Business Builder    

 

 

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Strategic Guidance to Build Your Business
Volume 2, Issue 6, July 2008

"The Business Builder" is brought to you by VSA, Inc. in collaboration with Rink Consulting. VSA, Inc., founded by Valerie Schlitt, builds and implements B2B prospecting programs for businesses and professional service firms. VSA has a team of professional telephone callers who open doors to new business opportunities for VSA clients. Linda Rink, president of Rink Consulting, specializes in B2B and consumer marketing and research. Both Wharton MBA graduates, Valerie and Linda often team together to help clients identify and reach new customers. In this newsletter, they share some of their business development insights.

Dissecting the Successful Cold Call
by Valerie Schlitt, President of VSA, Inc.
Valerie Schlitt photo


When you're the one who receives the cold call, what is the sales person doing to create success?

Introduction
You're deep into your work and the phone rings. Someone wants to sell you something. You think to yourself, 'Another sales person? Talking to this person is the last thing I want to do right now,' and you begin to hang up.

Analysis:
Less than 25% - and more like 10% - of cold calls reach the decision maker on a single try. Equally importantly, recipients never expect a cold call and want to end the call almost immediately.

It is critical that the sales person be respectful and quickly present a compelling statement about why they are calling, without being too eager.

Conversation
The sales person starts talking about something you've already been thinking about, or something you might actually want to learn more about.

Analysis:
About 20% of decision makers will have an interest in continuing a conversation. The best prospects are familiar with the product or service and already want to buy it. But, a good caller can also pique the interest of those who 'might' have a need.

An overly-persistent caller will annoy those with no interest, denigrate the brand, and waste time.

Conversation, continued
While you're interested, this is just not the right time. Besides, you need some proof the company is legitimate before you agree to meet. You ask for more information.

Analysis:
About 90% of decision makers who ask for more information simply want to get off the phone. A good sales person can tell when the decision maker might have true interest. Otherwise, sending more information is a waste of time and money.


Conversation, continued
You and the sales person talk a bit about your needs. The sales person learns that you are involved in the decision making process.

Analysis:
Yes, all good sales people ask for the appointment first. No experienced cold caller resorts immediately to 'sending more information.' However, despite what some sales courses say, often a decision maker requires documentation before agreeing to a meeting.

The sales person always tries to send information directly to the decision maker and not to an assistant or secretary. (Sometimes the gatekeeper is the only way in the door, however.)

Email
This sales person sends you a professional email, from an account that is not Yahoo or Hotmail and attaches a professionally created PDF. A website address is included.

Analysis:
A generic email address is an automatic red flag. Companies who do not have web sites, likewise, reduce their credibility.


Conversation, continued
The sales person calls you back, at the agreed upon time. This time, you pick up the phone and are ready to talk. The sales person references prior notes, showing they remember you.

Analysis:
Who knows? You might become a client.


What went right?

1) Got quickly to the point, so you didn't hang up first.
2) Asked questions to confirm that you were truly interested.
3) Confirmed that you had decision making authority.
4) Set a specific time to call you back.
5) Acted respectfully and professionally.
6) Sent you an email that reinforced the company's legitimacy.
7) Called back at the promised time, and personalized the call to your needs.

When the Going Gets Tough, the Tough Do Research!
by Linda Rink, President of RINK Consulting
Linda Rink photo

Depending on whom you ask, we may or may not "officially" be in a recession, but it certainly seems like businesses everywhere are tightening their belts. The automatic reaction to tough times is to reduce expenses and "hunker down." And one of the first budget items to be cut is often research, not viewed as a high priority.

This can be a very short-sighted view.

When the economy is strong and your business is growing, it's easy to keep on doing what you've been doing because it "works." The need for incisive research may not be so evident.

But when times get tough, you need to be more competitive, more strategic. Now, more than ever, you should arm yourself with the information that will help you stay ahead.

Remember: research yields information that will minimize your financial risks and increase your chances of success.
So in fact, during troubled financial times, research should be more of a priority than ever!

Don't think you can find the money?

Here are 8 tips to help you stretch your research dollars:

1) Prioritize your information needs.
Rather than arbitrarily cutting the budget by 20%, rank order the planned research and spend where it's most important.

2) Look to the future.
When the economic picture is brighter, will you be ready? Take a hard look at where your category is going. Are there customer trends, demographic shifts that you haven't paid attention to? Do your homework now, so that you can have a jump start when customers start spending again.

3) Instead of jumping in with primary research, start with published sources (secondary research). This can save you money, and it will likely yield valuable insight and data. You will also lay the groundwork for later primary research.

4) Revisit projects that were put on the "back burner" and never fully examined. Chances are, some preliminary research has already been done. Finishing the market analysis might not be that expensive.

5) Brainstorm new growth opportunities.
Whether you use a formal process or an ad hoc one, opening the door to fresh ideas from your staff, ad agency, customers--even suppliers--can move your business in a positive direction. Follow up with market research to test and prioritize the opportunities.

6) Talk with your existing customers.
Think about conducting an informal survey or one-on-one discussion to see what their current priorities and issues are. In the process, you will forge a stronger relationship.

7) Analyze the profitability of your customer base to focus your marketing efforts for maximum return. Can you segment your customers based on characteristics such as industry, size, or other variables? Spend your prospecting time where it counts!

8) Consider pooling your research dollars. with other divisions in your company--or even other companies--by doing joint research studies to explore topics of mutual interest.

Be smart about how you spend your time and your research dollars. The results will help you weather tough economic times - and stay ahead when the economy improves.


Have any comments about this or previous articles? I'd love to hear from you at lrink@LindaRink.com! (They are archived on my website,
www.LindaRink.com .)









RINK Consulting
1420 Locust Street, Suite 31N
Philadelphia, PA 19102
215-546-5863
lrink@lindarink.com
www.lindarink.com