Red Hot Cold Calling Tips
“Garver’s Notes” – Red Hot Cold Calling
Preface
vii One must love what they do. For the author “heaven will be a small room with a telephone and a never-ending list of prospects.”
viii Business development is a proactive process – you must make things happen.
x The goal of the book is to make the reader “Rejection-Proof.” This book outlines a formula called “Smart Prospecting” and the reader will be presented with the “Ten Commandments of Prospecting.”
Chapter 1 – Prospecting: An Essential Element to Your Success
1 Prospecting and business development are possibly the most crucial elements in your selling success formula. Steps in the
2 One could conclude that if one is not successful at prospecting, one will not be effective at selling. This book is dedicated to the art of prospecting and business development. This is the primary objective of the book.
Your Path to Success
Top performers in any field are doing things slightly better relative to others in their profession. In sales, for example, the top producers make that one extra call or attend that one extra sales meeting. The difference in performance may not be significant, but the outcome can be.
3 To keep sharp, the author listens to a new audiocassette per week and reads a new book each month. We can all learn. This is the second objective of the book.
4 The third objective of the book is for the reader to keep an open mind and have fun while you learn.
Chapter 2 – What Is Prospecting?
5 You must love what you do to be successful. Most salespeople love sales, but dislike prospecting. The author traces this to the fear of rejection. “The trick is to alter your perceptions of prospecting, and rejection.”
5-6 Is the Glass Half Full or Half Empty?
Viewing prospecting in a positive light (‘half full’), you will begin steps toward becoming rejection proof.
“[P]rospecting is the conversion of a stack of leads into a stack of money through the effective use of the telephone.”
Focus on the positive and leave rejection out of the equation.
7 The Sun Does Rise in the East and Set in the West
There is a distinct relationship between the number of times you dial the phone
and sales volume. You must keep detailed records of prospecting activity. If you do this, you will quickly see that the relationship between sales volume and dials is as predictable as the sun rising in the East and setting in the West, irrespective of your prospecting acumen.
8 What’s in it for me?
The relationship between sales volume and dials extends to commission check
(the “Von Der Ahe” effect). In other words, the salesperson earns money every
time she dials the phone. It is the cumulative effect of dialing and prospecting that leads to selling success (akin to shattering a rock with a sledge hammer after 100 swings).
9 If you in
9-10 A recession to a salesperson simply means you need to in
10 The Law of Sowing and Reaping
The Law of Sowing and Reaping is a biblical paradigm for professional prospecting and selling. Plant only one seed, or make only one cold call, and you cannot expect to have an abundant harvest at the end of your sales cycle. (The “Savage effect” –
11 A Positive Outlook
Prospecting can be fun if you give it a chance. It gives you an opportunity to earn money, to set your income level and it is challenging – what else could you want?
Chapter 3 – Why Prospect?
12-13 A Day in the Life of a
The author refers to a summer internship in which he was busy at all times, but he made no calls and thus had no sales.
13 Just Do It
As a salesperson you have basically two functions: 1) service your existing customers and 2) business development. “When you are not providing superior customer service, you must devote your full attention and energy to business development and prospecting.”
13-15 Compelling reasons to prospect:
1. Most prospects never receive information you send.
2. People rise to a challenge – it is a microcosm of the sales process; you reach a goal and should feel elation from this.
3. Success will breed success – when you are successful, make another call.
4. Prospecting prevents peaks and valleys.
5. It’s fun – where else can you get paid to talk on the phone, meet people and serve their needs?
Chapter 4 – Becoming Rejection-Proof
16 The “Selling Life-Cycle Paradigm.”
16-17 Educating Your Prospects
A paradigm is simply a way of looking at something. The “Selling Life-Cycle Paradigm” teaches you to view selling as a process and not as an event. The goal is to educate your prospects, meaning if they know what you know then they will buy.
Educate as to the value of your product or service (V.O.R.) which will add to the profitability of the buyer’s organization. If you can demonstrate superior return on investment, then they will buy.
