THE COLD HARD TRUTH: Prospecting 101, Part 12

The Cold, Hard Truth with Gabriel Siegel

THE BOTTOM LINE: To survive and thrive as an entrepreneur in today’s environment, one must be able to:

• Distinguish your company from the competition (easier said than done).
• Continually re-evaluate the needs of the market.
• Appreciate the necessity to shift your marketing strategies to accommodate customers/prospects changing requirements and levels of sophistication.
• Make a concerted, organized and systematic effort to develop new customers/clients (cold calling/prospecting).
• Appreciate the growing sophistication of your customers and prospects.
• Understand that a “one-size-fits-all” solution rarely works.
• Present a full range of services/products to clients. We’re not mind readers. Don’t presume that your clients are not interested in a specific product/service.

It’s too easy to become, as a friend once told me, “DUMB, FAT AND HAPPY”. An E mail I received summed it up thus:

“When I worked for a company, my job was to make money for them. My job now is to make money for me!”

At a recent PROSPECTING ROUNDTABLE, a web designer shared with the group his new strategy for attracting clients and upgrading existing ones. He told us this came about as a result of one of his clients asking about Google Analytics. His client sells funeral supplies and was trying to expand his range of services and products in an industry where there are few, if any, new funeral homes. His client read about Google Analytics and search engine optimization and wanted input on the value of his web site. The web designer told us that when he created the site for the client, he was given a limited budget. He kept the language simple, refrained from using buzz words and responded to his client’s concerns with specific examples of what can be done to attract more “eyeballs” to the site. After some discussion the client agreed to a major revision of the site.

Taking a cue from that encounter, the web designer created a newsletter which he distributes to his existing customers and prospects. The newsletter focuses on web-site revision and the need for continual updating. Each mailing is followed up by a phone call discussing issues with the site and suggestions for improvements. He reported that 2010 was the best year he had since he’s been in business.

THE MORAL: REFER TO “THE BOTTOM LINE” AT THE BEGINNING OF THIS ARTICLE.

In one of my previous articles, I told the story of the carpet and upholstery cleaning company which was built entirely on cold calls and referrals. The owner read an article in a local paper about allergens in carpets and upholstery which exacerbates allergic reactions in children and adults who are sensitive to dust mite feces. He contacted a local allergist and together they agreed on a plan to promote carpet and upholstery cleaning to the physician’s patients.

I received this E mail from my client:

Dear Gabe:

“I started this new venture in July of 2010 because I felt I needed to expand with a different type of clientele. The Allergist suggested that I visit the local Pediatricians and explain the program to them. I needed to invest in some additional equipment and hire and train a technician. I’m pleased to report that we have, as of this writing, added 35 new clients, each of whom have agreed to a twice yearly cleaning. This can easily become an annuity”.

WRITER’S NOTE: The client called me to let me know that he’s been invited to set up a booth at the local hospital’s annual “Wellness Day”.

THE MORAL: REFER TO “THE BOTTOM LINE” AT THE BEGINNING OF THIS ARTICLE.

In my previous article, I introduced the reader to the manufacturer’s rep group. They were in the process of “re-inventing” their sales organization. Owing to the upheaval in the automotive business, the new owners realized that their survival hinged on cultivating a new breed of clientele; younger, more sophisticated and more demanding. The new owners felt their only alternative was to replace the entire sales force with a different “breed” of salesperson. They were looking for problem solvers who would also prospect, aggressively, for new customers. However, before hiring their new sales force the owners and the sales manager (at my suggestion) became the sales force.

The new owners and the new sales manager did what every successful entrepreneur should be doing. This afforded them the opportunity to learn the demographics of a changing market. They cold-called prospects and set up appointments. And it worked! As one of the owners told me, “This is excruciatingly difficult. But unless we can develop our own base of new customers, there is no way we’ll understand the requirements of this emerging industry. The old system of doing business died along with Detroit’s Big Three. We now have signs all around the company saying “OUR ONLY JOB IS TO HELP OUR CUSTOMERS” In addition, everyone wears a button which says “I’M HERE TO HELP YOU”. I know this sounds corny; but it works”.

THE MORAL: REFER TO “THE BOTTOM LINE” AT THE BEGINNING OF THIS ARTICLE.

There are significant lessons for the entrepreneur. Those lessons are best summed up in a letter I received from the sales manager (edited for brevity):

“Dear Gabe:

Thanks for your help and input. Much was as you predicted. We were perceived as old-line, stodgy and out of touch with the market. The cold calling was even more difficult. But, we did manage some break throughs. And each of those contacts (some of which turned into orders) gave us additional insights into where we need to go and what we have to do to get there. Only by understanding our changing market environment can we properly organize, manage and compensate a sales organization”.

