Cold Calling Techniques

Stephan Schiffman

Cold Calling Techniques
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About this Author

Stephan Schiffman, a renowned sales trainer, has coached at major corporations like AT&T and Motorola. He's authored numerous books, including "Closing Techniques (That Really Work!)" and "The 25 Habits of Highly Successful Salespeople."

First Edition: 1999

Category: Business & Money

Sub-Category: Management And Leadership

11:00 Min

Conclusion

7 Key Points


Conclusion

In sales, persistence is key to adopting rejection as a stepping stone to success. Double your efforts by doubling your calls, refining your approach, and transforming objections into opportunities. Always aim to progress to the next step, maintaining professionalism and focus on meeting prospects' needs.

Abstract

Stephan Schiffman's sales wisdom is a lifeline for businesses stressing the importance of overcoming objections and seizing opportunities. With a wealth of experience, Schiffman imparts practical advice on cold calling and consistent prospecting, key pillars of sales success. Through relatable anecdotes, he underscores the vital role of perseverance, clear communication, and strategic thinking in achieving favorable outcomes. His guidance resonates with small businesses, offering straightforward yet effective strategies for sales excellence.

Key Points

  • Consistency in prospecting is key to maintaining a steady flow of sales.
  • Every "no" brings you closer to a "yes""it's part of the sales process.
  • Doubling your efforts in calls, techniques, and appointments can double your sales.
  • Explore various sources like civic groups, conferences, and neighbors for new leads.
  • The first few seconds of a cold call are critical for grabbing attention.
  • Always focus on setting up the next meeting, even when facing objections.
  • Track and analyze your calls to improve and stay on top of your sales game.

Summary

Identify the foe.
As a salesperson making cold calls, your biggest challenge is convincing customers to switch from their current setup. Most folks believe they're content with what they've got"if they weren't, they'd be calling you instead. To stand out, you need to focus on the one-third of prospects who might be open to a change if you can sway them away from the status quo.

Real-life data
For ten weeks, a lone salesman diligently pursued his goal: making at least one sale per week. His efforts resulted in 293 phone calls, 149 conversations, 49 initial appointments, 83 visits to both new and returning customers, and 10 successful sales. These figures simply illustrate his determination to achieve a consistent sales rate of one per week. On average, he made 8.3 calls and secured one sale weekly.
This schedule might not sound exciting, but it's crucial for sales success: you've got to keep at it consistently. Don't just aim for big peaks and then drop into valleys. The key is to keep prospecting and setting up appointments all the time. Many salespeople forget how important this ongoing search for potential customers is. Think about how long it takes from the moment you start talking to a prospect to the time you make a sale and get paid. It's not instant; there's a whole process involved. And because of that, there's always a gap between when you start working on a sale and when you see the results. In reality, the sales you're making today are the outcomes of the effort you put in yesterday. So, it's important to keep hustling! The prospecting you do, or don't do, today will directly impact how many sales you make down the line.

Recognize the importance of saying no.
In sales, hearing "no" is a good thing. Each "no" brings you closer to a "yes." It's like collecting gold nuggets on your way to finding treasure. Every rejection helps you refine your approach and get one step closer to making a sale. Salespeople understand this well. They know they'll face many "nos" before they get a "yes." By tracking their ratios of calls to appointments and appointments to sales, they figure out how many "nos" they need to hear before making a sale. So, if you're not hearing "no," you're probably not making enough calls. Accept the "no"s " they're your pathway to success in sales.

Five strategies to double your income.
You might have heard that there are no easy tricks to sales success. That's true, but there are some logical steps you can take to boost your effectiveness. By following a few simple steps, you can potentially double your income.

  1. Make twice as many calls as you currently do.
  2. Learn better ways to connect with decision-makers during your calls, so you can reach more people.
  3. Try out new techniques to increase the number of appointments you get from your calls.
  4. Work on improving your closing rate. If you can close deals more often, you'll sell more.
  5. Find ways to increase the amount of money you make from each sale. This could mean selling more to each client or offering additional products or services.

Search for potential opportunities or clients.
Today's sales are the result of yesterday's prospecting. Without actively seeking out new potential customers, you're stuck with only the ones who come to you on their own. If you're okay with just being average, that might work. But for those of us aiming higher, there are plenty of great places to find new prospects.

  • Civic organizations: Get involved in your community through civic organizations"it pays off big time. Volunteer your services without hesitation.
  • Conferences: At conferences, for every 10 people you meet, expect to land one lead. It's a numbers game, so make those connections count.
  • Neighbors: Don't underestimate the power of your neighbors. Pay a random visit to nearby companies after a sales call"it might just lead to more opportunities.
  • Newspapers: When it comes to newspapers, focus on older editions. Everyone jumps on the news as soon as it breaks, so the older issues might hold untapped leads.
  • Existing business: Utilize your existing business relationships by asking for referrals. Keep nurturing those accounts while you're on the hunt for new ones.
  • Research resources: Tap into various research resources like directories, white pages, yellow pages, and newsletters"they're all treasure troves of potential leads.