17-18 Continuing the Selling Process
One can not be ‘rejected’ if the selling process continues. A rejection should never be perceived as a ‘no’. A rejection should be viewed as information about a prospect to be repositioned in the pipeline. Find willing buyers now and reposition others in the pipeline.
20-21 Persistence Pays Off
Most sales are made after the fifth call, yet we quit after the first out of fear of rejection. Persistence, or not quitting after the first rejection, defines successful salespeople and people in general. Failure and rejection are precursors to success.
21-23 Overcoming the Fear of Rejection Through Diversification
The key to overcoming fear is to make enough calls so that the outcome of one call is not significant to your overall selling results. (This is akin to a mutual fund versus purchase of a single stock.)
Couple diversification with the “Selling Life-Cycle Paradigm” and you should have no fear of rejection.
Keep track of your results and you will see a ratio you can bank on (ie, every twenty dials results in one appointment). This should remove fear of rejection.
23-25 Believe in Your Product; Believe in Yourself
First, professional sellers believe in their product or service. If you believe in your product, then your calls are a service or benefit and not a bother.
Chapter 5 – Smart Prospecting
25 Return on investment = Sale/Time invested in the sale.
This chapter is designed to teach you how to maximize your return on investment.
25-27 Fishing for Whales
The planning step is a necessary precursor to prospecting. The time invested in a sale is usually constant. The key is to maximize the size of the sale. Fish for whales, not minnows.
26 The
A large portfolio minimizes risk (akin to a large stock portfolio).
27-32 Defining Your Target Market
The first step in Smart Prospecting involves defining your target market. If you define your target market, then there will be ample opportunity within it and you will maximize the return on the time invested.
Buying potential or a quantitative factor (objective criteria) versus rejections (subjective feelings) should be the determination of how to set priorities within your priority market.
Therefore an individual or company can not reject you – only criteria can.
In other words, you are only working with the buyers that fit your criteria.
One may choose to limit geographic scope and may choose one other strategic criterion such as ‘top fifty fastest-growing companies’ regardless of buying power.
Thus, the target market should contain a quantitative factor, a geographic factor (if applicable) and one additional strategic factor.
32-33 Segmenting Your Market
Once you have the target market you need to segment it into three categories: high-priority accounts, moderate-priority accounts and low-priority accounts.
The goal is to maximize your return on investment.
This stratification should be based on the target market categories (ie, in
This will enable you to set call and visit goals for each account. This will minimize time between calls to the biggest accounts and place them consistently in the sales pipeline.
33 Goals for Your Target Market
For example, high priority accounts get one call per month and one visit per quarter.
34 Winning With Smart Prospecting
The end result should be a plan that leaves no doubt what needs to be accomplished to achieve success.
The final rule is to make as many calls as possible. Since we refined our market each call should by definition be a quality call.
Chapter 6 – The Ten Commandments of Prospecting
35-36 This chapter posits a simple ten-step system that will help an individual with the prospecting process. To be successful with any system (ie, Weight Watchers) you must follow it to the letter. Follow these ten commandments and you will be successful.
36-47 Commandment 1: Make an appointment with yourself for one hour each day
to prospect. This requires discipline and should be treated like an important meeting.
Commandment 2: Make as many calls as possible. Smart Prospecting taught us that we are only making quality calls. Make as many as possible with no interruptions (phone on DND, door closed).
Commandment 3: Make your calls brief. The purpose is to get an appointment. The call should be two to three minutes to introduce yourself, your product and understanding a prospect’s needs so you can provide them with reason to spend time with you and get the appointment.
Commandment 4: Be prepared with a list of names before you call. Do not waste the hour looking for names. Have a one-month supply of names at all times. Trading for leads with competitors is the next best thing to purchasing quality lists. “Leads are money” and should be treated with respect.
Commandment 5: Work without interruption. “Get into the groove.” Your prospecting will improve over the hour.
Commandment 6: Consider prospecting during off-peak hours if conventional prospecting times don’t work. This demonstrates that you are a ‘go-getter’ and may be a more effective means to reaching a decision maker. The author suggests supplementing call times with off-peak hours. Author’s special tip: calling at has been magical for him.
