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Strategic Guidance to Build Your Business
Volume 1, Issue 5, May 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.

Cold Calling - A Prospecting Tool that Differentiates the Best from the Rest
by Valerie Schlitt, President of VSA, Inc.
Valerie Schlitt photo

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

  1. 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.


  2. 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.


  3. 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.


  4. 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.


  5. 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.


  6. 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.
  1. 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.


  2. 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).


  3. About 10% - 20% of the success of your calling campaign depends on how your calling team represents you.


  4. 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!

Positioning Your Business for Success
by Linda Rink, President of RINK Consulting
Linda Rink photo


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:

  1. Your product's features and benefits. (What does it offer? What problems does it solve?)
  2. Your target prospect. (Who would want to buy it - and why?)
  3. 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!

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


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