Kerry L. Johnson - Phone sales : the science of making the sale

Phone Sales

Phone Sales

THE SCIENCE OF MAKING THE SALE

Kerry Johnson, MBA, Ph.D.

Published 2019 by Gildan Media LLC

aka G&D Media

www.GandDmedia.com

PHONE SALES. Copyright 2019 by Kerry Johnson. All rights reserved.

No part of this book may be used, reproduced or transmitted in any manner whatsoever, by any means (electronic, photocopying, recording, or otherwise), without the prior written permission of the author, except in the case of brief quotations embodied in critical articles and reviews. No liability is assumed with respect to the use of the information contained within. Although every precaution has been taken, the author and publisher assume no liability for errors or omissions. Neither is any liability assumed for damages resulting from the use of the information contained herein.

FIRST EDITION 2019

Front Cover design by David Rheinhardt of Pyrographx

Interior design by Meghan Day Healey of Story Horse, LLC

Library of Congress Cataloging-in-Publication Data is available upon request

ISBN: 978-1-7225-0179-2

eISBN: 978-1-7225-2276-6

10 9 8 7 6 5 4 3 2 1

Contents

Introduction

I n my travels as a speaker and consultant, Ive found very few people who have even read a book on doing business on the telephone, yet even face-to-face sales demands a very high level of telephone expertise.

The cost of doing business is increasing. It costs much more to do business face-to-face now than ever before. In fact, a recent study done by the Xerox Corporation showed that seeing a prospect face-to-face costs approximately $300. Obviously, this includes preparation time, secretary time, and travel time. Yet the cost of seeing prospects belly button to belly button exclusively is prohibitive.

We can no longer afford to do business in the future as we have in the past. I frequently consult with companies who send their salespeople out to cold-call face-to-face. Often theyre effective, yet they rarely are able to see the right person on a walk-in basis. Even on those face-to-face cold-call appointments, proper telephone follow-ups could be much more useful than a handshake.

One Midwestern company, realizing that their costs were going higher and higher and their profits lower and lower, decided to cut their sales force from five salespeople to one. This one salesperson had practiced the art of selling face-to-face for years and years in his job. Suddenly his production goals were multiplied by five. He had no recourse but to use his time much more wisely. He was forced to use different strategies. He talked both to new prospects and existing clients by phone. Only in those instances where he was sure he would be able to get a sale would he take the time to see a prospect face-to-face.

As you might imagine, profits increased by 300 percent. Sales costs were cut by 90 percent. The company experienced a sizable revenue increase, and coincidentally added twenty new salespeople, producing past their sales goals, by using the phone. Its a shame that the company had to learn to train its salespeople with telephone techniques as a last resort.

Years ago, when I started my business, my goal was to see people face-to-face in order to get them to utilize my consulting services. My primary objective was simply to get a prospect on the telephone, commit him to an appointment to see me, and then try to sell him.

My closing rate was approximately 35 to 40 percent on face-to-face appointments, but through the years, Ive found that when I talk to prospects by telephone first, Im able to close not only face-to-face but also on the telephone. I obviously receive more rejection on the telephone than face-to-face, but thats only because the phone allows me to make more calls than I ever could by seeing prospects (particularly because my clients are now located worldwide). I was making more sales in less time and increasing my company profits.

Shelby Carter, senior vice president for the Xerox Corporation, said that salespeople in America have too much windshield time and not enough contact time with prospects: we spend too much time on the road traveling to appointments and too little time eyeball to eyeball, toenail to toenail with our prospects and clients.

We can no longer afford to conduct business simply by sending an email informing our prospect of our intentions to do business. How often have you received a letter or email with a message that could have been more effectively communicated by telephone? Letters are very expensive to write these days. According to the Dartnell Institute, it costs approximately $10 for a staffer to type a simple letter.

Its also obvious today that America is in the midst of a email glut. We are deluged with spam and junk mail enticing us to buy everything from cars to carpeting and curtains. Emails should only be used to confirm the information provided in a telephone conversation.

Until a few years ago, direct-mail solicitors received approximately a 10 percent response rate. Now they can expect one-fourth to one-half of 1 percent response rate. Email spammers are lucky to get one response out of 10,000 mailings. Out of every 200 snail-mail letters you mail, youre lucky to get one response. Misunderstandings occur much more frequently in emails than on the telephone, but the two working together provide for effective business relationships. Proper use of the telephone allowed me to go from being a local speaker and consultant to being a national and worldwide consultant.

Joe Gandolfo was one of the insurance industrys top producers. A heavy telephone user, he also sold nationwide. He used the phone to service existing client needs and prospect for new business to expand his markets. Before traveling, he simply made an appointment with a qualified prospect. Then Joe turned into the expert from afar. Even an insurance agent from the little town of Lakeland, Florida, is an expert to somebody in Iowa.

A recent McGraw-Hill Corporation study found that over 65 percent of personal sales calls were made on the wrong people. In other words, many prospects who were seen face-to-face were not people who could make a decision to buy a product. The proper and effective use of the telephone would help you at least to qualify your prospect to make sure that when you see him face-to-face, he can make a decision.

Because of the low cost, the telephone should be the first resort and the letter your last. After reading this book, youll be able to get many more sales on the telephone than you ever could with emails, personal letters, or even face-to-face.

A good example of the striking difference between telephone and letter is an international client I had in New Zealand. This individual, Ian Clarke, and I corresponded for approximately one year way back in 1985. At one point, my letters were reaching New Zealand after two months. While some letters got back within fifteen days, I was appalled at how poor the postal service was between the two countries.

One day I decided to make a phone call to New Zealand. It was expensive, but I got more done in fifteen minutes on the phone than I did from six months of writing letters. A phone call is here and now. An email or letter is so impersonal that it can be easily ignored. You undoubtedly have sent letters to which you never received a response. But its very difficult not to respond to a telephone call, as long as you can get through to the right person.

Some of the things youll learn in this book are (1) how to get referrals from existing clients and customers and use them to prospect for new business; (2) how to use referrals to your best advantage; and (3) what to say to a referred prospect in the first fifteen seconds.