The Lost Art – How and Why to Use Cold-Calling for Higher Sales

 

Are you lacking in sales revenue? Do you get enough face time with the right prospects?

Cold-calling is no longer in vogue. Many sales executives and salespersons are perplexed about getting new ways to make sales.

Obviously, a key is networking to help meet the right prospects. It’s important to start at the top. It’s easier to work your way down than it is to work your way up. And in my experience in B2B cold-calling, using the telephone to make appointments with senior executives does not work.

So what’s the No. 1 effective way to land face time with prospects? First, let’s remember that in the interest of time management and stable cash flow for years to come, it’s critical to consider the big picture — the short term and long term.  Apropos here, there’s an old sales adage, “Find a need and fill it.” 

Therefore, consider in-person cold-calling for two salient reasons:

• It works for short-term sales results.
• It helps build a foundation leading to long-term relationships. 

Why does it help long term? If implemented adroitly, you will forever be remembered from the favorable first impressions you created when the person met you.

Unfortunately, many salespeople dislike it or more accurately, they are afraid of in-person cold-calling. They and their sales managers are also worried about time-management and fuel expenses. Consultants loathe such cold-calling, too. For them, it’s undignified — it feels reminiscent of early in their careers when they cold-called “with their hats in their hands.” They much prefer referrals.

Yes, referrals are a great asset. But what if a salesperson can’t get enough referrals? It’s time to rethink the problem and solution.

In-person cold calls do indeed work.  Why? Remember, the goal is getting both feet in the door for face time. That’s why I especially keep in mind the adage, ”Do the footwork,” literally. In-person cold-calling visits work well — if the right strategies are used.  It worked for me years ago as a young salesman. It worked well when I was job-hunting. Today, it works well for me as a confidential business-performance consultant when I want to get outside for fresh air.  It’s energizing.

Three memorable examples: In-person cold-calling has worked to immediately get me in the door to see the mayor of a city, the CEO of a paint company, and an executive in broadcasting. 

The latter two were visibly impressed and made these respective comments: 

• “Geez, I wish our sales people had the ability and initiative to make cold calls!”
• “Wow, you’ve got guts.  I’m going into a staff meeting right now and cite you as an example!”

The mayor’s reaction:  “Please come in. I know your name, but how? From where?”

Yes, I’ve heard all the arguments against in-person cold-calling visits, but in my experience it does work — if implemented effectively.

Consider this checklist: 

1. Approach the process with the right attitude – an attitude to provide a valuable service or product, and an attitude of gratitude.
2. Research your prospects prior to making cold calls, so they’re not really cold calls, at all.
3. Implement effective sales techniques, including empathy for the gatekeeper.
4. Be poised with a professional appearance.
5. Speak with formality until told not to be formal, e.g. Mr. Smith, Ms. Jones.
6. Cold-call on the right days during day-parts when prospects are more likely to be receptive.
7. Be strongly branded, and present the right collateral to prospects.

Yes, get published, be interviewed in the media, use all social media including LinkedIn, join the Rotary and be an active Chamber of Commerce member, etc. But don’t be afraid to make in-person cold calls to make appointments. 

You’ll receive seven possible benefits: 

1. You get to size up the prospective organization about its structure and culture.
2. With such face time, you’ll get an opportunity to start building a rapport with the gatekeepers.
3. The prospects’ gatekeepers and decision-makers are in a position to evaluate your professionalism.
4. Sometimes, you get really lucky – you’ll be immediately ushered in to see the boss, who makes a buying decision on the spot.
5. It yields appointments, even when the gatekeeper objects – “You don’t have an appointment?”
6. If able to schedule an appointment, when you return you’ll be more familiar with the prospects’ surroundings, which means you’re more comfortable when asking questions and providing value propositions as the prelude to your follow-up sales presentation.
7. You’ve started laying the foundation for a long-term relationship.

As one who has earned every wrinkle, I still use every marketing tool including in-person cold calls.  However, I only use the telephone for follow-up.  That’s also what I advise clients.  When executed strategically, in-person cold-calling works beautifully. 

