Determining the Proper Amount of Preparation for Cold Calls
Changes in workplace settings and technology in recent years have transformed the dynamic of both sales prospecting and meetings, with fewer buyers answering incoming phone calls and taking in-person meetings. While the decrease in travel and face-to-face meetings has made salespeople more efficient, the jury is certainly out as to whether it’s been a net positive in terms of revenue generation. With fewer opportunities to speak with prospective buyers, it’s critical that salespeople make the most of the opportunities they are afforded, starting with the first one. To do so, sellers need to determine how much to prepare and how best to do so.
When cold calling, a blend of knowledge and genuine curiosity is key
While a cold prospect is occasionally interested and available enough to have a substantial discussion during an unplanned call, that is certainly not the norm. The goal of a cold call should thus be to determine if there is enough potential value for the customer to justify giving the seller more time to conduct deeper discovery. If the prospect’s response is “send me some information” or they don’t agree to a specific time for a second conversation, it is a good indication that the salesperson has not done so.
Given that reality, what should sellers come prepared with prior to making a cold call? The first step requires being honest with oneself about both the complexity of their solution and the needs and sophistication level of their prospect.
If your value proposition and prospect’s business is uncomplicated, your offer should be as well
If one sells payment processing solutions to retailers, the value proposition for each company and target contact is likely very similar-and that’s okay. In such cases, having a clearly stated purpose for the call and example of how you’ve helped similar companies address a business problem will typically be enough justification. At the same time, it’s critical to acknowledge that each business is unique and not be overly assumptive that you are a natural fit for them. Therefore, expressing a baseline understanding of a prospect’s business and requesting the opportunity to learn more is generally sufficient in such a scenario.
If your buyer is complex and the potential utility of your solution is uncertain, adjust your approach accordingly
Earlier in my career I sold alternative data and equity research to hedge funds. Because skepticism and secrecy were essentially job requirements for my buyers, they generally did not want me (or anyone) to know their full opinion about a particular company or sector that my company was covering. If I did not “do my homework” in advance, I was rarely even given the opportunity to ask questions. At the same time, if I overprepared or assumed that I knew what they wanted to hear, my fate was often the same.
I thus had to be able to spark their interest with specific and targeted insights that might strike a chord with them at a specific moment, while being able to quickly pivot to a concise general value proposition if not. By attempting to provide value in the initial interaction, I often earned the opportunity to learn about what was in fact of interest to them and permission to speak further, armed with knowledge about how I should prepare for the next conversation.
For the best results, put customers first and earn the right for more time
Modern buyers are savvy enough to know when a salesperson is going through the motions and doesn’t truly want to learn if they truly can help them. Taking the time to research a customer’s role and company not only makes an initial call more productive, it also demonstrates respect for the customer’s time, which can pay dividends in the future. At the same time, spending too much time preparing for every individual call is a recipe for a lack of production. Therefore, prepare enough to demonstrate credibility but don’t forget that your time is valuable as well.
