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Is cold calling dead? And if laws are being passed to put it to rest once and for all,
how do we generate business from now on?

Opinions on the subject vary greatly depending on the background of the individual.
For example, most of the old-timers are vigilant in preaching their belief that the
only possible way to succeed in the world of selling is to make no less than fifty
calls each and every day. On the other hand, younger salespeople tend to become
frustrated with this rather quickly and begin looking for more innovative ways to
generate business.

I was just reminded of how ingrained this cold calling belief is. I spoke with a friend
who left a sales position with a major merchant processing bank only a few weeks
after starting. The reason? He was required to make a minimum of 400 cold calls
each and every week and to document his activity with business cards. He is highly
experienced and knows how to generate business without knocking on 400 doors
per week and decided to discuss the strategies that have worked for him in the past
with his managers. Their response? This is how we’ve done it for forty years and
we’re not about to change.

That response, in my opinion, is the reason we’re seeing record business
bankruptcies today. The world and our economy have changed and are breaking
into bold, unchartered territory. But the management of most business
organizations insists on doing things the old way, even though the old way
produces less and less results as time goes on.

The concept of “Permission Marketing” is slowly but surely gaining popularity as the
old idea of “Interruption Marketing” becomes less efficient and more wasteful. There
are several reasons why cold calling in particular has become less effective as we
move further into the Information Age. It destroys your status as a business equal. It
forces you to spend time with unqualified prospects while the qualified ones are
buying from your competition. It annoys people and is increasingly considered to be
rude and disrespectful. Moreover, it may now be illegal (and in several states it’s
been illegal for quite some time). But, most importantly, it destroys sales peoples
attitudes.

Where is the good news in all of this? Well, the great news is that if you begin using
new, innovative, “Information Age” methods for prospecting, you’ll be miles ahead
of your competitors who are wasting their time annoying people with cold calls. In
this age of the Internet and vast communication networks, why on earth would
anyone knock on doors or make cold phone calls to look for business?

Think of the power at your fingertips: there are literally dozens of ways to use the
Web and e-mail to let the idea of Permission Marketing do its magic. Allow
customers to raise their hands and let you know they’re interested. Begin finding,
implementing and reaping the benefits of this bold, new Information Age we are in.
Your competitors will be the ones standing in bankruptcy court and explaining their
“do-not-call” violations to the government while you are happily taking orders.

Frank Rumbauskas is the author of Cold Calling Is A Waste Of Time: Sales Success In
The Information Age. He is the founder of FJR Advisors, LLC, which publishes
training materials that educate salespeople on how to generate business without
cold calling. For more information, please visit http://www.nevercoldcall.com

Congratulations! You successfully sold one or more of your company’s products or services to a business unit, department, or division of a large organization. Now your manager has tasked you with “account management”. If you are not already familiar with account management, you are probably asking yourself the following questions:

• What is “Account Management”?
• What skills and talents are required to excel in Account Management?
• What activities must be performed to maximize Account Management ROI?

Providing answers to these questions is the focus of this article.

What is Account Management?

Account management is actually a synonym for account penetration. Just because you have sold one product or service to one business entity within an organization doesn’t mean your job is done. Think of all the additional opportunities that may exist in the account! For example:

• Does your company offer additional products or services that might be a “fit” for this customer?
• How many other business units, departments, divisions, and subsidiaries are potential prospects for your company’s offering(s)?

Required Skills and Talents

A critical talent for successful account management is the ability to build relationships, as relationship selling is a very effective way to increase account penetration. Another critical skill/talent is organization. If you are going to manage large accounts effectively, you need to be willing and able to keep meticulous records.

What kinds of records do you need to keep? Picture a large, three-dimensional spreadsheet in your mind. In the left-hand column is a list of every product and service that you could possibly sell to a customer. Across the top of the spreadsheet are all of the business units, departments, divisions, and other business entities that make up your account’s entire organization. Behind each business entity is every contact you know within that business entity.

Armed with this mental picture, ask yourself the following questions:

• Which business entities are you doing business with?
• Which business entities are you not doing business with?
• Where are the various business entities located?
• Which products and services does each business entity already purchase from you?
• Which products and services are they not purchasing from you?
• Who do you know in each business entity?
• Which of these contacts have you already asked for referrals and testimonials?
• What referrals and testimonials have they given you?

Required Activities

Hopefully your organization has some type of CRM (Client Relationship Management) software application to help you keep track of your answers to these questions. If you don’t have access to a corporate CRM system, here are some other options:

• You can purchase a software package like ACT! Or GoldMine
• You can subscribe to an online service like salesforce.com
• You can track information using a spreadsheet, database, or e-mail program

Next, plan your tactics for increasing account penetration by considering the following questions:

• What process will you use to regularly expose each of your contacts in the account to your company’s entire portfolio of products and services?
• Who can provide testimonials that will help you win business in other business units, departments, or divisions in the account?
• Who can refer you to new contacts in other business units, departments, or divisions in the account?

