Peter Jones of Dragons Den fame has openly said ”networking is the most cost effective route to market there is.”
I’m not so sure…
Networking is very important indeed. It provides a very enjoyable way to extend your reach, get your name out there and meet potential new clients and suppliers alike. But I believe networking is simply part of a wider activity mix designed to reach a target audience in a number of different ways.
In the interests of pseudo-science, here are some numbers I’ve quickly calculated:
Let’s assume a networking event is 2 hours long. It might take half an hour to get there (and back), so the whole event ‘door-to-door’ is 3 hours. Sound reasonable?
Let’s also assume you’re unlikely to meet someone for the first time, for them to decide you’re brilliant and write you out a purchase order on the spot. Perhaps it takes a handful of times (perhaps 4 or 5?) of meeting people at a regular networking event to build a relationship (and trust) before you’re likely to get either a single direct lead or a referral, let alone close some business!
So, that’s around 15 hours of your time, in total. Stay with me…
The next bit is rather specific to each and every one of us, but let’s say you charge your time at £25/hr. Some people will charge more, some less, but at £25 that networking time has cost around £375.
What’s the alternative? We recently managed a direct mail campaign for a client - the TOTAL cost of which was £770, including design and distribution. That client received 67 leads. Of which, upon qualification, c60% were high quality, real, closable leads.
A one off perhaps? No. We’ve managed similar numbers three times in a row now for the same client.
So how cost effective does networking look now Peter? Who said direct mail was dead…
Do you need to outsmart your competitors? Contact us now on 0845 310 2457 to discuss what you want to achieve and how we can help you meet your goals.
Why not find out more about Business Vitamins, Strategic B2B marketing agency Suffolk.
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I love cookies. Particularly chunky ones with lumps of chocolate in them the size of icebergs. Naughty but very nice. I love bananas too. Residing at the opposite end of the healthy lifestyle spectrum, the humble banana is high in fibre, vitamins B6 and C, as well as iron and potassium. In fact, the banana is a veritable smorgasbord of healthy goodness.
Driving back from a long meeting recently, I topped up my energy levels with a gorgeous looking white chocolate cookie. Scrummy. But as I ate, I got a funny aftertaste. After initially writing this off due to tiredness, my second bite yielded the same taste. Bananas!
As intriguing a combination as this might sound, the cookie was not supposed to be laced with essence of banana. I even checked the packaging to make sure I hadn’t picked up a rogue bag by mistake!
On reflection, I thought I might like to try a banana-tinged white choc chip cookie in the future, but that moment’s eating experience was tainted beyond redemption. Simply put, my expectations were not met. No matter how nice my “Banookie” might have been, it wasn’t what I expected.
We all need to be aware of and manage expectations carefully. As a marketing business, we need to be fully aware of likely response rates to various types of marketing campaigns. We think our clients should be too.
Many businesses might be surprised to learn that according to the Institute of Direct Marketing, a normal response rate to a direct mail campaign is “only” 2.6%. Sounds awful doesn’t it? 97.4% of contacts don’t respond! So if your campaign managed a 2% response rate, is that a complete disaster? What if your campaign achieved a 5% response rate? The reality is that whilst a 5% positive response is great, most businesses would STILL feel disappointed that 95% of the letters/cards/postcards/flyers they had paid to be lovingly designed, printed and distributed were so quick to find the recipients recycling system.
Of course there are tactics we employ to ensure response rates are significantly higher, such as multi-touch campaigns or tightly integrating direct mail into other marketing activity. In this way Business Vitamins aim to ensure that at LEAST a 2.6% response rate is achieved.
And to ensure neither our clients or ourselves slip up, we'll also ensure we discuss what you can reasonably expect to achieve. You might be surprised how much!
Banana update:
Try peeling a banana from the bottom and you won't have to
pick the little 'stringy things' off of it. Apparently that's how monkeys do it. Also, take your bananas apart before placing them in your fruit bowl. If you leave them connected at the stem, they ripen faster.
Do you need to outsmart your competitors? Contact us now on 0845 310 2457 to discuss what you want to achieve and how we can help you meet your goals.
Why not find out more about Business Vitamins, Strategic B2B marketing agency Suffolk.
Or follow BizVits on Twitter? Or Like us on Facebook?Or +1 us on Google+?Or see the Business Vitamins channel on YouTube?
It’s fifty years since the first UK postcode was introduced in 1959!
A nice little factoid and one I’ll certainly file away under “useful gems for the pub quiz”… but so what, surely they’ve been replaced by that ubiquitous item of personal identity, the email address?
I’m not so sure. There’s still a place for direct mail. Yes, emails are probably cheaper than direct mail, particularly when sent in serious volume, but not that much. Yes, measurement of certain metrics is easier (try measuring the open rate of a postcard), but surely the best measurement is that of the number of people responding to a campaign?
Emails can be designed with company values and branding in mind, but being digital media, I can’t help thinking something is lost. Perhaps that’s why email marketing is FAR more effective as a method of retaining, informing and communicating with existing customers than new prospects. It’s just too damn easy to hit “delete” if you don’t know who the email is from, no matter how targeted it purports to be.
Of course the beauty of direct mail is that it’s tangible. When I open a business letter, the senders choice of paper type, paper quality, typeface, printing quality, 1st vs 2nd class stamp, and all those other touchy-feely criteria tell me something about who’s written to me. Often it tells me something positive about them, other times it's a subtle warning. The point is, they’ve communicated with me before I’ve even read what they’ve sent me!
So has direct mail had its day? Is email the new king? Or is it horses-for-courses?
Do you need to outsmart your competitors? Contact us now on 0845 310 2457 to discuss what you want to achieve and how we can help you meet your goals.
Why not find out more about Business Vitamins, Strategic B2B marketing agency Suffolk.
Or follow BizVits on Twitter?
Or Like us on Facebook?
Or +1 us on Google+?
Or see the Business Vitamins channel on YouTube?
Networking is very important indeed. It provides a very enjoyable way to extend your reach, get your name out there and meet potential new clients and suppliers alike. But I believe networking is simply part of a wider activity mix designed to reach a target audience in a number of different ways.
