There is an ongoing discussion in sales about the merits of cold calling. I'll state my bias right up front. Done right cold calling works, works across all B2B sectors and at all levels of an organization, 'C' suite to basement. Key is "done right"!
It may not be the number one best way to engage with new prospects, that distinction seems to go to referrals, either direct or indirect.
Beyond the fact that I continue to connect with and gain access to decision makers at all levels of organizations and continue to gain customers as a result (just for the record I do most of my cold call by telephone, and via e-mail). My belief that cold calling is a must for success was reaffirmed by a couple of recent conversations.
The first was with an individual who provides similar services to mine to corporations and associations. We were comparing notes on client acquisition, when they informed me that they absolutely never (ever) cold call. OK, I am game, “what do you do to get clients?” They laid out their internet strategy, SEO, AdWords, you name it. "So whenever someone is looking for training and they do a search, they find me." Great I thought, "What about the other trainers with a web presence, Google AdWords, SEO, and so on? How do they figure?" Seems I was unaware that their strategy was much more thought out and superior to the others, tied into social media, and more. I was impressed, (I needed to be).
I couldn't help but wonder, and had to ask what percentage of their market was in play at any given time. I mean think about it, the only people who would go to Google and do the type of search that brought them up top and center, would have to be someone who has already decided to address a concern or interest they had, they were somewhat along in the process, having made the decision to search the terms that put their ad at the or near the top of the list. She estimated that probably 10% to 12% was actively looking and therefore searching. “What about the other 90%, the ones that are not proactively looking at this time?” She would be there when they were ready, was her stance.
I pointed out that cold calling allowed me to get to the 90%, and engage in a discussion around their objectives, and potential opportunities to utilize my services to help them attain those objectives. One of the obvious advantages is the fact that I often do not compete with others. I approached them, they were not actively seeking, and as such measure the merit of my proposal rather than comparing to others who came up in a search. A great way to establish thought leadership with the client; build a solid foundation for a long term relationship, while building entry barriers for others.
The second conversation was with an owner of a multi-national head quartered in Toronto with offices in the USA and UK. We were discussing the shifts in the market as a result of the economy and his recommitment to prospecting by phone. We went on to talk about the new “do-not-call” list in Canada, and similar initiatives in the UK and the States. While the “list” in Canada only applies to consumers, he told me in the UK the initiative extends to commercial or B2B as well. I asked what the impact had been in the UK, and he said minimal. Apparently, not many business people are putting their names on the list in the UK. I asked why he felt that was, seeing as how everyone tells me that everybody hates getting cold calls; I am told by the no cold call pundits that most business executives would do everything to avoid being disturbed by pesky cold callers, and all the usual things cited by the no cold call crowd.
What his customers told him is that they were afraid of missing out on new ideas, or things that could help them with their business. They had told him that the trade off was worth while, a bit of pain for potential gain, the risk of missing something was greater than momentary grief of a bad cold call.
So what it comes back to is how well you execute the call, how well you can engage with the prospect and how you differentiate yourself from the other callers. As stated earlier in this piece, “done right” is key. It also validated that those who insist on not making calls do so because they have yet to find an effective way to execute. So rather than continue making bad calls, they choose other way to get to prospects. Of course there is the alternative of learning to make the calls, but hey.
Clearly a combination of approaches works best, referrals, networking, web, cold calling, advertising, etc. But if you are not cold calling, you are limiting your ability to drive sales and attain your goals. What the discussion with the business owner confirmed was that business leaders are seeking ideas and means with which to move forward and achieve objectives. At times they will go and proactively seek new ideas or alternatives, especially when the status quo becomes intolerable. As a professional I am glad to know that there is an opportunity to engage with them before that point, and that is where cold calling can be even more effective than referral.
There are always those that believe they can succeed without using some basic approaches, but for success in B2B sales, where prospects are not lined up at your door, cold calling is a fact, proper and consistent execution is the challenge.
Tibor Shanto is a Principal with Renbor Sales Solutions Inc., and find out how he has helped dozens of organization to fill their pipeline with real prospects - - driving real revenue.
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