Take the Chill Out of Cold Calling

ImageCall reluctance is experienced by all business professionals, no matter their role.  Executives returning messages from upset customers, accounting personnel calling on past due notices and technology team members shopping for service providers.  Imagine if your entire day’s success was measured by the number of calls you made to convince strangers to buy your goods and services.

No. Not right now. No, thanks. Not interested. Maybe. Not in our budget. Hang up. Send me information. Yes.  That is the typical day of a sales person who is building their pipeline, repeated over and over again.  And we wonder why it is hard to find and retain great sales people. There are not many of us who would put at the top of our career ambitions to be rejected several times a day.

Cold calling is rarely listed as a favorite work activity; however, for millions it is what pays the bills. Selling is fundamental to our economy. There is no business until something is sold. Embracing the fact we all need to make cold calls, how can we take the chill out of one of the most important activities in business?  Here are a few tips to prepare for a day of cold calling:

1.  Know your target market. Every buyer is unique; however, they will have similar demographics, sociographics and psychographics. Spend time understanding the common data characteristics, along with behaviors and motivators.  For example, if you are targeting a small business owner, know what drives them to change.  What fears do they face in making buying decisions? What would benefit them the most personally and professionally when they say yes?  The more you know about them, the easier it will be for you to make a “warm call” into a known, targeted buyer.

2.  Feel the buyer’s pain. There is a natural tendency for inexperienced cold callers to talk about their reason for calling more than finding out why the buyer would benefit from their products or services.  Stop. Listen. If you are doing the most of the talking, you are losing.  You will never hear the buying signals when you are spewing facts, features, and generic benefits.  The best technique is to understand and relate to your buyer so they have confidence you are doing what is best for them, not you.

3.  Quantity matters. It is far easier to deal with rejection if you can get a “win” during your calling spree.  Plan with enough time in a single day to make calls in blocks of several hours. One, right after the other. Hang up, dial the next.  If you stagger your calls throughout the day or over longer periods, you are simply prolonging the pain. Dial until you get to yes and then dial more. Target how many yes calls you need in a day to hit your weekly and monthly goal.

4.  Needs analysis pays off.  Do your research on your buyer. You will be expected to speak to their individual business needs. There is no excuse to cold call blindly. “Google them”. It takes seconds now to find valuable data online about buyers.  You have access to profiles in LinkedIn, you have company websites with executive profiles, products and company information, public reports and news. Do your homework.

5.  Call with intent. What is your goal in cold calling?  What qualifies as a “yes”?  As with any business function, have a goal and objective with every call. The only way to get to the yes is to ask – ask for the sale. Get agreement along the way of your presentation and make sure you are aligned in your mutual objectives. You are solving a problem for the buyer. Countless deals are lost because people think making the call is the goal. That is not the win. The win is getting the deal.  Ask for their business.  It only counts when they say yes. When they say no, ask again.

A sales person has to remain calm in the chaos of measurable rejection. They have to keep their eye on the “prize”.  One more call to a yes.  One more opportunity to use their real skills and talents of negotiation and the power of persuasion to fulfill a need.

Respect and reward those that you depend on to make the calls to grow your business.  If you are the cold caller, prepare to win.  Know your target, be diligent in your process and never forget to ask.  It is the glimpse of hope, the possibility of acceptance and the incredible satisfaction of closing a deal that keeps a cold caller motivated. Commissions aside, most sales people will say they get the greatest reward from winning.  Winning when a customer says yes!

For every sale you miss because you’re too enthusiastic, you will miss a hundred because you’re not enthusiastic enough.” – Zig Ziglar

Jamie Glass, Founder, President and CMO of Artful Thinkers

Additional Sales Related Posts by Artful Thinkers

  1. http://www.artfulthinkers.com/prepare-to-hire-a-sales-person
  2. http://www.artfulthinkers.com/questions-sales-candidates-ask-that-should-stop-the-interview
  3. http://www.artfulthinkers.com/a-bad-sales-hire-can-crush-a-small-business
  4. http://www.artfulthinkers.com/5-essential-topics-for-a-winning-sales-proposal

Great find:  Additional tips and references for warming up cold calling can be found at fellow sales advisor Tom Costello’s blog post: http://www.igroupadvisors.com/wordpress/five-steps-that-will-take-the-chill-out-of-cold-calling/

Prepare to Hire a Sales Person

It is the time of year that businesses start to look at their anticipated revenues and question if they can increase the top line with additional sales resources.  A sales person is an investment in your business. Preparing for the role within your organization is as equally important as hiring the right person.

