Tag Archives: sales training

Why Doesn’t Cold Calling Work Anymore?

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I’ve been thinking a lot about the future of selling.  Last week, I defined the four trends that I believe will drive sales into the rest of the 21st century, and I’m even hosting a Webinar on those trends on July 6.  One of the dangers of thinking about the future, however, is that you lose sight of what worked in the past and can still work today.  I’m not going to do that.  That’s why this week’s Navigator is going to be about why, if you think cold calling doesn’t work, maybe the problem is you and your skills.

Cold calling is probably the oldest technique for generating new prospects.  It’s taken many forms over the years, but it’s still around.  Should it be?  Spoiler alert – YES.  But you have to be good at it.  Yesterday, I had a cold call that illustrated something I’ve been saying for years:  If you think cold calling doesn’t work anymore, you’re probably lousy at it.  I’m going to tell you about the cold call I received, where he went wrong, and how you can do it right (and why you still should).

Yesterday, I was cold-called by a guy who was selling recruitment services that matched military veterans to employers (a worthwhile cause).  On the face of it, this is probably a guy who should be talked to if you are hiring.  Here’s where he went wrong.

The first time he called, his phone connection was so bad that I couldn’t understand anything he was saying.  He said, “This happened on my last call, let me switch phones and call you back.”  Wait – if it happened on his last call, why didn’t he just stay on the other phone and call me from that one?

When he called back, he introduced himself with his name and company (good so far).  Then, he went into a long spiel about what his company did, and that this was definitely a sales call, that he’d be wanting to talk about getting my hiring business, and could he have 30 seconds?  This spiel took him more than 30 seconds.  I timed it.  So at this point, I just explained that I don’t do hiring because I don’t have a staff.  That’s not 100% true, as I just hired my very own sales executive (the business is growing), but I didn’t have any MORE need for hiring.

Then he asked, “Well, could you tell me who would do all the hiring at Salesforce?  It’s a big company.”  That’s when it dawned on me.  He thought he was calling an executive at Salesforce.  For those of you who haven’t been with me for the nearly 19-year ride of my business (most of you), I’ll give you the backstory.

When I started my business on September 1, 2004, I called it “Salesforce Solutions.”  The idea was not that I worked with the Salesforce CRM, it was that I solve companies’ problems with their own sales forces.  Seemed like a great idea, but it wasn’t, due to marketplace confusion (up to and including calls like this one).  That’s why I rebranded around my own name in 2014 – ten years ago.  This guy had somehow gotten ahold of ten year old data and thought that he was calling an exec with a large company.  I explained his mistake to him, politely, and wished him well.

He is probably thinking, “I don’t know why I’m cold calling – cold calling doesn’t work!”  No.  He’s just very, very bad at it.   Before I give you the four keys to being good at cold calling, however, I want to talk about the elephant that I put in the middle of the room.

If I’m talking about the future of selling, artificial intelligence, what ChatGPT can do, etc., then why am I talking about this old sales technique?  Simple.  First of all, cold call prospecting is STILL the most controllable way that salespeople can build their businesses and attract new customers.  Other strategies, such as networking events, social media, etc., are great and can work, but they are not numerically predictable and controllable.  And we need a method that is.  Cold-call prospecting should be part of your repertoire and routine.

Second – and now we can directly look the elephant in the eyes – cold calling is not (yet) something that AI can do well.  In the article I wrote a few weeks ago, I said that salespeople need to get better at those things that AI cannot do well.  Cold calling is one of those things. By using AI well in things that it’s good at, and then using the time saved to improve your skills at the things it does not do well, you can become the complete package.  With that said, here are the four keys to being good at cold call prospecting:

  1. Test your technology. This means that, if you’re using the phone, make sure that you get a good connection and that you are understandable on the other end of the line.  If you sound like you’re calling from the bottom of an oil well, find a different phone.  You MUST be understandable.  And while we’re on the topic, no damned auto-dialers!  As a call recipient, nothing kills your chances quite like the 2-3 seconds of dead phone line between the time that the call recipient answers and says, “Hello?  HELLO?” and you pick up and start talking.  Use your fingers and dial the phone.
  2. Use a good database. Even the best databases can have about a 10% obsolescence factor – but in this case, “obsolete data” means a year and a half, not ten years.  I think someone would have to be working hard to find data old enough for my past company name.  By the way, here’s a quick hack.  Most good library systems have subscriptions to free database services like ReferenceUSA, Data Axle, A to Z Databases, or the like.  These databases give all pertinent information including contact names.  You must have a NAME to ask for – not “the person who.”
  3. Be concise and powerful. From the time your prospect picks up the phone, you have 15 seconds – MAXIMUM – to give that person a reason to talk to you.  Crap like “How are you today?”, “is this a good time?”, or other babbling uses up that 15 seconds, as well as your prospect’s patience.  Introduce yourself and give ONE powerful sentence that explains how you benefit your customers, and how you could benefit them.  Yes, this requires thinking and refinement.  DO IT.  You could even try getting ChatGPT to help you write the sentence!
  4. Ask a strong question. After giving your one-sentence explanation, ask an open ended question about the prospect’s potential problems and needs to stimulate the discussion.  Then you can ask for an appointment.