Besides the caveats in THE BOTTOM LINE, the entrepreneur must appreciate the following:

• There is no such animal as customer loyalty.
• Your customers are being visited and solicited by your competition.
• You need to fight for every new order, even from existing customers.
• Don’t depend on anyone to get business for you. You’re on your own!

In my next article I will share some additional strategies and insights for helping the entrepreneur adjust to and maneuver in changing markets. I will also be discussing the buying and use of leads as well as hiring independent telemarketing companies.

For anyone wishing to share thoughts or comments, the writer can be reached at guitarman1811@aol.com. I respond to E mails quicker and more thoughtfully than I do when contacted on social networking sites.

For more information, please visit Gabriel's TNNWC Bio.

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Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

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THE COLD HARD TRUTH: Prospecting 101, Part 12

THE COLD, HARD TRUTH: Prospecting 101, Part 11

The Cold, Hard Truth with Gabriel Siegel

THE BOTTOM LINE: Too many organizations, as well as entrepreneurs, fail to recognize the changes taking place in their markets and therefore with their customers. Regardless of your situation, you need to be aware of the following:

• Older companies are closing and are often replaced with younger and more aggressive organizations.
• Buyers are demanding a greater level of sophistication and savvy from their suppliers.
• The “lowest price” doesn’t always win.
• Newer, agile and hungry competitors are visiting your “established” clients.
• You need a systematic, realistic and aggressive plan for getting new clients.

Of all the E mails I receive from our readers, most ask about prospecting, specifically the use of cold-calling to create new customers in view of changing market conditions. Whether you sell to consumers or Business to Business (B2B), you can “milk” your existing customers only so far for either referrals or add-on products or services. Prospecting for new clients, even for an established enterprise, has now become “do-or-die”.

Other writers have noticed a shift in the “demographics” of their business. A few have gone so far as to say that they now have to spend most of their time in re-building their business. In one E mail I received, the writer said “I now have to spend most of my time cold calling for new business. I should have been doing this all along”. Another writer wrote “I’m working twice as hard for the same money I made before”.

CHANGING DEMOGRAPHICS CAN ALSO MEAN A WHOLE NEW RANGE OF POSSIBILITIES FOR YOUR COMPANY. The alert entrepreneur needs to be aware of the changing needs in his market. Consider the following example from a company located in my town:

A small SAT tutoring service near my home recently began to advertise for middle school students by offering “test prep”. The owner of the company began to notice the testing pressures placed on this age range and the fear and frustration of the parents. He began to advertise for this age group and he recently told me that his income has increased in the first year by almost 50%.

These entrepreneurs recognized a need and were quick to capitalize on this new market.

Several years ago, I was invited to lunch with the Training Director for a large New York based insurance company. He observed that within the first five years of an agent’s career, he opened the majority of accounts. From years 6 to 10, most of their agent’s business came from existing accounts with a corresponding “leveling off” of the agent’s income. Agents with 11 or more years with the company opened even fewer accounts and lost some business with a decrease in income.

I received this letter from a National Networker reader:

Dear Gabriel:

“I’m the Sales Manager for a Mid-Western manufacturer’s rep group selling to the automotive market. We have 7 salespeople compensated on salary plus commission. In the past 3 years our sales have declined in each territory, due to the problems with the auto industry and their related suppliers. Many of the companies with whom we’ve done business have closed, or they’ve been replaced by start-up enterprises, founded and staffed with savvy, younger and aggressive automotive engineers. Our sales force has had only limited success with this emerging group”.

The insurance company and the manufacturers’ rep group reflect problems faced by all sales managers:

• Difficulty in opening new accounts
• Reluctance of “older” salespeople to prospect
• A salesperson has reached a “financial comfort level”
• Salesmanship vs. order-taking
• A shift in an industry’s demographics (adjusting to new markets)

We set up a series of PROSPECTING ROUNDTABLES for one office of the insurance company. We paired an established producer with a newer agent. We worked on cold-calling approaches, referral-getting and interviewing techniques. Each new agent had to report to his senior partner on his weekly progress in getting new accounts and discuss problems encountered in the field.

Something else was at play. The company was in the process of introducing B2B products where heretofore they were selling to individuals. Therefore, each producer had to develop a new level of clientele which of course meant prospecting. Success in developing new clients would also determine whether or not the producer would be getting, or keeping, a private office as well as their jobs.

Did all the producers buy into this PROSPECTING ROUNDTABLE/MENTORING approach? Of course not! Approximately one-third of the sales force either left or was terminated. However, for those who stayed and adapted to the new processes, their incomes reflected their efforts. About a year later one of the older agents told me that it “salvaged” his career.

