Relationship-Based Marketing for Small Businesses

Small businesses often have the challenge of growing customers without advertising dollars. Relationship-Based Marketing can be a cost-effective way to grow business. The old saying, “’Word of mouth is the best form of advertising,” is true now more than ever. Below is a four-step process:

1. Define what you do and what differentiates you from the competition.
What is your specialty? What can you do better than anyone else? This will become your “brand platform.” It will help potential customers identify who you are, and it will help you target potential customers while doing small business marketing on a budget.

Once you define what you do, condense it into a conversational 30-second “elevator speech.” The reality is, today’s society has Attention Deficit Disorder. In any communication about your business, whether a traditional advertisement, or coffee with a prospective customer, you have a short window of time to capture their attention and interest. You have 30 seconds to convey your specialty and why you are uniquely qualified to provide your service.

2. Leverage your personal and professional networks.
Relationships are fundamental to any business. As much as people claim they try to stay fair and objective, people prefer to do business with colleagues they know and trust.

Before starting my own public relations firm, I was employed in a high-profile position at a local hospital. This position required me to foster relationships in the business community. However, I never fully appreciated the importance of my network until I was a victim of a layoff which prompted me to start my own company. By reaching out to my business contacts, I have been able to build a nice clientele without expensive advertising.

3. Prioritize the people in your network to target, and take them out for coffee.
Do you know an influential leader in your industry? Does someone owe you a favor? Invite them to coffee or lunch. Morning coffee appointments are often easier to schedule and are more cost-effective if you have a limited budget. Explain exactly what you do and what you are looking for. This is where small business marketing on a budget and your elevator speech comes in handy. Even if they don’t personally have a need for your products or services, they often know someone who might and can introduce you. They can also be part of your “sales force,” on the lookout for customers for you.

4. Continuously expand your network.
Many professionals, especially if they are new to town, don’t know where to start. Networking doesn’t come naturally to everyone, and people can often feel like outsiders in a new community.

Learn your community’s networking events. There are a number of networking organizations in any community, but you can only be at so many events. Identify the true “power events” where key influencers and your targeted customers will most likely be, and build a personal calendar of can’t-miss events. Trade organizations and referral-based business networking organizations are a good start, in addition to using the Web for networking.

The bottom line is that in today’s market, business will not just come to you. You have to be out there actively looking for customers. Happy networking.

Editor’s Note: Don Butterfield Public Relations is a full service public relations firm specializing in cost-effective ways to grow and promote small businesses. Butterfield has a 17-year background assisting hospitals, universities and small businesses with public, media, community, and government relations, as well as employee communications, crisis communications, Web-based communications and marketing. For a free consultation, contact Donbutterfield@yahoo.com.