By Michael W. McLaughlin
The cold call is older than fictional salesman Willy Loman—and less effective, particularly for professional services providers. With all the high-impact marketing and sales strategies available to you, it’s time to rethink cold calling.
A cold calling campaign reflects the one-two punch theory of sales. First, you send out a stack of “enticing” letters to people you don’t know, and second, you call them and solicit their business. The underlying logic of this approach is that having a large number of targets will work in your favor.
You know that most of your calls will result in failure, but you hope a small percentage of those you contact will agree to meet with you. And from that group, some small percentage will want to discuss a proposal, and a smaller percentage may hire you.
What’s Wrong with That Logic
If you’re selling aluminum siding, investments, or cell phone service, maybe nothing is wrong with that strategy. But placing a call to a complete stranger to make an offer is self-serving, not client-serving. Your call is a solution in search of a problem, and everyone knows it. You can be sure that if you do make contact, that person’s guard will be way up.
Cold callers are lucky if they get through to a real buyer. You’re more likely to reach gatekeepers and tire kickers, not decision makers. And remember, most direct mail ends up in the round file or spam folder, unopened. So don’t be surprised if the person answering your call has no idea who you are or why you’re calling.
Even if you’re fortunate enough to reach a decision maker and your message is well-received, that doesn’t necessarily help you. Most services buyers obtain recommendations from colleagues on which provider to hire. So, it’s possible that your call will give the prospective client a great idea and, because you are an unknown, that client will hire someone else to do the work.
An Offer They Can Refuse
Cold calling wastes valuable time and energy. Before you can experience the joys of making those calls, you must have a data base of prospects, your opening letter, a phone script, and time to place your calls. You also need a good system for call scheduling, tracking, and follow-up. But don’t forget to put on your hard hat because most people are just going to say no.
Like everything in the services business, you’ll find an exception to any rule. It’s possible to find those who swear by the effectiveness of cold calling. For some professionals, cold calling is at the center of their lead generation strategy.
For most of us, though, cold calling is best suited for initial introductions. And it takes a fair amount of time to get those prospects into the sales pipeline.
I think of cold calling as the spaghetti method: “Let’s throw it all against the wall and see what sticks.” It’s a high-effort, low-success numbers game that begins with the false assumption that you can identify your real prospects without knowing them, or their issues.
Step away from the Phone
Eventually, you need to meet prospective clients to begin relationships and win new business. Otherwise, you can’t grow your practice. Use your precious time to create a strategic lead generation campaign, rather than engaging in a low-probability numbers game.
Begin by identifying a small group of clients you’d like to work with. It’s helpful to rank the prospective clients using criteria that suit you. For example, you may only want to work in certain geographies, or for a particular size of company.
For some of the clients on your list, it’s likely you can use the power of your network of contacts for introductions. It may seem difficult to find people who can introduce you, but it is well worth the effort. A single introduction by a trusted colleague will almost always guarantee that client will take your call.
In other cases, you may not know anyone who can help you, so you need a different approach. This is the point at which some sellers resort to cold calls. Resist the temptation; you have many other options for raising your profile among your targeted clients.
Learn as much as possible about your prospective client’s industry and business. Identify the relevant trade or professional associations that serve your targeted client’s industry. Participate in those events, volunteer to speak, or write articles for the group.
Broaden your network in the industry, and you’ll meet people who can, and will, help you. If you have a newsletter, keep building your list. Share your best ideas on your Web site, and contribute your articles to others’ Web sites.
Use your valuable time to build your marketplace eminence, instead of compiling cold call data bases. Bring value to your target market and execute a strategy of creating relationships with prospective clients before you try to sell them something.
When you’re seeking new clients, put relationship development ahead of short-term lead generation and you’ll win without having to become a telemarketer.
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