The moral is never underestimate the power of mentoring combined with re-training. It can work. You need to make the commitment. If you’re dealing with a mature and complacent sales force, try it. If you’re a solo entrepreneur, ask for help.

The Mid-Western manufacturers’ rep group was a “mature” organization. The sales manager was recently hired to revitalize the company’s presence in a challenging environment. Each salesperson suffered a minimum of a 25% decrease in commissions with 2011 shaping up to be even more difficult. The sales force was demoralized and they feared the owners, second generation family with no loyalties, would be making some serious cuts.

The sales manager discovered that within each territory were companies that had never, or rarely, been contacted! It appeared to him the sales force was content to visit their customary (safe) clients and take orders. It was the sales manager’s feeling that unless contact was made with these new entities the entire sales force would need to be replaced.

The entire sales force was terminated. The new owners and the sales manager visited each client. They discovered that much of the work could be done over the phone. They created a new, internal “sales associate” position thus freeing the as-yet-to-be-hired sales people to focus on developing new clients.

The owners and sales manager are also prospecting for new clients. They reported to me they are cautiously optimistic and when a sales force is put into place, they envision a comfortable future for the company.

In a recent phone conversation with one of the owners, he made the following points:

• Prospecting (cold-calling) is critical to getting new customers.
• The salesman must be a “problem solver”.
• The salesman must devote a part of every day to cold calling.
• The salesman must respect and understand the competition.

For the “emerging enterprise”, solo entrepreneur or group, always remember that your lifeline, your key to survival and your income is tied to your ability to bring in new clients. You need to be making those phone calls and wearing out your “shoe leather”. It does work! Any doubts? Check your competitors. They’re doing what you need to do in order to survive.

Changing demographics and a changing economy will have an impact on your business. You may lose or gain sales. As needs change, what people want can also change. You need to be “out there” calling new people and questioning even your existing customers to determine what the market wants.

In my next article I will be sharing you the progress of the Manufacturers’ Rep group, how they established their PROSPECTING ROUNDTABLES and the expectations for the new sales group. I will also be sharing information on how several companies are coping with shifts in their markets.

For anyone wishing to share thoughts or comments, the writer can be reached at guitarman1811@aol.com. I respond to E mails quicker and more thoughtfully than I do when contacted on social networking sites.

For more information, please visit Gabriel's TNNWC Bio.

---

Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

Forward/Share This Article With Colleagues And Social Media:

THE COLD, HARD TRUTH: Prospecting 101, Part 11

THE COLD, HARD TRUTH: Prospecting 101, Part 9

The Cold, Hard Truth with Gabriel Siegel

THE BOTTOM LINE: If you wish to self destruct as an entrepreneur, bring hubris and ego to the table. Your prospect is not buying you! Your prospect has three concerns:

• How can you save me money?
• How can you help me make more money?
• How will your product/service improve my quality of life or enhance my lifestyle?

Your function is to “ferret out” those concerns. You accomplish this through the use of judicious questioning and listening.

I received a great number of emails asking why I don’t respond to Social Networking inquiries. This subject has also come up at PROSPECTING ROUNDTABLES. The financial planner whom I mentioned in earlier articles, made the following observation:

“To make a living in our business, we need to look for serious money. I’ve discovered that in 20 years in this business real money can only come from two sources: referrals and cold calling with face-to-face interviews”.

On the subject of emails, one of his partners made the following observation: “One of my wealthiest clients has no email and another uses email only to stay in touch with their (sic) family. This creates a problem for some of our younger producers who grew up relying on automation as a primary mechanism for establishing contacts. To be successful, they’ve had to re-orient their thinking and adjust their prospecting efforts”.

Another email offers the following observation: “In my business (event planning) we need to have a presence on social networking sites. This may (on rare occasions) result in an invitation to present our service. However, a potential client will often call in several companies who are competitors. I’ve learned by reading your articles that we need to ask good questions and respond to a client’s concerns. This allows me to tailor my presentation. Do we get all the business? No! But our closing and referral rate has definitely increased. I’m firmly convinced that social networking by itself is not a viable mechanism for developing new clients”.

The largest number of emails I received concerned the use of questioning before presenting a service. Most agreed that asking questions saves time and aggravation. Of course not all concurred. Some felt the use of my type of questions was “intrusive”. One writer went on to say “That prospect is buying me!” Nonsense! The prospect is buying what you can do for them.