Incidentally, in-person cold-calling also works in B2C sales or if you’re job-hunting. The key in job hunting is to be proactive in cold-calling. Don’t wait for the ads to be published. Do it now.

So, in-person cold-calling does work, if you do the right footwork. After it starts working for you, don’t stop. Or, you’ll again be stuck — without enough face time for business development and the ultimate goal – higher revenue.

From the Coach’s Corner, here’s a related column – The Seven Steps to Higher Sales.

P.S. If you’re kept waiting when you show up for the appointment, take it easy and don’t be insulted. Consider this axiom: “The longer they keep you waiting, the more they want you.”

Some days, sales calls require a backbone and resilience, especially when some people are rude. Try to be understanding. Assess whether it’s an omen about how the company treats people – determine whether it’s a company that has too many problems to become your qualified customer.

As a business-performance consultant for organizations needing a turnaround, I don’t necessarily have to wait to see financials for indicators to learn what’s wrong. I first look to see how management and staff interact among themselves and customers. If they behave badly, I know it’s an opportunity for growth.

Advice for Ad Agencies to Generate New Business

 

An article in AdAge.com caught my eye: “Marketers Exhibit Cad-Like Behavior at the RFP Ball.”

The author, Jennifer Modarelli, opined about the lack of courtesy and respect companies give to advertising agencies. I agree with her.

And there were excellent comments – such behavior is symptomatic of the times. Such sales opportunity costs are too high.

Many ad agency ideas are worth millions. Therefore, it’s important for ad agencies to earn a place at the senior executive decision-making table in the conference meeting rooms.

If you’ve encountered such behavior as an agency, as a business-performance consultant, here are some options you might wish to consider:

• Unless, you have the staffing to absorb such high sales opportunity costs, stop reacting to RFPs.
• In your pitches, stop giving details without an agreement and compensation. Instead, share your approaches to prospects’ marketing dilemmas.  Otherwise, a cost-benefit analysis will show the resulting legal hassles aren’t worth it.
• Refrain from giving proposals – try letters of agreement after using the appropriate steps to sell your brand to prospects (a trick I learned from fellow members of www.consultantswest.com).
• Offer benchmarks for your performance and show empathy for marketplace conditions. But monitor the client. That’s an approach I used early in my career as a young account exec at KIIS-FM in Los Angeles when a Beverly Hills client doubted my approach (but he had unkempt aisles in his upscale store).  Later, as an agency VP, I once saved an account after a client whose niche was women complained about my mediocre results.  I reviewed our approach and I was perplexed, so I visited one of his mall locations where I noticed several problems (i.e. the first 6 customers weren’t greeted, dirty store windows, and blaring male oriented hard-rock music). So it had to be the client’s poor performance.  I asked to meet with the client outside one of his locations. He saw for himself the company’s self-destruction. So, when I bought my own shop, this is how and why I expanded my services/revenue streams to provide other business services.
• Develop ground rules for client service (my firm has 60). Occasionally, I’ve encountered some friction with a client, so I pull out my service policies and I discover I failed to adhere to them.
• Solicit compliments. When you get them, ask for two referrals to their peers at other companies who might need your great marketing.
• Pre-sell your shop. Bypass the advertisers’ “screening out consultants” by getting close to the advertiser in advance. Join the largest business organization in your locale and volunteer for appropriate committees.
• Continue your SSP, shameless self-promotion. Try new approaches. During the last recession, I convinced a TV station to allow me to do on-air testimonials explaining five benefits the station provided my clients. In turn, my clients were impressed with the frequent testimonials and took pride in my “doing favors for the station”. After a year, I had to repeatedly ask the station to stop the testimonials because I developed an optimum number of clients (the station’s sales management enjoyed the new business the testimonial attracted).

Good luck!

From the Coach’s Corner, OOPS, I just realized I need to be more diligent about following my own advice, so I’ll skip writing this Coach’s Corner giving more tips and will reflect on more business-development ideas.