Why is it necessary to repetitively expose your contacts to your company’s entire portfolio of products and services? Because they forget! I can tell you from personal experience that there is nothing more frustrating than finding out a customer has placed a large order with another salesperson…and the only reason they didn’t give you the order was because they didn’t know or remember that you could fill it!

Is There More to Account Management?

There can be, but activities focused on increasing account penetration make up the critical core. Account management does become more complex if a team of people is managing a regional, national, or global account, but most of the complexity pertains to coordinating the activities of the team members.

Don’t make account management more complex than it needs to be! The basic goal is to maximize account penetration. Look for opportunities to sell every product and service in your portfolio to every business entity (business unit, department, division, etc.) in the account. Make maximum use of referrals and testimonials to help you initiate new relationships. Regularly remind all of your contacts of the full breadth of your portfolio of products and services. Be organized and keep meticulous records. If you do these things, you should be amply rewarded for your efforts!

Copyright 2005 — Alan Rigg

Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Selling: Why Most Salespeople Don’t Perform and What to Do About It. His company, 80/20 Sales Performance, helps business owners, executives, and managers DOUBLE sales by implementing The Right Formula for building top-performing sales teams. For more information and more FREE sales and sales management tips, visit http://www.8020salesperformance.com.

Times have been a little lean for many businesses. You may need
to generate cash fast.

Here are simple effective ways to multiply sales quickly with
nothing more than the telephone and your smiling face.

I’m not talking about canvassing from one neighborhood to the
next getting the door slammed in your face. These techniques
work best to get sales from:

* Customers who have bought from you recently. * Old customers
who haven’t purchased in a while. * Prospects who have shown an
interest, but never bought. * People who have a good reason to
buy from you, but haven’t heard about you yet.

You can already see you are in pretty friendly territory.
Seventy-five percent of the people in this list are VERY likely
to buy. So why not get in touch? Give them the opportunity to
let you help them.

Start by making a list of customers and prospects you will
contact. Unless you have a team of helpers, keep your list small
enough to service over the course of the next few weeks.

When working alone, I usually make my list no longer than 10
customers per week with a maximum of 50 to reach in five to six
weeks. This is fairly lesurely. If you have the desire or need
the money, you might go for 30 to 50 per week.

Start with a phone call. It can sound like this:

“Hello John! This is Melinda Smith at Smith Technology. We
talked last month when our guy was out to fix your computer. How
are you?…….John, if you have just a moment—This month
we’re offering a PC tune-up that increases your computer’s speed
and eliminates all those crashes.”

If John is interested, you are off and running toward a sale.
But what if John is a bit hesitant? Tell him you have several
different things that can save him time, hassles, and money.
Offer to stop by and show him in a face-to-face visit.

“John, this will only take a few minutes and it could save you a
great deal of grief for months. Would Monday at 2 or Wednesday
at 10 work for you?”

I like to give customers a choice of two appointment times. You
are giving them a choice while using a firm hand to get a
commitment.

What happens if you can’t reach the customer? You will have this
problem with half or more of the people you call. Be sure to
leave a message on their answering machine or voice mail.

Then follow up with a letter. Mention the time or two you tried
to call, then lay out your offer and give the customer several
ways to contact you. It’s a good idea these days to include an
email address. Many customers will send you a note after hours
when they have more time to consider your offer.

These techniques work great for current and previous customers
and prospects who have shown interest but haven’t bought. It is
a little trickier reaching people who should want to buy from
you, but don’t know about you yet. For that you need direct
marketing.

Direct marketing comes in many forms ranging from simple
postcards, to sales letters, to radio spots, to magazine ads.
Try to target your direct marketing to a group of people who are
most likely to want what you sell.

Here’s an example Roy paints cars. He provides a high-end paint
job with a specialty in restoring the paint on old cars. Roy
knows he can get a lot of great customers fast and cheap if he
could find a big bunch of people who collect classic cars from
the 50’s and 60’s.

First Roy contacts several classic car clubs in his area. He
discovers one has 300 members while another claims 700 members.
Roy calls and explains to the club presidents how his service
could be a big help to their members. Then he drops by with
photos of past jobs and a collection of recommendation letters
from previous customers.

In no time, Roy gets the list of mailing addresses for all the
members in both clubs. He prints up a brochure with some of his
photos, an explanation of how he restores paint jobs, and
comments from past customers. He also has a freelance writer
create a sales letter for him. The letter offers the member a
special, limited-time discount for club members. Then he mails
the brochure and letter to 50 members per week.

Will this get results? You bet! Even though none of the 1,000
classic car owners has ever heard of Roy, he offers just the
kind of service a great many of them need. If he provides a good
value, Roy will be swimming in customers for months and years to
come.

Use these simple steps to quickly build leads and turn them into
buying customers. There is no faster way to improve profits NOW!