social media

Cold Calling vs. Social Prospecting

cpankey 2 Comments
No Cold Calling Zone

Image by markhillary via Flickr

I read a question today on LinkedIn that asked if the Traditional Cold Call was still an effective means of growing business.  One of the responses that was recorded basically refered to cold calling as an ancient tradition that had little place in todays marketplace, I believe they said it was a huge time sucker.

This torments me a little as I continue to learn and understand the power of social media.

In a Business to Business (B2B) sales world, has Cold Calling really become that out dated. I know I still make 30-40 cold calls each week in order to introduce myself and my business to new clients. In the last month the only contacts that I have made that resulted in sales were from Cold calls that turned into relationship building (face to face) and then the sale.

Now I do understand the time Sucker mentality, Cold calling often has a low rate of return and you must have a thick skin in order to take the rejections that come with the practice. It does take time and commitment.

Social Media can be used for prospecting and if you have a specific target I can see how you could capture huge groups of leads quickly with a basic search on your favorite social site. But it also takes a committed amount of time building that relationship to a trust level which creates sales. They don’t know you and if they are going to buy you are going to be building a relationship based on what? The written or video word, not a handshake, or conversation that relates interest and value.

So what do you prefer?

Are you still using cold calling, door to door, pound the pavement tactics? Are you spending adequate time daily prospecting targets in the social realm?

As I see it a B2B business must commit to both.  I know for a fact that business professionals in the majority of businesses still today do not have the time or the aptitude to build social media relationships. Face to face still has value to them. I also know that if I am targeting anyone under the age of 35 that if I am not in the social realm, I have little chance of earning their business. Social activity is mandatory collateral to this age group.

So tell me, what methods  do you use to build new business?

The 1 to 1 Marketing Relationship

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I sat with a couple friends last night discussing business and future opportunities in several industries. Our conversation however found its way to talking about a local business owner which has run into a very rough patch of business in this economy and how marketing is no longer working for him.

As we debated and turned over in our minds the various issues he was facing it was clear to me that this business owner was likely blaming the media for his marketing failures instead of looking at how he was relating to the consumer in his message.

I have heard this from business owners for the past 10 years, being in the newspaper business. “Your product does not work anymore. ” I am sure there are thousands of media reps whom have heard those exact words from their clients. I want to challenge this myth in this blog and direct business owners attentions back to the 1 to 1 marketing efforts that they must now embrace in order to get the marketing funnel functioning again.

  1. First Myth – Media is broken. This is just is not the case. Media in every field can be wildly successful if you pay attention to two things. Who is the audience? How does that Audience like to make decisions on usage?  Let’s take newspapers as an example (everyone’s favorite dinosaur that just will not go away) Newspapers today are still read by more people on the average day than the number of people who will watch the Superbowl this year. The Superbowl is considered the single largest TV event to air each year. So the vehicle although changing and shrinking is still huge and not broken in the sense of reaching audience.  However, many businesses are finding it increasingly difficult to market in the media and think it is because no one is reading it.  The Truth is they are reading but the AD programs and marketing is Stale and uninviting. Or your message sounds too much like a gimmick and todays consumer just is not buying it.
  2. Second Myth – Word of Mouth Marketing is all I need. This is my favorite. The fact is the moment you decide that this is your marketing plan for the year you have decided to close your business. It might not be this year, but you have placed the end in your future. Word of mouth is great, and it is the ultimate goal for every business, but the reality is that consumers only value you until they find better value, and they will leave. With out a planned out marketing method for growing customer base you are counting on a false impression to keep your business running. In todays social networks it is even tougher, because one mis-step by you and the word of mouth will swing the other direction and provide instant death.
  3. Myth Number 3 – My Customer does not use that media.  Tricky one hear, because you just might be right.  If your business model is mainly people 65 plus you probably don’t have a current marketing need for mobile marketing. Or do you? One of the toughest challenges in marketing is consistently looking towards the future and not just analysing the current event. I firmly believe that all marketing has value. Your event may not have given you the ROI you were looking for but what is the overall growth of your company brand. Even markets that serve the 65 plus crowd might need to look at mobile marketing so that they can capture that next generation of consumer.  Yeah I know, you can’t afford to do everything. I have no answer for that, just don’t use it as an excuse and bury your head in the sand when discussing the future.

Ok I am sure you can give me a few more Myths in the media word. But let’s turn our attention to the 1 to 1 marketing methods that business owners need to embrace and how to keep the marketing funnel working for us in the process.

What is 1 to1 marketing?   1 to 1 marketing only refers to the methods in which you communicate and cater to individual customers in your marketing efforts.  You know customizing your marketing to the individual not the crowd.

