“Because we’re trying to make new contacts and more newsales.”
“Is there a better way to do that than cold calls?”
“I sure hope so.”
“Well, let me give you a clue: There is no WORSE way.”
The cold call is THE lowest percentage sales call. It’s aninterruption, it’s a fight, it’s often a lie, it’s maximum sales manipulation,and it’s a rare appointment and a rarer sale. Wanna go from low to lower? Coldcalls are made by people who are new to the job and have limited capabilities.Or worse, they are made by seasoned salespeople convinced that “cold callswork, they have made me a lot of money.”
We differ on the definition of the words “a lot.”
“But Jeffrey, you don’t understand, I HAVE to make coldcalls, it’s a job requirement,” you whine.
It is not.
Suppose you doubled your sales quota for the month and mademore sales than anyone else in the company. If you sheepishly went to your bossand said, “I didn’t make one cold call,” is your boss going to fire you?
Or is it likely that he could CARE LESS. He’ll hoist you onhis shoulders. He’ll tell everyone in the company how great you are. In fact,he’ll want to know how you did it. In fact, you may be put in charge oftraining. In fact, you may be next in line for the boss’s job.
Let’s get the facts straight:
Cold calls are a great supplement.
Cold calls are a great place to practice.
Cold calls are a great place to learn sales skills.
But, cold calls are a LOUSY place to make a sale. Let’s goone step further – of all the sales opportunities, options, and scenarios, coldcalling is worst one.
Everyone wants to “make more sales.” And most salespeoplehave a monthly goal or quota. The question remains: What’s the BEST way to makethat happen?
ANSWER: Look at the value of your sales call. Or, betterstated, the valuable-ness of your sales call. In other words, which sales callwill produce the best results, the most sales, the greatest return on time andmoney, and be best for building a great relationship and loyal customer? Andoh, by the way, which is the most profitable?
Ranked in order – here are the categories of sales calls,both outgoing and incoming, for your painful pleasure. BE ADVISED: The morevaluable they are, the harder you have to work to get them – but the easierthey are to make the sale. The fact is – most salespeople won’t do the hardwork it takes to make sales easy.
Worst – the cold call
Almost as bad – an appointment made from a cold call
Fair – a response from an ad or direct mail or unsolicitedemail
Semi-good — an appointment made from a trade show ornetworking event
Pretty good – a social media inquiry
Pretty good – a web inquiry
Pretty good – an email blast to your existing customers
Real good – a referral from another customer or friend
Real good – an unsolicited referral
Great – an unsolicited call from a prospect wanting to buy
Best – an unsolicited call from an existing customer wantingto buy more
OK, now that you know the types, write the percentages thatgo with them. No, no — not the percentage you close. The percentage of eachthat makes up the type of sales call you make or sales inquiries you receive.What you’ll discover is that if you change the TYPE, you automatically change the percentage.
Eliminate cold calls and concentrate on earned referrals andyour sales completion ratio will skyrocket. A hundred cold calls or a hundredreferrals? You tell me, Bubba. And while you’re telling me, tell your boss toread this.
“OK, Jeffrey,” you say. “Now that we have established thetypes and percentages, tell me how to get from the lowest level to the highestlevel.”
OK, I will… Next week. But let me give you a clue – it hasmore to do with networking, positioning, personal reputation, businessreputation, web presence, social media presence, Google ranking, and servicethan cold calling. Stay tuned…
And if you’re still cold calling between this week and nextand want some tips to make them more effective and profitable, go towww.gitomer.com, and enter the words WORST WAY in the GitBit box.
KING OF SALES, The author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com.