Before you hire anyone, have you created a sales plan?  The sales plan is where you define your revenue goals for the year, the budget for required headcount and support resources, and the tactics you will employ to achieve your goals.  At a minimum, you must define what you are willing to invest into the selling of your products and services for every expected new dollar of revenue.  Once you make this calculation, set your budget based on your investment requirements and expected returns with new sales.

Now that you have your sales plan outlined, here are some steps to help you get ready for hiring a new sales person:

  1. Sales Role: Will your new hire be a direct, field sales person or an inside sales person?  A direct sales person will have a larger budget for travel and expenses, in addition to higher compensation.  The expense of a direct sales person can be offset by a putting in place a higher quota.  A direct sales person is expected to negotiate larger contracts and develop profitable long-term relationships over the phone and in person.  An inside sales person will conduct all of their selling over the phone. They will be qualifying opportunities, making online presentations, negotiating and asking for the business over the phone.  Inside sales people will have a smaller quota and also typically sell smaller priced products and services that do not require face-to-face presentation and negotiation.
  2. Job Description:  Create a job description that clearly defines the requirements for the role, responsibilities and expectations of what the sales person must deliver.  Be specific. State the sales goals, types of customers they need to sell and how they will engage with prospects.  Will they be a “hunter” or a closer or both?  Will they need to have existing relationships?  How much experience in your industry?  Note how your sales person will be measured and how you view success.
  3. Quota and Territory:  Generally inside sales quotas will start at $100,000 to $250,000 in new business revenue per year.  The defined quota will always depend on the sales price.  A direct sales person can be expected to have a quota of $500,000 to $1,000,000 a year in sales.  Again price of product will help set the quota, along with experience of the sales hire.  If you hire someone with no experience in achieving a million dollars in sales, they probably won’t hit a million dollar quota no matter how much they sell you on the prospects.
  4. Comp Plan and Incentives:  Detail how the sales person will be compensated.  Typically there are three factors in sales compensation:  sales commissions on new business, incentives to exceed quotas and bonuses for quality or quantity.  Define your compensation and commission rules.  When will the sales person be paid?  You can set different commissions for different products, based on profitability.  The average sales commission is 4-8% of top line sales revenue.  One word of advice, the easier the plan is to follow, the more focused your sales person will be on achieving plan instead of trying to figure out when and how they get paid.
  5. Sales Process:  The sales process defines the steps a sales person will engage to find, qualify, present, negotiate and close a deal.  If you know the process, you can better hold a sales person accountable to how they manage their sales funnel.  It will also provide you data on how many leads you need to support the number of deals you expect to close each year.  Data is your friend in sales.
  6. Marketing and Sales Support:  Sales people will typically work independently; however, you can shorten the sales cycle by providing sales tools and marketing support to help educate the customer, drive the process forward and substantiate the value propositions of your products.  Prepare a training plan to educate the new hire on what they will sell.  A minimum requirement for any sales person is a CRM tool.  Your prospects and clients are a company asset.  Track and manage the data and make sure it is stored in a company repository.
  7. Measurable Success:  Before you make the hire, know exactly how you will measure their success.  A sales person, no matter the level of experience, will have a ramp up before they start closing deals.  Your sales cycle can range from weeks to years.  The more complex the sale, the higher price of your products and the more consultative the sales process, the more likely it will take six months or more before you see traction with even the most experienced sales person.  Your only exception will be to hire a person that already has relationships with your targeted customers.  The ramp-up will decrease with selling experience; however, you will pay a lot more for this type of sales person in base and expected overall compensation.  Do the math.  Can you invest more early on to increase odds of higher returns with a shorter sales cycle?

An investment in sales is one of the most important decision an owner makes in the life cycle of a business.  Making a bad sales hire can crush your business.  Prepare and plan for success.  Set reasonable expectations and measure performance.  Sales is a numbers game.  Know the numbers, inside and out.  Know what you spend.  Know what you want in return. Know how the sales person will achieve the sales goals.  Prepare your plan so you know what success looks like and then execute your plan.