Commandment 7: Vary your call times. We are all
Commandment 8: Be organized. Use a computerized management system to facilitate follow-up and to keep detailed records of the nature of the calls, times, etc. The one who keeps the best notes wins.
Commandment 9: See the end before you begin. Envision your success before each call to boost confidence and enthusiasm.
Commandment 10: Don’t stop. Persistence is the key. Keep calling. Most sales are made after the fifth call, yet most salespeople quit after the first. Hand-written notes on personal stationary are helpful follow-ups as well (ie, clipping an article with a congratulatory handwritten note).
47-48 A Reminder
The author reiterates the ten commandments.
Chapter 7 – Anatomy of a Cold Call
49-51 We need an eleventh commandment: practice, practice, practice. Practice your cold calls and develop a script. You will be prepared, in control of the call and consistent. The author claims that if he made 10,000 cold calls all would be identical in form and substance. The greatest asset is to sound conversational and only a simple script can sound conversational. Once you find the perfect script you will never change and you will never look back. The author proceeds to dissect his script.
51-52 Get the Prospect’s Attention
You have about ten seconds. People love to hear their names. The author suggests saying the person’s name twice. “Mr. Jones please. Hello Mr. Jones.”
52-53 Introduce Yourself
“This is Gregory Garver (feel free to use my name) of Brokers USA – how are you today? Great!” This is an icebreaker and once they respond, ‘great’ transfers your enthusiasm. One needs to be a strong listener and consultant.
53-54 State Your Reason for Calling
For example, “the reason I am calling is because I sent you some information about our organization in the mail.” Continue by stating what you do, “we provide financial management services to large organizations like yours.”
54-55 Ask a Question
The salesperson is at his best when he asks open-ended questions and does little talking. “How do you handle your needs for those types of services at your company?” Listen carefully to their response. This will allow you to identify a need.
55-57 Get the Appointment
“Great! [In response to the prospect’s comments of how they handle needs.]” This transfers enthusiasm and exudes confidence. “I am going to be in your area on ___ and would like to stop by and introduce myself. Are you available at ___?”
Pre-select the appointment times. Appointments should begin at and continue every two hours thereafter. Proposals, letter writing and updating the database should be done early, late and on weekends.
57 Review the Cold Call Script
The script should be simple and conversational.
57-60 Your Cold Calling Tool Kit
Mirror - you have two minutes to present a strong mental image (neat hair, sit up straight, do not roll-up sleeves, etc.) You would never look disheveled at a sales meeting; do not sound disheveled.
Tape recorder – get rid of the ‘ahs’ and ‘ums’ and listen to your idiosyncrasies. Get rid of them.
Telephone headset – you can retrieve information from around the office while continuing the conversation, your hands are free to take orders and write and you can stand-up for more effective and enthusiastic sales speaking.
Chapter 8 – Your Prospecting and Business Development Strategy
61 The strategy is based on the Law of Sowing and Reaping, the Selling Life-Cycle Paradigm and consultative selling which provides new and valuable information.
There are three potential outcomes to any call: speak to the prospect and get the appointment, speak, but do not get the appointment or you do not reach the prospect.
61-62 Getting the AppointmentThe first option is the easiest. A confirmation letter (sample letter, see page 63) and a call the day before to re-confirm is a nice supplement.
62-78 Losing a
If you win the sale, then you need to provide superior customer service. What if you lose the sale after the appointment? This is where most stop – but we are just beginning. Refer to Smart Prospecting, the author went to great lengths to define a target market based on objective demographic factors. So, we must place the prospect back into the pipeline and into the “Business Development Cycle.”
Spend a few minutes outlining your company’s strengths. You should be able to recite them in your sleep and they should permeate all of your conversations.
The Business Development Cycle allows you to call back a prospect and provide them with new information each time. This gives them a new reason to call you back. One needs to
Prospects have core business and niche business. The author suggests targeting niche opportunities and develop a strategy surrounding your unique selling points. Present innovative ways for a prospect to improve profitability.
