RIP cold calling

[GreatSEO]

I think that cold calling is what the guys in the B2C arena do. Most people in the B2B arena will profile there data before making any calls at all. This results in the data consisting of prospects that you know are in your target market. I.E. web designers can buy a data of businesses without websites and the stats to making these calls are a lot better than just jumping on yell.com and having a go.

Then the phone call itself we have to get past the gatekeeper that is an art form in itself. Once we have done this we then need to use a process to engage the prospect, find a need, discuss the solution, talk about return on investment, close, consolidate etc etc

So yes I do believe there is a formula that consists of many different things that you cant just learn overnight. It is this formula that has made me successful for the last 4 years after 12 years in the industry I can say that I am what I would class as qualified.

Yes you can generate business from a simple script but that is very much a numbers game the more you call the better your chances. However using and adapting the process and a few other things you can make 5 calls and gain a 3-5k deal dependant on your service/product of course.

I hope this helps

Regards

Dave

 

[Cornish Steve]

Let me turn the questions back to you guys to explain how, from your experience, online networking can work well:

1) Companies tend to be quite protective of information, often ridiculously so, so as not to give away information for their competitors. How do you convince companies to share their needs in a public forum? (This is probably the biggest issue I see.)

2) Companies often go fishing for information, leading potential suppliers to spend significant sums on proposals and sales activities. An online forum is a very cheap way for them to engage in a fishing expedition. Is there any way to protect suppliers from this?

3) There's something reassuring about looking into people's eyes and physically shaking hands. You get a sense for who you're dealing with. In an online environment, some companies have tried to make up for the lack of face-to-face trust-building by instituting a rating system, but these are open to abuse too. How do you get around this problem?

4) Do you verify the identity of each participant? What's to stop spammers etc. taking advantage of the contact information available at the site?

5) Do you offer any kind of guarantee that the services and products purchased from networking meetings are safe, professional, and adequate quality? If not, for this business model, how do you protect yourself from unhappy users? (I'm thinking of the legal cases recently brought against eBay.)

 

[wecandobiz]

Let me turn the questions back to you guys to explain how, from your experience, online networking can work well:

1) Companies tend to be quite protective of information, often ridiculously so, so as not to give away information for their competitors. How do you convince companies to share their needs in a public forum? (This is probably the biggest issue I see.)

Very happy to answer these. First off, it sounds like you haven't yet taken a look at WeCanDo.BIZ, which played a big part in helping Matthew see the results he did. Customer Centric Selling teaches that if the prospect won't share a need, there isn't a lead. In other words, if you don't know what the person needs it is impossible to sell them a solution. All members of our site get to share with us their most urgent business need, what we call a Biz Need (and around one third of our Business members have posted Biz Needs). This Biz Need gets sent to everyone they are a contact with -- think a business application for micro-blogging (eg. Twitter), where the "Tweet" is what they need to get their job done. They are happy to share this in the hope that someone will help them with their objectives, maybe amongst their contacts or the people they know. But we also send it to members on our site who we think could help, matching up by keywords. Those members then have the option of contacting the person with the Biz Need to offer solutions. Maybe Matthew, Dave or Dan on here will tell you how they've seen it work for them so far.

Incidentally, you could also get this from Twitter, although you'd need to filter through the other stuff. But the principle is the same. People are happy to share a need if it means they can find a solution and not get bombarded by irrelevant contacts. We help with that. You can view our Biz Needs RSS feed list at http://www.wecando.biz/rss/bizneeds.php .

2) Companies often go fishing for information, leading potential suppliers to spend significant sums on proposals and sales activities. An online forum is a very cheap way for them to engage in a fishing expedition. Is there any way to protect suppliers from this?

Yes, but so is the European Journal, or mailing people through their websites. As with any of these methods, some sales practice to qualify opportunities before you spend time on them is necessary. That is true of any lead.

3) There's something reassuring about looking into people's eyes and physically shaking hands. You get a sense for who you're dealing with. In an online environment, some companies have tried to make up for the lack of face-to-face trust-building by instituting a rating system, but these are open to abuse too. How do you get around this problem?

I could not agree more that seeing a smile and shaking a hand are critcially important. Social networking is a great way of making introductions and building a relationship, but you won't be able to win total confidence that way -- the old rules still apply. That said, we have an endorsement system to help to win some confidence along the way. If you look at a business profile on our site you can read endorsements that have been left, plus we will highlight which of your own contacts have specifically endorsed that business -- the personal element makes it harder to abuse. We only allow endorsements where the "endorser" is defined as a customer too -- you can't endorse those you have said you know socially or supply to, to earn beer!

