How many cold calls for a sale?

How many Cold calls make one appointment?
Past research from US universities concluded several years ago that calling potential clients directly from the phone is un-effective. The conclusion of such research was that 4 out of 5 decision makers will definitely not buy directly from a cold call. Now business people from the direct marketing arena will tell you: “Ahhh, it’s all in the word cold calling, we gather as much information as we can first”
Yet it’s still speaking with someone for the first time and the rapport you can establish in a few minutes is very limited.
More recent however; The Keller research center at Baylor University Texas research has painted an even more damning picture of the telemarketing business arena:
Over 6,000 calls were made by experienced and seasoned sales-telemarketers and monitored closely over a fortnight period. The results may shock you!
72% off all calls were abrupt and quite rude, and ended swiftly, with no further contact!
28% Were labeled as Useful, as they did not hang up immediately, managed some small talk a while and developed a modicum of rapport, and asked to be called back or gave a referral, seems some of us just can’t hang up or be rude, even though we want to!
The follows ups were made on this 28% who were useful and 19 appointments were made
So that’s 19 appointments from 6264 calls which then became 4 sales or if you like your math’s that’s around 0.6%
The time spent and the costs accounted for it equated to a full working day to get one appointment!!
The statistics come from a leading authority on business and the point is that it is getting harder and harder to make sales by starting from the phone.
Back in the 1990’s when I was banging the phone on an office day from Salford Quays Manchester we would spend the whole day making 50 calls, getting 16 appointments, 4 per day over the next week from our existing clients and a few new ones. This resulted in around 2 sales a week of office automation. So that’s 2 sales from 50 calls now it seems you have to make around 3,000 calls to get 2 sales.
That’s 1,500 calls to get a sale , that’s like a month of calls for a sale! you would have to make sure you have a massive order value to make this worth while, like houses and Bentley cars!
We as a society are so much more guarded and educated in sales techniques; we just don’t get taken in as much as we did!
No wonder Physical network and social media have found new heights of success, spending two hours on social media branding your business or establishing a new relationship at a networking event will be much more comfortable and a much better use of your time.
To find out how to start blogging and brand yourself effectively online contact Netmedia

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January 22, 2013

Comments

2 Responses to “How many cold calls for a sale?”

  1. We alll know how stats can be used to support what ever your argument is. The real world fact is that as a B2B Lead agency in the UK focusing on the IT sector for the last 12 years, we average one appointment per day, out of every 70 calls we make, which equates to around 21 “qualified” sale leads a month and if a client averages one sale out of every three leads, thats seven (7) sales a month. This averages 210 calls for every sale not the 1500 calls that are quoted in your research. Bottom line is our clients are spening more of Telemarketing that in previous years, because it works well, for them when used correctly as part of the overall marketing mix, including social media. Like all things in life its using the right tools at the right time in the right way.

  2. Admin Admin says:

    Ws not my own research as such Norman I just wrote about what I read. perhaps it’s just the Americans doing it all wrog who knows. Your ratios are quite encouraging, and that’s the whole point of something like this to spark different points of view so we can all at least find the balance.

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