A recent article of mine, Why Decision Makers Hate Cold Calls, is creating a number of responses to it on EyesOnSales, as well as a number of emails to me. The majority of the responses are defending cold calling and challenging my thinking on the subject.
What I find interesting is the article simply related the reasons decision makers hate cold calls and that if one wants to use cold calling as one of their primary prospecting tools, they had better get the best cold call training they can-or, better yet, learn more effective methods of prospecting.
I’m always amazed at the emotional reaction many salespeople and managers, and a great many sales trainers have to anything that might question the orthodoxy of cold calling. Simply mention that you question the effectiveness of cold calling and the reaction is immediate and vehement. I’ve been accused of hypocrisy since “those who oppose cold calling are only trying to sell their overpriced, worthless ‘training.’” Nice to know that the only trainers who believe what they say are the ones who agree with the sender of the email.
And, of course, I’ve been accused of being ‘dangerous’ and should be ‘stopped’ for leading salespeople to believe there are other, more effective ways of finding and connecting with prospects.
We conducted a survey last year that asked business decision makers and individuals a number of questions regarding how they found the salespeople and companies from which they bought goods and services. Regarding cold calling, of the several hundred people we spoke to at random, less than 5% indicated they had bought anything in the past year initiated through a cold call (slightly higher for businesses than individuals).
My argument isn’t that cold calling doesn’t work-you can certainly find clients via cold calling, and every once in a while, even find a great client. My argument is that cold calling is inefficient. Certainly for some companies and even some salespeople selling a commodity, cold calling can be the only reasonable way of operating. But for salespeople in relationship driven industries, is cold calling really the Mecca of prospecting?
I’d be very interested in getting your cold calling experience. My only request is that you identify yourself with your real name (too many try to hide behind a screen name), and that you give real experience, not opinion.
Cold calling is no more inefficient than if you were to put an ad in the classified when it is not properly thought out and that is where most companies and individuals struggle or even fail when it comes to their cold calling efforts.
Cold calling is more than simply picking up the phone, calling a complete stranger and promoting yourself. It is about understanding how, why and what happens when you do.
Like all marketing tactics, some work better for you than others depending on what it is that you hope to achieve as long as it is done right and understood that what ever avenue of marketing you choose. It will take time and persistence.
Comment by John Chepyha — September 30, 2008 @ 12:53 pm
Paul, I have to admit, I am getting bored with the raging debate over cold calling. Not bored with you or your opinion but bored with the emotional debate.
This year I have generated 51% of my revenue via cold calling. That is down significantly from other years as referrals, and more importantly, SEO efforts have kicked in. But, I execute a well defined methodology for cold calling that connects me only with those prospects that have a business problem I can address. And, they know I can address their problem because I have been able to articulate it in voice mail messages and emails.
In MHO, most of the emotion around cold calling comes from people who are afraid that if their teams don’t cold call they will sit there and wait for the phone to ring (see hubspot’s video on the topic) - and they will if you let them!
SEO, inbound marketing, networking. referrals and cold calling are all tools. You can’t build a house with just a hammer and you can’t make your number with just one strategy for creating pipeline.
Comment by trish bertuzzi — September 30, 2008 @ 12:54 pm
Trish,
That’s one of the big problems with the debate–for most it’s emotion based, not reason based. And both you and John are right–it can’t be simply picking up the phone and dialing.
Again, I agree with you, I don’t know of any good trainers who would advocate a single prospecting method.
Your experience with cold calling demonstrates the need to do your homework–to know who you’re calling, why you’re calling, and the specific issue you know they have that you can solve. Unfortunately, many think that knowing the name of person they’re calling, knowing the ‘probing’ questions to ask to determine if they have an issue, and believing that ‘everyone’ needs my product or service meets the criteria of having done their homework.
Once again, I think your observation of the fear that ‘if they aren’t cold calling then they aren’t working’ has a lot to do with manager’s emotional reaction.
Comment by Paul McCord — September 30, 2008 @ 1:26 pm
In my opinion, in highly complex B2B sales the majority of business is done with people whom you have a relationship with in some form or another. Therefore, a cold call can only expect to deliver an opportunity to create that relationship rather than the sale itself which I think is a tough ask as the time factor dictates little scope to build the need for the decision maker to form another relationship through this medium. This is not to say that it is not possible, but in every situation where I have been approached by a cold caller I have not been compelled to go further - possibly because the cold caller is trying to close the deal straight away on the first call. I have no incentive to form a long term relationship with such a person.
Comment by Nesh Thompson — October 1, 2008 @ 2:03 am
I am enjoying reading the comments and this follow-up article regarding cold calling. I recently posted a comment on the “Why Decision Makers Hate Cold Calls” article to get feedback as to what other ways have worked from your experience Paul and from others reading to get to those decision makers. Networking events are good and necessary but not every event is a good turn out for you. I have come across some new referral sites that are another tool in the arsenal. Have any of you heard of Inquisix, http://inquisix.com? It is in beta and a great way to get referrals within the areas you seek and build those relationships.
Looking forward to hearing/learning more feedback and resources.
Karina
http://www.resourcefulrecruiting.com
Comment by Karina — October 1, 2008 @ 8:06 am