4) Do you verify the identity of each participant? What's to stop spammers etc. taking advantage of the contact information available at the site?

There is some level or verification to be a Business member, which is the only type that is publicly visible on the site, yes. And you build your contacts one by one, with both parties having to verify the relationship. A registered member can message anyone on the site through our message system -- e-mail addresses are not revealed to Basic or Business members, the only two membership levels we have' nor are they to unregistered visitors. And you can only send one message at a time. It is not an evironment that lends itself to mass spamming.

5) Do you offer any kind of guarantee that the services and products purchased from networking meetings are safe, professional, and adequate quality? If not, for this business model, how do you protect yourself from unhappy users? (I'm thinking of the legal cases recently brought against eBay.)

Sales are not completed through our site -- we just make it possible to connect with people to discuss business. Our role is no different to a phone carrier in carrying a business telephone call really -- yes, there are endorsements on our site, but we are carrying other people's endorsements and detail who it is giving them. Those endorsements are individual and not representative of our view. Caveat emptor still very much applies.

I hope this answers your questions. I would certainly welcome you to our site to try it out, regardless of whether you think it dislodges sliced bread as the best thing ever, or whether you find it isn't for you. Either way, as a user of the sort of system Matthew discussed in the context of displacing cold calling, it further adds to your position when passing comment of course, although I value the opinions of all in this thread.

IH

 

[An Oasis]

Cold calling = old hat, boring and bloody annoying... who needs it? Type into your preferred search engine (even better if you actually understand how to search, do an advanced search) what you are looking for and bingo... Persuade me otherwise, never had anyone sell me crap that I did not need and if I need something...it's easy to find.

 

[An Oasis]

Oh and BTW if they at least researched the industry before commencing it might result in a half decent conversation but...no it is just some scripted toss that is designed at who?

 

[Cornish Steve]

All members of our site get to share with us their most urgent business need, what we call a Biz Need (and around one third of our Business members have posted Biz Needs). This Biz Need gets sent to everyone they are a contact with -- think a business application for micro-blogging (eg. Twitter), where the "Tweet" is what they need to get their job done. They are happy to share this in the hope that someone will help them with their objectives, maybe amongst their contacts or the people they know. But we also send it to members on our site who we think could help, matching up by keywords. Those members then have the option of contacting the person with the Biz Need to offer solutions.

But this is the crux of the matter. In many industries, companies want a signed NDA before they'll reveal anything, even if they are fishing. They are paranoid that competitors will learn something about their business. I just can't see them posting needs to a forum where they "share with us their most urgent business need" and you "send it to members on our site" based on keywords. It might work when buying office supplies, for example, but it won't work for their most important (and probably most expensive) purchases.

On the other hand, a one-on-one conversation by phone carries with it fewer risks. The company chooses to whom they reveal information and can make decisions about how much to reveal as the conversation develops.

 

[wecandobiz]

But this is the crux of the matter. In many industries, companies want a signed NDA before they'll reveal anything, even if they are fishing. They are paranoid that competitors will learn something about their business. I just can't see them posting needs to a forum where they "share with us their most urgent business need" and you "send it to members on our site" based on keywords. It might work when buying office supplies, for example, but it won't work for their most important (and probably most expensive) purchases.

On the other hand, a one-on-one conversation by phone carries with it fewer risks. The company chooses to whom they reveal information and can make decisions about how much to reveal as the conversation develops.

But this is a generic problem -- how would cold calling to initiate contact make it any better? It could well happen as you describe, but how do you kick the relationship off so you can get to that point through any means? Cold calling and networking within the organisation during the call to find the right person is one option; we propose online networking as another.

There are still enough members on our site who are willing to reveal their needs and the list of Biz Needs now numbers nearly 171 from just below 300 businesses. It doesn't need them all listing Biz Needs for the system to produce benefit.

And Biz Needs is just one mechanism for matching buyers and sellers. There is a search facility and a directory. Plus people are using our Share facility to make introductions to their off-site contacts where they think business might be done.

You are making entirely valid points. There are ways to achieve every point you are raising that are already in practice outside of social networks. I am not saying they don't exist; neither am I saying they are all redundant. My view is that through social networking, other ways to achieving the same objectives are possible. Where the objective is a sale, I think any sales person worth their salt should be exploring all the options open to them, rather than just sticking to what's been the norm for 30 years.

