How much do you hate being interrupted by telemarketers or door to door salespeople?

Cold calling is the term given to approaching a business or person who has not contacted you first, to make a sale. The success rate of cold calling is around 2%, so why do companies bother with such a small return available?

Large companies have access to the latest technology. Automatic dialers deal with engaged lines and answering machines so the call is only presented to a telemarketer when a real person answers. This dramatically reduces the costs compared to manual dialing and makes a 2% conversion a worthwhile return.

Despite the cost, smaller businesses often need to use cold calling to build up their customer base. Traditional advertising is expensive and until you establish a reputation there are not many other options to build your business.

If you don't want to face the slammed door or dead phone line here are a few things you should avoid and alternatives you can use.

1. Don't just pick up the phone directory and start dialing. You cannot afford a 2% conversion rate. You need to be aiming for at least 50%.

Do your research on customers in your industry. Think about who would benefit from using your product or service. Use your networks to get leads and ask them if you can use their name when talking to prospective customers or better still get them to introduce you.

2. Ask for a person by name. A position title is not enough. It is easier to refuse a person you are absolutely sure you don't know.

When you first contact the company ask who in the company deals with purchasing products or services like yours. If you are given a position title, ask for their name. Don't ask to be connected to them at that point. It is likely the person transferring the call will also pass on the details of the conversation. Call back a little later and simply ask for the person by name.

3. Don't use a one size fits all script. Standard scripts are boring and easily identified. Your prospective customer will stop listening and be waiting for a pause in your sentence to politely disengage.

Use your contact's name. Their reputation will help you get a real hearing. Know exactly what benefits your product or service will provide for this specific business and focus on these not general benefits.

4. Don't insist on the first call being the sales call. No-one has more than a minute or two to deal with a cold call.

Ask for a suitable time to call back, or make an appointment to discuss your product or service in person.

5. Don't be discouraged if you don't make a sale.

Learn from the experience. Why did they refuse? Do they have processes in place such as tenders or preferred suppliers? Turn your cold call into a research opportunity. Find out how you can tap into their existing purchasing processes.

Properly targeted and managed cold calling can make the difference between a flat refusal and a successful sale. Spend the necessary time in preparation to ensure a profitable return for your efforts.

Learn more about this author, Marie Hurley.
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