Mastering Cold calls

Session 2 GRASP the Fundamentals of Cold Calling

SESSION CONTENTS:
TIP 3: GENERATE TRUSTING RELATIONSHIPS.
TIP 4: MAINTAIN A WINNING MINDSET.
TIP 5: UNDERSTAND DYNAMICS OF COLD CALLING.
TIP 6: FOCUS ON NEEDS AND SATISFACTION

TIP 3: GRASP THE FUNDAMENTALS OF COLD CALLING
To become a successful salesperson, you have to build a
solid foundation of prospects, and cold calling plays a large
part in your success. Your job in cold calling is to move the
prospect from his or her comfort zone to an appointment
and/or on to a final sale. When you know the fundamentals
of cold selling, you are on your way to the close.
You master the fundamentals of cold selling when you:
TIP #3: GENERATE TRUSTING RELATIONSHIPS.
TIP #4: MAINTAIN A WINNING MINDSET.
TIP #5: UNDERSTAND DYNAMICS OF COLD CALLING.
TIP #6: FOCUS ON NEEDS AND SATISFACTION.

TIP #3: GENERATE TRUSTING RELATIONSHIPS
Start the session with a riddle:
What is the most important ship? (Let them try)
RELATIONSHIP
Ask the participants if they remember the steps they climbed in order to build
one good strong relationship or become somebody’s friend or make some one
their friend. What qualities would they look for the most? Ask each one of
them to list those qualities. Have a couple of participants read out what they
have written.
Successful selling means you need to find out information. Your job
is to ask probing questions: How, what, when, why, where? To get
answers, the right answers, you need to establish a relationship of
trust. Otherwise, the answers will not willingly be given. To
generate trusting relationships you need to:
Know that integrity is a must.
Always tell the truth.
Establish credibility as a priority.
Be ethical in all business practices.
Avoid exaggerating the service or product.

Know That Integrity is a Must
A successful sales person first sells himself and then his product/
service.
From the first few seconds in the cold
call, when someone hears your voice or
sees your face, they are making
assessments about you. First and
foremost they are asking themselves,
“Can I trust this person?” If the
prospect believes you can be trusted,
she has been convinced of your
integrity.
Making eye contact (in most cultures), building rapport, and
listening go a long way to show that you have integrity.
The most important aspect of integrity comes at the end of the
sales process. It is doing what you say you will do and having the
customer’s best interest in mind. Having confidence in your
product, knowing that you are selling a good product with value,
is the most effective way to convince someone of your integrity.
So make sure you are sold on your product before you try to sell it
to others.

Always Tell the Truth
There is a saying that the truth hurts,
but in reality, a lie or false statement
hurts more in the long run. If you are
ever caught telling an untruth, falsifying
information, or not being
straightforward with your clients, you
will not only lose the sale but more
than likely will lose a lot of other
business because you will have lost
your reputation.
A good reputation for truthfulness is much like the introduction for
a keynote speaker: it leads the way and builds positive
expectations. Ask yourself—how am I building a reputation for honesty?

Establish Credibility as a Priority
Credibility is earned through action and polished by words and
knowledge. To be credible is to be powerful. Knowledge and
information create power because they are the commodities of
credibility. Do you know everything you should know about your
product/service? Do you know how your industry, the prospect, and
the product you are selling are synergistic? Can you provide detailed
insightful information about your product? About your competitors?
Credibility means you have
extensive knowledge about your
product/service combined with the
skill to use that information for
practical application. Before you
begin your sales calls, determine
how you can best establish your
credibility.
Some people will cite important data, others will drop names of
satisfied customers, and still others will mention what they know
about the industry.

Establish Credibility
Here are six key ways a salesperson can establish credibility:
1. Use the industry jargon (with discretion).
2. Build a good reputation.
3. Know you product/service well.
4. Establish rapport with your customer.
5. Use proper language and social skills.
6. Dress and present yourself professionally

Be Ethical in All Business Practices
Trust is hard to gain but easy to
lose, and one of the quickest ways
to lose trust is to be unethical.
Referrals are your way of building
clientele. You will rely heavily on
your reputation for referrals.
Remember, the foundation of a
good reputation is ethical
behavior.
So often, because of pressure to make sales and the
competitiveness of the sales industry, sales professionals are
challenged to stay true to their ethics and values. Before you
begin any sales endeavor, write down your code of conduct and
keep it handy for reference and support.

Avoid Exaggerating Service or Product
In the zeal of the sale you may be tempted to make exaggerated
claims about your product or service; after all, you are convinced
it is the best on the market. Know when to temper your
excitement. A good product or service does not need to be a
panacea to be valuable.
Make sure you can back up any
claims you are making with solid
facts and data. In today’s
marketplace customers are alert to
many of the high-pressure tactics
and claims made by salespeople.
You will be able to tell by listening
to and observing the customer’s
responses when he is becoming
skeptical. Don’t create this
unnecessary resistance by
exaggerating.

TIP #4: MAINTAIN A WINNING MINDSET.
The most successful sales professionals firmly believe they are
benefiting their customer by selling them the product or
service. When you make a cold call, you must believe your
prospect will be better off. This mindset will make cold calling
easy and closing even easier. To have the right mindset:
Be emotionally equipped.
Be prepared for the no answer.
Be non-confrontational.
Hold the vision for success.
Understand the numbers.

