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What to do with a "cold" lead

Written by: Liz Walker

Article Overview: We have a client who has so many requests for quotes on his desk he is way behind on filling them. At first this seems like a problem we would all like to have. So many leads we can’t get to all of them! But there is a down side to this story. Our client has no way of sorting the leads into those that are “hot� and need immediate attention; and those that are “cold�. Maybe these cold leads are from qualified people, but who knows when they are going to close.

What to do with a "cold" lead

On top of that, he has recently learned that two of the leads in his pile assumed he wasn't interested because it took so long to get a quote; they took their business elsewhere. This raises two important issues: what is a hot lead, and what do you do with a lead that's gone cold? Most of us are pretty good with hot leads. These are qualified prospects who have the cash to buy our product or service, a real need we can fulfill, and the intention to buy right away.

Cold leads are prospects who are qualified, but who simply aren't ready to purchase right away.

What does your sales team do with a lead that is qualified, but won't close for a while? 99% of small businesses throw these cold leads away, or let them fall through the cracks because it's so time consuming and expensive to follow them up.

But those businesses who do follow up can literally double their sales in a year. Why? Because these folks will eventually buy - but if they haven't heard from you in a while, they won't be buying from you.

The best idea is to hand leads back to marketing for re-engagement and continued nurturing; creating opportunities for the sales force to pursue again in the future when timing is optimal.

Marketing can use tools like automated messages, newsletters, direct mail, events and public relations that are up to 90% cheaper than direct contact from a sales person. And, when the prospect decides its time to buy, they don't need to be re-sold, because they have all the information they need to make a good buying decision - your product.

Let's do the math. Say you have a showroom, and 100 people who are interested in your services walk in the door in a week. Your staff can only talk to 35 of them, so that's 65 people who walk out again - you don't know if they are qualified, interested, ready to buy or just there to kick tires.

Of the 35 people your staff talks to, let's assume 25% of them are hot leads, and 25% of the leads close. So of the hundred people who came in, two actually bought your products.

Let's assume the same ratios apply to the 65 people who walked out without speaking to a member of the staff. 25% are hot leads, 25% of the leads buy - that's 4 more sales, an increase of 200%.

Now imagine those 65 people are the cold leads, qualified people who for whatever reason won't take your calls, won't see a sales person or put off making a purchase. And imagine what those incremental sales could do for your business.

It's a great argument for follow up marketing, wouldn't you say?

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Article Tags: cracks, direct contact, direct mail, intention, marketing, math, prospects, public relations, s 65, sales person, small businesses, tires
Referred by: http://www.makingprofitspour.com



Related Forum Posts
Re: Cold Calling - In my experience the problem with hiring cold callers is that many of the successful candidates already realize that they have a talent for sales and are already working for themselves. Most of the candidates that would take a job cold calling most likely do not have solid selling or client service skills. I used to work for a brokerage firm in Victoria and we hired co-op students to cold call. In my opinion that was a mistake. Potential clients can sense inexperience very quickly and without a seasoned cold caller on your team prospecting will be very challenging.....the key is to find someone with skills that isn't already doing there own selling....tricky. Good luck Phil
Re: Who hates cold calling? - I think it really depends on what you are selling. For example, we sell chiropractic software that they can enter and store their notes on. Since the law is requiring them to go electronic by 2014, we have a pretty good chance of calling someone who needs it. I agree that for other products and services cold calling would probably be a waste of time. I think the key to cold calling is knowing how to get past the gate keeper. If you just keep calling people and have no clue how to get to the decision maker, cold calling is a BIG waste of time. There are some really good books out there that will teach a person how to do that if he/she decides cold calling would be helpful to their business.
Cold Calling ain't that bad - "Go for No" interesting concept and Jen great use of it. I'm working on a project right now and I think this concept/perspective can help. Thanks ppl. I try as mush as possible to convert a cold-lead into a warm one. Email is definitely one of my tools. I keep it short and add some value (e.g. article of the company in the paper) and that I will be contacting them on a particular date or time with their permission - much like what's been said before. I also try to find out if a company is running a blog or some extension of their company online and build rapport with the person maintaining the site - that usually will lead to an introduction to the person pulling the strings. Other times there just isn't time to build rapport and you just need to pick up the phone.
Re: Who hates cold calling? - I can see a role for calling your warm market, people who have opted in to your list or requested more info from your website. But is does cold calling really offer the best return on your investment of time? Sure you can "maintain" a positive mental attitude and eventually find someone to buy your stuff, but it takes an awful lot of "maintaining". I would prefer to spend my time improving my web copy skills so as to achieve a higher conversion rate online and use the telephone to contact those who have requested further info. One guy who has a lot to say on this subject is Daegan Smith ("The King of never calling a single lead"). I am not one of his affiliates, but I do enjoy his email newsletter. You can learn a lot from what he has to say - and from the way that he says it. So if you want to get OUT of cold calling, check out via a Google search what he has to say!
I hate Cold Calling! - In my past I was really scared to cold calling until I realized that cold calling in my line of work was the only way for me to generate accounts. I assiociated large amounts of pain in my life with not cold calling such as loss of house, car, wife.... The fear of losing all of that helped me over come the fear. Good luck with your problem It might help to think its all in your head and the only thing in the world that you have control over is your own mental thinking.


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