5 Rules of Successful Cold Calling By John Costigan

Cold calling is, without a doubt, one of the greatest challenges faced by salespeople. In my years as a sales coaching partner to the Fortune 500, I have heard countless tales of otherwise smart executives who had yet to master this technique. They struggled twice as much as their peers just to meet quota and had totally lost passion for the game.

Having spent my share of time in the trenches, I feel their pain. And that’s why I make sure to address cold calling in all my classes, whether they be corporate training engagements or my LIVE seminar series, which are open to the general public.

Now, the important thing to keep in mind about cold calling is it can be fun. As a matter of fact, it SHOULD be fun! All it takes is the right skills. Once you start getting great results you will find yourself be pumped up again. And success breeds success. So keep that in mind as we go over some guidelines that will help get you back on track.

The first rule of successful cold calling is:

Know thy prospect

Before you even reach for the phone you must do your homework. Establish the top five accounts in your territory and learn as much as you can about those companies. Who are their CEOs? What are they currently struggling with and how can your solution help them overcome it?

Never underestimate the power of Google News. Make sure you read everything that’s been recently printed about a company you are looking to prospect. Check out the “investor relations” section of their website. Read their press releases. Look up the management team and make sure you find out as much as possible about the decision makers. Never lose sight of the fact that, in order to move the deal forward, you will need to get to power.

The second rule of successful cold calling is:

Don’t sound like a salesperson

There is nothing that turns off prospects more than a sales pitch. Trust me on this. So instead, try saying you would like to ask them a couple of questions. Explain that if they feel you are a fit, you can move forward and, if not, that they have your permission to say no. That way you won’t waste their time, or yours for that matter.

The third rule of successful cold calling is:

Have a concise message

Do you know exactly what you are going to say if you get the right person on the phone? And by right I mean the decision maker or, at least, someone high up enough on the corporate ladder to refer you down to the appropriate decision maker. Before you dial you must craft a concise message that explains what the call is about. Then follow with a relevant question that can yield a good lead.

Most likely, the person you have reached is having some issues with the current provider of the solution you are selling. Or better yet – for you, that is—they might not even be aware that there is a solution out there to the problem they are facing. Try asking: “On a scale of one to ten, how happy are you with___?”

You may already have some idea of what their pains are but always keep an open mind. Your perceptions may not accurately reflect the customer’s reality.

The fourth rule of successful cold calling is:

Location, location, location

Do not underestimate the importance of your surroundings when you dial for money. Most people are really self-conscious about cold calling in front of other people. There’s a strong peer pressure component to that feeling, along with a very understandable fear of screwing up.

Make sure you make your call from a room private enough so that you can be confident – not arrogant – and so that if you make a mistake, no one will know about it but you. That does not mean you should be sloppy or careless, but that mistakes are a part of the process. And unless you are allowed to make them, you will never learn what behaviors you need to change to become a better salesperson.

The fifth and final rule of successful cold calling is:

Be organized!

I hate to sound like your Mom, but the truth is a cluttered workspace makes for a cluttered mind. When cold calling, you need to be able to think on your feet. You can’t do that when you have a desk full of stuff distracting you from your conversation. All you will need is a piece of paper, a pen and your phone.
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John Costigan is president and founder of John Costigan Companies. John is known for his training technique where he makes live impromptu phone calls to his students' prospects in front of a live audience. For more information, visit www.JohnCostigan.com

It's So Hard to Say "Good-buy" by Kim Jones

If you are not specific in telling customers how to decide between you and your competition, they will choose based on the one thing they do understand: price.

Unless you are Wal-Mart, your aim for "everyday low, low prices" could be putting the profitability and the health of your business in grave danger. By definition, most small or midsize businesses do not generate enough volume to compete on price and price alone.

The opportunity lies in your ability to define your advantages and teach your prospective customers how to buy whatever it is you are selling.

Wal-Mart has perfected the art of "everyday low, low prices". They virtually own this position in the minds of consumers. Any new retailer coming into the market today would have to spend a tremendous amount on marketing to try to unseat Wal-Mart as the low price leader.

The good news is that Wal-Mart leaves plenty of room in the market for other retailers to position themselves as the leader in customer service, convenience, quality or a host of other attributes that are also important to shoppers.

Your role is to teach your customers how to buy your product or service. You have the opportunity to take your businesses strengths and turn them into "must haves" for shoppers.

Car marketers are geniuses at teaching us how to buy. Car marketers teach you about rack and pinion steering, twenty-four inch wheels, ABS brakes and all kinds of other bells and whistles.

Granted, many of us aren't really sure why we need rack and pinion steering or ABS brakes but the car marketers have done such an incredibly effective job at teaching us what we need that we no longer even consider those cars that don't offer these basics. They have shifted our focus away from price and have turned our gaze towards an ever-growing list of "must have" features.

