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COLD
CALLING
In
business, as in all areas of life, ideas come and go.
What worked yesterday doesn't work today and probably won't work
tomorrow.
Cold calling, for many years, was
the preferred method of generating new business for practically
all companies and salespeople worldwide. However, it has literally
been decades since it has led in terms of results. In spite
of this, sales managers in nearly all companies, large and small, continue
to demand that salespeople spend their productive time cold calling
instead of doing things that will bring them face-to-face with qualified
prospects who want and need their products or services and are ready, even
eager to buy. Any time sales are down, those familiar words
"cold call more" and "you need to increase your
activity" are heard from sales managers, regional directors, and even
VPs and CEOs.
Hundreds of thousands of
salespeople have been mistrained and misled
by otherwise well-meaning corporate trainers, sales managers, and the
literally hundreds of books that can be found in the business section of
any bookstore. They continue to bang their heads against the wall,
wasting hour after hour and day after day cold calling with dismal
results. However, the belief that "cold calling works" has
been so frequently drilled into the minds of most salespeople that they
continue to do it, believing it will magically lead to success.
The effectiveness of cold calling
went by the wayside as our society moved out of the Industrial
Age and into the Information Age, which many symbolically mark with the
fall of the Berlin Wall in 1989. Especially now in our time of slow
economic growth and reduced spending, cold calling is by far the least
efficient way to find new business and in these tough times, the result in
many cases is literally zero. As cold calling continues to fail
and results diminish, otherwise talented salespeople who've simply been
mistrained find themselves on probation or out of work and their
employers lose huge dollars in terms of lost revenues and high turnover in
the sales department.
Following are some of the key reasons we
believe cold calling should literally be banned by all
sales managers and sales organizations that wish to excel:
- Cold calling destroys your
status as a business equal.
When you approach a prospect in a cold call situation, it's
readily apparent to everyone involved that you need them and their
business but they don't need you. The prospect is instantly
placed in a position of power and superiority over you. Even if
your company is a business equal or superior, you are perceived as
needy and inferior by the prospect. As all negotiating experts
explain, perception is everything. Even if you have power, if
you're perceived as not having it, you don't have it.
- Cold calling limits production
and wastes time.
The typical sales training model goes something like this:
"Take your quota and divide it by the average dollar amount per
sale to determine how many sales you need each month. Then
multiply that by the number of proposals you need to produce to get
one sale. Then multiply that by the number of appointments you
need to have to get to a proposal, and multiply that by the number of
cold calls necessary to get an appointment. Divide by 20, and
that's how many cold calls you need to make every business
day."
The obvious problem with this is if the salesperson is brutally honest
with him/herself about closing ratios and cold call to
appointment ratios, the number of cold calls required is unrealistic
and there simply aren't enough hours to do them as well as other work
such as appointments, proposals, etc. In addition, you're not
using the power of leverage when cold calling.
You can only be in one place or making one phone call at a time and
can make only so many cold calls in a day, week, month, or year.
Your potential becomes finite and is strictly limited by how many cold
calls you make.
- Cold calling makes timing work
against you, not for you.
Do doctors call you at random times to ask if you happen to
be sick and therefore in need of an appointment? Do
dentists call you unexpectedly and ask if you have a toothache?
Do mechanics call you without warning to find out if your car
happens to be broken down that day and in need of repair? Of
course not. In fact, the very idea of getting these kinds of
calls is ridiculous and may even have you laughing, but this is
exactly what most prospects think when you cold call them.
If you're lucky enough to find a prospect who is in a buying mode for
your product, chances are they've already called some of your
competitors for proposals or quotes and the odds of your getting the
sale are already stacked against you. In addition, because cold
calling destroys your status as a business equal, you automatically
appear inferior to your competition.
- Cold calling instantly puts you
in a negative light because prospects find cold calls to be intrusive,
annoying, disrespectful of their time and bothersome.
Businesspeople, especially those with enough importance and
authority to wind up on prospect lists, are extremely busy people and
the last thing they look forward to is getting ten cold calls during a
stressful day. You're seen as a burden on their time, an
annoyance, and a distraction from important work.
- Cold calling might get you into
trouble.
In our home state of Arizona and in many other states, it is
now unlawful to make a telephone cold call to either a business or
consumer without first obtaining and paying for a Telephone
Solicitors' license or obtaining an exemption from requiring a license
from the state. Either way, you may face heavy legal penalties
if you make telephone cold calls without first completing miles of
government red tape. Many businesses are fed up with cold
calling salesmen who repeatedly violate "No Soliciting"
signs and some members of our staff have even been face-to-face with
the police while cold calling, back in the early days of our careers.
- Cold calling destroys
salespeoples' attitudes.
Let's face it. Even the "rah-rah" trainers
and managers who hold up cold calling as the solution to all of life's
problems will admit it: Everyone HATES cold calling!
It's a pretty basic fact of human psychology that forcing yourself to
do something you find unpleasant puts you in a bad mood and instantly
causes your attitude to shift from positive to negative. Why,
then, would anyone continue to do something that undermines your
ability to sell at the most basic, subconscious level?
The great news is that there's a
better way to find and attract new business. The
Voicepro Autodialer has quadrupled the production of many of our clients
while actually reducing their working hours in many cases.
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