I am happy to discuss this further, but the real test is trying social networking alongside what you do. Matthew Brazil, with whom I had no link before he became a member, tried it and was delighted with what he found. It may not work for everyone, especially those who sign up wanting to prove it doesn't, but I can assure you he is not alone in feeling WeCanDo.BIZ (in particular) adds real value to methods he already practices. We aren't alone -- I have spoken with a few people who pick thousands of pounds worth of business up per month from forums like this. It would be interesting to see the results from those people if they did JUST that exclusively for a month. But it takes some courage dropping what you know and has worked to attempt something new that might, but might not, be better.

IH

 

[wecandobiz]

Just as an interesting aside, since this thread started:

• Nine new businesses have added themselves to our directory and trusted business search
• Eight members have shared a Biz Need with the rest of the community
• 55 messages have been sent between members
• Paul Cornish at CWConcepts has collected a customer endorsement
• Diane Moses at CreditSafe has picked up TWO customer endorsements

And those members probably spent less time on our site individually than we have on this thread!

Anyone wishing to connect to me directly on our site can find me at http://www.wecando.biz/profile.php?bid=20.

IH

 

[allaboard]

Cold-calling geta bad-name because xyz company has a 100 + diallers banging out scripted calls, 99% cannot deviate from that script

However professional cold-calling with knowledge and speaking to the right person will always work especially if you know your target and it`s viable for that business
ooh... and the professionals are too busy working to network!

 

[Chris Butler WeCanDo.BIZ]

Very interesting chain here. I would welcome anyone to sign up with us and have a look and see for themselves

Chris Butler
COO
WeCanDo.BIZ

 

[wecandobiz]

Cold-calling geta bad-name because xyz company has a 100 + diallers banging out scripted calls, 99% cannot deviate from that script

However professional cold-calling with knowledge and speaking to the right person will always work especially if you know your target and it`s viable for that business
ooh... and the professionals are too busy working to network!

Not true at any level. This is my other business: http://www.entelegen.com/m_18.asp. It is interesting perhaps that in 5 years we have NEVER cold called to find our own business -- it has all been word of mouth. We practice professional methods and yet I can see how online networking provides many better ways of contacting who we need. We have used LinkedIn for years for research and they boast it contains senior executives from all of the Fortune 500. Professionals ARE networking!

I can name you 5 telesales companies using WeCando.BIZ. I am quite sure there are many, many others networking on LinkedIn and Ecademy, not to mention picking up leads from here and other forums, which also helped Matthew turn in leads in his research.

When Matthew and I worked together on his article, we did it with a long history in telesales -- me with my own telesales company and many years sourcing telesales services before that, Matthew as former sales director of outsourced sales company SCI Sales. This isn't some hastily concocted set of fixed results in order to support a poorly researched argument.

As I said at the start of the thread, I'll be looking hard into what we offer our clients from hereon in, because I am concluding that there are easier ways of getting leads for our base of customers than hammering the phones, even with all the preparation we do ahead of it.

IH

 

[allaboard]

Very interesting chain here. I would welcome anyone to sign up with us and have a look and see for themselves

Chris Butler
COO
WeCanDo.BIZ

All I will say Ian/ Chris good luck with your venture , hope it works

although it`s not for me

I`m more high-brow , and will defend cold-calling forever and a day

As the clients I work with were all acheived from cold-calling...

The marketing brochures, conferences get your name out , but you cannot beat cold-calling conversation selling

 

[Chris Butler WeCanDo.BIZ]

More high-brow? I find that a rather arrogant and premature statement given that you are not signed up and that Ian has answered every question you have had.

I guess our members might be rather insulted too. Oh well. Happy cold-calling.

You will of course always be welcome to sign up - it costs nothing and we are very friendly!

Chris Butler
COO
WeCanDo.BIZ

 

[Cornish Steve]

High-brow? Low-brow? Who cares if the service works and provides value?

My experience in this field is with LinkedIn. I have about 300 contacts, most of them current or former colleagues. I really don't use it for networking per se; it's a great way to keep in touch with people as they develop their careers.

I did once get a call from an executive recruiter who was trying to hire a CMO for an international company. She had used LinkedIn to track me down, which I found rather interesting. Other than that, little has happened business-wise.

Certainly, I wish you every success with your venture. If it meets a need, I'm sure things will take off.

