You Absolutely CAN Be A Rock Star

Thinking Beyond The Cold Calling Debate

by Paul Castain on May 7, 2012

Sometimes we get caught up in a discussion, debate or full blown argument to the point that our own passion for the subject keeps us away from bigger issues.

Enter the ongoing “Is the cold call dead?” debate.

And just to silence those who feel a need to define a cold call . . . let’s not! Feel free to change “cold calling” to “making phone calls to people who aren’t buying from us” so we get on with bigger and better things.

Like what?

Like what if I hate the phone and I’m not really good at cold calling (or “making phone called to people who aren’t buying from me”)?

More specifically, what if I have zero interest in getting better at my cold calling? (or “making phone calls to people who aren’t buying from me”)

Even more specifically, what if I rock at networking or doing seminars, emails or creative door openers or any one or a combination of other approaches in my “sales mix”?

Just to be clear, sooner or later, all of these things typically will come down to a discussion via phone so I’m not questioning the need for phone muscle groups but . . .

I am questioning the need for us, with all the tools that are available today to have to be good at cold calling (or “making phone calls to people who aren’t buying from us”)

Your turn . . . How important is it for an outside sales professional to utilize cold calling (or “making phone calls to people who aren’t buying from us”) if they are proficient in other ways of acquiring new business?

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Tagged as: cold calling, networking, phone, prospecting, Sales 20, telemarketing

  • http://cynthiaschames.tumblr.com/ Cynthia Schames

    I think your point here is very valid:  as sales professionals, we should play to our strengths and use the tools that prove most valuable for us.  ”Cold calling” or whatever you want to call it may actually be a horrible way to generate leads for one sales pro in one line of work, but might actually be an excellent tool for another person. 
    The key in my opinion is to be open, flexible, and willing to try any and every channel of communication to open a dialogue with a prospect.  For me, that means researching them heavily and seeing who we may know in common, but ultimately often my first point of contact actually IS a phone call.  It’s not a cold call, though; I prefer to think of it as a warm outreach call where I have already ascertained that my contact (or someone else within his or her department) would actually benefit from the conversation I’m initiating. 
    So, maybe cold calling is dead for some.  Maybe emailing is dead for some.  Maybe webinars or content marketing don’t work for others.  But each technique or approach has its own merits and I think the best way to be successful is to keep an open mind and try what you think would work best for the prospect you’re approaching, or the product you’re selling. 

    Great stuff, as always, Paul! 

  • http://yoursalesplaybook.com paulcastain

    Brilliantly stated Cynthia . . .I think the bottom line is that our individual mileage may vary and that is by no means indicative of cold calling, warm calling, networking, emailing etc . . . its just what works for us.

    Last I heard, this stuff still counts as revenue as far as the IRS is concerned :)

    Thanks so much for sharing your thoughts!

  • Peter

    Cold calling is what you have to do if you haven’t already built a prospecting funnel of people who are looking to buy from you. If you haven’t set out your stall well enough, created a compelling offer and communicated it powerfully and comprehensively.

    The mentality is – if they won’t come and buy from you, you have to go out and bully them into doing so.

    Another way of saying this is that selling is what you have to do if your marketing isn’t good enough.

  • http://websitesgiveback.com/blog/ Elena Patrice

    Hi Paul!

    For me, it comes down to … no “making phone calls to people who aren’t buying from us”, no food … that simple. It’s my lifeline and it’s taken me a good bit to get use to it and make it work, especially being such a face-to-face person. I’ve been in sales truly since entering the workforce at 15 (and 1/2 ;) ), so it’s all I know. However, I never did phone sales and now in the place I am in life, it’s an absolute necessity. I’ve learned to like it in an odd way. I just think of the alternative and all of the sudden, “making phone calls to people who aren’t buying from us” is super appealing!

    Great post here … love it!! Thanks so much!!

    Happiness,

    Elena

  • http://yoursalesplaybook.com paulcastain

    Thanks Peter.

    I do believe that sales people have to become better marketers in using more of the tools that are available.

    What tools do you find most effective in building your business?

  • http://yoursalesplaybook.com paulcastain

    Thanks Elena!

    We have some folks who will be right in there with you, who learned to love cold calling and have learned to be really good at it.

    You have others who deep down, want to eat but would rather go about building their business with other tools.

    The interesting part is that participants of both schools of thought can show results.

    I definitely think this is a “your mileage will vary”type of  discussion for sure. 

    Thanks again Elena!

  • Jack Lazo

    Many large companies have teams of cold callers, performing either pure cold calls or calling in response to a customer touch from marketing, to qualify leads for sales teams. While the ratio of number of calls to leads is horrible, these activities result in anywhere from 5 to 20% contribution to sales results. One of the tools available to sales people? Teams of cold calling agents.

  • http://yoursalesplaybook.com paulcastain

    I worked with 2 organizations that utilized that model and was please with the results.

    I saw a few challenges with it though . . . 