I received this email from a reader. I should also mention that the writer and I have had several phone conversations:

Dear Gabriel:

“I’m a dedicated follower of your columns because I’m thoroughly sold on the idea of cold calling and being able to ask questions before I waste time offering my services (IT Consultant) which may be of no benefit to a prospect. My wife, a retired high school guidance counselor and a friend of hers, started a college advisory service. They’ve had many inquiries and meetings, but few have become clients. I suggested she read your articles on prospecting and questioning. The problem, it seems is that too many parents have unlikely aspirations for average students and will go to a service that caters to these fantasies. They now ask, before an interview, for a student’s transcript. To “weed out” those with unrealistic expectations, they now ask ‘If you have to be truthful and realistic, what was it you are hoping we could do for you’? They also ask ‘How open are you to possible alternatives?’ In our community, they are now a recommended college advisory service. Questioning works; if you’re open and willing to using it!”

HOW DO I GET MORE REFERRALS?

Too many salespeople are reluctant to ask for referrals. They’ll often send a thank you card to a new client and enclose a return envelope for names hoping that it gets filled out. As many have told me, it rarely does. When I’m looking for referrals, I’ve found the following to be effective:

“I ask for referrals because it saves me time prospecting for new clientele and allows me to respond to existing clients in a more timely manner. Do you know of anyone else who can use my services? Would you be willing to give their name and number”?

Do we get “no”? Of course we do. But we also get referrals we wouldn’t have gotten it we didn’t ask.

At one of our PROSPECTING ROUNDTABLES, a participant who uses that referral-getting technique has extended it to when he doesn’t make the sale. This participant has a successful service company, built entirely on cold calling. He says:

“I know there’s nothing I can do for you at this time. However, do you know anyone who can use my services? Would you be willing to share their name and number with me”?

This takes guts. But it does work! You need to ask for the referral. You will not get them automatically or by accident.

THE WEB DESIGNER’S DILEMMA:

A client of mine, who is a successful web designer, told me this story: He cold called a small local business and got an appointment to see both owners. The objective was to help them develop a stronger web presence. One of the partners who was skeptical of bringing in an outsider (or spending money), told him “I got (sic) a nephew who’s good with computers”. Every web designer has heard this, or something similar.

My client said (restating the objection):

“Help me out. I’m confused. Is it fair to assume that your nephew who is good with computers is also good with your business”? Dead silence. “Okay, I understand. Maybe we’re just wasting time here, but, I need to ask you if you have an accountant. I’m sure you do and I’m sure you trust him with your business because he’s a professional. Would you trust him with your health? Of course not! You would go to your physician. This is what I don’t understand: Why would you trust your company’s health to someone who is ‘good with computers’ but not a professional. Does that make sense”?

My client went on to ask:

“When I spoke to you on the phone, you told me you were looking to develop a stronger web presence. Could you share with me what you mean by a ‘stronger web presence’”?

For many, this encounter would have been a no sale event. My client did three very correct things:

• He acknowledged the objection and restated it.
• He asked a simple question in response to the objection.
• He asked the client to clarify the reason why he was invited to their office.

Is this man a super “salesman”? No. But he appreciates that he must sell his services and overcoming objections are part of that process. He has another observation. Many of his clients are older entrepreneurs who, while understanding the need for a web presence, have to be educated as to its value and what it can do for them. If you’re wondering, he did get the job.

Another web designer uses the following statement when in front of a new client:

“We have two choices here. You can have a simple web design or presence because everyone else has one, or you can use the web, and my services, to create a salesperson for you. Which makes more sense for your business”?

In both these cases, neither of the presenters used fancy terminology or buzz words. The first designer dealt “head on” with the objection and the second laid the groundwork for a full presentation based on the client’s wishes.

At one of our PROSPECTING ROUNDTABLES a participant noted that some prospects feel “pre- packaged” web designs are as effective as anything a professional web designer can accomplish. Basically, what you’re being told is that your prospect can achieve the same results as you without the expense or your expertise and/or experience. Some of our readers and PROSPECTING ROUNDTABLE participants have come up with some excellent responses to this objection and I will be sharing them with you in my next article. I would be interested to hear how our readers would respond to this objection.

We’re interested in hearing from our readers on how they handled objections they received from prospects. I would also welcome hearing about objections which you feel have cost you a sale. Feel free to E mail me with your ideas, problems and suggestions.

In my next article, I will discuss additional strategies for overcoming objections and respond to reader’s concerns with problems in the sales process.

For anyone wishing to share thoughts or comments, the writer can be reached at guitarman1811@aol.com. I respond to emails quicker and more thoughtfully than I do when contacted on social networking sites.

For more information, please visit Gabriel's TNNWC Bio.

---

Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

Forward/Share This Article With Colleagues And Social Media:

THE COLD, HARD TRUTH: Prospecting 101, Part 9