Cold Calling 101: 6 Steps to Success

As mentioned in previous weeks, salespeople broadly fall into two categories: Hunters and Farmers. Farmers do great cultivating existing business or business that walks in through the front door, while Hunters have an aptitude for going out and finding the business, rather than waiting for it to come to them.

But you can't count on business just showing up (especially now); sometimes you have to encourage it. The importance of being able to drum up new business is especially important if your company's prior sources of revenue are on thin ice.

Recently, a dealer I know hired and relocated a salesman from the other end of Canada, only to dismiss him after three months for "leaning on the counter," as opposed to hitting the bricks and building new relationships with builders.

"Cold calling" inspires a certain amount of dread amongst all but the bravest souls. However, like most fears, much of what people are afraid of is unfounded. Prospecting and cold calling new business is a skill, just like any other.

Learn, practice, and employ the following six steps, and you can train yourself or your salespeople to be effective Hunter-type salesmen.

Create A List Of Prospects

Everything starts with a plan, and the first thing to do is to know who you're targeting.

Is it builders? Architects? Designers? Retailers? Whatever the case, the easiest place to start is the Internet. Start with 411.com and Google, and then refine your search down to individual company or association web pages. Everything you need is there: names, addresses and contact info.

Organize your prospects in whatever organizational system or software you like, and start working your way down the list from A to Z.

Locate The Decision-Maker

Bloviating at the receptionist won't get your foot in the door. Figure out who you really need to talk to and ask for them.

Don't worry; most companies don't hide their decision makers away from the likes of you. Odds are that if they're at their desk, you'll get put through to them.

By the way, don't assume that the decision maker is the highest person on the totem pole. At many builder's offices, for example, the person you want to talk to is the senior project or sales manager, and not the owner, at least at first.

Set A Goal And Script Your Call

Know in advance why you are calling and know what you're going to say.

Are you trying to arrange a face-to-face meeting? Do you want to send them a brochure?

If you know what you're going to say ahead of time, you'll be better prepared to state your case and hook their attention.

Introduce Yourself and Get to the Point

When you're cold calling, there's no time for small talk. Don't ask, "How are you doing today?" They know that they don't know you, so phoney sincerity puts a check against you in their mental tally.

State your case: say who you are and what you can do for them. In your research, you may have found a hook that will pique their interest. You've got a brief window to get their attention and keep it, so do your best.

Give A Benefit Statement

Tell them what you want to tell them and try to build some rapport. It's important to avoid being pushy, as that really doesn't work.

Following that benefit statement with, "Do you have a moment to talk?" lets your prospect understand that you respect their time. If they do, then go on to the next step. If they don't, then ask when would be a good time to call them back and then follow-up accordingly.

Secure An Agreement

Regardless of your goal, use both your pre-planned scripting and your sense of the situation to get to yes.

Even something as obvious as "Are you interested in setting yourself apart from your competitors?" can be enough of a hook to get their interest. Once they're interested, they're talking, and once they're talking, you're building a new relationship, and you can take it from there.

Bear in mind, that no matter how good you are at cold calling, your ratio of successful calls will be substantially less than with pre-qualified leads, or so-called "warm calls." You're going to have to have thick skin, be able to put rejection in perspective, and start your day over with every new call.

Do that, and you're well on your way to effective cold calling.

Lee Distad is a freelance CEDIA Certified Professional Designer who offers design and process consultation to firms in the Custom Installation industry, as well as copy writing and other professional writing services. Lee’s business and industry blog can be read at http://www.leedistad.com