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Strategic Guidance to Build Your Business
Volume 1, Issue 3, January 2007

"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.
Cold Calling - A surprising way to gain insider information!
by Valerie Schlitt, President of VSA, Inc.
Valerie Schlitt photo

If you knocked on all the doors in your neighborhood, you’d learn a lot about the people who live around you.

Did you know that the same thing is true when you make cold calls to sales prospects?

Certainly, cold calling is primarily a prospecting tool. VSA makes telephone calls every day for our clients and we open doors to sales opportunities. Sometimes our clients ask us to gather specific information to qualify leads. But, even when we implement pure appointment generation campaigns, we gain valuable market intelligence for our clients.

Here are some examples of what we have learned:

Competitive information

Earlier this fall, an innovative VSA client decided to enter a new market. This client believed there would be little to no competition for their services.

But soon after VSA began making cold calls, we learned the truth. Companies were already using services similar to our client’s offering. In fact, the market was virtually 100% penetrated.

Importantly, though, there was no single dominant competitor in the market.

With this information, our client decided the challenge was to convince prospects that they are the best in the industry, and the dominant provider for the services they offer.

Target industries

Another area where clients can gain great knowledge through cold calling is identifying the ideal target industries.

Cold callers are in a unique position to learn which industries:

  • have "easy-to-reach" decision makers
  • have greatest interest in talking about our clients' services
  • are willing to meet with new vendors
  • are willing to try out new or multiple providers
  • seek back-up providers on a regular basis
By calling hundreds of companies, cold callers can see industry behaviors that would not be visible by just talking to a few firms. We observe these trends to help clients focus on the best possible prospects.

Mailing lists

The most valuable information gained through cold calling is an excellent prospect list!
A targeted prospecting list created through cold calling contains specific information that is not generally available elsewhere.

Information can range from the decision maker’s name, to what product they are currently using. Here’s a list of frequently asked questions for mailing list development:
  • Decision maker name and title
  • Confirmation of the company name, address and telephone number
  • Whether the prospect is willing to meet
  • What competitive products/services they currently use
  • What kinds of needs they might have for a specific product/service
  • When they might consider making a specific purchase
Obtaining this kind of information is certainly challenging. But, a prospect list developed through cold calling is very targeted and can be used with great results in drip mailings and targeted prospecting campaigns over a long period.

Cold calling puts prospecting in high gear.

Most VSA clients hire us to create sales opportunities through cold calling. The value- added information we provide is often a surprise. By really listening to the market, cold callers can turn an ordinary calling campaign into a campaign that not only generates short term sales, but also produces long-term marketing and sales strategies.
Competitive Intelligence – It’s not just for spies!
by Linda Rink, President of RINK Consulting
Linda Rink photo

Industrial espionage, rummaging through dumpsters, corporate spies, bribes – are those the images that come to mind when you hear the phrase “competitive intelligence?”

Smart businesspeople know that focusing on your own company and activities exclusively can lead to disaster. To avoid being blindsided, you need to be aware of what’s going on in the marketplace around you. But you don’t have to resort to unethical cloak and dagger methods.

"Competitive intelligence" simply means gathering information about other companies. And the good news is that you can tap into a wealth of legitimate sources.

Here is a short checklist of ways to monitor your competition:

  1. Join the appropriate industry associations. Be active. Subscribe to their newsletters or other publications. Go to industry conferences and trade shows.


  2. Get debriefed regularly by your salespeople. They are your eyes and ears in the field. Stay in close contact. Just be sure to separate gossip from fact.


  3. Stay in touch with vendors. Suppliers who work with both you and your competitors can be important sources of information.

  4. Listen to your customers. But be aware of their own agendas.


  5. Subscribe to trade publications not only for your industry, but for those of your customers. You will keep up with what’s relevant to your customers – always important! And you may read about your competitors as well. (Hint: Check out the “Vendor News” section.)


  6. Study competitor websites. Read the press releases and company news items posted. Be alert for new product news.


  7. Don’t forget your customer service department. Hopefully, they are already giving you feedback about your company and products. Remind them to pass along anything they hear about other companies. Then verify it.


  8. At trade shows, don’t spend all your time at your own booth. Check out your competitors’ booths and pick up literature, if you can. If there are forums and panels, make a point of attending – you never know who will be there, or what the Q&A session will cover. Be sure to check out the new products exhibits. And of course, mingle and network!


  9. Other sources of information:
    10.
  • Industry or special-interest blogs
  • SEC filings and annual reports
  • Patent or trademark applications
  • Job postings – useful for validating that a certain department or technical competence is being beefed up.
Take a moment to grade your company’s CI efforts:
  • Is there a process in place? Is it
  • Does every employee understand the importance of awareness and communication? do they keep their antennae up?
  • Does information flow to the right individuals? How quickly?
  • Are your usual sources reliable? Might they have their own agendas? How is information verified?
How’s your CI report card? Remember: No matter how large or small your business, “competitive intelligence” is a smart thing to have. And you don’t have to hire a spy to get it!










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

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