If you’re thinking that cold calling doesn’t work, it’s time to get good at prospecting.  Don’t waste your prospects’ time – or yours.

Five Outdated Sales Techniques That Have Only Gotten Worse With Age

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I’ve been going back lately and reviewing some of my past articles; as Jeff Foxworthy once said when listening to his old material, “There’s some good stuff in there!”  Some of these articles are pretty relevant today as-written; others will do with a little updating.  I’ll put updates, where necessary, in italics.  This one focuses on outdated sales techniques that should have been retired long ago.

Some outdated sales techniques are not like wine or cheese – they don’t get better with age.

I was listening in on some sales calls with a distributor of high performance auto parts, along with their Inside Sales Manager.  A customer had called in to ask about a particular engine wiring harness.  The salesperson explained that, yes, the harness would work on his engine just fine.  Right as the customer was about ready to buy, the salesperson said, “However, it’s not designed as a stock replacement harness; it won’t work on your original 2000 Camaro.”

The customer stopped and said that what he wanted was a stock replacement harness for his Camaro, and the salesperson explained that this harness was designed to swap the engine into an older car and wouldn’t support all the functions of the Camaro’s system.  The customer thanked the salesperson and hung up, and the Inside Sales Manager came unglued.  He referenced one of the worst outdated sales techniques you can use, and if you’re using them, you’ll want to STOP now.

  1. “Never answer the question the customer didn’t ask!” is what the Sales Manager yelled at the poor salesperson.  He said, “If you hadn’t volunteered that information, he’d have bought.”  The salesman was a rookie, so I stepped in.  “If he’d bought,” I said, “that harness would have come right back to you as a return, and the customer would have been upset.  What’s your win there?”  As the manager stammered, I said, “Or worse, he’d have tried to cut into and modify the harness to make it work, it still wouldn’t have worked, and then he couldn’t return it OR use it, and he’s out $1,000.  How does that help anyone?”  “Never answer the question the customer didn’t ask” is an old canard that’s built around “get the order at all costs, and to hell with what happens afterward” transactional sales.  It’s old and outdated.  Your role is to help the customer reach a succesful buying decision.  So here’s your new rule:  If it’s information the customer needs to know in order to have a successful result, give it to them, whether they asked or not.  I’m reminded about the old trope that salespeople shouldn’t be “Free consultants;” another old saw that I disagree with.  My thoughts on that are in this video.
  2. The “take away” close.  The way this one works is that, at closing time, you say something like, “You know, you really shouldn’t buy this (for whatever noble reason).”  The idea is that the customer now wants it so badly that he will then justify why he should buy (and deserves to own), and in so doing, sell himself on the product.  Here’s the problem.  If you’ve been selling correctly, you’ve built up a lot of trust and credibility with the customer.  Based on that, when you use the “take away,” one of two things will happen.  First, the customer will believe you because of the credibility and trust – which means that you lose the sale (or you end up having to re-close, which makes you a liar).  Second, the customer sees right through the tactic, realizes that you’re lying, and walks.  Neither is good.  Just play the close straight.  Only take it away if you’re really going to take it away; i.e. it’s not a good purchase for the customer. Or, I would add, bad business for you – I’ve taken offers away more than once if they wouldn’t result in good business for me.
  3. Never ask a question to which you don’t know the answer.  This is the old “lawyer’s technique,” and basically it means that the salesperson is scared to death of being surprised by the answer to a question.  There are two problems with this philosophy.  First of all, you must ask questions to which you don’t know the answer to properly discover and interpret needs – and be prepared for surprises and for the call to go in directions you hadn’t anticipated. Second, by the time the lawyer gets into the courtroom, the witness has already been questioned – numerous times – and the lawyer already knows what the witness is going to say.  That’s not the case in a sales call.  Not asking questions to which you don’t know the answer means that you’re fearful. Drop the fear and do good customer discoveries – that’s the best way to sell today. It always has been the best way to sell – and always will be.
  4. The salesperson should seek to control the customer and the sales process.  First of all, any salesperson who believes that he has “control” over the customer is fooling himself.  The customer can always remove themselves from the process.  Whatever control we have is more aptly referred to as “influence,” and is shown by the customer allowng or asking us to direct parts of the process.  Seek influence, rather than control, by respecting the customer’s intelligence, showing your expertise, and working side by side for a successful result.
  5. The Up Front Contract.  Essentially this is a technique where you open the sales call with a closing question designed to lock the customer in with “intent to buy if things are right.”  This can range from the car salesman’s “Are you here to buy a car today?” to “If you like what you see today, is there any reason we can’t move forward?”  The problem with this question is that it occurs at the start of the selling process, before you have built any trust or equity with your customer, and before you have earned the right to ask a closing question.  At this point your customer knows nothing of your offerings, your pricing, and many times their needs haven’t been defined and matched to a product or a service – and you’re asking a closing question?  Ridiculous.  And if the customer says “yes” to the question and later says “no” to moving forward, the only thing you can do is whine, anyway.  Don’t worry about the buyer’s intent until the buyer has a reason to have intent.  If they are seeing you, they are Motivated to enter a buying process – but that’s all.
  6. I’m going to add a sixth technique, which I call the “Good Time Charlie.”  Good Time Charlies hardly ever focus on customer needs and solutions; instead they focus on being the customer’s buddy, buying lunches, drinks, sports tickets, etc.  They seldom know much about their product, and beyond the personal level, they know little about their customers.  GTC’s were becoming obsolescent – but the events of 2020 have made them obsolete.  If you are one, or if you employ one, it’s time for that person to update their skills.  It’s never too late to do so.

