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The Death of Cold Calling

Guest post by: Drew Stevens Ph.D.

Article Overview: Discover better methods than cold calling to help you land more leads and more sales.

The Death of Cold Calling

I was out with a recent customer Ken the other day having lunch when my cell phone rung indicating a voice mail from my office. Once I completed my meeting I checked voice mail only to discover a message from the most lethargic obnoxious cold caller received. When I have time I view many of the Linkedin groups and blogs to listen what the world is saying on sales and sales management issues. After 29 years in this business, a top blogger and thought leader as well as watching continual consumer buying patterns; it still shocks me to see how many view cold calling as a valid sales instrument.

I grew up in Brooklyn New York and as a child we had a pediatrician visit our home when I was ill and a milkman that delivered a gallon of milk once or twice per week. That was then this is now. I also remember a time when sales professionals that wanted to pitch their products/services were able to do so before "No Call" lists and the Internet. That was then this is now.

Sales Managers must stop representatives from cold calling. Cold calling like black and white television is dead. Cold calling does not work, it is annoying and does not engage economic buyers.

There reason for placing a moratorium on cold calling is because:

1. It wastes significant time and money

2. It does not lead to any significant increase in lead generation or sales

3. It does very little for creating value based relationships

With consumers having more power than ever with the use of the Internet, they have discretionary choices of products and services before any seller calls. The fact is decision makers today have something cold callers used to have - power. This comes from the ability to instantly discover trends and research information.

Secondly, decision makers today are highly influenced by other customers. Their decisions are based on case analysis and testimony of others. Don't believe me then look at examples of both Facebook and Zappos whose consumer grew through word of mouth versus traditional advertising and promotions.

At this point you might be saying well if cold calling is dead then what are alternatives since sales people still need to generate leads and close business. Here are just a few:

1. Networking Works - To help increase the flow of leads selling professionals need to be visible. The only manner to be known is to network aggressively in groups that house your economic buyer. Stop hanging around groups where your friends are or where you are comfortable. Focus your efforts on true buyers.

2. Warm Campaigns - Meeting buyers can be effective sales agents focus their efforts on sending a warm handwritten letter of introduction to decision makers. This must have reasons for writing, validation or proof of previous experience with similar companies and an action step for follow up on a specific date. Targeted campaigns if done correctly will open doors.

3. Referrals - Nothing beats a cold call then a simple referral from those that know and trust sellers. Those that appreciate your value are more willing to give the names of others that will appreciate the products or services sold.

4. Third Party Endorsements - Sales agents can meet new individuals that might appreciate their value through alliances of suppliers, vendors or even your prospective customers customer. Conduct some initial research to determine how large your network is.

5. Visibility - Aside from simple networking sometimes speaking at industry conferences, holding webinars or attending conferences are great ways to show off talents and meet decision makers. However similar to networking you must be more attractive then the paper on the wall.

We are in an ever changing and fast paced environment. With so many changes many fundamentals are no longer applicable. Buyers are either too busy, too tired and simply too distracted. Sales representatives and their sales managers must find better and more efficient techniques so that they can easily meet and exceed sales goals.

With the changes in the sales environment, what are some practices that you have stopped or changed recently? Our readers would love to know. Please place your comments in the space provided.

©2011. Drew J. Stevens Ph.D. All rights reserved.

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Article Tags: cold calling, cold calling techniques, sales skills, sales tips, selling techniques



Related Forum Posts
Re: What to avoid when cold calling? - At the time of Cold Calling we should avoid price increases for products and unavailability.
Re: How to develop sales contacts? - Everyone has the right idea here. Depending on your business, there are different techniques that you could use. For consultants and sales heavy businesses, there are three tactics that I have found especially useful in my business: 1. Attend Networking Events 2. Cold Calling 3. Referral Program 4. Affiliate Program (most successful) The affiliate program was successful for me, as I hooked up with a franchise consultant, and he gave multiple unit businesses that needed my credit card processing services. I highly suggest you hook up with a sales partner, and give him a cut of the monthly revenue.
Re: Direct Mail Postcards - Post cards would be really expensive to send from Japan...but one way to advertise that is not expensive from overseas is by Cold Calling using cheap VoIP equipment. I know Japan has a really good internet connection, so as long as you are willing to stay up late, it might be an option. I cold call from Thailand far, far away from any city using a CDMA wireless internet connection and have had pretty good results. I find tho, that cold calling works best for business 2 business (b2b), rather than b2c products. --matt
Re: Cold Calling - As long as people are out of jobs, you'll probably have a lot of people who say they want to work for straight commission, but if they don't get paid fairly quickly, they usually move on. We've run into that and went through about 500 people (whose resumes looked really good) until we found about 3 good resellers. People just don't want to work for anything. Or they do a good job getting the business but don't do the follow up necessary to make the sale......so they move on thinking they need money NOW. Our business requires all cold calling as well. It's really tough for people to perfect that but there are a lot of good books out there. On is Cold Calling Techniques, by Stephan Schiffman
Re: Cold Calling - Cold calling is an extremely difficult job to do and unless one learns that being told no by people is not a direct refusal aimed at the cold caller but at whatever is being sold, it can be very soul destroying work to do. One needs to have absolute confidence in themselves and a pretty thick skin. MichelleJ


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