The
Hidden Cost Of Cold Calling
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The majority of sales organizations today
continue to mandate cold calling by their salespeople. They do
this despite the fact that cold calling has the lowest return
of all prospecting methods. Managers like to require cold
calling because it is done at the salesperson's time and
expense, not the company's. They believe that the ability to
scrape up some business here and there, on the salesperson's
time, is enough to justify the ongoing activity of cold
calling.
What they fail to realize, however, is the
dangerous hidden cost of cold calling.
I'm talking about the effect that cold
calling has on salespeople. In my experiences in working with
hundreds of companies, doing sales training, sales planning,
and coaching individual salespeople, I've learned a few basic
truths that are valid one hundred percent of the time. First of
all, companies that require cold calling have the highest
turnover of all sales organizations, upwards of seventy-five
percent. Such high turnover is disastrous to a company's
long-term profitability. Companies that run a solid marketing
program and provide qualified leads to their sales forces have
virtually no turnover.
In the world of salespeople, the number one
reason why salespeople quit their jobs is the requirement to
cold call. And, as you can guess, the number one reason why top
producers choose to stay with their employers long-term is
because those employers are providing qualified leads and
therefore there is no need at all, let alone any requirement,
to cold call.
I personally quit jobs because of the
requirement to cold call. On the contrary, I stayed at one
particular position for quite a long time and was very
prosperous there because my manager was actually against cold
calling and worked hard to make sure we always had a decent
supply of incoming leads. Not surprisingly, we were the most
rapidly expanding branch in the country during my tenure
there.
Sales organizations that wish to attract and
keep the desirable, most professional top producers out there
need to start with the basics and implement a solid marketing
plan that will generate a consistent supply of leads for the
sales force. Anything else will lead to a lack of talent and
high turnover on the sales staff. A requirement to cold call
repels great talent and attracts inexperienced salespeople who
won't bring in the big numbers every manager desires. A good
marketing system, and the consistent stream of leads it
generates, attracts and keeps top sales talent.
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About
The Author
Frank
Rumbauskas, the New York Times best-selling
author who revolutionized selling, has taught
tens of thousands of salespeople and small
business owners how to stop cold calling forever! For
10 free chapters of Frank's breakthrough
book, please visit www.nevercoldcall.com.
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