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For managers, what is the value of knowing our cold calling or appointment setting metrics?

June 23rd, 2010 by Barry Caponi

 

Knowing the five key metrics of sales can keep us from setting our Sales Professionals up for failure without even knowing it.
 
First of all, what do I mean by metrics? There are only five metrics that can influence how well we bring home the bacon as the old saying goes. They are:
 
1.      Average size of our sales – how do I measure it and what are the ways that I can influence it;
2.      Closing Ratio – we measure it from Initial Appointment to closure;
3.      Dials – the number of times I dial the phone to attempt to set an Initial Appointment;
4.      Conversation Ratio – the percentage of those dials that result in an actual appointment setting conversation with the person I want to meet with; and
5.      Appointment Ratio – the percentage of conversations with those Targets that result in an Initial Appointment;
 
What we do with each of these individual metrics is the subject for a future blog perhaps. But at a macro level, it is important to note that numbers 3 through 5 obviously relate directly to appointment setting. However, surprisingly enough though, so do numbers 1 and 2. Let me explain the importance to us managers of knowing these metrics.
 
The key is that when coupled with the revenue goal for the year, knowing all five metrics will provide me with the understanding of the daily or weekly activity necessary to hit that goal. Sometimes these numbers bring the cold reality of life to the forefront.
 
For instance, in the example below, let’s assume that our boss has handed down the new business goal for the year that we, as the head of sales, must meet. When we divide it by the number of new business Sales Professionals we have, we come up with an individual goal of $1,000,000. We also know historically the value of a new customer over a twelve month period (how we measure first year revenue for commission purposes) is $12,000. That means each of our intrepid Sales Professionals must close 83 new customers over the course of the year. To do that based on our other current metrics (see first column on the left), our metrics indicate that each Sales Professional needs to generate 105 appointment making dials per day. Not gonna happen for an outside selling person.

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How to turn that typical cold calling ‘no’ into ‘yes’ every time.

June 16th, 2010 by Barry Caponi

 

We know the majority of appointment setting calls end with a ‘no’. Here’s a way to turn the final response on those calls into a ‘yes’ and simultaneously increase the likelihood of an appointment in the future.
 
I’ve written about the topic of building territories over time before as I believe strongly in its concept from a strategic point of view. Therefore, I’ve written about a number of ways to accomplish that. Each of the following links has the tactical topic listed and will take you directly to those blogs. Some were written from the sales professional’s perspective and some from management’s view.
 
1/30/08
4/23/08
4/30/08
11/11/09
12/2/09
2/17/10
 
This blog is no exception. However, there is another issue at play with this one, and that is the impact on our psyche of hearing all those ‘nos’. All of us react differently to being told ‘no’ so many times. Whether you’re one who handles it easily or are one who gets disheartened by hearing ‘no’, here’s a way to end calls with a ‘yes’!
 
One of the most constant things in life is change. In many situations, it is the person who is not interested in talking with you, not the company. Additionally, it may very well be nothing more than a timing issue. We’ve all heard the old sales adage, “No doesn’t mean forever, it just means for now”. Projects are completed, relationships with current suppliers sour, promotions occur and people leave jobs.
 
When I get to the end of a call that obviously will end in one of those ‘nos’, here’s what I say. “I totally understand. Over the years however, one of the most valuable lessons I’ve learned is that one of the most constant things in life is change. May I check back with you in a few months to see if anything has changed in your situation?”
 
Everyone I have ever asked that question of has said ‘yes’. That means when I call back I can reference this call, their agreement for the check back, and begin to build that ‘Dialogue Bond’ I talked about in 4/30/08 blog. That begins to warm up and build my territory, but just as importantly to my psyche and the ability to pick up the phone and make another dial, that call has ended with a ‘yes’!
 
Caponi Performance Group and Contact Science jointly market the telephone prospecting and cold calling solution called The Prospector’s Academy™ under the brand name Coldcalling101. It is the only comprehensive solution to solving the biggest barrier to success in most selling organizations – the inability to secure enough Initial Appointments to begin the selling process. We accomplish that through simultaneously addressing both the efficiency and effectiveness of the process. We can be reached at 214 483-5800 or at barry@coldcalling101.com.

 

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What do cold calling and sports teams have in common?

June 8th, 2010 by Barry Caponi

 

Why do sports teams (who profess to play for ‘fun’) concentrate on practicing basic fundamentals skills (Art) and then specific plays (Best Practices) until they are second nature, yet we, who profess to belong to the ‘profession’ of sales insist on ‘winging’ it?
 
Let’s take baseball or softball for an example. From a coaching perspective, we want our players to react instinctively (call it second nature) when certain things happen during a game. If our players have to stop and think about how to react, the play will have passed them by before they are able to react. For instance, a hard hit ground ball to a third baseman does not allow time for a lot of thought. We either are up on the balls of our feet when the ball meets the bat and are already moving forward to meet the ball or it will most likely eat us up for an error. When there is a runner on first and second with less than two outs and the batter hits a fly ball to the center fielder, we know that the center fielder’s first option is to throw to the cut-off man between second and third base to keep the runner on second from tagging up and going to third. We also know that the shortstop should be lining up on a direct line between third base and the center fielder, and that the third baseman should be verbally helping the shortstop accomplish that task. Ever watched a little league game and watch the throw come in behind the runner to second base…and how often the lead runner therefore winds up on third instead remaining on second?
 
