The real value of Networking

While every business development professional dreams of out of the blue phone calls from potential customers, they seldom happen.

It’s really important to remind ourselves that most new business opportunities come from following up on referrals and tips from your own network of friends, clients and contacts. We all know the old saw about it being 6 times more cost-effective to sell to existing clients- well then just how important is it to network well? According to research done by Communispond Inc in the USA-

• Fewer than 1 in 500 names from a purchased list or blanket mail campaign become warm leads-


• 1 in 100 people you cold call will turn into business, but one in 15 of those will refer you to someone else-


• More than 1 in 10 personal referrals turn into real business opportunities
  

So it’s worth asking yourself, your sales managers and their salespeople what steps they are taking to build regular networking opportunities and rigorous follow-up.