Cold Calling is Dead, Stop Doing It

If there was ever a real life example for the definition of insanity,  it would be cold calling in 2016.

When was the last time this happened?

  1. Your busy day was interrupted.
  2. You have never met this salesperson.
  3. You have never heard of the company.
  4. You have never heard of the product nor service.
  5. Despite all of the above, this salesperson had such godlike charisma, you made a purchase without a second thought.

Chances are slim to none.

Employees are more concerned about hitting the required number as opposed to scoring. It doesn't pay off because decision makers won't respond anyway. In today's highly connected world, relationships matter more than ever before.

I've heard the rationalizations. "It's a numbers game." You know what else is a numbers game? The lottery. Your odds are, "one in more than 292 million."

In an actual conversation, a former colleague of mine said to me, "I made 500 calls and only had one "yes." So you see, it eventually pays off." He wasn't wrong...

1 successful call / 500 attempts * 100 = a success rate of 0.2%.

However, the strategy wasn't right. It wasn't a big name account either. It was a small business that netted us less than 5% of our monthly income goal. That's a drop in the bucket. To follow this, there is literally not enough hours in the year to make a profit, much less be successful.

Interruption marketing is dying. Inbound marketing is thriving. Why do companies still do this?

The number one reason, "We've always done it this way." Clinging to the past like it is a sacred relic is foolish.

Number two, "It's too expensive." That is as short-sighted as the first reason. It'll become a lot more expensive as time marches on and leaves your company in the dust. Eventually, you have to bite the bullet and pay a premium to save your business. Or, it's time to go dumpster diving. Would-be divers should know, VHS VCRs are no longer being made. Searching for replacement parts on eBay will only go so far. You may end up spending more time and money finding a cheap alternative.

Number three, "I don't want to learn a new system." Too bad. The market place is the best example of Darwin's Theory of Evolution. Your business will either survive and thrive as Netflix has. Or your business will follow Blockbuster's slow and agonizing demise.

Adapt or die.