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Strategic Guidance to Build Your Business
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Volume 2, Issue 6, July 2008
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"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.
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Dissecting the Successful Cold Call
by Valerie Schlitt, President of VSA, Inc.
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.
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VSA, Inc.
441 Station Avenue
Haddonfield, NJ 08033
856-429-5078
valerie.schlit@vsaprospecting.com
www.vsaprospecting.com
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When the Going Gets Tough, the Tough Do Research!
by Linda Rink, President of RINK Consulting
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
.)
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RINK Consulting
1420 Locust Street, Suite 31N
Philadelphia, PA 19102
215-546-5863
lrink@lindarink.com
www.lindarink.com
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