All of these outdated sales techniques have one thing in common – they are designed to maneuver and manipulate customers into places that they don’t want to be.  If you’re using them, the ‘70s called and they want their sales techniques back. Even the customers of the ’70s didn’t like these techniques – they just didn’t have an alternative.

Today’s customers do have alternatives.  The ability to buy nearly anything over the Internet allows customers to eliminate salespeople from their buying process at will – and if you use any of these techniques, they will eliminate YOU.

Five Tips for Maximizing Video Selling

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Last time out, I discussed the top trends in selling coming out of Covid-19.  If you haven’t read that one, you should read it now.  But, the #1 trend that I have identified, and that I think will be evergreen (meaning it will outlast Covid-19 and the aftermath) is the increasing use of video in selling.

With everyone working from home, more and more people have gotten comfortable with video conferencing, whether it’s a Zoom call or a different platform.  And many of those people have found it to be a time-efficient way to have meetings.  Those people may want to continue to use video conferencing when you are selling to them – so you might as well make it good.  Here are five ways you can maximize video as a sales tool.

  1. Ask for the upgrade. I said before that video selling lies between two-dimensional (phone) and three-dimensional (in person) activity.  So, when your contact wants to set a phone appointment up (you are making appointments for your phone calls, right?), ask for an upgrade.  “I’d be happy to have a call with you at that time – but would you rather have a Zoom call?”  Remember, more people are familiar with this technology than ever before. On video you can get more cues to and from your buyer – so the more calls you can upgrade from phone to video, the better off you’ll be.
  2. Respect the request. On the other hand, if your customer requests that you meet through video instead of in person, respect that.  Right now, many people are still leery of face-to-face meetings, and if your customer is one of them, you could put them off by pushing for a face to face meeting.  Accept the video call.
  3. Make sure your video is right. The great thing about video is that you have control over the visuals.  Think through your equipment and your backdrop.  Today’s laptops and phones have very high quality HD cameras on them, so that’s not a problem – but the camera lens should be at eye level (so you are making quality eye contact with your customer) and you should be looking AT THE LENS instead of at the screen.  That one’s difficult.    The backdrop should be interesting but free of anything off-color or distracting.  The lighting should be at your front and not your back.  You may want to get a good quality external microphone (mine is a Blue Yeti).  The best way to ascertain all of this is to set up as you would for a call, and then shoot some video of you talking.  Practice and get comfortable.
  4. Learn the technology. Right now, there are many different technologies out there.  They all have their pluses and minuses.  My best advice to you is to pick a technology that you like, get really comfortable with it, and then when you do schedule a video call, you be the person who does the inviting, rather than expect the customer to do so.  I will freely admit that I myself have been a bit tardy on this one.  That said – if your customer already has a preferred tech, go with it – which means you need to be conversant with many platforms and not just your own.
  5. Show up ten minutes early. The same rules apply for this as for a face to face call.  If you’re going to participate in a video call, you should log on ten minutes early, whether it’s your tech and platform or theirs.  If you’re on early, that means that when they log on they don’t have to wait for you; if it’s theirs, that means that if there are any technological hoops you didn’t know about (such as an app to download), you have time to do it before it’s meeting time.

Video calling is something we are going to be working with forever now, at least until someone invents a hologram so we can project ourselves into the customer’s office.  Do these things and you’ll be very effective at it, and you’ll beat salespeople who aren’t.