Take a step back and closely examine your business. How do you define what you are selling? How do you compare with your competition? Take the time to teach people why they should buy and more importantly why they should buy from you.

Don't be fooled into thinking that offering the lowest price is the key to getting more customers. Your job is to let your customers know why you are the obvious choice, regardless of your price. And remember, not everyone is looking for a good buy.
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With over 15 years of corporate sales and marketing experience, Kim Jones has been training sales and non-sales professionals on ways to "Stop Selling & Make More Money". She can be reached at 561-741-7770.

Cold Calling 101: Dialing for Dollars by Jill Konrath

A few years ago I temporarily shut my business down to refocus, rename and rebrand my company. I also had to figure out what to put on first web site. Finally, after several months of gut-wrenching work, I was ready for prime time - eager to get back to work.

My value proposition was strong; my target market clearly defined.

After identifying companies that met my parameters, I went on-line to research them. I requested annual reports and read them carefully. I wanted to ensure that when I talked to the executives, my services were aligned with their business objectives. Then, I developed my Top Ten List.

But my preparation still wasn't complete. I needed a phone script to make sure I didn't sound like a blathering idiot when I reached their voicemail. So, I went to work on that.

I wrote a script and then rewrote it. To hear how it sounded, I called my own phone number and left a message on my own voicemail. At first I sounded awkward, stilted. How you talk is really different from how you write. So, I'd make changes and try again - and again.

Finally, I got it down pat and was able to leave a personable message that conveyed exactly what I wanted to say in about 30 seconds. By the time I was done, it wasn't a script anymore; it was just me talking.

It was time to pick up the phone! I'll start tomorrow, I promised myself.

Well, after about a week of doing just about anything to not make calls, I decided I couldn't avoid it any longer. I stared at the phone. My stomach was churning. Thoughts of saying something stupid and stumbling over my own words raced through my mind.

I looked again at my list of targeted companies, thinking it was nicer to have them on my prospect list than to have them say 'no' to me. At least there was still the possibility that we could do business in the future.

"This is absolutely ridiculous," I thought to myself. "Here I am, a seasoned sales professional and I'm suffering a severe case of call reluctance." There was only one way to put a stop to this. I had to call someone - right away.

Taking a final look at my Top Ten list, my eyes zeroed in on my top prospect. I picked up the phone and started dialing. 6...1...2... I paused, wanting to hang up, but I didn't. I took one last look at the highlighted bullet points I wanted to cover in the voicemail and forced myself to continue dialing.

The phone rang. I stood up - erect, with good posture to ensure the best possible voice quality. It rang again. I smiled, to make sure I sounded approachable... personable. It rang again.

"This is Peter," the voice said in a brisk British accent. I waited for the voicemail to continue, ready to deliver my message at the sound of the beep. There was a pause - a long, silent pause.

Suddenly I realized I was talking to a human, not a machine. I was dumbstruck. The last thing in the world I expected was to get the Vice President of Sales in person. No one ever answers phones anymore.

My mind went blank; everything I planned to say totally disappeared. Words came pouring out of my mouth. I bumbled. I stumbled. I sounded like a blathering idiot. I would have hung up on me!

Sure enough, the VP was quick to cut in, "We don't need any of that. We handle it all internally."

Under just about any other circumstances, I would have taken the comment in stride and addressed it easily. Instead, I sputtered, "Oh ... Well, thank you for your time," and got off the phone as quickly as I could.

Shaking my head at my own incredibly stupid behavior, I started to laugh ... and laugh and laugh. It couldn't get any worse. Now, I was ready to make calls.

Lessons Learned:

1. NEVER, EVER call your best prospects first.
When you're selling something new, there are always glitches to work out and new obstacles to overcome. I tell this to every sales group with whom I work. If I've said it once, I've said it a million times. "Practice on your B or C prospects - ones you can afford to lose."

2. Have a voicemail plan AND a real person plan.
Even though 95% of the time you'll probably get voicemail, you must have a contingency plan in case a human answers.

3. Be prepared for common obstacles too.
As a salesperson, you can almost count on hearing things like, "We don't need any" or "We're happy with our current vendors." Don't be stupid like I was and say, "Oh." There are much better responses. Plan for them.

4. Make the process a learning opportunity.
If you don't get the reaction you hoped for or you run into some obstacles that are difficult to overcome, simply consider that feedback. Look at what you're saying and how you're saying it. Make changes and try again. Don't let yourself be defeated by a few rejections. Figure out what needs to be different and experiment. It truly isn't the end of the world unless you let it be.

