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You are all ready to go. You have all of your leads for the day prepared and lined up in front of you. You have all of your rebuttals ready, and you have rehearsed your main talking points. You are ready to begin your cold calling session. You pick up the telephone and make the first call. The prospect was not in. Whew! Time to take a break.
A quarter of an hour later you’re back at your desk and you start again. You make a call. The prospect said he was not interested and hung up. You then suddenly realise you have some paperwork from last week’s sale that you MUST get done right now.
If this prospecting period sounds remotely familiar, it is because you suffer from a fear of cold calling. “Phone Phobia,” – a term coined by sales superstar John Landrine in the U.S. in the early 90’s – is a serious problem and entails much more than what you may think. To overcome the fear of cold calling, you first must UNDERSTAND the fear. So, first let me give you a clear explanation of the fear, followed by a way to get rid of it.
Everything Is At Risk
At the heart of the fear of cold calling is that usually the sales person puts too much weight or importance on the value of a single telephone call. The thought process, though mostly subconsciously, goes something like this:
1. To be successful and have all the things you want, you have to close lots of sales
2. To close lots of sales, you have to close one at a time
3. Before you can close one sale, you have to do a successful sales interaction
4. Before you can complete a successful sales interaction, you have to have an appointment
5. The next telephone call is to make that appointment
6. Therefore, if I fail at this call, I lose everything!
The sales person believes that everything depends on this one call, and since he or she has no real control over the call or what the prospect says, it creates a horrible feeling of anxiety, depression and hopelessness. To overcome this fear, you have to put the cold call in its proper perspective.
What Is A Single Cold Call Worth?
So, exactly what is a cold call worth? It is certainly not worth your entire future, your home, car and life as you know it. But exactly, precisely what is the value of a single call? To figure this out, you need conclusive data. That is, real data from a CRM or database that contains actual sales activity records. Once you have the definitive data then do the math.
First figure out your closing average, as in how many closing attempts does it take on the average to close one sale. Let us assume that it is 20% or 1 out of 5.
Then check out how much money, on the average, you earn from one sale. And let’s assume that figure is £400. Therefore we know that it takes you 5 appointments to earn £400. In actuality, you earn £80 per appointment. Does that make sense?
Now, calculate how many cold calls it takes for you to set one appointment, and let’s say it takes 10 calls. So it takes you 10 cold calls to set 1 appointment, and that 1 appointment earns you £80. That works out to just £8 per cold call. That’s it. In this scenario, a single cold call is worth only £8.
But hold the phone! That is not £8 that you risk, or lose.
THAT IS £8 THAT YOU GET PAID GUARANTEED, NO MATTER WHAT!
The Truth Shall Set You Free!
This is no trick or play on numbers. This is actually how you get paid. If you work with any type of a commission, then you earn a certain amount of money every time you place a call, no matter what happens.
So the next prospect that yells, “I’m not interested!” Don’t get upset. Just thank him and go on to the next call!
MTD Sales Training
(Image by Stuart Miles at FreeDigitalPhotos.net)