Chapter 9 – Handling Objections
79-80 First, there are a limited number of objections you will come across, so we can plan how to respond. Second, objections are really a request for additional information to justify meeting with you. The author has compiled a comprehensive list of objections and responses to same.
80-81 Developmental Stages in the Learning Process
Adult learners go through four stages: unconscious incompetence, conscious incompetence, conscious competence and unconscious competence. At first the salesperson is a newcomer, then he is aware of his deficiencies and concerned, then the person starts to become better, but needs to constantly think about what he is doing and then he is able to do it unconsciously – the last is our goal for cold calling.
Practice, practice, practice and then get on the phone.
81-105 Famous ObjectionsSend Me Literature
This is most common (sample response, see page 82. It must have gotten lost in the mail. Why don’t I stop by and drop it off? Will you be available?). The author has already sent mail. Therefore, the objector can either agree to meet with you or provide a ‘real’ objection (addressed below).
We Handle the Need for Your Product [Service] Internally
This can be handled in one of two ways depending on whether you are dealing with middle or upper management.
Middle-Management – address efficiency and niche opportunities (sample response, see page 84. That was exactly my reason for the call. We have found we are an effective supplement to your services. I am going to be in your area…).
If asked how you will accomplish this, provide one of your company’s unique selling points. This helps the middle manager’s goal of doing a better job.
Upper-Management – address return on investment and in
We Have an Existing Relationship
This is akin to internal servicing. The key is to address a niche need and demonstrate unique selling points (sample response, see page 92. That was exactly my reason for the call. We can be an effective supplement to the services of your primary provider. I am going to be in your area…).
I’m Not the Person Responsible for This
Make the call and try to reach a secretary, etc. Ask for their help to identify the decision maker and his or her extension. If you have now reached the proper party, go directly into your script or apologize and ask to be directed to the proper party.
We Do Not Have the Budget for Your Product or Service
Remember the Selling Life-Cycle Paradigm. This is a process (sample response, page 97. My goal is to not sell you something today, but rather to build a relationship. I am going to be in your area…).
Second response (sample response, page 99. We have worked with companies that felt just like yours prior to spending a few minutes with us. I am going to be in your area…). This is the “Feel, Felt, Found” or the “Repeat, Reassure, Resume” technique. They are others similarly situated out there that ultimately reacted differently.
Your Price is Too High
Your job is to discuss value not price (sample response, page 102. We work with a number of organizations like yours that believe they receive a return on their investment.)
We have Used Your Company in the Past and were Dissatisfied
Listen and take copious notes. You must rectify the problem at all costs in order to combat bad-mouthing of the company (sample response, page 104-05. Please take a few minutes to tell me about your dissatisfaction. If I were you, I would feel the same way. I would like to make amends. I am going to be in your area…).
105-09 Can You Turn Every Objection Around?
You can develop simple, well thought out responses to all objections. Make two attempts to turn around the objection and get the appointment after that, state that you will put the person on a mailing list and follow-up to see if things change. From there, move to the Business Development Cycle.
Chapter 10 – Working With Voice Mail, Administrative Assistants, and Secretaries
110 This chapter outlines a strategy that will allow you to work with both voice mail or secretaries and administrative assistants.
110-14 Working With Voice Mail
Voice mail should be seen as the ultimate advertiser versus the ultimate gatekeeper. This is the chance to present your position without interruption or objection.
Because of this, you need to have a strategy prepared or an advertising campaign. Each voice mail should be one of your company’s unique selling points and then place the person into the Business Development Cycle. The modification to the script and follow-up letter are minimal (sample voice mail, page 112. This is Gregory Garver of Brokers USA. We recently did X Y and Z and this will revolutionize the way companies do business. I would like to stop by and demonstrate it to you. Please give me a call at ….).
You may want to consider immediately calling back to speak to the secretary and at a minimum make sure you left a message with the decision maker.
Voice mail should be supplemented with some of the ten commandments: be persistent, vary call times, send focused letters, etc.