Anyway, I digress. The point is that on that play there were several moving parts. During practice fielders learn the fundamental skills of how to catch and throw (what we call Art in appointment setting), and then learn how to execute plays (what we’d call Best Practices) when certain things happen. The way they learn? Drill after drill after drill. If you’ve ever played baseball or softball or watched your kids practice, you know exactly what I mean.
 
Now I will admit that practicing a sport that we love to play is somewhat more fun than practicing our appointment making skills. However, it does not change the fact that there are great similarities and that the task is necessary.
 
They call third base the hot corner in baseball and softball because the ball gets there so quickly. When receiving a negative response when asking for an appointment, the action is no different. We’re all playing the hot corner. The ‘no’ comes at us like a Nolan Ryan fastball (I’m having so much fun with these baseball analogies). Unless we first know how to handle that hard hit ground ball, we’re doomed unless we get really lucky and the ball miraculously finds its way into our glove. And even if we know what to do, unless we’ve practiced that skill so that it is second nature, we’ll be depressed over the fact that one more target said no and we couldn’t counter it. On the cold call, unless our responses roll off the tongue like natural conversation, we’re going to be sitting on the bench (couldn’t resist).
 
And if we don’t get the appointment, we’re either making way more calls than necessary, or our paychecks are way smaller than we’d like. Or, in this economy, need I say we might be looking for a job.
 
So if we manage a sales team, how does this translate into what we should be doing to help our teams more efficiently and effectively prospect and specifically cold call? First, find a methodology (Art) that fits you (like The Formula™) and teach the team to use it. Then create a set of Best Practices that contain what we’ll say to the most common negative responses we hear) and then practice it and practice it (role play at each sales meeting) until it becomes second nature.
 
Until our sales professionals reach the place where they actually welcome those negative responses because they know they’re so good at turning them into conversations where they can deliver our value propositions, we need to be either working with them on improving those Best Practices or practicing them until they’re all making the minimum number of dials possible and investing more of their time in front of prospects actually selling!
 

Caponi Performance Group and Contact Science jointly market the telephone prospecting and cold calling solution called The Prospector’s Academy™ under the brand name Coldcalling101. It is the only comprehensive solution to solving the biggest barrier to success in most selling organizations – the inability to secure enough Initial Appointments to begin the selling process. We accomplish that through simultaneously addressing both the efficiency and effectiveness of the process. We can be reached at 214 483-5800 or at barry@coldcalling101.com.

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If cold calling, how many targets can a sales rep pursue each year? (Part 3 of 3)

June 2nd, 2010 by Barry Caponi

 

When cold calling for appointments, it is important to note that if we follow a ‘Best Practice’ that consists of a certain number of attempts to reach someone, there is a finite number of targets we can pursue in a year. Part 3 of 3.
 
In the first blog on this topic, we explored the concept that it was important to have a well designed ‘Best Practice’ for cold calling to leverage the limited resource our calling represents. In last week’s, we explored a few questions we need answers to in order to develop a good Cycle for pursuing a set of targets.
 
This week, we’ll tackle the topic of how to figure out how many targets is the ‘right’ number for a particular rep or territory.
 
Take a look at the chart below. It comes from our Activity Calculator (available for free – send me an email at barry@coldcalling101.com). The key fields are the number of steps (most likely calls) our sales professional will make per day, the number of times we’ll actually go through a ‘Cycle’ per year, and the estimate of how many targets will be replaced because they were unqualified or we sold them. Reasonably that number generally falls somewhere between 750 and 1200; much more than that and we’re into the drive by shooting approach of try a few times and give up.
 
 
How Many Targets Can You Persue A Year?
1- Minutes Per Day on the Phone  60

2-

Average no. of steps taken in your Best Practice before a "pursuit" ends 3.5
3- Average time per step (CRMs are typically 6 minutes; Klpz is less than 3 minutes) 3.0
Number of steps you can make a day  20
4- Number of days per year you will telephone prospects  220
5- Number of times a target will be "pursued" per year until you reach them  2.0
6- Replancement targets, as percent of total, that are needed to keep your calling list at the right size  25%
You need a list with this many names  786
 
 Let me explain a few of these for you.
 
No. 2 refers to the number of times we normally have to try to call before we get them. In this case, it takes 3 to 4 attempts before we generally get them. This number can actually be taken right out of Klpz reports if you’re using it. Otherwise, you’ll have to estimate it.
 
No. 3 refers to the average time of a call. This number can also be taken right out of a Klpz report. Otherwise, it also will need to be estimated.
 
No. 5 refers to how many ‘Cycles’ will be performed per year in pursuing the typical targets on this list. The more limited our universe of targets, the more times we’ll typically pursue them. If we are selling into a horizontal market with many, many targets, we may choose to touch more so we’ll reduce the number of times we’ll conduct a Cycle on a target. (Every six months is about the minimum I’d recommend. Any less frequently than that and we lose the memory of previous attempts.
 
No. 6 refers to the number of targets that will be thrown off the list either because we discover they were unqualified or we sold them.
 
The point of this series of blogs is simply this. By knowing the number of targets a rep or territory can support can help us when dividing up territories, setting quotas, and figuring budgets for acquiring target lists. Helpful information to have.
 
 
 
Caponi Performance Group and Contact Science jointly market the telephone prospecting and cold calling solution called The Prospector’s Academy™ under the brand name Coldcalling101. It is the only comprehensive solution to solving the biggest barrier to success in most selling organizations – the inability to secure enough Initial Appointments to begin the selling process. We accomplish that through simultaneously addressing both the efficiency and effectiveness of the process. We can be reached at 214 483-5800 or at barry@coldcalling101.com.

 

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