Be Emotionally Equipped
When you are tired, unfamiliar with
your product/service, or preoccupied
with other thoughts, you are not
emotionally prepared to make a cold
call.
Your emotions play a large part in how well you present yourself
and how you listen and interpret your prospect’s responses. You
filter any feedback from them through your emotional screen, so
before you begin selling, breathe deeply, visualize a positive
outcome, and check your emotions. Are you ready to make the
call? Are you smiling? Are you prepared to hear a few “no”
responses before you hear “yes?”

Be Prepared for the No Answer
The insurance agents in a company were tired of hearing “no” from
all the prospective customers. Their morale was very low.
One of the agents took it as a challenge and hired two teenage
boys to work for him. He instructed these teenage boys to go from
house to house and ask “You won’t like to buy insurance, would
you?” The person would answer “Yes” and so the boys did not feel
de-motivated.
One amongst hundred persons said “no, I would not mind have a
look at the plan”. This was their target client.
Another mindset to have is the appreciation of the word “no.” You
will hear the word “no” much more than “yes,” so remember that
each no has two positive benefits: it is one step closer to a yes
and it is an opportunity to highlight the benefits of your product or service.

Be Non-confrontational
Persistence is a virtue of successful sales professionals. Being
confrontational is not, and it is easy to confuse the two.
Appropriate persistence lessens resistance. Confrontation increases
it.
Confrontational communication from sales people can cause the
prospect to stonewall and shut down because no one likes to feel
they are being pushed or belittled. If the prospect responds
negatively to your confrontation, then all your hard work has been
wasted.
Many sales professionals do not know when they are coming off as
being confrontational. Check your style to see how it is interpreted.
Ask your peers to give you feedback on how you come across. You
may not know when you are appearing confrontational

Check Your Style
Here are some responses that are typically viewed as
confrontational.
Body Language:
􀂃 Pointing at the person
􀂃 Moving closer in proximity to the prospect
􀂃 Leaning toward the person
􀂃 Standing taller
Voice and Tone:
􀂃 Talking louder
􀂃 Enunciating certain words
􀂃 Expressing sarcasm
􀂃 Sounding angry
Words:
􀂃 Asking belittling questions
􀂃 Asking questions rapidly
􀂃 Making aggressive statements
􀂃 Asking too many probing questions
􀂃 Not listening to the person’s answers

Hold the Vision for Success
All things are created twice. There’s a mental or first creation, and
a physical or second creation to all things.
Take the construction of a home, for example. You create it in
every detail before you ever hammer the first nail into place. You
try to get a very clear sense of what kind of house you want. If
you want a family-centered home, you plan to put a family room
where it would be a natural gathering place. You plan sliding doors
and a patio for children to place outside. You work with ideas. You
work with your mind until you get a clear image of what you want
to build.
Then you reduce it to blueprint and develop construction plans. All
of this is done before the earth is touched. If no, then in the
second creation, the physical creation, you will have to make
expensive changes that may double the cost of your home

It is easy to become discouraged in
a sales career. One day you may
have more than your share of
resistant prospects. The best way
to overcome these glitches is to
hold a clear vision of what you
want to accomplish.
Know what your definition of success is. Visualize your success
before you make every call. This will build your confidence, and
confidence makes sales.
Most leaders have a vision of where they want their organization
to be in a stated time frame. Since you are the leader for your
own sales effort, determine your goals for a given time period.
Define your success in specific, meaningful terms for you

Understand the Numbers
Success in cold calling is surprisingly predictable if you understand
the numbers. The ratio of “no” responses to “yes” responses is
typically 15 to one. Does that seem like the odds are too great to
be successful? Not really, because each no is worth money. Each
no answer is a step closer to the yes. You continue forward,
making more and more calls, which eventually equal a lot of yes
responses.
One way to improve your ratio of
no to yes responses is to make
sure you have clearly identified
your target customers and the
reason you are contacting them—
and making as many calls as
possible.
The Tool: Improving Your No-to-Yes Ratio will help the
participants in understanding how the numbers work.

IMPROVING YOUR NO-TO-YES RATIO
Line 1 What did you personally gross from sales you made in the past
12 (or 6) months?
Rs.
Line 2 How many sales does Line 1 represent?
Line 3 How much do you average from each sale? (Divide Line 1 by Line
2)
Rs.
Line 4 About how many “No’s” do you currently get for each “Yes” on
your cold calls for appointments or 1-call sales?
Line 5 What is each “No” worth to you? (Divide Line 3 by Line 4) Rs.
By applying what you learn in this course, you can reduce the ratio of “No” responses
to cold calls. You’ll get fewer “No’s” for each “Yes”. Each “No” will therefore become
more valuable, because they will lead to “Yes” faster.
Line 6 Your current “No-to-Yes” ratio on cold calls is: (See Line 4) ___ to 1
Line 7 Over the next 3 months, how much do you intend to reduce that
ratio?
___ to 1
Line 8 If you succeed on Line 7, the value of each “No” will become:
(Divide Line 3 by your answer to Line 7)
Rs

Each No is Worth Money
To find out the value of each no response, (to measure your no to yes ratio),
write down how much you are making for each yes order and divide by the
average number of no’s you are getting. (It will be higher when making cold
calls.)
You have just determined the value of each no answer. If it is Rs .200, you now
have a new mindset and you can say. “I make Rs. 200 every time I hear the
word ‘no.’” If you know this ratio you can also determine how long it will take for
you to reach a certain level of sales.
When you practice and master cold calling, you will be able to lower your no to
yes ratio and make Rs. 300 for every no answer. This is an aspect of sales where
you are your biggest competitor. Just like the basketball player that knows his
winning scoring average, you will have the competitive mindset to consistently
challenge your no to yes responses to determine your sales scoring ratio.

 

 





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