Cold Calling Works Big Time
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Loading ...Steven Burke explains in an open forum why cold calling is the most effective way to open doors for new business. Paul McCord joins the conversation with an opposing viewpoint which makes for a great debate.
Source: http://www.salespractice.com/forums/t-7605.html
Ha! Good catch. Thanks for adding it. I gave it a thumbs up!
Personally, I think that cold calling has never been effective - firing randomly and hoping you’ll hit someone may work in John Wayne movies - it’s not that efficient for sales people whose greatest asset is “time”.
Clients just didn’t have an effective way to avoid it. They do now. And it’s called voicemail and caller ID.
Warm calls, client referrals, simple introductions through LinkedIn and other networking methods beat cold calling any day or the week. But then again, these are just my 2c.
Your 2c counts. Some would say that anytime you call on a “Probable Buyer” for the first time that is Cold Calling, some would argue that Cold Calling is calling names randomly out of the phone book and some would say it’s neither of the above. IMO, to discuss the effectiveness of Cold Calling requires an agreement on what cold calling means to those involved in the discussion.
To Cold Call or not to Cold Call. Give me a break.
Real Sales Pros Balance Prospecting.
First no one, not even companies who drive cold calling, can deliver a solid definition of cold calling. So here’s the deal. When you pick up the phone, or walk in the door of someone who is not expecting you with whom you are not currently engaged in a sales discussion (ie. you are interupting their day), it is a cold call. Get over it. (you can argue the degrees)
Next, it really depends on your industry. In some industries if you spend the majority of your time interrupting people’s days you will fail. In others if you don’t dial for dollars you will die a quick and painful death. LinkedIn be damned.
Next, it depends on your tenure. If you are brand new in your territory, company, or industry you better damn well be prepared to pick up the phone. If you don’t you will surely be picking up the phone in a new industry shortly. On the other hand, if you have been in your territory or industry for years it is likely the cold calling will become a smaller portion of your prospecting balance.(the problem is that experts tend to forget their freshman year in sales)
Finally, if you live in the real world. If you have sold to real prospects. You understand that prospecting is a balance. Balance means a measure of referrals, networking, internet connections, and cold calling. The very best sales people across all industries have mastered balanced prospecting in the same manner that wealthy people have mastered balance in their investment portfolios. Putting your eggs in any single basket will eventually lead to mediocre returns. However, balancing your prospecting regimen based on your industry, company, and tenure almost always leads to consistent performance over the long-term.
I think that is the biggest problem. I find that most of these people argue the virtues of cold calling til they are blue, neither understanding what the other thinks a cold call actually is.
I always keep in mind that it is the sales person who designates the call warm or cold, not the persone being called, so whatever makes it easier for you to pick up the phone.
There’s no argument - cold calling is ineffective. I find the only people telling you to cold call are:
- Sales Managers who used to cold call “back in the day” and think the old ways are the only ways.
- Sales Managers who don’t know how to help their reps in the prospecting side of the sales funnel and so they fall back on tired methods.
- Sales Managers who are afraid to go to marketing and tell them, “Give us better leads, not necessarily more leads.” They’d rather tell the rep to cold call more.
- Authors who wrote books about how wonderful cold calling is and how it makes you a better sales rep.
What do these people all have in common? Other than their heads in the sand? They have a vested interest in the status-quo and are unwilling to change.
- Michael
Michael - I think you’re missing the point that many people consider the “better leads” form marketing to still be cold calls. Even qualified leads are still cold if they haven’t been contacted yet.
For a new business starting up without existing or previous customers to help them with referrals, cold calling is often a painful necessity. Networking (and the referrals generated from there) is often far too slow a method of generating new leads. So for new start-ups, cold-calling is often one of the core methods to get the business off the ground. Once up and running you can switch to more effective methods - but early on, cold calling is often your only choice - or at least one of the better ones.
Ian
Excellent points Ian regarding a new business starting up and the potentential lag time of generating new leads via Networking.