 

[Chris Butler WeCanDo.BIZ]

Steve

Thanks so much. It is appreciated. We are certainly very different to LinkedIn

Chris Butler
COO
WeCanDo.BIZ

 

[Gillie]

High-brow? Low-brow? Who cares if the service works and provides value?

My experience in this field is with LinkedIn. I have about 300 contacts, most of them current or former colleagues. I really don't use it for networking per se; it's a great way to keep in touch with people as they develop their careers.

Gee Steve, does that make me one of the not most of them??

The problem with social networking as such is that there are a lot of them suddenly and whilst they are good in certain aspects, too many dilute any attempt you have to make the most of them!

Linkedin, facebook, myspace, plaxo, ecadmey etc,and the many more, all purpose to help you inthe various aspects of marketing your wares!

 

[OldWelshGuy]

Well I am an ANTI-SOCIAL networker. I am a meber of several underground invitation only networking groups where we share information hints tips research etc. We also engage in private SEO/marketing tests to ensure they are controlled and private.

I am also involved in private networks with regard rugby, again where we discuss things in private (I am involved in junior rugby in Wales)

Does that make me a bad man

 

[6consulting]

I think everyone is still missing the point. Social media is not just about having a profile and connecting with people. Facebook and Myspace are small elements of social media. LinkedIn is a glorified recruitment tool. True social media starts with creating engaging content, your profile is NOT part of this!

For example in the original article I spoke about a test I conducted, one week cold calling, and one week using social media. The test was conducted a few weeks ago and I am still picking up inbound communication as a result of my social media campaign, but NOT from the cold calling. The social media campaign included blogs, diggs, youtube, twitters, sphinns and more. This was content created on the back of research into the area I wished to target for sales.

The comments about 'high-brow' and references to 'Glengarry Glen Ross' made me laugh. Everyone is entitled to an opinion and it is great that such a debate is happening here, but high-brow is not only an insult but shows a true lack of knowledge about social media (it's not just for B2C but a very powerful tool for B2B regardless of the price of product/service). Glengarry Glen Ross was indeed a great film, one of my favorites and something I have used in sales training sessions to show exactly how NOT to sell. Glengarry Glen Ross works on the premise of the salesperson winning and the consumer losing and it is attitudes like that which gives all salespeople a bad name, labeling them as double glazing sales charlatans.

 

[Gillie]

Oh I am far from missing the point thanks! I have been blogging, twittering, digging and all the various other ones now for well over two years you see and whilst they have a place in my marketing strategy, I also use other means and do not rely on them alone!

 

[chris2289]

social networking and user created content didnt spell the death of cold calling, the inevitable decline of traditional DM in general did.

 

[6consulting]

Oh I am far from missing the point thanks! I have been blogging, twittering, digging and all the various other ones now for well over two years you see and whilst they have a place in my marketing strategy, I also use other means and do not rely on them alone!

Precisely my point. I have stated that Social Media is to be used as part of the process, not a cure all for everything.

 

[lupton]

Having been in business for a number of years, we have tried all methods of generating new business to include networking.

However cold calling has given the best results everytime if targeted and forcused it can also be the most cost effective.

I have found that many new businesses shy away from this method as they do not like the feeling of rejection that cold calling can provide.

Regards

Lupton

 

[Deleted member 30151]

If you are in a niche market you may be spending money on advertising or cold calling which is totally unnecessary. If you are good at your business then your existing clients will be happy to refer others to you - OK I am in a niche market (tax and accounts advice to actors, musicians and others in the entertainment business) but I find my new clients will only come if they receive a recommendation from a friend in the same business. I'm happy to say I receive 12 new clients a month on average, so it certainly works for me.
All I do when I get new clients is to provide them with extra copies of my business cards and ask them to pass them on to any of their friends who need help. I spend no more time or money on advertising/cold calling/networking and the rest of my time is spent working and earning fee income.
Everyone needs to look at what they do and every business will be different. Just don't waste your time or money!

 

[IanB]

Hmmm,

The author lists SPIN selling as a technique being used to improve cold calling. SPIN selling has absolutely nothing to do with cold calling - it's a technique from improving the effectiveness of face-to-face sales meetings for the sale of large, complex products - not something that can be done over the phone. This makes me question whether the author has really done his homework.

Of course, social media will have a big impact on sales. And I believe that cold calling will decrease in it's impact (it has been decreasing for years) - but it will never die and will always have a place.