By failing to prepare, you are preparing to fail.” ― Benjamin Franklin

By Jamie Glass, CMO & President of Artful Thinkers and Managing Director of Sales & Marketing Practice at CKS Advisors.

5 Essential Topics for a Winning Sales Proposal

Selection of Offerings

A sales proposal is your persuasive argument as to why the client must choose you now to solve their problem.  Proposals need to be positively articulated with a sense of urgency and demonstrate how the client wins.

Sales people and consultants often neglect the most important part of a sales proposal, the statement of why the client needs to buy now.  I have watched presentation after presentation where sales people talk about themselves, their company and their amazing, fantastic, one-of-a-kind solution.  It’s the feature marathon and often leaves you falling asleep or gasping for any air left in the room.

Successful sales proposals must always begin with a conversation about the client.  Those inclined to start talking about themselves before the customer are likely to fail. Why? Customers want to talk about their issues, not you!

Whether you plan to present your proposal in writing, in person or through an online presentation, every sales proposal must include the following five essential topics in this order:

1. Statement of Understanding
2. Needs Analysis
3. Recommendation
4. Pricing and Terms
5. Next Steps

The Statement of Understanding is your opportunity to showcase the research you have done prior to presenting to the client.  Always start your proposal with what you learned about the client.  Gather facts about the client from their web site, annual report or press release boiler statements, along with facts gathered in talking to the prospect.  Make it brief and affirm that you have done your homework.

Be sure to include one or two sentences about the area of business you are targeting for your proposal.  If this is a finance proposal, talk about the financial situation.  If it is a technology proposal, talk about the functions in the company that will be impacted by your solution. The Statement of Understanding is a confirmation.  It should be no more than one or two paragraphs (one slide) about your knowledge of the client.

Needs Analysis details all the work you have done to qualify the prospect.  Here is where you make your case as to why the company needs your services or products.  Whether you are a single person selling advisory services or a Fortune 500 company sales executive, you must define why the client needs YOU based on their needs.

Warning!  Do not use the needs analysis section to sell.  It is a series of facts of why they need your help.  Think of it as your presentation of due diligence. In conclusion of your detailed needs analysis, summarize the needs in bullet form to easily reference again when the buyer reviews your proposal.

The Recommendation portion of the proposal is where you will highlight the features AND benefits of your offering.  Now you can start selling. The same order that you outlined the needs of the client, is the order to present your recommendation.

Often sales people believe this is the most important part of the proposal; whereas, the buyer will still be stuck on their problems outlined in needs analysis.  This is why recommendation follows understanding and needs analysis, clearly stating the problem you are solving!  It is imperative to be clear and to the point in your recommendation.  Use key features and benefits in one or two sentences – outline format is best.  Don’t create a sales whitepaper on your product.

Provide supplemental collateral to the buyer separate from the proposal if more product information is necessary in making the final decision.  Hopefully, you covered product reviews and demonstrations earlier in the sales cycle before delivering a proposal.

Remember, PROPOSALS DO NOT SELL.  Proposals are affirmation to conversations you had prior in qualifying the client and getting agreement that you can solve their problem.  If you are using your proposal to unveil your services or product features and benefits, you have not qualified your buyer.  You will likely fail.

Now on to Pricing and Terms.  This should be one page (one slide).  Outline your pricing based on your recommendation.  If there are specific terms to the agreement, add them to this area of the presentation.  Terms and conditions should include time of agreement, dates for implementation, and milestones or KPIs to assess progress.  Avoid the dreaded commission breath when talking money by making it all about you.  Be steady, assertive and remember it is about the customer winning!

The assumptive closer will always conclude a proposal with the list of Next Steps.  Number the steps and make them fewer than five so you do not overwhelm the buyer with the fact their decision will require more work.  Be succinct and use action words.  The list should show the commitment by you, the seller, and the expectations of the buyer.

The Customer Bites on Your Proposal

Selling is creating a story that you can tell convincingly face-to-face, in writing or over the phone that addresses a customer need followed by an effective recommendation. Your sales proposal needs to be enticing and compelling to get the buyer to bite.  Organized proposals that put the customer first, will get more attention than those that solely focus on what you are selling.  When you focus on the buyer, you are a problem solver.  People like people who help them!