Sales Moves: Is cold-calling a thing of the past?
Posted: Monday, February 22, 2010
Views: 385
This message is brought to you by: "Reg. Fixer Pro"
Yes!
Cold-calling is over. The only people who don't realize it are the people still making them. Or worse - their bosses.
I am in a LinkedIn group called Sales Gravy. I'm following a thread about the ROI of cold-calling. It's interesting to see how salespeople view making a lot of calls.
As you read my posts, you will gain insight to my philosophy and get a few sales tips on how to avoid cold-calling forever.
There were more than 100 other posts - here are mine:
• My definition of calling for sales since 1992 has been waste of time. I have upgraded it since the onset of the Internet to a total waste of time. Oh, some people make sales calls - but not nearly as many as with referrals, by a margin of 50-1. Whatever your thoughts are about cold-calling - one fact is undeniable: Of all the options, the sales calls is by far the lowest percentage.
• Which would you rather have - 100 calls or 100 referrals? People have to cold-call because they are transactional with customers (they have a hunter-farmer, 1970s mentality) and don't take the time to build memorable relationships that lead to referrals. Instead of spending a day calling everyone, why not spend a day with existing customers to earn referrals.
• Focus on delivering real value to your best customers, and relationships will blossom. Real revenue comes from long-term relationships, not one-shot deals. Anyone trying to tell me that, "Cold-calls work, or I made a lot of money calling customers" will get my agreement. I did it, and have made a lot of money calling people for sales. But I have made millions by writing, positioning, delivering value first, and creating a reputation of excellence. And I recommend you do the same.
• (Someone's post) The only accurate statistic I can quote is, "You miss 100 percent of the shots you don't take."
• (My response) Eh, almost Bill - closer to accuracy is - You only miss 100 percent of the calls you do make.
• As I said in my other posts - some people have success cold-calling. I have had success calling mostly, at the C-Suite (with referred inside information) - but with reputation, relationships, and referrals, it blows away all stats on calling for sales, and reduces the sales cycle time from connection to sale. You can say all you want about how great calling is - but the fact remains it's the lowest percentage of sale among the options available. There is a bright side to cold-calling - it's a great place to learn how to sell. It calls for real mental agility to get to the real decision maker, and preparation combined with creativity once you do. And you feel great when you finally do make the sale. But in today's business world, where most of the calling takes place on the phone or online, you're much better off with a referral - or better - when someone calls you.
• If you're in sales, you should spend the majority of your time in front of people who can say yes to you. If you're making cold-calls, the majority of your time is wasted on people saying "no."
• No wonder everyone fails at cold-calling - no one gets what the real objective is: Get to the decision maker, and create the atmosphere where he or she wants to buy (not to sell them). Until that takes place, the ROI stats on calling is under zero. Reality: The cost of lost opportunity for not investing your time in other sales generating activities, like earning referrals, relegates you to having to cold-call. The three elements are not: art, best practice, and science. There are four elements: engage, provide value, prove worth and get a signed contract - any other results are an utter waste of time and effort - not to mention an annoyed potential prospect, lost forever.
• I've been reading with amusement all the comments that have been posted about "how to" cold-call - the one above is a classic example (here is an exact quote from the post: "And here is a by-product of calling customers: When you call in, you learn where the receptionist sends salespeople. That is, now you know where your competition is being sent and you can make sure to protect that entry point in the future.) It's sharp thinking, and a great sales thought - it's just starting at the bottom, and a rehash of 1980s thinking - and it takes five calls to get anywhere. If you used the business power of LinkedIn, or the social media power of Twitter and Facebook, this kind of sales-stealth would not be necessary. In 2010, sales is not about one out of 10 calls, or getting through the gatekeeper, or calling and hanging up.
Interesting that most of the people posting here have few if any LinkedIn connections, almost no recommendations, no Facebook fan page, and under 250 Twitter followers. In other words, they are doing things the way I did things in 1975 (taking freight elevators in New York City to get to the floor of the buyer and walking in with no appointment). It was fun - and got results - but there was no Internet, and the world was receptive to salespeople.
Not the case these days. Not one of these contributors talked about e-zine, blog, earning referrals, writing an article in an industry publication, or giving a speech at a trade show - all ways of 2010 cold-calling - resulting in people wanting to connect with you.
Periodically "cold-calling" your customers is not a good idea - sending them a value-based e-zine once a week is - then maybe the customer or the prospect will call you! That's not a cold-call, that's a hot call.
OK - there's my current thinking on cold-calls. And some will argue that calling a lot has and is working for them. Great - good luck - two out of 100, if you're a great salesperson. I'll take 100 referrals anytime.