The reality is that no one channel for reaching customers is perfect for all types of customers, products and situations - all have there disadvantages. For example, use of customer referrals has always been a much more effective strategy than cold calling for generating new leads. But what if you're a startup with no existing customers - customer referrals can't help there - but cold calling can.

In my experience, social media currently have a number of challenges:

1) Only a distinct segement of the population use them (22% of the adult population may have a social networking profile - but how many of them actively use it- 15%? 10%? 5%?). They represent a particular segment of society - what if that's not your target market?
2) At the moment there is a huge proliferation of sites - so the customer base is split across those. Which one should I use?
3) Sites like WeCanDo.Biz look very promising in my opinion - but currently deal primarily with explicit needs - where the customer knows what they want. The vast majority of my sales are to customers who don't know what they want - there is a long exploratory process first which isn't amenable to a "marketplace" type model. I'm sure other social sites may come along to help with this, but we're not quite there yet. (In fact, the UK Business Forums are probably a good example of a social site where this sort of sale can happen. I have a problem - I post it - someone asks more questions, I think a bit more and post more - they help me a bit (and so establish their credentials) - we interact a bit more - and I end up hiring them 6 months later for something bigger).
4) There is a lot of investment of time required if you want to do it right. People are mostly rightly wary of establishing relationships with people they can't see or hear. So you have to earn trust via social media in a way you wouldn't have to if you met them face to face. This takes time and effort that shouldn't be discounted. Personally, I do think that blogging, article writing, forum and social media interactions will be very valuable for me - but I recognise it is going to take a large investment of my time.
5) The geographic angle isn't quite working yet for a geographically bound business. I want to work primarily in the North West. But the people who read my blog and articles and my Linkedin answers, who follow me on twitter, etc. are 99% not based near me or ever likely to be my customers. They follow/read me because of what I have to say. Because the overall number of social participants is still relatively low, there's just not a critical mass of active local potential customers for me for me to win a lot of business this way yet.

So as I said, cold-calling is not dead - but it's shrinking in importance; and social media are not he solution for everything - but have a growing niche. IMO anyway.

Ian

 

[GeorgeM]

Well I may be stating the obvious - but we are on a 'Social Network' now.

Is this exchange building positive business contacts ?

I would be interested to hear others views.

 

[6consulting]

Well I may be stating the obvious - but we are on a 'Social Network' now.

Is this exchange building positive business contacts ?

I would be interested to hear others views.

As the author of the piece I am really pleased with the debate. We seem to have a 50/50 split in opinion. We also have a great deal of people thinking Social media is just Facebook.

IanB makes some interesting observations about social media usage and the geographic issue of connecting with people locally, all valid points. IanB also made mention of SPIN selling having nothing to do with cold calling, I would have to disagree. I have worked with a large number of companies that apply the basic principles to cold calling.

Social media is not a cure all, I agree with that. Sales is all about process, and social media is a great step to have in your process regardless of what you are selling.

 

[IanB]

Well I may be stating the obvious - but we are on a 'Social Network' now.

Is this exchange building positive business contacts ?

I would be interested to hear others views.

I found my accountant through a question I asked on here. I noted who gave the most sensible answers and reached out to them/their firms.

For me, this is a very clear way for social sites to be used for business that adds value both to the customer and vendor - and is difficult to "cheat". You can pay a company in India to vote for your sit on Digg/Stumble/etc. - but it's very difficult to pay them to post sensible answers to a question on UK tax law for example.

Ian

Ian

 

[6consulting]

For me, this is a very clear way for social sites to be used for business that adds value both to the customer and vendor - and is difficult to "cheat". You can pay a company in India to vote for your sit on Digg/Stumble/etc. - but it's very difficult to pay them to post sensible answers to a question on UK tax law for example.

Great point..

 

[jamesrudall]

I’ve just read Matthew Brazil's article and I have to disagree with the majority of his points. The effectiveness of cold calling as a route to new business depends entirely on the approach and the level of professionalism adopted and also on the calibre of people making the call and perhaps most importantly what you are calling to talk about.

The first point in cold callers having a bad image - this pre-conception is only applicable if the people calling follow the same pattern. A proper introduction and a respectful approach is generally received in the same manner. Bad, rude or ignorant cold callers will be told to get lost and rightly so.

No Names Policy - this is never a barrier to selling over the phone and using social networking sites in conjunction with cold calling is an excellent way to mesh the two approaches. Find the names(s) of the relevant person you want to talk to via linkedin for example and the get in touch on the phone.

