I never understood why salespeople hate cold calling. They have two choices – they can either sit back and wait for business to drop into their lap or they can go out there and uncover opportunities through cold calling and prospecting. Most business owners would prefer that their sales reps actively seek new business, via cold calling and prospecting, each and every day – they are not paying them to wait for business. Otherwise business owners would simply hire order takers.
A recent article in Business Week, titled “Is Cold Calling Really Dead?” highlighted a study by the Wellesley Hills Group in Framingham, Mass., that suggests otherwise. The companies that were surveyed reported top ways they generate new leads: 22 percent – referrals from clients or partners; 16 percent – general referrals; and 13 percent – cold calling. The results suggest that, after referrals, cold calling represents the second-best method for generating new business. Whether you call it cold calling, prospecting or appointment setting, successful salespeople must connect with customers who need and want their product but just don’t know it yet. In other words, successful salespeople do not sit back and wait for orders to come in – they are out there cold calling and hunting for the next opportunity.
There is no better way to proactively control your destiny than to make effective cold calls. Statistics tell us that 13% of business is typically generated this way. So it goes without saying that, if your company is not cold calling and prospecting, you are losing an additional 13% of revenue each and every year. How many salespeople would pass up the opportunity to increase their income by 13%? How many businesses are not interested in increasing their bottom line revenue by 13%?
Is cold calling challenging? Well, of course it is. Everything that is worthwhile has some level of challenge associated with it. Everyone has voice mail, most decision makers have assistants… it’s easy to identify obstacles to cold calling activities that we prefer not to do. It’s much easier to blame those roadblocks than to uncover ways to break through them. Inertia or momentum? The choice for most salespeople is easy – momentum! Momentum requires drive, ambition, activity and force – the ultimate result is that you move forward. And this is what drives salespeople – the opportunity to develop goals and achieve objectives.
No one questions the fact that email and the internet has changed the way salespeople connect with potential customers. Buyers are more educated and much savvier. Before the internet, customers relied on salespeople for information and, because of this, sellers had more power. Now, customers are capable of finding information online which makes the process of establishing a relationship with them much difficult. These changes in the market create more urgency for effective cold calling.
However, given all those facts, the truth remains that people still buy from people. The key to successful cold calling is to be prepared – know who you are calling, know what you are going to say, anticipate their response. “Prepare, prepare, prepare” – these are the three rules of sales just like “location, location, location” are the three rules of real estate.
Sure, it’s much easier to have a warm lead – a referral, an internet request, etc. And those leads are critical to any business. But what about the other 13%? The ultimate question is – how many opportunities are left to your competitors each and every year? Because if you are not cold calling you can be sure that your competition is.
Remember, salespeople are critical to companies because they sell – they don’t simply take orders. Order takers are easily replaced – effective salespeople are irreplaceable. The official definition of salesperson is “a person who sells goods, services, etc.” And the word “sells” is a verb – it indicates action. Waiting for a call to come in via a referral or internet lead is reacting to something… going out there and finding business is acting on opportunities. Cold calling is the most effective way you can be proactive in growing your business.
So, the ultimate question is… do you sit back and wait or do you sit up and take action?
Wow! Amazing post and well put. I’m still in the startup stage of growing my business and was looking for some inspiration. Got it! Right along with a good ol’fashion kick in the pants.
I never realized how difficult cold calling was until I had to resort to it as my only means of drumming up business. “Challenging” may very well be an understatement “Controlling your own destiny” is the reason I chose to take on such a challenge in the first place and you my friend have just reminded me of that.
Forever Grateful,