ONE of the first things that any marketing student will learn is that it costs on average eight times as much to win a new customer as to retain an existing one A bit like football where it is easier to stay in a division than it is to win promotion.

The message for businesses is very clear and even more so in troubled economic times – do everything that you can to keep your existing customers. A good customer is like gold dust and should be treated as such.

Working within BNI we should regard our fellow members as valued customers with whom we build long term relationships to mutual benefit.

The great differentiator of the BNI is that our networking is relationship based in contrast with other networking groups which are much more akin to one night stands.

It has been said that businesses are either product or customer led. In simple terms a product led business has a product or service that it then tries to find customers to which it can sell.

On the other hand a customer led business makes real efforts to discover what its customers want and sets out to meet that need.

There are no prizes for guessing that it is the second kind of business that can expect to do best.

We live in a world that is full of businesses that fail despite providing an excellent product or service that no one seems to want to buy.

As the saying goes – there is no point in having the best white shirts in the world if no one wants to buy white shirts.

Growth is the entirely laudable objective of most businesses but this should come on a solid foundation.

Expansion that leaves behind its existing customers and leaves them unhappy is a recipe for failure.

Toyota will pay a heavy price for leaving millions of unhappy customers as a result of a bid for growth that has left its core values or reliability and build quality on the hard shoulder.

To get the best out of BNI we remain faithful to the core values of “givers gain” of “farming rather than hunting.. More

There are numerous myths about networking! Here are just a few.

 More

What does the 1 to 5 scale on a referral slip signify? This is what Cheryl Luscombe wrote to a BNI member...

The 1 to 5 scale simply measures how ‘hot’ it is:  this could be in terms of the likelihood of it going ahead, e.g. If it’s for a new conservatory that someone definitely wants to get done and the BNI member has been highly recommended, but they don’t mind waiting for the work to be started over the next weeks/months, then it’s a ‘5’; or in terms of urgency, e.g. Someone needs a new van for the business now – they have various options, so you should call them before the competition gets in.

Importantly referrals should always be followed up that day or by the next day at the latest – Even if the referral is a 1.  

This is because a BNI member has worked hard to get that referral, talked to the potential client to let them know someone would be calling – The quicker that call is made, the better the BNI network/your business credibility looks. The more that initial call is delayed, the ‘colder’ the referral gets.   

Here is what happened to Cheryl in her own words...

"A conservatory salesman received a referral from me (for my house). It was a definite 5 as my husband and I want it done over the next couple of months. It took him 2 weeks to call me (business credibility plummeted). He then scheduled an appointment for noon on Monday. By 12:30, no one was here, so I called the office who said they would get back to me. They got back to me the next day and asked to schedule a new appointment. Business credibility out the window!

Keep an eye out for the new advanced skills workshops coming out in August and running every month. Attend the workshops and avoid simple mistakes that might cost you business...

Interesting Quote...

 "I've missed over 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game-winning shot... and missed. I've failed over and over and over again in my life. And that is why I succeed."    

Michael Jordan       

Why not call someone who has repeatedly said "no" and ask them again.       More