Growth doesn’t happen in a vacuum for a business. Effective customer, supplier, investor, and peer relationships, value-added industry knowledge, and complementary businesses, partners, and experts can provide access to knowledge, resources, opportunities, and markets that may be hard to build in-house. Studies on business networks have been conducted many times, and they consistently show that maintaining quality relationships is important for business performance, and that the quality and diversity of those relationships matter more than the size of the network.
Strategic networking is not just about handing out business cards and making a social media connection. It requires conscious building of relationships over time that create value for each other. If businesses are operating in the context of developing unique market positions, a brand strategy firm can see networking as a component of a wider strategic system for a brand.
7 Strategic Networking Tips for Turning Relationships Into Growth
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- Use Cultural Insights to Understand the People Behind the Network
The first step in networking is realizing that there are more factors than job titles or company size that go into professional relationships. Understanding cultural insights can help identify variations in communication styles, values, expectations, decision-making processes, and relationship-building preferences across industries and markets.
This is especially relevant in the context of geographic or cultural boundaries in building relationships. What works in one business setting might not be at all the same in another. Likewise, there are a lot of different expectations for introductions, meetings, negotiation, and follow-ups.
Take the time to recognize these differences to build greater trust. Business networks research highlights interactions and interdependence rather than single transactions as the path toward the formation of relationships.
- Build a Network Around Strategic Objectives
Networking becomes much more beneficial when all the connections relate to a larger business purpose. Rather than chasing connections based on prestige or popularity, businesses can discover the skills, understanding, market entry, and connections they need to achieve future success.
These goals could span a new geographical area for expansion, new product launches, locating distributors, gaining access to special skills, or improving customer acquisition.
- Prioritize Mutual Value Over Immediate Transactions
A one-way exchange of information does not result in a strong working relationship. Reciprocity, in terms of having a reason to stay in the network, is essential for sustainable networking.
Providing relevant information, making introductions, providing expertise, providing information about another’s work, or pointing to an opportunity that may be complementary to the job allows the other party to provide value prior to any business transaction.
This is a way to convert networking from a transaction to a relationship development. Reciprocal exchanges may foster trust and provide opportunities that would not have come from short-term sales-oriented exchanges.
- Develop Relationships Across Different Industries
An all-business network, completely within the same industry, can offer helpful information, but may not be diverse enough to introduce new concepts. Relationships across the industry can bring new ideas, approaches, technologies, business models, and knowledge about customers.
Studies that have explored the concept of network diversity have revealed that it can be especially useful for large companies and those in innovative sectors.
Relationships with people outside the field of work can, therefore, be helpful in innovating and scaling up. A tech company could potentially have ties with researchers, creative agencies, logistics companies, or those that have similar customer bases.
- Turn Initial Connections Into Consistent Relationships
The introduction is only the first step to a professional relationship. Even if it’s a great connection, it can fade if you don’t follow up.
It doesn’t have to be a sales call all the time. A post about a relevant article, a professional accomplishment, an invitation to an industry discussion, or just a simple check-in after an initial conversation can keep the conversation going.
Relationship momentum builds from consistency. Research with strategic networks shows that the depth and quality of connections may be more significant to growth than the number of contacts.
- Create Opportunities for Collaboration
The introduction is only the first step to a professional relationship. Even if it’s a great connection, it can fade if you don’t follow up.
It doesn’t have to be a sales call all the time. A post about a relevant article, a professional accomplishment, an invitation to an industry discussion, or just a simple check-in after an initial conversation can keep the conversation going.
Relationship momentum builds from consistency. Research with strategic networks shows that the depth and quality of connections may be more significant to growth than the number of contacts.
- Measure Relationship Quality, Not Just Network Size
Having a large contact list may look like “networking,” but it isn’t actually productive business. Better measures are those that are based on the nature and results of relationships.
Examples of relevant indicators may include qualified referrals, strategic introductions, collaboration projects, market insights, new opportunities created, customer retention, and partnership opportunities—among others—that are attributable to the relationship activity.
Periodic check-ins of these outcomes can help determine if there are relationships that are adding true value and, if so, which ones and where networking may need to be more intentional.
End Point
The most effective strategic networking is achieved when the relationships are founded on shared value, cultural understanding, clear goals, diversity, consistency, collaboration, and measurable outcomes. Building a strong network can go beyond just referrals; it can provide access to knowledge, resources, partnerships, innovation, and new markets as well. If managed intentionally, industry partnerships can be a strategic long-term resource that can help sustain business growth.
