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Strategic Guidance to Build Your Business
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Volume 1, Issue 5, May 2007
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"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.
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Cold Calling - A Prospecting Tool that Differentiates the Best from the Rest
by Valerie Schlitt, President of VSA, Inc.
As sales people, we all know that the three best
ways to make sales are via referrals,
introductions, and warm leads. Most "rain
makers," like us, employ all three of these methods.
Differentiating The Best
One of the practices that differentiates the
best sales people from the rest of us, is cold
calling! Top tier sales people rely on referrals,
introductions and warm leads, but they never stop cold
calling. They retain control of their own prospect
flow through ongoing cold calling campaigns.
Why Cold Calling Makes a Difference
- Cold calling, implemented on an ongoing basis, is
a way to find business outside our normal
spheres of influence - and outside the influence
of our referral partners. We can operate in a far
bigger pool because the telephone connects us
to new prospects we will never meet in a networking
meeting or through any chamber of commerce.
- Cold calling, implemented on an ongoing basis,
evens out the peaks and valleys that
eventually occur when we as sales people cannot
continue networking because we become too busy
with proposals, negotiations and in some cases
doing the actual work. Cold calling is a way to keep
our pipeline steady.
- Cold calling can be outsourced. In fact
your outsourced callers don't need to fully know your
business in order to be effective. At VSA, callers make
appointments for industries we never knew existed
until we started working together. Callers simply
require the ability to converse, intelligence, the gift of
being quick on their feet, and endurance. So,
through outsourced cold calling, prospecting can
continue while we're working on other critical
aspects of our business.
- Cold calling allows you to learn first hand
about your market and their concerns. Even if you
outsource, your outsourced vendor should provide this
feedback. It's not scientific market research. Nonetheless, when
we listen to people we've never met (and probably never will)
we stop talking to ourselves and our peers about the value we
bring, and we hear directly from our target market about the
reasons our products or services are or are not right
for them.
- With cold calling, we control the spigot!
When we're too busy, we can delay cold calling.
When we need more business, we can open the valve
further.
- Most importantly, done correctly, cold calling is
profitable. Implemented on an ongoing basis, it
builds brand awareness that can pay back months
and years later.
Cold calling is NOT telemarketing. Cold
calling teams are extensions of our sales forces (or
ourselves, if we're a one-person sales team). The
calling team is reaching out with the goal of helping
prospects who may need our services. With the right
tone and professionalism, a cold calling team can
enhance our image in the marketplace.
Cold Calling Works for Every
Business
Here's what contributes to success.
- About 70% of the success of a cold calling
program is determined by the list. If the
prospects on the list do not want your product or
service, you need to identify the target market that
does need your service.
- 10 - 20% of the success of the program is
determined by the "offering." This is a
combination of the benefits of the product or service
PLUS any special offer our callers can provide. (See
Linda Rink's article about positioning).
- About 10% - 20% of the success of your calling
campaign depends on how your calling team
represents you.
Importantly, repeat calls enhance results, so VSA
always recommends multiple calls to the same
list.
If you have any questions, give us a call at VSA. We'll
help you learn more about how cold calling and how it
can separate you from the rest!
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VSA, Inc.
441 Station Avenue
Haddonfield, NJ 08033
856-429-5078
valerie.schlit@vsaprospecting.com
www.vsaprospecting.com
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Positioning Your Business for Success
by Linda Rink, President of RINK Consulting
Before branding became such a hot topic, there
was positioning.
While it seems like everyone
these days talks of brands and brand image, the real
foundation for building a brand - and your business - lies in
positioning. Your marketing strategies
(including your branding strategy) should be built on it.
What do we mean by positioning? It's how a
product (or service, company or even person) is perceived in
the minds of potential customers relative to other
products.
No business exists in a vacuum. In the
marketplace alongside of you are competitive
products and companies. Like it or not, potential
customers have a certain perception of your product
versus your competitors'. If you've done your job as a
smart businessperson and marketer, that perception
will match the positioning you want.
Positioning is usually defined by these three key
factors:
- Your product's features and benefits.
(What does it
offer? What problems does it solve?)
- Your target prospect.
(Who would want to buy it -
and why?)
- Your competition.
(What makes your product
different from others?)
You can and should create the positioning you want. It
may take time and skill. But it absolutely takes an
understanding of these three factors. Gaining this
understanding may require some market analysis
and research. You should, for example, verify:
- What is important to your target prospects? What
motivates them to buy?
- Does your product have the desired features? At
the right price? Does it deliver on its promise?
- What makes your product unique? Is it clearly
viewed as different from, and superior to, competitors?
Find your niche!
Looking at the wider marketplace is also critical.
Strategically, you want to be positioned to take
advantage of growth trends.
If you are operating in a cluttered industry with many
competitors, try to look for untapped market niches
where you can be the first one in. If a niche is viable
for you (i.e., compatible with your products and large
enough to be profitable), make sure you understand
its dynamics, then focus your marketing efforts on
owning that niche.
What makes you unique?
Which brings us to: the USP - Unique Selling
Proposition. Your USP is like your three-minute "elevator
speech" condensed into one sentence. And it is based on
your positioning in the marketplace. The term "Unique
Selling Proposition" was coined in the early 1940's by the
advertising agency Ted Bates & Company. It's as valid today
as it was then.
If well-crafted, your USP will position you firmly and
positively in the mind of your prospects. It will tell
them how you are differentiated from your competitors
and what you will provide that is meaningful and
valuable to them. Most importantly, it will motivate
them to do business with you.
For example, my colleague Valerie Schlitt's USP
is: "Valerie Schlitt Associates is a business-to-
business prospecting and telemarketing firm focused
on lead generation to increase our clients' business."
It identifies the target prospect (only business-to-business), what
it offers (prospecting and telemarketing), and what makes it
unique (it is focused on clients' growth). Some other
examples of USP's are:
Fedex: "When it absolutely, positively has to be
there overnight."
Domino's Pizza: "Fresh, hot pizza delivered in 30
minutes or less, or it's free."
Rink Consulting: "We reduce risk for growing
companies by providing them with marketing and
business data for strategic decision-making."
Positioned for Success
Armed with a positioning that you have crafted:
- based on market analysis,
- an understanding of your target customer,
- and with a Unique Selling Proposition that
motivates your prospects,
you and your business will truly be positioned for
success!
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RINK Consulting
1420 Locust Street, Suite 31N
Philadelphia, PA 19102
215-546-5863
lrink@lindarink.com
www.lindarink.com
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