There are hundreds of methods in which a business owner can employ 1 to 1 marketing. No doubt you have received this marketing from your favorite stores in the last quarter and may not have even know it. When was the last time you received a promotion from your bank offering you Free life insurance because you are a value member? How about the magazine which magically has your name screen printed onto your teams favorite jersey?

These are all tactics of 1 to 1 marketing. 1 to1 marketing is the process in which a business uses the information they gather on their customers and transforms that into a unique marketing  or communication with that customer. 

Example:  Lets say you are a veterinarian, you have a data base of 100 customers which own various pets.  You would send out a card to each customer with a picture of the type of pet they own (dog, cat, horse, turtle etc…) the card would not only have your name but the pet’s name on it also, (Charlie it is time for Skippers shots, come on in for a 20% discount this week only)  In that one hundred you might have 25 dogs 50 cats and 12 horses and 13 turtles. Each card is customized to that customer and the communication seems very personal.  That is an example of 1 to 1 marketing and mass customization.

So how does a local business use 1 to 1 marketing in the scope of  a business plan. First understand it is not the end all to marketing. It is only as good as the data you collect.  Second, it will not feed the funnel with new prospects unless you are really good at getting your customers to give you continual referrals. But 1 to 1 marketing tends to have a much higher rate of return. In the direct mail industry statistics suggest that 1 to 1 marketing is read at a 30% increase over standard direct mail.

What vehicles allow you to use 1 to 1 marketing:

  • Mobile marketing
  • Social Media
  • Direct Mail
  • Post Cards
  • E-Blasts
  • PURLS (personalized URLs)

Before starting or finishing your marketing plans in 2011, discuss with a consultant or business partners how you can use 1 to 1 marketing in 2011 to enhance and grow business.

Branding in 2011 – Top five vehicles

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As business owners peer into the New Year how will they measure their brand value in the coming year? How will they improve it in a culture that has limited stickiness to it in forms of loyalty? What vehicles of marketing will be most valuable in brand building in the coming years?

Here are my top five lists of Brand Building Vehicles for 2011.

1) A Viral Social Media platform – You cannot deny the massive movement in social media. Businesses large and small must invest and work on the viral effects of their social media. Contests, content, video, give-a-ways, consumer content… etc. If your company has not changed their hiring practices to either have a full time Social media talent on staff or have hired a professional to build and support these efforts in 2011 make this your first priority.
2) Community Branding – Attach your business to as many community functions as possible. In this economy consumers are going to be looking more and more to their community for family entertainment and feeling of a connectedness to their neighbors. Companies should update their brand marketing, Pens, calendars, t-shirts, etc… Plan to give out new (updated) products to customers and clients this year and freshen up your brand. Be a sponsor of a community event and pass out free items branded with your website and social media sites helping drive new traffic and increase brand awareness.
3) Mobile Web – The invasion of the Mobile App is contagious. Smart Phones will out number traditional phones 2 to 1 by the end of 2011. Consumers at this point don’t even know what they want to down load as an app. Consumers want a function that improves the quality of their lives all bundled up into the apps on their phones. Us this for your companies brand. The Mobile Web marketing engine has already changed from “you must be in the app store” to community based apps and web marketing. Local business must now have a functioning mobile web application that provides information, links, maps, special offers. Use the mobile web and app movement to build your brand loyalty and 1 to 1 marketing capabilities. Using a mobile app/Web platform to launch SMS text marketing campaigns and viral contests with new customers can become a complete marketing engine in 2011 that will provide not only brand loyalty but also brand growth.
4) Video Blog – A picture is worth a thousand words right? Well a video today is worth ten times that because if it has value to the consumer they will share it with the world. It is like word of mouth marketing on steroids. How many times in the last year has someone sent you a video from you-tube? Video Blogs can be added to most company websites and will create great results on search engines.
5) E-mail Marketing or Direct Mail Marketing – I am split here on this one because I believe there are two types of consumers that we need to be aware of here. The First is a “paper free believer” they want everything via electronic media. They are almost reposed to believe we still print newspapers and direct mail wasting our natural resources. The second is the “stop bugging me in my private space group” This group could be the traditional group that still has not embraced the technology, or the professional group that is still in the belief that people are wasting a lot of valuable time using the social media.
Whichever group you are targeting both media can be used to enhance all four above and can be effective ways of building up a base of consumers in 2011. Less competition has survived in the current economy that means your business has market share to capture. A good Direct Mail campaign can give you a fresh new group of consumers into the top of your marketing funnel.

Each of these Brand Building vehicles can be done on almost any marketing budget and be effective. In 2011 take action and start early, the greatest growth in market share will happen early in the cycle. Don’t let your business be caught on the sideline as your competitors steal the market. If you are not sure where to start check out a few of these sites for help: http://www.wcmobi.com ; http://www.copmanycasuals.com/valetbranding ; http://www.opvinc.com .