Death of Cold Calling Webinar Slides


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Traditional cold calling as a primary sales practice is no longer an effective method for generating B2B leads. The high cost and associated risk of sales headcount coupled with the low conversion

rates of calls, compounded by the business consumer’s desire to interact and self sell online makes cold calling ineffective for most organizations.

Marketing automation, deployed in a b2b environment, integrated with CRM can eliminate the risk associated with cold calling while improving the call connect rates by inside sales by facilitating person-to-person interactions through lead analysis, alerting and routing.

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Death of Cold Calling Webinar Slides

  1. 1. The Death of Cold Calling The Advent of Marketing-Assisted Selling
  2. 2. The Death of Cold Calling Hypothesis for today’s session • Changes in buyer lifecycles and the advent of the social web have rendered cold calling much less effective in today’s “self-service” buy cycle • Calling into lists of suspects based on onedimensional criteria (demongraphics) wastes valuable selling time and causes leads to fall through the cracks © 2013 SalesFUSION
  3. 3. Lead Management • • • • • Cold Calling – Death versus evolution Lead generation in 2013 –hijacking the digital conversation The statistical failure of cold calling Where do leads originate in 2013 and beyond? Adapting sales and marketing to optimize the digital conversation • The journey to lead to sales revenue management • The changing view of telesales/inside sales © 2013 SalesFUSION
  4. 4. Why is cold calling ineffective The buyer journey has changed © 2013 SalesFUSION
  5. 5. Why is cold calling ineffective The buyer journey has become self-paced © 2013 SalesFUSION
  6. 6. Why is cold calling ineffective The buyer journey has become self-paced • • • • Logic dictates that if buyers are self-evaluating, then Sales must make more calls to find those who are active The opposite may be true due to lack of efficiencies in cold calling Cold calling to find active, self-paced buyers is non-scientific and wastes time Inefficiencies in cold calling adds to the CAC (Cost to Acquire Customers) © 2013 SalesFUSION
  7. 7. Why is cold calling ineffective? Buyers are in complete control of information © 2013 SalesFUSION
  8. 8. Why is cold calling ineffective? Buyers are in complete control of information Why is cold calling icky? It fosters a culture of “taking” • Cold calling is a practice of starting a B2B relationship by taking something from a prospect without asking them first like their time or info. • Most people feel uncomfortable “taking” something from someone • Consider the following stats on sales rep retention: • 44% of sales reps quit after one no • 22% quit after two • 14% quit after three • 12% quit after four (total is 92%) • 60% of customers say no at least four times © 2013 SalesFUSION
  9. 9. Why is cold calling ineffective Statistical failure rates • The Keller research center at Baylor University Texas research on cold calling – summary Over 6,000 calls were made by experienced and seasoned sales-telemarketers and monitored closely • 72% off all calls were and ended swiftly, with no further contact! 28% Were labeled as Useful, as they did not hang up immediately, • Follows ups on this 28% who were useful and 19 appointments were made 19 appointments from 6264 calls which then became 4 sales around 0.6% The time spent and the costs accounted for it equated to a full working day to get one appointment!! © 2013 SalesFUSION
  10. 10. Why is cold calling ineffective Statistical failure rates - 2% of sales are made on the first contact 3% of sales are made on the second contact 5% of sales are made on the third contact 10% of sales are made on the fourth contact 80% of sales are made on the fifth to twelfth contact © 2013 SalesFUSION
  11. 11. Why is cold calling ineffective More sobering statistics • • • • It takes 8.4 dials to reach a person and only 2% of all calls result in a meeting If 30% of these first meetings convert into opportunities and a sales person closes 25% of these opportunities, they will have to make 1000 calls to get one sale If they are pounding the phones making 50 cold calls per day, they can get one winnable sale every 20 days At this rate, they can acquire 12.5 new customers per year. © 2013 SalesFUSION
  12. 12. Why must we change? • • • • How people buy has changed Competitive landscape has changed Selling dynamics have changed Information dissemination has changed • Business communication has changed © 2013 SalesFUSION
  13. 13. How are leading B2B Sales/Marketing teams adapting? © 2013 SalesFUSION
  14. 14. Marketing’s ever-increasing role © 2013 SalesFUSION
  15. 15. Inbound Demand Flow Inbound Leads MA System – Lead Scoring/Nurture Mkt MQL – Nurture SQL – Sales Accepts SQL – Stalled SQL – Sales Advanced Closed / Won © 2013 SalesFUSION
  16. 16. Lead management What does a lead management process look like? © 2013 SalesFUSION
  17. 17. Historical flaws in marketing & sales alignment © 2013 SalesFUSION
  18. 18. How marketing automation fixes this Multitude of tools for lead gen © 2013 SalesFUSION
  19. 19. Lead Analysis What metrics matter to lead flow? • • • Strength of engagement Buying signals Lead score history © 2013 SalesFUSION
  20. 20. Lead Analysis Analyzing lead behavior post-capture © 2013 SalesFUSION
  21. 21. Lead Management Taking action against leads • • • • • Sales engagement Nurture enrollment Feedback loop from sales Scoring actions CRM connectivity – Opportunity and Lead card © 2013 SalesFUSION
  22. 22. Lead Routing Getting the leads to the right people • • • Lead alerts triggered from forms, scoring or general web activity/campaign activity Send sales synopsis and relevant details Tied to scoring to keep volume within reason © 2013 SalesFUSION
  23. 23. Lead Management Establishing a feedback loop • • • Capturing proper lead source codes Visibility into key fields (Lead Status) returned from CRM Ensuring lead source codes are mapped/protected in CRM © 2013 SalesFUSION
  24. 24. Sales Alignment Steps to achieve a successful process • Ownership of lead gen (marketing) • Hand-off process • Hand-back process • Regular meetings • Marketing participation in pipeline reviews © 2013 SalesFUSION
  25. 25. Integrating Marketing Data w/ CRM © 2013 SalesFUSION
  26. 26. The new b2b funnel © 2013 SalesFUSION
  27. 27. Performance is high with aligned orgs © 2013 SalesFUSION
  28. 28. Final Thoughts • • • • Human interaction (via the telephone) is increasingly valuable because fewer people engage in it The social web cannot sell for you and you must learn how to put sales personnel in the mix Technology-assisted selling through marketing automation can have dramatic revenue implications Sales & Marketing alignment has quickly become a de facto state of success…not a nice to have © 2013 SalesFUSION
  29. 29. Thank You