The ROI of a Handshake

Handshake In business, every dollar and every effort we invest is precious, and for that investment, we expect some measurable return on investment (ROI).

Often, ROI can be quantified in terms of sales, responses or revenue. But in many cases — especially for businesses that have a complex sales process — ROI may not be quantifiable and may in fact not come back to us for weeks or months.

This is especially true when we invest in face-to-face connections with our customers and prospects. What is the true ROI of a handshake or an in-person conversation? Quantifying the value of social interactions is not as simple as other more clearly defined metrics. So why invest money, time and effort in a face-to-face connection when you have quantifiable methods available?

Multi-faceted communication

In human interactions, 90 percent of communication is non-verbal — something that is difficult to translate through video conferencing and virtually nonexistent via telephone conversations or email communications. Thus, face-to-face interactions include not only the spoken words, but incorporate a more holistic experience with gestures and facial expressions that allow meanings and emotions to shine through.

This more personal and holistic experience is important in any business-customer relationship — and vital in sales. Consider how much more powerful your sales pitch is when your potential customers can not just evaluate what you're offering, but can truly determine what kind of person you are, whether your message is genuine and whether they want to do business with you.

In fact, a Forbes Insights study published in 2009 revealed that although many business executives are turning more frequently to technology-enabled meetings (e.g., videoconferencing), they still prefer face-to-face communications. The study surveyed more than 750 executives about their meeting and travel preferences, and found that 84 percent preferred face-to-face meetings. Only 16 percent preferred "technology-enabled" meetings.

Of the business executives surveyed:

85 percent said they preferred face-to-face meetings because "they build stronger, more meaningful business relationships."
77 percent noted face-to-face meetings offer the "ability to read body language and facial expressions."
75 percent noted face-to-face meetings "allowed for more social interaction, ability to bond with co-workers/clients."

These findings align with those of another recent survey of Fortune 1,000 chief marketing officers, which found that "meetings and events provide the highest ROI of any marketing channel."

An essential tool

Although the ROI of face-to-face interactions may not be as easily tracked and measured on a spreadsheet as other metrics, meetings are an essential tool for companies to build relationships and strengthen trust with customers.

Even though most marketing and sales budgets are being developed conservatively, don't leave out in-person events in your 2011 planning!

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