Skills - properly motivated and intelligent telephone sales teams will deliver results if they are talking about value propositions which are relevant to the executives and delivered in a considered consultative manner. Also - make sure you speak to the most senior person available and have a conversation. "Pitching" is a term reviled in this office - cold calling should be about having rich conversations and building relationships on the telephone and not "selling". Worthwhile high value deals are not made on the phone but they can be lost with the wrong 1st impression

Cold calling or "Inside Sales" is often viewed as a low-level task and given to poorly trained and in-experienced people who don't care about their jobs or the results. Why not take the view that the first point of contact with your prospects is the most important one you will ever have and give that task to well paid, articulate, ambitious people who want to succeed by doing things properly.

New Philosophy - I’m all for a new way of approaching new business sales however i firmly believe cold calling to be an integral part of that approach. It's absolutely essential to integrate new media and social networking into the cold calling approach but to be tolling the death knoll of cold calling at this time is very premature

Results - I run an outsourced sales organisation and the results we deliver on a daily basis stand in stark contrast to Matthews’s stats. Our conversion rate sits roughly at roughly 1:7 conversations leads to a meeting and our sales ROI is in the 1000's of %.

So in summary, cold calling is very much alive and kicking, if you do it right and that means the right people, having relevant conversations in a consultative manner with people who have the specific business needs that your organisation is addressing

Feel free to learn more about advanced consultative telephone based sales at the Conversion Uk appointment setting website

 

[georgelane]

Quick disclaimer: I’m a professional internet marketer with no real experience in telesales so please ignore everything I say on that subject

Maybe we need to shift our perspectives here.
The comparison to Cold Calling versus Social Networking isn’t really a fair one, and maybe the point is being lost a little in this (very good) debate.

The main problem I see is that these two marketing methods are from two totally different camps. Cold Calling being ‘interruption’ marketing and Social Networking ‘permission’ marketing.

Both methods are used ultimately to put prospects into a sales funnel, and the effectiveness of each will vary from business to business/industry to industry.

The proverbial usually hits the fan when Social Networking is used as an interruption device (spamming), and Cold Calling is un-targeted and robotic… Which leads me onto why surprisingly, these two marketing methods have a common thread that joins them.

I believe that the power of both Social Networks and Cold Calling is in creating, building and maintaining relationships with your prospects and customers (as is all marketing really).

A skillful Cold Caller on first contact asks for permission to keep in contact with the prospect, as does a prospect when she “friends” someone on a Social Network. (Note how permission is gained using two completely different methodologies.) Two different approaches yet the outcome is the same. You’ve qualified the prospect enough to get them to take the next step in the sales process. Which in this case, are the baby steps to getting permission to continuing to communicate, and hopefully close.

Maybe the reason Cold Calling is slipping in some industries is because the prospect isn't as 'warm' as those from social networks. Social Networking leads have already made a small commitment (See "Influence" by Cialdini) by adding/confirming your 'friend' status which can set them up to be more receptive.

Anyway, hope that all makes some kind is sense!

Cheers,


George

There are a couple of people I listen to on the subject of Social Media. They are Jack Humphrey (Google his name) and Ed Dale (Google “30 Day Challenge”).

For sales (and telesales), I always look up John Paul Mendocha (again, Google his name) as well as Ari Galper from Unlock the Game.

 

[IanB]

IanB also made mention of SPIN selling having nothing to do with cold calling, I would have to disagree. I have worked with a large number of companies that apply the basic principles to cold calling.

OK - I change my comment - you have done you homework - but I suspect the companies you talk about are either making a mistake, or are using priciples so basic they aren't really the essence of SPIN selling.

SPIN selling is about making major sales. The unique elements of the methodology relate to the differences between selling small items (where for example, you need to close asap after establishing a basic need) and large sales (where you need to explore the need, highlight the wider impacts, etc.). In fact, if I remember rightly, you could read Rackham's data to show that applying SPIN techniques to smaller sales is not only pointless but also counterproductive. They are a different beast.

Here's my simplifed logic. Making major sales can't be done over the phone. SPIN selling only uniquely applies to major sales. For major sales the most productive use of the phone is to get a meeting - not to try to sell the product. So using SPIN technques over the phone is a bit pointless.

Of course, that's simplified, there will be exceptions and I don't know the companies you're talking about - maybe they are doing something slightly differently. But I would suggest that anyone trying to make a major, complex sale via a cold call (rather than set a meeting via a cold call) is a bit misguided in the first place.

