Evaluating the Success of Your Networking
The clocks have changed and unbelievably, we’re into frosty mornings and dark evenings already, as we lurch towards Christmas. 2020 has not been what any of us were expecting and with ever tighter lockdown restrictions still in place or threatened in some areas, the challenges this year has brought are not over yet.
One of the many things COVID 19 has had an impact on is the way we have been networking. As a small business owner, I’ve been networking for over 10 years and it took me a while to adjust to the fact that we couldn’t network face-to-face as I love social interaction!
So, after months of Zooming and as we approach the home straight of the year, right now is a great time to start evaluating your networking strategy and how well it has worked so far this year. Then you can start making informed decisions for 2021.
To help you out, here are a few tips for measuring how successful your networking has been, and what you could change for next year.
Know What to Measure
First things first – what do you use to measure the success of networking? After all, it’s a bit of a nebulous thing, not very easy to quantify. But there are a few things you can track to give you an idea of how well things have been going, and how much of a return you’ve been getting from each group:
- Number of Activities Vs Number of Sales. How many sales have you made from each networking group? This should be not just the people in the group who have bought from you, but anyone they have referred to you, and anyone those referrals have in turn referred (and so on and so on).
- Number of Activities Vs Number of Referrals. This is slightly different from the above because it covers all the things that were referred to you but didn’t convert into sales. This helps you gauge how valuable the connections you’re making are. If your referral level is low, it might be time to re-evaluate your networking groups and activities.
- Number of Referrals Converting to Sales. Now take a look at that list of referrals and work out how many of them actually converted into sales. This shows you the quality of the referrals you’re receiving from each group. If the referral rate is high but the conversion rate is low, then either you’re doing something wrong, or the quality of referrals is bad.
- Total Time Spent on Each Group. How much time do you spend on each networking activity? Be sure to include any follow-up and any prep-work you do, as well as the actual meeting time. Under normal circumstances, you would also include travel time but for most of us, networking this year has been mainly virtual. You can then compare this to the return you’re getting from each group, and this will tell you if you’re getting any sort of ROI on your time.
- Number of Referrals Given in Each Group. Remember, networking is a two-way street and works best when referrals are mutual. If you’re a good fit for the people in your network, you’ll be giving a decent number of referrals out and recommending them as well. If not, then it might not be the right group for you.
But Don’t Jump to Conclusions!
While it’s great to track and measure your networking, you need to avoid the temptation to expect immediate results from them. Networking is a slow burn marketing activity, and it takes time to build up the relationships and trust you need to really get a return. So, you’re not looking for the results from just this month, or even this quarter – you’re looking for long-term trends.
Back in 2010 / 11 I attended a local networking group. They were a lovely lunch of people, but I wasn’t seeing any return on my money or time and after a couple of years I stopped going. However, I’d built some strong personal friendships from within the group who I have kept in touch with on social media and who I support as and when I can.
It’s been nearly 10 years since I lasted attended but a number of people within the group now regularly refer work to me (perhaps more so than they did when I was a member). I realise, looking back, that my attendance at this group was an important part of building my reputation as a new local business. By getting to know the members, many of whom with hindsight weren’t my ideal clients, I established myself as a reputable business within in my town. They in turn talked about me to others and that in itself is worth dividends.
Remember the Added Value
Of course, it’s also not all about the money! There are other kinds of value you can get out of networking groups. For example, the supportive and collaborative atmosphere you can get at a meeting. Support and learning are often key-value indicators. So look at what you get from each group, both in terms of money, and of other, intangible benefits.
Approach your networking strategically
Networking is, or should be, part of your business and networking strategy. Having evaluated your networking efforts of 2020, it may now be clear that some groups are not a great fit. In which case, you may conclude it’s time to move on.
Don’t forget networking groups come in all shapes and sizes – women only, structured, informal, etc. Therefore, it’s worth taking a moment to think about you, and your business personality and values. Think about your business goals, your ideal clients and what you want to achieve from your networking. Think about how much time you can realistically afford to spend on networking. With all that in mind, you can then make an informed decision about any new networking groups that might work well for your business.
Planning your pitch
It’s all too easy to just turn up to an event, virtual or real. But successful networking requires more than that. The 1-minute pitch should not be underestimated, particularly if you deliver a pitch each time you attend. You need to plan both what you say and even how you say it. It’s got to be memorable, on brand, to the point and crystal clear. I’ve heard all too many business owners try to so too much about “the many hats” they wear. The result is that no one is left with a clear idea of what it is you’re actually looking for. And that makes it pretty hard to refer or recommend you!
We’ve gained much and have much to look forward to
With luck, in 2021 networking groups will be able to start meeting in person again, although until then, we all have to make the most of Zoom meetings. Whilst these may not always feel as good as the real thing, as you look back on 2020, it’s worth remembering that Zoom kept us going through some of the really dark times.
Those meetings kept you in touch with the world from a business and a human perspective. And there is great value in that. You’ve probably also learnt valuable skills about how to present yourself online. And whilst the end of the pandemic my feel a long way off, networking can and should still play a valuable part of your business strategy.
If you would like to have a chat about networking, I would be happy to share my own experiences and recommend the groups that have supported me throughout the last 10 years. You can contact me here.