114-19 Working With Administrative Assistants or Secretaries
The key is to understand their role in the sales process. What has changed is the level of the sale. The author defines three different levels of sales. The first level is the ‘tangible’ sale because they result in a physical transaction. The second level is the ‘conceptual’ sale or the appointment. Administrative assistants just add a third level – once again the ‘conceptual’ sale or the pre-appointment.
The goal of the sale is to have the secretary allow you to speak to the decision maker as opposed to the original goal of scheduling an appointment.
Work with the secretary. Get the person’s name and record it. Secretaries typically possess great knowledge about their boss’ business. Try to confirm that the boss is the true decision maker. Secretaries can also provide information concerning the company’s needs and direction.
Secretaries often have the power to schedule appointments for the boss (ie, Charlie Sheen in Wall Street). If the secretary is unwilling to schedule an appointment try to figure out what times are good for the boss to speak to you. The fall back position is discussing the product with the secretary in order to get the secretary to allow you to speak to the boss. Try to work with the secretary to reach the goal of speaking to the boss.
If this fails, fall back to the ten commandments, ie calling during off-peak hours, etc.
Chapter 11 – Public Relations: How to Make Your Prospects Come to You
120 Public relations tools such as press releases, newsletters and public speaking engagements can help you on your quest for sales success. A well-planned public relations campaign can build a mystique around you and your product.
120-21 Press Releases
Send the releases to the editors-in-chief of the leading trade publications, to producers of shows, etc. Develop this list over time and keep it current. Once you have a list, send out one release per month. The releases should be based on your selling points and should contain: 1) name, company and address; 2) the release date; 3) the headline; 4) the dateline (city of origin) and 5) the body of the release.
121-24 Newletters
Consider preparing a newsletter and distributing it to the names on the list which you personally manage. A newsletter can be effective in positioning you as an industry expert. By providing information to your clients, you add value.
A quarterly newsletter keeps the information from being diluted while minimizing the burden of publishing the newsletter.
You should not mail press releases during the months you send out newsletters – you do no want to inundate people. The newsletter should be no more than four letter size pages. Print it on both sides of legal paper so it can be folded and read like a book. Four pages are enough for one or two brief articles that provide the reader with one or two nuggets of valuable information.
124-25 Public Speaking
This is a powerful tool. Refrain from selling; just provide information. Start with smaller conferences and fine-tune your speech.
125 Networking
There are two levels: the obvious and the not-so-obvious. The obvious is networking within the target market. The not-so-obvious are outside organizations.
Chapter 12 – How to Leverage Your Success
126-30 An endorsement is invaluable. Prospects do not expect third parties without a vested interest in a sale to endorse you. When you have successfully completed a project, you should be able to obtain a reference for another project. You then adjust your script minimally adding the reference name (sample, page 127. The reason I am calling is because we just finished a successful program. We were working with Mr. Smith. Our company provides X, Y and Z and Mr. Smith thought you might have a need for this. I am going to be in your area …).
Chapter 13 – Tracking Your Progress
131 Tracking your progress is crucial because you can fine-tune your plans along the way.
Arguments Against
The classic argument is that it is too time consuming. It should be viewed as an investment in your own success which ensures that you work smart.
132-33 Arguments Supporting
Reporting also quantifies the relationship among dials, completed calls, appointments, proposals, and ultimately sales. This will indicate to you and management areas for improvement. What gets measured, gets done.
134-39 Your
See form on pages 134-136.
Consider the numbers and how they can help you plan your cold calling strategies. Overtime you will develop a feel for your sales ratios. Save the forms and review the numbers when experiencing periods of high or low activity. In both cases reflect on the Law of Sowing and Reaping.
Conclusion
141-43 Final Thoughts: The Four Steps to Success
Set goals. Have confidence. Be persistent. Have fun!
Step 1: Set Goals
If you do not know what you are shooting for, how are you going to hit your target? Set your sights extremely high.
Step 2: Have Confidence
Have the confidence to live your dreams – reflect on Commandment 9.
Step 3: Be Persistent
Greatest successes in life occur after greatest defeats. Persist – reflect on Commandment 10.
Step 4: Have Fun
The great secret of prospecting is the secret to life’s success. Have fun! Learn to love prospecting.