Follow these rules when contacting prospects

Editor’s note: Liza von Claparede is president of LvC Company, a Saginaw, Mich., business development and sales training firm.

I once saw Jerry Seinfeld do a wonderful routine in which he mentioned a survey of the American public in which a majority of respondents (92 percent) admitted they were more afraid of public speaking than they were of death. He asked the audience to ponder this for a minute and then he observed, if the data is to be believed, it would appear that 92 percent of individuals attending any given funeral are going to be more comfortable in the coffin than they would be on the dais giving the eulogy!

I love that Seinfeld routine because it reminds me of the way most people react to cold-calling. Over the years, cold-calling has become the most berated of marketing tactics and the reason is clear: most people do it so badly that it is as painful to execute as it is to listen to. And this is a shame.

Before you opt for the comfort of the coffin (like the folks in Seinfeld’s survey) consider this: In my final year working in corporate America - i.e., working for someone else - I generated nearly $1 million in new business - just me and my telephone. No tricks, no games, no snake oil. The company that employed me was a small, full-service market research firm. Using my “rules” and some other skills I had perfected along the way, we achieved amazing revenue growth and client acquisition. This same firm, years earlier, had had serious doubts as to whether research could be sold at all using the telephone.

From my two decades of selling (both in and out of the research industry), I can tell you that cold-calling is the single most expedient, cost-effective way to generate new business. It is more immediate than advertising, more compelling than direct mail, and faster than networking. When done correctly, cold-calling can yield astounding results, and it can do so without huge capital expenditures, cash outlays, or an increase in staff.

But market researchers are typically not good cold-callers. It’s not because they don’t know their product or their target audience. Nor do they lack enthusiasm and technical knowledge. It’s because they haven’t been trained to sell a product or service - and certainly not over the phone. Research is a serious business and researchers have come to doubt the respectability of a cold-call. Additionally, many firms are small to mid-size, with principals as owner-operators. When your name is on the door it becomes harder to separate yourself from the product. Picking up that phone is equivalent to putting yourself out there and many research professionals are not comfortable doing that.

To address this discomfort, and in an effort to make a case for cold-calling as an effective way to sell research (be it full or field services), I will share a few strategies which I think might be helpful to those firms who want to increase revenues by engaging in a sales program that embraces cold-calling. I call these strategies “The Rules of Engagement” and they have served me well.

Rule #1: Be clinical.

Approach the cold-call effort with an emotional detachment. Business-to-business cold-calling is much different from consumer work and there aren’t many professionals who hang up on you. Nevertheless, you will certainly reach people who are not at all interested in speaking with you, so a thick skin is a valuable resource!

Rule #2: Exude confidence.

Any lack of confidence on your part will be construed as a lack of confidence in the abilities of the company you represent. Simple clues like the timbre of your voice, the strength with which you speak, and the words you choose to use can communicate confidence to your prospect.

Rule #3: Find common ground.

Many times in a cold-call, the listener is not really listening to you. He or she is actually trying to figure out how or where you got their name. Remove this distraction by telling them right up front. Maybe you got their name from an association directory or from a newspaper article. Tell them so immediately. It helps to break the ice because it shows that you are aware of, and involved in, things that affect and/or serve the industry.

Rule #4: Know your purpose.

When you pick up the phone to call a prospect, know what you are going to say. As the individual who instigated the contact, you must set the direction of the call. You should be prepared to tell the prospect: who you are; how you got their name; what you want; why they should listen to you; and what you would like to do for them.

Rule #5: Have a basic understanding of their business.

Have some idea of what your prospect’s product or service is and a general idea of how your firm can assist them. Typically, you should be able to look at a corporation and, depending on the nature of their business, determine the likelihood of their utilizing market research services and if so, what services they are likely to need. Approach them with a straightforward specificity and they will respond.

Rule #6: Respect their current relationships.

Your prospects are likely already involved with another research supplier at the time of your call. You are presuming to challenge that relationship and, in effect, the prospect’s judgement, by your cold-call. Current relationships are also used by prospects to shut down a cold-caller - another way of saying no. You should assume that the prospect has other relationships in place. Try to find out what needs are not being met and find a way to address those needs if you can. If all else fails, position yourself as an option, a possibility for the future.

Rule #7: Mimic speech patterns/speed.

Listen to how a prospect expresses him or herself. This will be the first and most accurate indication of how that individual likes to receive and process information and will provide a useful clue to how to present yourself and your company. Listen to how the prospect speaks, the speed, the vocabulary, how they enunciate, etc., and then seek to gently mimic this in your presentation. I am not suggesting that you speak with a Southern accent if you don’t already have one, but use the prospect’s speed and inflection during your presentation. If you are cold-calling a New Yorker, you may find that you will have to speed up your pace. If you are calling a prospect in Savannah, this same approach may be a turn-off. Listen and mimic for optimum acceptance.

Rule #8: Be truthful and to the point.

 Don’t engage in trite telemarketing ploys. Don’t ask a stranger how they are. You don’t know them and they know you really don’t care. Besides, how they feel is not the purpose of your call and they will take you more seriously if you don’t sound like every other telemarketer that calls them. Don’t pretend to know the prospect by asking for him or her by their first name. The secretary is a gatekeeper. The secretary is not stupid. Inferring that you are a friend of the prospect when you are not is dishonest. And, if you approach a prospect with anything less than honesty, what do you think their expectation of working with you will be? Avoid these tricks like the plague.

Rule #9: Be flexible in your script.

Every newcomer to cold-calling should begin the process with a script. This should be a basic outline of what you want to say and the order in which you will say it. Your script doesn’t have to be on paper, it can be in your head. But have a general idea for your own peace of mind. That having been said, you must also be prepared to deviate from the script as the conversation warrants. I’ve had many good laughs listening to salespeople respond to me in a way that clearly catches them following their script no matter what I say. Don’t do that. Let go of the script and engage the prospect in a conversation. And, more importantly, listen to what is being said. Don’t look for the next opportunity to get back to that script. Delivering a script only proves that you can read. It does not mean that you can communicate.

Rule #10: Be responsive.

After the call, be sure to do what you said you were going to do for the prospect. Don’t wait three weeks to send out the follow-up materials, or ask the boss that question that the prospect wanted answered. Follow up quickly on your deliverables. Responsiveness is judged by many companies as the degree to which your company is interested in doing business with them. If they have to wait weeks to get preliminary collateral and promotional information they might be skeptical about your company’s ability to deliver product or services on time and per spec. Finally, responsiveness keeps the conversation going - like a tennis match - and as such, is a very important ingredient in minimizing the length of the sales cycle.

More tips

Other tips which don’t qualify as rules, but can be helpful are:

  • If a prospect is not interested, he isn’t interested and no act of God or man will change this. Part of good selling is realizing when to dedicate your efforts elsewhere.
  • When you lose a bid - particularly if it was your first time bidding - always try to do a “post mortem” with the prospect. It is very important to find out why your bid wasn’t successful so that you might submit a more compelling one next time. Every firm wants to know why they lost, but few will pick up the phone and ask. I urge you to do so each time a bid goes elsewhere.
  • Try to make your cold-calls early in the week to maximize the number of return calls you will receive by the week’s end. Don’t ignore holiday periods and Fridays as good days to call as well.
  • When leaving a voice mail for a prospect be sure to let them know who you are and why you’ve called. Most will call back and appreciate the courtesy. Explaining the reason for your call helps avoid angering prospects who return your call (on their long distance dime) only to find out that you want to sell them something.

I welcome your comments on my “Rules” and wish you good luck!