How to Eliminate Phone Phobia

Written by Sean McPheat | Linkedin thumb

15 August, 2011

Businessman dialling a phoneThe first part of this article, “Do you suffer from Phone Phobia,” explained how phone phobia is much more than the simple fear of making calls.  It has to do with the misplaced high-level of importance sales people place on the value of the call.  To eliminate phone phobia, you must determine and understand the true value of a single telephone call.

What is the True Value of a Telephone Call?
Use the following formula to help you determine the value of a telephone call in your business. Note that you must base all of the information below on actual sales activity.

  • First, figure the monetary value of the average sale in your profession.  That is, exactly how much do you earn for every sale you close?  Figure the average total commission you earn for every sale.
  • Determine your overall closing average: how many closing attempts or appointments it takes you to close one sale.
  • Determine your appointment closing average: how many telephone calls it takes you to set up one appointment.  That is, determine exactly how many times you must dial the telephone to set an appointment.  This includes no answers, voice mails, screens you could not pass, even disconnected numbers.  How many actual dials do you make to set one appointment?

Now calculate
For instance, assume a sales person earns £400 every time she closes a sale.  She has a 20% closing average and a 5% appointment setting average.

£400 = average earned sales commission

20% (1 out of 5) = closing average

5% (1 out of 20) = appointment closing average.

Do the Math
Our hypothetical sales person earns £400 for every sale; however, it takes her five attempts or appointments to close that sale.  Therefore, each appointment is essentially worth £80 (£400/5).

Since it takes her 20 telephone dials to set that appointment, each dial is essentially worth £4 (£80/20).

What is at Risk?
Each call the sales person makes is worth a mere £4 not £400, and certainly not her whole career.  But let’s take this a step further.  The call is worth only £4, however that is not what the sales person pays or looses per dial—it is what she earns!

Our sales person risks nothing when making calls.

You risk nothing when making calls.  Instead, you actually earn some amount of money every time you dial the telephone, regardless of the outcome!

Figure out the exact value of a telephone call in your business.  Then keep that figure in mind as you dial the telephone like a slot machine that pays off every single time!

Happy Selling!

Sean
Sean McPheat

MTD Sales Training | Sales Blog | Image courtesy of Big Stock Photo

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