changed the way we do business. New technology is created at warp speed, and customers expect immediate decisions. This cycle of ever-increasing speed and sophistication not only creates an intensely competitive marketplace, but places further demands on our companies to act and react quickly.
Ironically, whether a business is ultrahigh tech or low tech, the most important business decisions a customer makes are still based on personal relationships. There is significant research about why customers make buying decisions. Bottom line: it’s because they like and trust the salesperson and his organization.
There’s a saying among salespeople that customers buy with emotion and justify with fact. If our customers don’t like us or don’t feel comfortable with us, they won’t buy from us. You can wow your clients with technology know-how now and try to win them over later, once they find out you’re honest and reliable. In reality, you need people to start liking you within the first few seconds of your relationship.
That's really all you have to get off on the right foot. And fancy gizmos won’t make that happen. But a trusted referral and a personal connection will. Think about it—with who would you prefer to do business: someone you've met only via the cold call or a colleague with whom you have an established, respected relationship?
If you think you can substantially build your business by cold calling, think about the value of your time. The new business climate demands you make the most of it. How many cold calls do you or your team make to close a deal? Chances are it's not a healthy ratio. Cold calling just isn't an effective use of time.
We often delude ourselves by thinking that we’re making a warm call. In reality, there’s no such thing as a warm call. A sales call is either cold or hot. A cold call is one that’s made to someone who doesn’t know you and is not expecting your call. Consider the following situations:
- You call someone because you got the name came from a colleague or friend. Cold!
- You call someone and then follow-up with a letter. Cold!
- The person’s name came from a specific list. Still cold!
Not only does cold calling have a low percentage return, those who do it and those who receive it rarely have a positive attitude about cold calls. Recent research by Huthwaite® surveyed buyers about their attitudes on prospecting:
- 91% of buyers never respond to an unsolicited inquiry
- 71% of buyers find cold calls annoying
- 88% of buyers will have nothing to do with cold callers
- 94% of buyers couldn’t remember a single prospector or message during the last two years
A call is hot when there’s an introduction. The person knows who the caller is and is expecting the call. This is the kind of call that shortens the sales cycle, increases a salesperson’s credibility, results in qualified prospects, and means a new client over 50 percent of the time! Why would you waste your time doing anything else? Here’s how to get HOT calls:
- Make a list of everyone you know—current clients, past clients, peers, neighbors, service providers, friends, past coworkers, professional association members, volunteer groups, etc. You should have at least 100 names. Prioritize the list by starting with the people that you know the best. You are not asking these people for their business; you are asking them to introduce you to people they know.
- Set a goal and decide how many people you will contact each week. Arrange in-person meetings if at all possible.
- Tell these people (your referral sources) that you are building your business through referrals and would like their help. Describe your ideal client and ask for one or two people who meet your description.
- When your referral source makes a suggestion, find out as much as you can about the person and his company.
- Then ask your referral source to make the introduction. The introduction could be by phone, in person, or by e-mail.
By calling on referrals, the business decision-making time collapses, your competition fades into the background, and you establish immediate credibility. The relationship closes the deal. What's to lose except that long list of cold calls!
Remember, the most energizing and exciting part of sales work is the relationships with our customers—the interaction. Salespeople like learning about a customer’s situation and matching their solutions to the needs of their customer. That said, enrolling in a quality inside sales training program is worth the expenditure. In an era dominated by ever-expanding technology, the creative, strategic part of our business is back. Yes, it requires brainpower. But isn’t that what we love about what we do? Indeed.