Revamp the cold call process
Cold calling is often seen as a tough part of sales, but it's super important. Here's how to do it right:

  1. Grab their attention.
  2. Tell them who you are and what company you're from.
  3. Explain why you're calling.
  4. Ask a question to see if they're interested.
  5. Set up a meeting.

Creating a script for cold calling might feel awkward at first, but it's crucial. However, listening to your prospect is even more vital than sticking strictly to a script. Instead of planning your response while they talk, focus on truly hearing what they're saying.

Get Attention
When you start a cold call, the first step is crucial: getting the person's attention. Whatever you say initially will elicit a response. The better your opening statement, the better the response you'll get. Remember, people tend to mirror your approach. If you use a gimmicky question, expect a defensive or gimmicky reply. Skip the fancy tricks and keep it simple. Starting with something like "Good morning, Mr. Jones," works wonders. People respond positively when addressed by name, and it's hard to resist returning a morning greeting. With this straightforward greeting, you've initiated the first exchange, and the conversation is underway. Absolutely! "We're the go-to choice for supplemental health insurance needs in southern Jersey, providing comprehensive coverage for individuals and families."
"The reason I'm calling you today is to set an appointment. By asking for an appointment, you have some chance of getting one. Even if the prospect doesn't understand why you're calling, he or she might schedule an appointment to find out. Finally, it's time to set the appointment. The request must be direct, brief, and specific: "That's great, Mr. Smith, we should get together. How's Monday at 4 pm looking for you?" This question focuses on when you'll be getting together, not why or if.``

"Six tips for better phone calls
Simple tweaks can skyrocket your cold-calling game:

  • Hang a small mirror where you can see yourself, and smile as you talk. People will pick up on your positivity.
  • Use a timer to keep your calls short, around two to three minutes.
  • Set aside specific time for cold-calling, separate from your other tasks.
  • Practice with someone else, but not with your potential clients. It takes about three hours of practice to get comfortable.
  • Keep track of your calls: Make a note of how many calls you make, how many lead to conversations, how many of those conversations lead to appointments, and how many appointments result in a sale. Aim for one new appointment each day: On average, speaking to seven people should land you one appointment.
  • Use a tape recorder if legal: Check your state laws, but recording your calls can help you analyze and improve your approach.
  • Stand up when making calls: This simple change can boost your energy and confidence.

Transform refusal into acceptance
Potential clients often decline your appointment request, usually citing one of four common reasons:

  1. "I'm pleased to hear that you're satisfied with your current product or service. Many companies, including XYZ, felt the same way before they had a chance to see how what we do can complement what they're already doing. It would be great to meet and discuss this further. How does next Tuesday at 2 pm sound?"
  2. "I completely understand, Mr. Smith. It's not uncommon for people to feel that way initially. Notably, companies like XYZ have found our services invaluable.
  3. Instead of asking when would be better to call, just cut to the chase and aim to set up an appointment. For instance, you can say, "Mr. Smith, I was calling to schedule something. How does next Tuesday at 4 pm work for you?" The idea is to keep it straightforward. They might not be in the mood for a chat right now, and that's okay. You're just focused on securing that appointment. If they bring up another reason for not talking, you'll be prepared to respond accordingly. But if you find yourself in this situation three times, it's best not to push for a fourth attempt. Simply offer to call them back later.
  4. Mailing literature doesn't usually get much attention. It doesn't help push things forward or lead to setting up a meeting. How about we meet in person instead? Can we schedule something for next Friday at 1 p.m.? If that doesn't work, sometimes prospects might say they're happy with what they have. In that case, a good response is, "That's okay. Let's still meet up anyway."

Experience teaches that the initial reaction checks your ability to react correctly. But the true challenge lies in the second response.

Balance on the edge.
The ledge strategy is simple: Whenever someone raises an objection or says no, you turn it into an opportunity to schedule a meeting. For example, if they say your company is too expensive, use that as a chance to highlight the value of your product or service and suggest a meeting time. If they mention they don't use your product, turn it around by explaining how it could complement what they're already doing and propose a meeting. Every reason they give for not doing business with you becomes a reason to meet up and discuss further.
In every sales interaction, your main aim is to move to the next step. Don't let anything distract you from that. When you're trying to schedule a meeting, remember: that you're a professional, and you should be treated like one. It's not professional to promise a five-minute presentation just to secure a meeting. Being too submissive isn't seen as professional.

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