blog posts
2. Video advertising
3. Mobile marketing

Social media marketing can be your best friend, but only if you have a well thought out plan and clear objectives.

A phrase I hear countless companies say in regard to advertising is, “I know I am wasting half of my marketing budget, the problem is that I don’t know which half!”  This is a common dilemma that is directly related to where, when and how you are distributing your brand.

A research report was just released by Advertising Age that revealed that the automotive industry would be much better served by transitioning away from television towards radio. This case study is key in understanding domain expertise. If automakers migrate away from television to radio they could be able to dramatically cut their collective marketing budgets while still hitting their target audience; thus increasing their advertising ROI.

If you feel that your marketing dollars are being wasted on the wrong mediums, don’t get frustrated… GET FOCUSED!