Posted: Monday, February 22, 2010
Views: 385
This message is brought to you by: "Reg. Fixer Pro"
Yes!
Cold-calling is over. The only people who don't realize it are the people still making them. Or worse - their bosses.
I am in a LinkedIn group called Sales Gravy. I'm following a thread about the ROI of cold-calling. It's interesting to see how salespeople view making a lot of calls.
As you read my posts, you will gain insight to my philosophy and get a few sales tips on how to avoid cold-calling forever.
There were more than 100 other posts - here are mine:
• My definition of calling for sales since 1992 has been waste of time. I have upgraded it since the onset of the Internet to a total waste of time. Oh, some people make sales calls - but not nearly as many as with referrals, by a margin of 50-1. Whatever your thoughts are about cold-calling - one fact is undeniable: Of all the options, the sales calls is by far the lowest percentage.
• Which would you rather have - 100 calls or 100 referrals? People have to cold-call because they are transactional with customers (they have a hunter-farmer, 1970s mentality) and don't take the time to build memorable relationships that lead to referrals. Instead of spending a day calling everyone, why not spend a day with existing customers to earn referrals.
• Focus on delivering real value to your best customers, and relationships will blossom. Real revenue comes from long-term relationships, not one-shot deals. Anyone trying to tell me that, "Cold-calls work, or I made a lot of money calling customers" will get my agreement. I did it, and have made a lot of money calling people for sales. But I have made millions by writing, positioning, delivering value first, and creating a reputation of excellence. And I recommend you do the same.
• (Someone's post) The only accurate statistic I can quote is, "You miss 100 percent of the shots you don't take."
• (My response) Eh, almost Bill - closer to accuracy is - You only miss 100 percent of the calls you do make.
• As I said in my other posts - some people have success cold-calling. I have had success calling mostly, at the C-Suite (with referred inside information) - but with reputation, relationships, and referrals, it blows away all stats on calling for sales, and reduces the sales cycle time from connection to sale. You can say all you want about how great calling is - but the fact remains it's the lowest percentage of sale among the options available. There is a bright side to cold-calling - it's a great place to learn how to sell. It calls for real mental agility to get to the real decision maker, and preparation combined with creativity once you do. And you feel great when you finally do make the sale. But in today's business world, where most of the calling takes place on the phone or online, you're much better off with a referral - or better - when someone calls you.
• If you're in sales, you should spend the majority of your time in front of people who can say yes to you. If you're making cold-calls, the majority of your time is wasted on people saying "no."
• No wonder everyone fails at cold-calling - no one gets what the real objective is: Get to the decision maker, and create the atmosphere where he or she wants to buy (not to sell them). Until that takes place, the ROI stats on calling is under zero. Reality: The cost of lost opportunity for not investing your time in other sales generating activities, like earning referrals, relegates you to having to cold-call. The three elements are not: art, best practice, and science. There are four elements: engage, provide value, prove worth and get a signed contract - any other results are an utter waste of time and effort - not to mention an annoyed potential prospect, lost forever.
• I've been reading with amusement all the comments that have been posted about "how to" cold-call - the one above is a classic example (here is an exact quote from the post: "And here is a by-product of calling customers: When you call in, you learn where the receptionist sends salespeople. That is, now you know where your competition is being sent and you can make sure to protect that entry point in the future.) It's sharp thinking, and a great sales thought - it's just starting at the bottom, and a rehash of 1980s thinking - and it takes five calls to get anywhere. If you used the business power of LinkedIn, or the social media power of Twitter and Facebook, this kind of sales-stealth would not be necessary. In 2010, sales is not about one out of 10 calls, or getting through the gatekeeper, or calling and hanging up.
Interesting that most of the people posting here have few if any LinkedIn connections, almost no recommendations, no Facebook fan page, and under 250 Twitter followers. In other words, they are doing things the way I did things in 1975 (taking freight elevators in New York City to get to the floor of the buyer and walking in with no appointment). It was fun - and got results - but there was no Internet, and the world was receptive to salespeople.
Not the case these days. Not one of these contributors talked about e-zine, blog, earning referrals, writing an article in an industry publication, or giving a speech at a trade show - all ways of 2010 cold-calling - resulting in people wanting to connect with you.
Periodically "cold-calling" your customers is not a good idea - sending them a value-based e-zine once a week is - then maybe the customer or the prospect will call you! That's not a cold-call, that's a hot call.
OK - there's my current thinking on cold-calls. And some will argue that calling a lot has and is working for them. Great - good luck - two out of 100, if you're a great salesperson. I'll take 100 referrals anytime.
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