What is Cold-Calling ??

These two words can be heard in any industry by any of the sales person/BDE at any position/Designation. So here in this article I am trying to put some light on cold calling that why this is of utmost importance at each and every level of sales/business development activity.

The first thing is the approaching lines and the most effective way to open a conversation gracefully.

The purpose of a cold call is to have a conversation to determine whether a potential customer has the following two things:

• a need your offering can satisfy, and
• the money to purchase it.

That conversation can happen only if you get through the customer's natural reluctance to speak with a stranger.

The easiest way to get through that reluctance is to have a reason you're calling, other than just the fact that you have something to sell.

For example, suppose you're selling an ERP System or an  inventory control system. Here are two possible ways to start the conversation:

• "I'm calling because I'm selling a great inventory control system that can save you money."
• "I'm calling because I understand that you just announced a new product line--and since that usually increases inventory costs, you may be looking for a way to reduce those costs."

Remember: Never say what you want, rather say what the customer want to listen. And all this needs some good homework on the area you are pitching and a good knowledge of the field too.

Because NO ONE is bothered what you are selling, EVERYONE is bothered what eases their life/ business or what is of their use.

The second example is more likely to result in a conversation because it relates what you're selling to what's called a trigger event, a change in the way that a potential customer operates its business.

The following trigger events are all excellent conversation starters:

1. The company has opened a new factory or facility.

2. It is moving an existing facility to a new location.

3. It has hired a new executive.

4. It has lost an existing executive.

5. It has announced a layoff.

6. It has announced an expansion.

7. It has acquired a new major customer.

8. It has lost a major customer.

9. It has launched a new product line.

10. It has retired an existing product line.

11. It has updated a major existing product.

12. It is acquiring another company.

13. It is being acquired by another company.

14. It has announced a restructuring.

15. It has announced a new round of financing.

16. It has announced a change in ownership.