Ian

 

[jamesrudall]

George is right in that cold callign fails where a smash and grab approach is taken with little respect for the situation and wishes of the recipient of the call. If the person calling buys into your approach and professionalism and you as a person then they become a "warm" prospect. If business is not immediately forthcoming then you will have created and maintained an important relationship. Much in the same way as can be done via a social newtorking site - however more immediate and tangible

 

[IanB]

If you are in a niche market you may be spending money on advertising or cold calling which is totally unnecessary. If you are good at your business then your existing clients will be happy to refer others to you - OK I am in a niche market (tax and accounts advice to actors, musicians and others in the entertainment business) but I find my new clients will only come if they receive a recommendation from a friend in the same business. I'm happy to say I receive 12 new clients a month on average, so it certainly works for me.
All I do when I get new clients is to provide them with extra copies of my business cards and ask them to pass them on to any of their friends who need help. I spend no more time or money on advertising/cold calling/networking and the rest of my time is spent working and earning fee income.
Everyone needs to look at what they do and every business will be different. Just don't waste your time or money!

You're right - but what if you don't have any existing customers? or expanding to a new geography where your customers don't know anyone to refer you to. What if you sel something non-referrable (I dunno, perhaps you are a doctor specialising in STDs - who's gonna want to refer you, or know who to refer you to?).

These may be the exceptions - but often the people asking about cold calling are the people who fit into these exceptions.

Having said that though, my experience is similar to yours - people overlook customer referrals. Or they do it badly. They just ask for referrals without preparing the customer first and clarifying what they're looking for.

Ian

 

[jamesrudall]

It's an important point that cald calling isn't the right approach for every business. If you can gain 12 new clients a month by referrals and that hits your target then there is no point in spending extra money on generating business. As with any route to market it's important to make sure your targetting, message and philospohy and right not just for you but also for your prospects

 

[IanB]

I think everyone is still missing the point. Social media is not just about having a profile and connecting with people. Facebook and Myspace are small elements of social media. LinkedIn is a glorified recruitment tool. True social media starts with creating engaging content, your profile is NOT part of this!

Well, to be fair, there are a whole load of disparate things lumped under the title of social media so it's no surprise people jumped on the contentious elements and not on others.

I'd agree that blogs, articles, podcasts etc - supported by social voting & bookmarking can have a great effect on interest and reputation - which can generate leads.

Really it's just a new media extension of the old strategy of publishing books and articles, speaking at conferences, etc. Only now, it's become possible for many more people to do it and for many more people to get access to the material and so become potential customers.

But it doesn't work for everyone. As I said before - geography is an issue for some businesses. This sort of "expertise marketing" works best for businesses who need to prove their knowledge and capabilities in advance of being hired - ofen because they are intangible beforehand. So it's a great model for professional services for example.

Would it work for a plumber? Probably not. But the marketplace stuff probably does.

That's the trouble I guess - social media covers such a broard area we all think of different things - some which work in some circumstances, some which work in others - and then end up arguind at crossed purposes.

One fearI have (as oldweshguy pointed out) is that people are now advertising their services to Digg/Stumble and otherwise promote stuff via social media. This could really hurt its usefulness. If you can't trust the reviews & votes, the social side will wither. Publishing wll still work though - provided people can find it.

Ian

 

[IanB]

I jokingly came up with the following phrase to sum up the dilemma of cold calling vs social media:

Cold Calling: Contacting targeted, potential customers who don't want to hear from you.

vs

Social Media: Reaching people who do want to hear from you - but who aren't target customers.


But after I thought about it I realised there was a bit of sense in there.

The challenge for cold calling to overcome is how to get prospects to want to take the call. Writing a letter in advance, sending an article etc. have always been used. Perhaps social media can help too - if they're read your blog they're more likely to take a call.

The challenge for social media (of the blog, podcast, forum variety) in my view is targeting. How can we get the people who are our target customers to read our stuff. If you have a circulation of Seth Godin proportions it's probably not a problem. But for people like me with a sub-100 subscriber list to my blog!?!?

Ian

 

[jamesrudall]

I jokingly came up with the following phrase to sum up the dilemma of cold calling vs social media:

Cold Calling: Contacting targeted, potential customers who don't want to hear from you.

vs

Social Media: Reaching people who do want to hear from you - but who aren't target customers.


