This is an update of an article from The Boston Business Journal May 30, 2003.
Can Cold Calling Lead to Frostbite?
In the 19th and early 20th centuries, sales were made mostly by pounding on doors (cold calling). Once the phone became ubiquitous, pounding on keys took over. (Actually it was spinning a dial). Today, with a multitude of purchasing alternatives such as cable, email, online advertising, malls, etc., a number of businesses (including, oddly enough, a number of high tech players) still rely on cold calling by phone. In light of technology, information, lifestyles, and work habits, cold is old and calling can be appalling.
Smile ‘n’ Dial
Let’s set aside dinner time, automatically (predictive) dialed solicitations for now and look at business to business “telemarketing.” As the economy tightens and many firms cut back on marketing and sales, they try to either squeeze more out of remaining salespeople or hire “telemarketing professionals”. The underlying rationale for this push adheres to the old adage that sales is a numbers game. You’re bound to make a sale sooner or later, so the more calls, and even rejections you acquire, the greater your chances of an ensuing sale. “Since we’re going for a touchdown, let’s throw a ‘Hail Mary’ on every play.” No competent sports coach would forsake a balanced attack, building momentum, and uncovering the opponents’ weaknesses for such an obvious and desperate approach. Yet many businesses do.
Call ‘n’ Bawl
A number of businesses have resorted to “playing the odds” by “dialing for dollars”. In reality, the odds are long. Voice mail, incorrect contacts, and, ultimately, rejections pummel the spirit, morale, and self-esteem out of salespeople. Banging their heads all day long against respondents’ walls, the sales person’s spirit can be further diminished by the perception that management doesn’t really value his time, and often has neglected to provide truly supportive marketing or sales materials.
If this seems like a harsh condemnation of a common methodology, consider the target. Can you picture today’s understaffed and overworked prospect sitting idly and waiting for a phone call to make a complicated decision on a major buy? “Oh, I was just sitting here wondering what to do with all the extra money we have. Maybe buying a call center (truck fleet, benefits package, computer network, etc.) is a good idea.” Those in a position to purchase a major (and usually specialized) service or product can and will make their own calls or visits to web sites.
Business to Business Telelottery
Historically, telemarketing had great success with unwary consumers. Apparently, there really is a sucker born every minute. How many actually buy is difficult to determine because the industry has no objective auditing organization. The FCC attempts to track the all too commonplace fraud, but numbers provided by practitioners are unreliable at best. For the sales staff of a business, “cold calls” can lead to income frostbite. The frostbite can turn into a cold day in Hell because the product or service competes with others, isn’t really subject to whim or impulse, or is intricate or requires purchase planning.
Fixing the Lottery by Warming Up the Calls
Employing more effective methods can be difficult because developing and implementing a cogent marketing strategy is more complicated than telling everybody to hit the phones or the streets.
Warming up cold calls is a two way street. Get to know your prospects and help them to get to know you. In order to understand what your prospects want, listen, watch, discuss, research, survey, read about your past and present customers, competitors, targets, referrers, etc. As you learn (which is a never-ending process), develop an identity. Nothing freezes a call quicker than when your salesperson names your company and the response is a chilling “who?” Even in the days of door-to-door, recognition of the Avon Lady or the Fuller Brush man led to trust and a greater chance for a sale. Your position/name/identity/brand/image should transmit consistently and in every way how your company, product or service fulfills the need of your prospect.
Fulfilling specific needs is more credible than fulfilling everyone’s needs. Specialize. Be prepared to give something up. Inherent contradictions confuse the prospect and destroy credibility. For example, it’s unlikely that the best is cheapest, that the largest mass producer specializes in customization, or that the widest selection and largest provides the most personalized service.
Fortunately, traveling the two-way street to improved sales is not as expensive as it once was. It usually requires more commitment and consistency than cash. Look, listen, and learn, be honest. Recognize and react to customer and prospect reality, deliver your message and deliver on your promise.
