Question

Topic: Strategy

Should We Add A New Division

Posted by michael on 11/7/2006 at 7:04 PM ET 1000 Points
I hope this fits into this category and my question is clear.

One of the key goals of our programs is to bring in leads for our customers sales people. (I've responded in other questions that it is also a sales job to do the same) At least that tends to be the reason we get hired.

Do you feel it would make sense to add a division whose job it is to do cold calls to generate those leads for a customer? So much of what we normally do is creating programs to make the phones ring but this is a completely different direction.

Think about the number of posts that have had to do with cold calls.

ANY feedback is appreciated.

Michael

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RESPONSES

  • Posted by mgoodman on 11/7/2006 at 8:48 PM Accepted
    I think there's a market for a professional cold-calling service. Most sales people hate cold-calling, and it requires a skill set that isn't always the same as that for consultative sales or follow-up.

    The key will be your ability to recruit, hire, train and motivate the individuals who will actually make the cold calls. They have to be really good at what they do, or no savvy client will entrust this vital function to an outsourced provider.

    Good luck. Let us know if you decide to give it a shot.

  • Posted on 11/7/2006 at 10:10 PM Member
    Screening out bad leads would be productive, but it would be better to create a new system rather than a new structure. (I just stole that line from an email from the Balanced Scorecard people. I thought it was a cool idea.) To create a new division would set up a dividing wall between the people who cold call and weed out non-prospects from real live ones and the sales people who build transactional relationships with the prospect and turn them into customers. The tasks should be well integrated and the people should have the same boss and it should work fast, not slow things down.
  • Posted by michael on 11/7/2006 at 10:42 PM Author
    Thanks for the feedback so far. It's greatly appreciated.

    As a clarification, I don't see a real division but an additional service. Depending on the customer and how technical the sales process the "hand-off" might need to take place sooner rather than later.

    Here's an example: We working with an architectural firm. The cold calling would simply be to determine a time frame for potential customers and who the appropriate person is. The hand-off would be early on.

    Another customer is a small retailer. We could keep that one all the way up to the order stage without a problem.

    Make sense?
  • Posted on 11/8/2006 at 3:30 AM Member
    hi michael,
    in my opinion you should first do some calculations. See how much its going to cost you to set up this department and how much will be the earnings as a result of that department.
    Only after that you can take a decision that is not going to affect the business.
    good luck.
    Andreea
  • Posted by Frank Hurtte on 11/8/2006 at 11:26 PM Member
    Micheal,
    In many industries you dont need to make cold calls you just need to pull additional contacts out of an existing database.

    I have an ebook called telesales prospecting that you may be interested in looking over...

    contact me via my profile..
  • Posted by michael on 11/9/2006 at 3:14 PM Author
    Frank,

    Thanks for that input. Actually, we already write cold calling scripts for customers. Sometimes I even train them while they watch me make calls on their behalf. I've also taken seasoned sales people out and showed them how to do this in person.

    Right now it's not about whether we have the ability to do this, just a matter of whether or not we should make this a regular part of our practice. I love making cold calls so I guess that's why I'm looking at it.

    Michael
  • Posted on 11/10/2006 at 4:17 PM Accepted
    If you can clone yourself, go for it! It's difficult to find people who enjoy cold-calling and are good at it.

    If you have good sales people that are about customer relationships and follow-thru and you can alleviate any need to cold-call you will have a happier team.

    Cold Callers Cold Call and Sales People making sales
    it's a win win partnership if the leads generated are real and if everyone has an appropriate incentive.

    I say yes. Do it.
  • Posted by michael on 11/11/2006 at 6:19 PM Author
    I'm just going to leave this open a few more days. Pretty certain, at this point, that we'll proceed but still want to hear more thoughts.

    This is really almost turn-key.

    Michael
  • Posted by michael on 11/14/2006 at 5:22 PM Author
    I really appreciate all comments.

    Based on them I think we'll move forward but at a measured pace. We could easily let it take over our business...just because of the needs out there...but that's not the goal. Really don't want to become a call center.


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