    1) Sales people were reliant on the inside sales team to the point that they weren’t doing anything on their own to generate leads. Many of the sales reps became lazy.
    2) The sales team lacked calling muscles because they made zero calls. The argument here (especially if you have a good inside sales team) is that they didn’t need those muscles. I do think you need them to some extent.

    3) I think there can be something lost in the whole rapport building thing when the person who sets the appointment isn’t the one running it. This is especially true when you have a long cycle from first contact to initial appointment.

    I saved the best challenge for last . . . 

    4) Most companies either don’t believe in this model or don’t want the “added expense”

    Don’t get me wrong Jack, I think it can work . . . there are just a few built in challenges that need to be navigated but isn’t that the case with any means of acquiring new business?

    Thanks for sharing your thoughts . . . I really appreciate it!

  • Kathy

    You said calling people who aren’t buying from you!  How the heck do you even know if they aren’t or won’t?  Nothing has really changed, the ideal way is to have a prospect reach out to you, put their hand up and say ME ME!  But today they don’t have to do that as often thanks to the availability of information.  Yes there are other ways to find and reach prospects, but a good old fashioned phone campaign keeps your communication skills sharp, does help you practice your tolerance and it can find that nugget.  Cold Calling as a mainstay isn’t the answer but using it in the mix is.  You have to use the phone sooner or later, or you should, so keep your skills honed!  

  • http://yoursalesplaybook.com paulcastain

    “Cold Calling as a mainstay isn’t the answer but using it in the mix is.”
    Funny you should say that Kathy because so many people are taking the opposite approach that you outlined and they are making this an “either or” type of deal.

    I don’t believe we should have to choose between cold calling and the other tools when they can all live very nicely together.

    Thanks for sharing your thoughts!

  • Jon Kenney

    As sales people we often times don’t have control over the marketing efforts but we do have control over who we contact and how we contact them.  For me, Waiting for others to generate leads is both painful and wishful thinking.  I would much rather use all the “arrows in my quiver” including outbound calls (I like Cynthia’s term “warm outreach”).  That said, having the person I am trying to reach know who I am and what my company does ahead of time is always preferable to “Hello, my name is and I represent…” but that sometimes is not an option.
    For those times I am grateful to those sales managers who early in my career insisted that I know how to cold call both on the phone and in person.

  • Mike H.

    I once had a co worker that said how do you make cold calls.  I stated they aren’t cold calls unless it is my first contact to the prospect.  i have had much success over the years building a portfolio of customers who would eventually buy, yet have a long cycle as my product is purchased by companies every 7-10 years.
    The point I am making is that as you continue to call the contact to find the right time to meet and sell your product you are building a relationship.  The calls get warmer and warmer as you continue to discuss your product with the prospect and find the right time mutually to begin the sales process.

    Also don’t forget your next call could be your biggest client.  Some of my biggest sales have come from cold calls.  Even cold calls in person.  I once called on a large hospital and was escorted to the Telecom manager for an introduction.  This turned out to be my biggest sale.

    Remember success comes from doing the things people don’t want to do or are uncomfortable doing!

  • http://yoursalesplaybook.com paulcastain

    Thanks Jon!

  • Barbara Giamanco

    All good comments to another excellent Paul Castain post.

    Anyone who knows me also knows that I don’t do “cold calling”. Yes, at some point, we all need to pick up the phone to connect with people who aren’t currently doing business with us. And, as Paul noted, I use lots of other strategies to get visibility, which more often than not, leads to a steady stream of inbound calls. At a minimum, the people I’m calling have heard of me or know about me from others. I follow Hubspot’s inbound marketing philosophy. The problem with cold calling is that by it’s very nature, the person on the other end of the phone – if you can even get them, that is – doesn’t know you. Why would they want to talk to you? Secondly, I receive a lot of sales cold calls and they are awful. Not well though out, inarticulate callers, not relevant to me…on and on. Plus, we know from solid research that buyers don’t respond to cold calls and cold emails like they used to.

    Jack mentions a 5-20% uplift in sales contribution by having a team of inside sales people make cold calls. On the surface, that might sound like you are getting some traction. But my question is what is that actually costing the company? What is the cost per sales hour in order to get to that number? In other words, when you add up the salaries and commissions and all the other overhead, is that contribution to the business really profitable? 

    Frankly, my approach has been and will always be to a) secure a sponsorship from a credible resource inside the company I am targeting or b) securing a recommendation from a trusted source outside the company. In the case of the former…84% of the time the buyer will take the meeting. With recommendations from someone outside, it is 44%. These numbers come from the research done for Selling to the C-Suite. I’d rather invest time going the sponsor/referral route. It shrinks the sales cycle and I don’t feel that I’m wasting hours calling people that I don’t know. Personally, I believe that “activity” should NEVER be confused with “effectiveness”.

    In the end, everyone needs to develop their own approach and use the strategies that work best for them. For me, I don’t cold call, and I eat pretty well!

