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Strategic Guidance to Build Your Business
Volume 1, Issue 6, July 2007

"The Business Builder" is brought to you by VSA, Inc. in collaboration with Rink Consulting. VSA, Inc., founded by Valerie Schlitt, builds and implements B2B prospecting programs for businesses and professional service firms. VSA has a team of professional telephone callers who open doors to new business opportunities for VSA clients. Linda Rink, president of Rink Consulting, specializes in B2B and consumer marketing and research. Both Wharton MBA graduates, Valerie and Linda often team together to help clients identify and reach new customers. In this newsletter, they share some of their business development insights.
What Kind of Planning Is Needed For Cold Calling Campaigns?
by Valerie Schlitt, President of VSA, Inc.
Valerie Schlitt photo

There's a lot of luck involved in getting one or two sales through Cold Calling. But, to really make a Cold Calling Campaign return its investment, more than luck is involved. Much success stems from upfront planning. And that planning requires knowing what to plan for.

7 Planning Questions to Prepare your Cold Calling Campaign

Important Caveat: All answers vary greatly by: prospect company size, your market's familiarity with the product you are promoting, your company's brand/name awareness, your budget and more. Our answers below reflect simplistic views that should provoke further thinking.

  1. Should we start at the top or lower in the corporate hierarchy?

    In general, if you are targeting smaller firms, it is wise to start at the top and work your way down. Being forwarded "down" by the CEO or CEO's assistant carries much weight.

    But, if you are targeting larger firms, we recommend a multi-pronged approach. Target the CEO as well as other decision makers in the organization, simultaneously. CEO's have highly effective gatekeepers and it is difficult to get past them in one or two calls. By targeting multiple decision makers, you have a better chance getting your foot in the door, while also reinforcing your company's name with the chief executive.


  2. How do we get past the CEO gatekeeper?

    Today, getting past the top executive's gatekeeper is extremely difficult. Try these strategies: 1) make multiple calls, as many as 9 over the course of a year, so you begin to befriend the gatekeeper, 2) follow-up on a "noticeable," compelling mailing that specifically says you will call; 3) behave as though the CEO is expecting your call and believe it! 4) Act familiar. Do not call the executive "Mr. Smith." Instead say "Is John available? This is Mary."


  3. How do we develop a script?

    Don't even think about developing a script. Scripts are for consumer telemarketing calls where a transaction over the phone must be made. Your callers must be seasoned prospectors who can react to any situation, and think off the top of their heads. Develop a list of talking points that focus on: what problems you solve for your clients and what makes you unique. Identify several key questions designed to engage your prospects in conversation. It's this personal relationship, and the professionalism of your call that will establish the trust needed to make a face to face sales appointment.


  4. Should we leave messages?

    If you have an easy product or service to sell, just call a list, leave no messages and move on if someone isn't available. If you are cultivating longer term prospecting relationships that may culminate in future, high-value business transactions absolutely leave messages. It often takes 6 - 15 "touches" for someone to decide to invite you in for a sales meeting. Leave a call-back number, too. Those prospects with immediate interest will return your call.

  5. How do we respond to requests for more information?

    Such requests typically lead nowhere, and we do not recommend sending more information. However, for high-ticket sales, services that are visual in nature, or services from unknown firms, we always advocate sending more information, if we cannot set an appointment and feel the prospect is qualified. Follow up within 3 days to this information.


  6. Should we talk about pricing on the phone?

    Generally, pricing should be left to the sales meeting. But, sometimes you need to get a sense of whether the prospect has a budget for your product/service. Proxy questions are the best way, "do you currently use XYZ services on a regular basis." If you are forced to talk about price, use a broad price range. "Our service might run from $10,000 to $30,000 dollars. Is this the kind of budget your firm allocates?"


  7. How many times should we call a single individual?

    If you don't get through to the decision maker when you call, we recommend calling 6-15 times over the course of 12 to 14 months, leaving voice messages. This assumes your list is qualified, and you have confidence your prospect is likely to need your services.
Stay tuned to future issues where more planning questions will be addressed. We have addressed only the tip of the iceberg!
When Do You Absolutely Need To Do Research?
by Linda Rink, President of RINK Consulting
Linda Rink photo

Many business owners shy away from market research. Some even seem to take pride in not doing it: "I don't need research. I know my business!"

Words like that make me shake my head in wonder. As a marketer, I know that research is as important as advertising or promotion - actually, it's more important because knowledge and understanding come before strategies and tactics.

But if you're not used to doing research, how do you know when you need to? I could argue that you always do, but instead, here are nine circumstances when doing marketing research is absolutely necessary.

Nine situations that call for market research

Do any of these apply to your business?

  1. Business plan for a new business


    2. Even if you are not approaching lenders for financing, launching a new business absolutely requires a well thought- out business plan - to reduce your risk and increase your chances for success. Discussing all the elements which may require research could fill up an entire article - suffice it to say that understanding, for example, whether there is a large enough market for your product to support an ongoing business, is not something that should come from your "gut."

  2. Apply for funding


    3. Lenders expect to be paid back - with interest. It is up to you to demonstrate that their investment has a high probability of earning them money. Your assurances alone won't do it - you will need to document it with solid research.

  3. New product development


    4. Same situation as for the Business Plan (above): before you launch, you should validate who will buy, why they will buy, what features and benefits they desire, and at what price.

  4. Customer feedback


    5. As simple an action as checking back with your customers to see if they are happy or unhappy with their purchase, is research. Knowing what your customers are thinking is always a good thing.

  5. Developing your marketing efforts


    6. A surefire way to waste your marketing dollars is the "shotgun" approach (no pun intended) - just say what you think is important and send it out to everybody! A little research on the front end - segmenting your target prospects, maybe talking to some of them to see what they consider important about your product - will save you money and increase your ROI.

  6. Find out if your strategies have produced expected results

    This of course assumes that you have an "expected" result. But how would you even know what "expected" is? Try a little testing to see if one marketing tactic produces better results than another. Then next time you'll know what to expect - and how best to spend your time and money.


  7. Troubleshoot problems

    When your "gut" no longer gives you the solution to a problem, it's time to dig a little deeper. And when the problems are big - losing market share or a key customer - you definitely want a full understanding of what could be a complex situation.


  8. Documentation for sales pitches

    Often overlooked, doing research just for the sake of doing research can be a smart thing. Objective data - from either your own research with prospects, or from third-party experts - immediately validates your sales message and shows that you've done your homework.


  9. Keeping ahead of your competitors

    Competitive intelligence also comes under the umbrella of research. It can be on-going surveillance of websites or a visit at a trade show - but it's still research. And it's essential.

So far, I have not mentioned research costs. Nor have I talked about types of research. In upcoming "Business Builder" issues, I will discuss inexpensive ways to do research.











RINK Consulting
1420 Locust Street, Suite 31N
Philadelphia, PA 19102
215-546-5863
lrink@lindarink.com
www.lindarink.com

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