But after I thought about it I realised there was a bit of sense in there.

The challenge for cold calling to overcome is how to get prospects to want to take the call. Writing a letter in advance, sending an article etc. have always been used. Perhaps social media can help too - if they're read your blog they're more likely to take a call.

The challenge for social media (of the blog, podcast, forum variety) in my view is targeting. How can we get the people who are our target customers to read our stuff. If you have a circulation of Seth Godin proportions it's probably not a problem. But for people like me with a sub-100 subscriber list to my blog!?!?

Ian

You can also get people to take the call by engaging with them on a professional level and having a proper conversation instead of diving in and "pitching" a service which may or may not be relevant. Building relationships with PAs and secretaries is a crucial part of this and perhaps an linked in introduction would be a useful tool as well. In the end though you generally have to ring them up

 

[MiracleTrainingLimited]

Hi All,

Cold calling is certainly not dead, even with the intervention of the TPS register as companies now have their cold calling lists matched up against the TPS database.

Social networking, as previously said cannot ever replace cold calling because the interaction between the caller and the prospect cant be replicated by posting messages to each other.

The other thing about cold calling is the sheer volume of contact it creates, i.e.: telesales people usually make between 50-150 calls per day, averaging at about 80 roughly. If companies used social networking sites alone to obtain new business, conversion rates would be very poor indeed, making for very low volumes of sales.

I would say that social networking sites can definitely provide a small amount of sales, but with rising targets in the current financial climate they can only ever be a complimentary way of gaining new business and never reach the volumes needed by companies today.

Another thing is productivity, when a telesales person goes to work, they focus on making the calls and should know their conversion rates from calls to sales. If they got embroiled in the world of social networking too much, replying to posts, messages, saying hello, making introductions, birthdays etc etc etc, productivity would soon be an issue!

I run a specialist telesales training company and have been involved in telesales for 16 years, telesales training for 11.

If anyone would like to ask any advice regarding themselves or their team/s, please get in touch through my website or by giving me a call, I'll be more than happy to help out.

Matt Rogers
Miracle Training Limited
07786 991146

 

[Rick at AXLR8]

I can only speak from my experience. I found a brilliant client yesterday and we find many every week by cold calling.

My experience is exclusively B2B (both Times /Fotrune 500 and SME). I have logged the lead source of all the sales in my AXLR8 company CRM for 16 years and my employers' before that in an attempt to find what marketing and sales investments pay back and evolve away from the rest that do not. I occasionally try things that failed previously to make sure I am not too rigid. Many things work. Some do not. Some work some times and not others.

Cold calling always works.

We start many relationships with a call but mix it up with all sorts of other stuff (W2, networking, WoM, etc.) these days. One of our best promotional investments is a huge local charity sports event that is completely irrelevant to what our comapny sells.

I have many clients who sell B2C. As we analyse their figures, usually, not one sales order comes from cold calling. (I also hate cold calls at home.)

So, I believe B2C cold calls are on the way out with a little help from legislation.

B2B cold introduction techniques always win respect from their recipients if polite professional and appropriate to their needs. Junior clerks do not want a cold call to disturb their play on Facebook in the office during the day. Most of our complaints about direct mail approaches come from very snotty juniors, too. Business owners, directors and managers have ever increasing challenges and set aside times to investigate new ideas. Obviously, I do not take cold calls while cold calling outbound myself, handling customer support or studying forums or presenting our products. Otherwise, if someone cold calling has a good idea, I'll listen. If they are a recruitment agent I will not. 7 a.m. and 7 p.m. are still a good times to catch decision makers. Some things do not change.

Keep the lead source on every contact you ever make on your CRM and see what works for you! If you do not have a CRM, consider AXLR8!

Rick
Sales.

 

[IanB]

You can also get people to take the call by engaging with them on a professional level and having a proper conversation instead of diving in and "pitching" a service which may or may not be relevant. Building relationships with PAs and secretaries is a crucial part of this and perhaps an linked in introduction would be a useful tool as well. In the end though you generally have to ring them up

Yes, of course, professionalism and an effective approach is assumed. The reality is still that until you convince them otherwise (by your professionalism or whatever), they were neither expecting, nor wanted your call.

Don't get me wrong - I'm not saying cold calling doesn't work - especially when done well. My point is more to highlight the irony of the two different methods - one is highly targeted - but to people not expecting or looking for the call. The other is to people who want to becommunicated with - but who aren't necessarily in your target market.

Ian