5. Laugh at yourself - we all make mistakes.
Sometimes I can't believe I actually called my best prospect first. I knew better. I also can't believe I didn't prepare for talking to a real person. Again, I knew better. Don't ask me where my head was that week. I guess I just wanted to get out there and make things happen. And I really did want to do work with that company.

Fortunately, the conversation was so short I didn't make any lasting impression. I think I'll call Peter again soon and do it right this time!
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Jill Konrath, author of Selling to Big Companies, is a recognized sales strategist in the highly competitive B2B market. A popular speaker at sales meetings, she helps her clients crack into corporate accounts, speed up their sales cycle and generate demand for their offering. Konrath publishes an industry-leading e-newsletter and blog. To subscribe and get a free Sales Call Planning Guid ($19.95), visit SellingtoBigCompanies.com. For more info on sales training, call 651-429-1922.

Your Approach Makes a Difference by Kelley Robertson

Not long ago my wife and I were planning a get- together with some friends and wanted to serve a cheese board after dinner. So, we ventured to a local market to look for some cheeses.

We asked for one particular cheese at the first vendor we visited and were told that they did not carry it. No effort was made to recommend anything else and we left without making a purchase.

As we walked through the market, I noticed the cheese we wanted at another vendor. After tasting it and several others, we selected two cheeses. Total sale: $17.

A few moments later we ventured across yet another cheese vendor. As we looked at their selection, an employee asked if she could help us. We told her that we were looking for some cheeses to serve at an upcoming dinner. She immediately asked us what we had already selected then made several suggestions and gave us the opportunity to sample them.

However, instead of providing the sample on a toothpick like the second vendor, she placed each cheese on a cracker. And, as she handed the first sample to us, she pointed out where the crackers were stocked. As the conversation continued she asked us several more questions and recommended several other cheeses which we purchased.

When we had finished selecting our cheeses, my wife stated that she was interested in buying some of their fresh olives. The sales person got us started by suggesting her favorites, encouraged us to sample the variety of olives she had on display, then left us alone while she took care of other customers. A few minutes later she returned, portioned out my wife’s choice and suggested that we come into the stall to look at fresh dips and spreads. She followed this by stating that she had put our purchases in a basket and would help us with them when we were ready to leave. How could we refuse?

Of course, once in the “store” we spotted some additional items that would complement our meal. When we advised her a few minutes later that we were finished she took the basket with our purchases to the cashier and wished us a great day. Total sale: $70.

There is no doubt in my mind that this particular vendor generates a lot more revenue than her nearby competitors. Not to mention the repeat business she’ll get from us in the future.

There are several great sales and business lessons to be learned from this experience.

First, she took interest in our particular situation. Her approach to the sales process and desire to help us select the best cheeses for our dinner helped her stand out from her competitors. Zig Ziglar once said, “You can get anything in life you want if you just help enough other people get what they want.” Her attention made us feel special and prompted us to spend more money.

Second, she asked us a few questions. Unlike the first two cheese vendors, she found out what we liked, what we had already bought, and when we were planning to serve the cheese (after dinner versus before dinner). Although virtually everyone in sales is told to ask questions, my experience has taught me that most people have a tendency to skip this step.

However, a few key questions can help you uncover vital pieces of information that will help you make more appropriate suggestions or recommendations to your prospect, customer or client. Remember, you don’t have to conduct an interrogation—you just want to learn a bit more about your customer’s wants, needs and particular situation. And depending on what you sell, this can expand to their likes and dislikes.

Third, she increased the size of the sale by pointing out additional items such as the crackers. Plus, when she gave us the samplings of cheese, she used these products which gave us the opportunity to try them with zero risk.

I’m not suggesting that you give every customer a free sample of your product—that’s not realistic in many situations. However, think of how you can reduce the risk of doing business with you especially if you are dealing with a first time customer or client.

Fourth, she dealt with, ad took care of, multiple people at the same time. Although she invested some time dealing directly with us, she did excuse herself to help other customers several times. And my wife and I certainly didn’t take offense to this because we knew she’d return to help us.

Regardless of what you sell and to whom, you can probably make some changes to your approach to stand out from your competition and make it easier for people to buy from you. Don’t wait. Do it now!

© 2006 Kelley Robertson, All rights reserved.
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Kelley Robertson, President of the Robertson Training Group, works with businesses to help them increase their sales and motivate their employees and has helped thousands of sales professionals and business people improve their results. He is also the author of “Stop, Ask & Listen – Proven Sales Techniques To Turn Browsers Into Buyers.” Receive a FREE copy of “100 Ways to Increase Your Sales” by subscribing to his free sales and motivational newsletter available at KelleyRobertson.com. Contact him at 905-633-7750 or Kelley@RobertsonTrainingGroup.com.