Almost everyone who has experienced an entry level sales position, has been required to do cold calling, on potential customers and clients.
You know the drill.
The sales manager, or more likely a lower level sales supervisor, hands you a list of numbers to call. The goal of the call is either to set up appointments for the closing representatives, or to even close a lower value sale right on the telephone.
Some businesses send you door to door.
I've done all all of these things.
Having experienced the unpleasantness of making cold telephone calls, the concept of smiling and dialing can get old very quickly. Usually, new callers are given very general numbers to call. Targeting of the better prospects simply is not for the new people.
The production quota set is often based on two factors. One is the total number of calls made. The other quota is number of closed appointments created; or sales closed on the spot, right on the phone.
It's not uncommon for the total number of calls to be declared the unspoken goal. Getting through the calling list, and making lots of dials is sometimes more important than the closing rate.
The call numbers are often the tail that wags the dog,
As a result, cold calling is often counterproductive
It's interesting to know that other people have shared similar experiences with cold calling.
There is even a Sales & Cold Calling Blog, (via Accidental Verbosity where despite the name, is not in favour of the standard cold calling techniques.
Sales blogger Frank Rumbauskas suggests creative alternative methods for sales. Rather than relying upon cold calls as lead generation, or as direct sales vehicles, other more effective prospecting concepts can be utilized.
I agree with Frank.
When I was promoted from sales in my last place of employment, I completely made over the sales department. It was a shambles. The only technique even remotely considered for lead generation was that of cold calling.
The idea was to call everyone and someone would buy.
The only problem with the cold calling system in place, was its utter failure. Despite many callers, and lots of smiling and dialing, only a few of us were ever very successful.
Turnover was high.
Fights and disputes over leads lists were common, despite the basic similarity of all of them. None of the lists were targeted in any way. There were few repeat customers. Complaints were at a very high level. Asking for referrals was simply out of the question. In fact, it was openly discouraged.
Sales numbers, as expected, were very low.
When I became Regional Sales and Marketing Manager, I changed the system completely.
Instead of caring only about the number of dials, I was concerned with sales results. In a traditional company, not open to any new ideas about sales and marketing, such boat rocking was not at all welcome.
My office, technically the smallest in the company, and located in the smallest city, had the highest level of profitability. We were subsidizing two other regions, who clung tenaciously to the older system of cold calling.
My marketing approach was even more radical, and much less welcome to the entrenched old guard. The numbers produced by my staff, who enjoyed their positions and rapidly rising incomes, were unsettling to the old boy network.
Needless to say, I got fired for changing "what worked so well for so long".
One of the charges against me was the inability to produce cold call sheets, demonstrating activity. The sales numbers, and the money in the bank, were not considered as valuable.
Talk about top management having a backward way of thinking.
Activity was deemed more important than results.
Unfortunately, that attitude is not as uncommon in the business world, as you would think.
Creativity is a great thing for building a business. It's best to use creativity and new ideas, however, in an organization that appreciates results.
Where only the appearance of being busy counts, results don't matter as much.
I have the employment termination to prove it.
Related post: "Cold calling is not all bad"
