My career has been comprised of sales, sales management and recruiting. I've worked for some of the largest companies in the world: Wal-Mart, General Electric, Gannett, as well as a couple small ones and start-ups (including my current firm--no longer a start-up after 5 years in business). With the exception of one (the giant retailer) each company relied heavily on cold-calling to generate new business. My definition of cold-calling is when a sales rep targets a company and/or individual that he or she thinks meets the demographics of a potential buyer and then without invitation (this is key, hence the italics) either picks up the phone or walks into their office in an attempt to initiate a sale. Cold-calling is marketing, pure and simple, albeit a caveman-like strategy in an electronic age. I've been giving a lot of thought to this lately because until a year or so ago, our company relied heavily on cold-calling to generate new business. Our cold-calling efforts have delivered a decent chunk of revenue for us over the last few years, however last year I decided to abandon the strategy completely and I haven't looked back.
It is Thursday a.m. and so far on two occasions this week I've had a knock at my office door only to have four total strangers (two on each visit) walk into my 10"x10" office and proceed to launch into a sales pitch. The first pair was peddling a local tire dealership offering 90% tires (my car is under warranty at my dealership) and the second was for "guaranteed savings!" on my color printing (I probably print all of two documents a month in color).
All four used the same strategy: walk-in, get comfortable--one guy immediately sat down--and start talking at me like I'm a 9 year old. In both situations I had to stop them in mid-pitch to say, "Guys, I'm NOT interested. Thanks AGAIN for stopping by." You're probably wondering how these individuals got past our receptionist. Well, the short answer is we don't have one--we have a phone and a nearby directory. Our partner whose office is closest to the front door is usually the first person hit on by these door-knockers. He thinks it's cute to tell them that he doesn't have purchasing authority but to be sure to go see me because I hold the purse strings (not necessarily true)--so he can pawn "bad cop" responsibilities on me. But lately it's a role I'm embracing. I now recognize what an outdated, old-school, ineffective strategy cold-calling is and it is one of the main reasons turnover in sales is so high. I would like to personally apologize to all those purchasing managers and perceived "decision-makers" that I dropped by over the years to have a little chit-chat with, completely interrupting their day and wasting both of our time.
Companies continue to employ cold-calling for a couple reasons: first, they perceive it to be cheap (it's not) and second, marketing (legitimate, creative, permission-based marketing) is hard (not always). Over the next few days or so I'm going to be discussing how our firm has been able to successfully secure new business without cold-calling a single person, while at the same time continuing to use proactive recruiting, what some would perceive as cold-calling (it's not) to find the highest qualified candidates for our client's open positions.
Tips For Cold Calling
Is cold calling a part of your lead generation process? If so, then this article may contain the secret to doubling or even tripling your appointment rate. Let me give you an example.. I received a cold call from a stockbroker just the other day. With his name and the name of his firm changed to protect their privacy, here was his opening statement: "Mr. Beverly, My name is John Smith. I am with XYZ Financial Services. We are a full service brokerage firm and offer everything from stock, bond and options trades, to banking relationships such as CD's, checking and loan services. Our investment advisors are recognized as some of the best in the business. I would love to have the opportunity to sit down with you to discuss how we could help you get the most from your money."
What do you suppose my response was? "Well, Mr. Smith, I do appreciate your call, but I currently have a brokerage firm that provides all of those services." "I understand," he said, I have found that we are able to offer our clients excellent customer service. I'm sure you are interested in great service aren't you?" I said, "I certainly am. I get good customer service from my firm now and wouldn't be interested in changing, but thank you for calling." "OK," he said, "but if you change your mind be sure to give me a call."
Now, I'm sure many of you are looking at this and thinking, "That's terrible. I would never make that many mistakes." But you might be surprised. How many of us start our conversations with prospects by telling them all about our company and our products? It may sound gross, but I call this "puking on your prospects." In most cases it is about as welcome as that. Telling me that your firm has been in business for 50 years, or that your service is "second to none," or telling me about all of your wonderful products does nothing for me except make me want to get rid of you.
Now, let me tell you what would have gotten my attention and when applied to your product or service will get the attention of your prospects. How about this instead, "Mr. Beverly, this is John Smith with XYZ Financial Services. I wonder if you could help me for just a moment? (This may be the most important question in your opening. You will be amazed when 87% of your prospects agree to continue. Be sure to wait for a response. When you get the yes, you have just received permission to tell them what you can do for them.) My company specializes in helping our clients achieve returns superior to those they have achieved in the past, while minimizing their tax liability. If you have just 2 minutes, I would like to ask you a couple of questions to see if there might be a reason for us to have a more in depth discussion." You'll get 82% affirmative here. Now, you have asked for and received permission to gather information about your prospect. No phony promises, only the promise to find out more about your prospect so that you can deliver the best possible solution to their needs, rather than a canned product or service that you provide to the masses.
The reason that this works so well is that you have indicated an interest in your prospect, and they have given you permission to do so. This works exactly opposite of the "puking" method which tells your prospect that you have no other agenda than to sell what you have to offer, regardless of their needs. You have successfully brought down the wall that sprang up immediately after your prospect realized he was speaking with a sales person. While the wall may not completely disappear, at least you have lowered it enough to begin a relationship, which will in turn give you your best opportunity to find his needs and wants and meet them with your product or service.
WIFM, or "what's in it for me," is the key here. Never forget that particularly on that initial contact, your prospect could not possibly care less about your company or your products. He only cares about how it is going to change his life for the better. Be prepared to answer that question or be prepared to underachieve in your sales career.
Both Thad Greer & Greg Beverly are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Thad Greer has sinced written about articles on various topics from Flirting Tips, Work From Home and Family Concerns. Thad Greer is an Executive Sales Recruiter and the Managing Partner with Priority Recruiting Solutions, Inc. , a nationwide retai. Thad Greer's top article generates over 5400 views. to your Favourites.
Greg Beverly has sinced written about articles on various topics from Sales and Negotiation, Pet Guinea Pigs and Legal Matters. Greg Beverly, CPA, MBA has been helping sales professionals achieve their dreams for more than 21 years. To visit www.sales. Greg Beverly's top article generates over 4400 views. to your Favourites.
