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.

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THE COLD, HARD TRUTH: Prospecting 101, Part 9

THE COLD, HARD TRUTH: Prospecting 101, Part 4

The Cold, Hard Truth with Gabriel Siegel

We’re following the financial planner looking to expand his customer base by using cold call prospecting.

Our target is the small business owner and our source is the local yellow pages. The singular objective is to get an appointment. Each agent (financial planner) in the office has committed to spend at least one hour a day cold calling. The newest agent will be spending the bulk of her day cold calling for new clients. She understands that building a “book” of clients is a long process.


If you remember from our previous article, we have 3 objectives:

1) Introducing yourself

2) Overcoming objections

3) Getting a firm appointment


We spent a good part of each session working on overcoming objections. Perhaps you have heard some of these common objections:

“I’m not interested.” Click

“I have no money.”

“I have all the insurance I need.”

“I have a relative in the business.”

“I’m too young to think about retirement.”

“I keep my money in the bank.”

“My wife handles our money.”

“All my extra money goes back into my business.”


These may be valid objections, or simply a way for a prospect to “blow you off.” How these objections were handled will be the subject of a future article.

As I explained to this group, cold calling is an impersonal process. You don’t know each other. Second, most of us are conditioned to reject an unsolicited call. It helps when you keep your tone casual. Third, remember that your only objective is to get an appointment or permission to call back. Fourth, there’s always the next name on the list.

In our prospecting round table, we developed and role played a variety of openings. One of the agents decided to use the following approach in introducing herself to new clients. She speaks in a casual and soothing tone:

“Good day sir. My name is ________and I have been talking with business people in our area who may have questions or concerns about their investment and retirement funds and may not have the time, or even the inclination, given this economy, to give this much thought.”

Remember, this is only an opening. For those skeptics out there, I must emphasize this approach works for her. Others in the office used a similar opening, with variations suited to their individual styles. But, all the openings had a common theme: POINT OUT WHERE THE PROSPECT IS HURTING.

After asking one or two qualifying questions (also developed in our “Prospecting Round tables”) our agent concluded her phone presentation thus:

“Sir, we really need to talk. I’m not going to sell you anything, we just need to talk. Would __________________ or _________________ be a good time to meet?”

Our agent has made several contacts so far. She carries nothing with her to the initial interview; just a pad and pencil to make notes. As her principle agent notes, “The objective is to look for real money and that takes trust and time.”

Why does this approach work? There are two reasons. First, it utilizes the salesperson’s own personality and comfort level. There are no scripts, because as successful salespersons have learned, the prospect never follows the script. Second, there are no “steps.” Some sales programs take the salesperson through a series of steps designed to culminate in a sale or close. The salesperson becomes so wrapped up in the progression of steps that any curve thrown by a prospect (and it will happen every time) renders the steps moot with the salesperson trying to figure out where to go next.

Our approach emphasizes questions and responses to a prospect’s concerns. It works for the financial planner, it works for our carpet and upholstery cleaner, it works for the computer consultant, and recently a painting contractor working with realtors to prepare houses for sale. There’s no reason to doubt it could work for you.

In my next article, I will share some of our approaches to handling objections on the phone just using a simple phrase. Unfortunately, too many sales persons will give up at the first hint of an objection.

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


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

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The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com

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THE COLD, HARD TRUTH: Prospecting 101, Part 4

THE COLD, HARD TRUTH: Prospecting 101, Part 3

The Cold Hard Truth with Gabriel Siegel

When cold calling, you must be able to follow two simple rules. (I discussed rule number one in last month's article.)

RULE 2: AVOID THE USE OF JARGON, BUSINESS LANGUAGE AND TRENDY PHRASES.

My neighbor owns a local hardware store. All his processes are automated. He was looking for a way to manage his retail operation from his home computer. He spoke to several “network integrators” and computer consultants. As he told me, all he got was a lot of technical BS. He finally met someone who spoke in simple, non-technical English. The consultant asked a few questions and offered a simple solution based on the client’s concerns. He left with a check and in one month the system was up and running.

Remember: IF YOU CAN’T DESCRIBE YOUR BUSINESS OR PURPOSE FOR CALLING SUCCINCTLY, DON’T EXPECT A PROSPECT TO DO IT FOR YOU!

CASE STUDY: A client, who is an accountant, has established himself as a financial planner selling a range of products from common stocks to annuities. His clientele includes long term investors as well as active traders. He has another group of clients who have trusted him to structure conservative investment programs geared to their retirement. For this group, he charges a fee and often works with the client’s attorney. His target market is the small business owner. He is on several social networking sites, but questions the value because he feels it “cheapens his service” and, as he points out, everyone is selling a similar service and more often than not, most people are looking for free advice. He’s an active member of several local Chambers of Commerce and conducts Financial Planning seminars several times a year from which he gets a few leads. His objective is to broaden his customer base using cold-call prospecting. He has used the local yellow pages, with moderate success. He bought leads, also moderate success. His goal is to increase the number of appointments through cold call efforts.

At this point, a reader may ask why not use his client base for referrals, or, try to upgrade current client’s investment programs. There are, I found through experience (sometimes painful), two good reasons for not relying on existing clients. First, given today’s difficult investment environment, fewer people are willing to recommend the services of an advisor. Second, there’s a decided limit on how often one can expect to “churn” an existing client, especially when a program has been designed to their specifications.

Please don’t assume that our financial planner doesn’t solicit referrals or upgrades. During annual reviews with clients, he always asks for referrals, and when appropriate, he does recommend portfolio upgrades and/or changes.

After a meeting with the client and several of his agents, we set up a “prospecting roundtable”. This is simply a group which gets together for the express purpose of helping to establish cold calling strategies, each tailored to his or her specific industry. Through role playing, each attendee gets to refine his opening, learns how to handle objections and make an appointment. This is an effective and powerful tool.

In this situation, our “roundtable” consisted of the client, his partner, and the three agents who work for him. We also included one of the secretaries because she is often the first person with whom clients and/or prospects have contact. We also conducted our session off-site to avoid any interference from office routines.

We enumerated three objectives for our sessions. Everyone had to come away with a method for:

1. Introducing yourself to a prospect


2. Overcoming objections


3. Getting a firm appointment

To date we’ve had three sessions with a fourth planned for mid-June. In my next article, I will share with our readers several of the openings we developed, a mechanism for overcoming objections, and a strategy for setting firm appointments.

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


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

---

The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com

Forward/Share This Article With Colleagues And Social Media:

THE COLD, HARD TRUTH: Prospecting 101, Part 3