Article on Lead Generation

 

Lead Generation - A Key to Getting New Business
 
I would venture to say that the single greatest barrier to obtaining new business is the fear of making the cold call. In my experience, even the  most experienced and successful sales people can become shy and uncertain when they pick up the phone to make cold calls.  But nothing ventured, nothing gained—so read on for hints, tips and tricks for making the most of this lead generation tool.
 
What are some of the greatest advantages of making cold calls to generate leads? 

  • No business can have a future without growth.
  • Cold calling--unlike any other form of lead generation--can create business opportunities at a lower cost and with greater results.
  • Cold calling enables you to have more control over the new business you bring in the door.


So what is it that keeps most professionals from biting the bullet and picking up the phone? 

Fear.

The excuses for not making cold calls run the gamut:

  • I had errands to run.
  • Everything else was a priority.
  • My dog, my cat, my child, my aunt’s husband’s cousin…

Here are some of the pointers I have used to coach professionals on overcoming their fear of the cold calls:

  • Have a list of objections you think you might hear, and write out responses to address them.  Better yet, practice your responses with someone you trust to give you constructive feedback.
  • Recognize that if someone is rude enough to hang up on you, it is about them and not you.  It is NOT the end of the world.
  • Always remember the word “next”.  The key to success in making cold calls or generating leads is numbers.  Our telemarketers make between 20 and 50 calls per hour--they recognize that the more outbound calls you make, the greater your successes will be.

I always suggest keeping quotes close by that remind you that fear is universal and can be overcome.  Here are some of my favorite inspiring quotes.

“Our doubts are traitors, and make us lose the good we oft might win by fearing to attempt” 
-William Shakespeare

“When you are afraid, do the thing you are afraid of and soon you will lose your fear of it.”
--Norman Vincent Peale

“You can conquer almost any fear if you will only make up your mind to do so. For remember, fear doesn’t exist anywhere except in the mind.”
--Dale Carnegie

“You gain strength, courage and confidence by every experience in which you really stop to look fear in the face.  You are able to say to yourself, ’I have lived this horror. I can take the next thing that comes along’ You must do the thing you think you cannot do.”
--Eleanor Roosevelt

 

Before you set out to generate leads for your business, use the following as a checklist of things to consider:

  • What are your markets?  The insurance industry? Manufacturing industry?  How specific can you be? 
  • What is the title of the person who makes the decisions?  Is your key contact an editor of a magazine?  The head of human resources?
  • How long is your list? It’s always surprising to me when I meet with new clients who don’t understand why they have not succeeded with a list of 20 new prospects.  When it comes to successful lead generation, the name of the game is numbers.  The rule of thumb is that for every 40 calls you make, you should have at least a 10 to 20% rate of interest.  If after 100 calls there is no interest, there’s a good chance that your product, your market or your list are not on target and should be re-evaluated.
  • How accurate is your list?  Even lists you buy from professional list services have an accuracy rate of 80%at best   We live in a very mobile society, so expect a list that is more than 6 months old to be out of date.

If you don’t have the answers to these questions, consider postponing your campaign until you do.

Now that you’ve determined who you are calling, it’s time to focus on your script.  Time for some more questions:

  • Does your opening sentence capture attention?
  • Are you clear on what you want the prospect to do next?
    • Attend an event?
    • Receive your literature?
    • See you for an appointment?
    • Buy a product?
  •  Have you role played the script delivery? I always, always recommend this.

So you have your list, you’ve identified your market and you are on a roll.  Have you thought through what happens if the person on the other end is interested?  You must follow through:

  • Send literature.  Do you have a professional PDF you can forward by e-mail?  If not, this is something you may want to have in place before your call campaign.
  • Set up an appointment.  If you are on a limited budget, do you want to limit your appointments to a 30 mile radius?
  • Sell a service.  If you have a service you want to sell by phone, do you have product detail you can forward?  Can the product be sold in one call or is it the type of product or service that requires multiple calls?

The number of calls you need to make to accomplish your objective depends on the type of cold call campaign you are embarking on:

  • To sell a product or service, you may need to make as many as eight calls to get to a close.
  • To invite people to a meeting may require 3-5 calls
  • To schedule an appointment may take between 1 and 3 calls
  • As a general rule, strong prospects for your products and services:
    • Are in the market for your product or service
    • Are financially able to make the purchase
    • Express at least mild enthusiasm for your offer

Now have a primer on making the cold call.  If your outbound lead generation is still not working, here are some possible reasons why not:

  • Call aversion--you are not making enough calls because you are avoiding them like the plague.
  • You are simply not making enough calls.  Again, this is a numbers game--the more calls you make, the greater the chance for success.
  • There is a lack of follow up.  Follow up is essential.  I highly recommend a program like Salesforce.com or ACT to keep detailed records of your contacts and dates for reconnecting.
  • The product is not a good fit for the market.  If you are not sure that there is a fit between your product and the market, ask your prospect.
  • You don’t have a strong enough script.  There is an art to effective script writing.  I would suggest locating a book that outlines different types of scripts.
  • The wrong person is making the calls.  The attitude of the caller can make or break your chances for success. If you or your team are uncomfortable making the calls, you could be wasting a lot of time and money.  In this case, I would suggest locating a professional lead generation firm.