  • http://twitter.com/BeaconSalesPros Beau Conway

    This debate can sometimes boil my blood.  I run an outsourced Demand Generation and Inside Sales Agency.  When I hear cold calling is dead, I usually see a group of lazy sales people nearby.
    Cold calling is a lead generation channel that should always be added to your outbound sales and marketing strategy.  It’s certainly not the holy grail of making quick sales.  On the contrary, sales closed from cold calls typically take some time to get nurtured to fruition.  I do know this however; the deal sizes from a deal generated by a cold call are typically larger and have a higher retention rate.
    Our people are trained to see cold calling as a way to develop as many RELATIONSHIPS as possible….not as a method of hitting quota this month.
    I believe an outbound telesales campaign should be tied to the marketing channel more so than the sales channel.  And here`s why:
    - The information you can gain from a prospect on a cold call has massive market research value
    - You have the opportunity to put a voice/face to the brand
    - You can gain newsletter opt in, LinkedIn Connects and Twitter follows very easily by asking the prospect to join your network while on the call
    - You can connect with another human being and leave an impression.  This invites an opportunity to follow up with a call to provide something of value.
    - You can more clearly correlate marketing with sales by using qualifiers that can only be obtained on a phone conversation. 

    I think the big mistake companies make is making cold calling their primary source for creating leads that need to convert quickly.
    Now, outbound dials certainly produce sales results but it goes far beyond that.  They should be designed to build relationships, support the marketing effort and keep sales people sharp.
    After 50 cold calls, when an inbound lead finally does come in, your sales rep will be bullet proof on that call as he’s had 10-15 tough conversations already before this easy one.

    Our clients have found major value in having our agency manage this process for them.  The truth is that your typical experienced sales rep doesn’t make the calls.  They feel they are above it.  To that, I say entitlement didn’t build our nation…Hard work did.

    And how can we get better at cold calls?  Your success in cold calling is directly proportionate to the degree you can BE YOURSELF while making a first impression.  All the person hears on the line is your tone of voice and delivery.  Any product or service information just rolls right off.  So who cares what you’re selling?  Can you make a connection?  That should be our task when making outbound dials.

  • http://yoursalesplaybook.com paulcastain

    Mike I appreciate your response and do agree with you . . . I’m curious what your thoughts are regarding my question  ”How important is it for an outside sales professional to utilize cold calling (or “making phone calls to people who aren’t buying from us”) if they are proficient in other ways of acquiring new business?”

    Meanwhile, congratulations on your success . . . sounds like you really know how to court your prospects.

    Thank you so much for taking the time to stop by and comment Mike! 

  • http://yoursalesplaybook.com paulcastain

    I must have reread your words a dozen times Barb and each time I found myself nodding my head in agreement. Thank God no one saw me they would have thought I was having an attack or something.

    I see two immediate challenges (and I bet you and I could easily add more) The challenge isn’t in your approach or mine, its that many times management wants the 300 dials or they feel the sales rep is lazy if they are opposed to making lots of calls.

    Management needs to read and reread your words when you said “In the end, everyone needs to develop their own approach and use the strategies that work best for them.”

    Thanks for sharing your wisdom Barb . . . its always appreciated.

    And I’m digging your new pic!

  • http://yoursalesplaybook.com paulcastain

    Well stated and I agree with you 99.9% Beau!

    When I hear the statement that “Cold calling is dead” or even the statement “Having the phone glued to your ear is pointless” I don’t see someone who is lazy unless they make that statement and proceed to do nothing.

    That would in fact, constitute the “laziness” lots of folks equate with that but . . . 

    Too many times, we have sales leadership going into auto default mode assuming that having other ways of securing business is lazy.

    And thank you for your thoughts, I particularly liked what you had to say about tying this to the marketing channel!

  • Jabba

    Hear Hear! I’ve done massive Cold Calling (not since around 2007) and all the other types of activities that can lead to $ales Revenue and you use what works the best in the situation you are in. My own experience usually found me in some type of “One Call Close” or appointment setting situation where heavy true cold calling was involved but I’m sure another sales pro may have been in a totally different situation and cold called. My own personal favorite is to have a territory of my very own and be the total account manager as I can generate the heaviest sales volume and thus make the sweetest remuneration.

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  • http://twitter.com/BRN2SELL Mark Cianciosa

    OK, I hate to upset the “apple-cart” here … but … I still do a level of cold calls. Typically, once I find the account that I believe would benefit from our services and or products, I start to research and act like a PI. Once I believe I have the right person/people to talk to I try to connect … by phone … by e-mail … by LinkedIn … and I keep trying. Does it work? Yes. I recently began doing business with a large company in my territory that was handled just this way. I worked for 3 or 4 months to get in the door. Long term, this strategy seems to work for me and our business.

  • http://yoursalesplaybook.com paulcastain

    Mark,

    Sounds like rather than using cold calling exclusively you are utilizing a diversified mix of sales activities.
    Nice job!

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