The Death of Personal Marketing ?

Originally Posted by pmccord Do I think a more skilled salesperson could have taken the orphan files she is working and closed more business than she has? I would certainly expect so--but we really wouldn't know without keeping accurate records. And the common "knowledge" in her office was that working the orphan files was a waste of time, just for the desperate. That common knowledge proved costly for many of her co-workers because they could have done the same thing she is doing--except everyone knew it was a waste of time.

The same could be said for "Cold Calling" and other forms of self-marketing.

Again, I would expect a skilled salesperson to do better, that doesn't mean that it's reality. Without the data one cannot know-- all one can do is suspect.

Buy even beyond that, one has to define what is efficent and what isn't. Our survey indicated a maximum 2% close rate on total calls with an expected close rate of less then 1%. Some other studies have determined a maximum rate around 1 1/2%. If a skilled cold call person is 5 times more effective than the aveage, they have a maximum close rate of 10%, with an exected close rate of about 7 to 8%. Is that efficient? Obviously, the individual salesperson would have to determine that for themselves. But without the data, you don't know how much more effective--if any--a highly skilled person is over an average cold caller. All you can do is suspect they are to some degree. And just because the highly skilled salesperson makes more money isn't proof--without the data you don't know if the real difference is in skill or that the "skilled" person simply made more calls, thus making more money.

And as for common knowledge, the "common knowledge" is that cold calling is the way to go. Its preached by most companies, by most sales managers, and defended as gospel by many a salesperson. Its cheap in terms of money, very expensive in terms of time; its "easy" in the sense anyone can do it (don't take that to mean anyone can be good at it, just that anyone with a phone can cold call); and it costs the company little other than the salesperson's time and one of the cheapest things they have to spend, especially if the salesperson is commission only, is the salesperson's time.

Originally Posted by pmccord Buy even beyond that, one has to define what is efficent and what isn't. Our survey indicated a maximum 2% close rate on total calls with an expected close rate of less then 1%. Some other studies have determined a maximum rate around 1 1/2%. If a skilled cold call person is 5 times more effective than the aveage, they have a maximum close rate of 10%, with an exected close rate of about 7 to 8%. Is that efficient? Obviously, the individual salesperson would have to determine that for themselves. But without the data, you don't know how much more effective--if any--a highly skilled person is over an average cold caller. All you can do is suspect they are to some degree. And just because the highly skilled salesperson makes more money isn't proof--without the data you don't know if the real difference is in skill or that the "skilled" person simply made more calls, thus making more money.

You are right, without hard numbers all I can do is suspect.

Scenario A

• Highly Skilled: Calls from a list of highly targeted prospects that was compiled based on an ideal customer profile or other specific data.

• Unskilled: Calls on anyone he or she thinks or feels might be a good prospect.

• Conclusion: I suspect the Highly Skilled approach will outperform the Unskilled approach.

Scenario B

• Highly Skilled: Qualifies/disqualifies prospects against minimum requirements - authority, budget, timeline, want ... before investing further resources.

• Unskilled: Spends resources - time, effort, money ... in pursuit of unqualified prospects.

• Conclusion: I suspect the Highly Skilled approach will outperform the Unskilled approach.

I agree with your assessments Paul. Sales is changing, and those that don't change with it are going to start to struggle. I believe it is hitting big cities first.

I have been using some self marketing techniques, and it seems to be giving a different impression to my customer so far. I am an expert in what I do, but showing the client without saying a thing about it is the challenge. Self promoting can be uncomfortable, so it may be something you will have to grow into.

I'm starting to feel sure enough in my own approach, that I am considering listing all of my competitors on my site. Won't that blow them away?

I agree that when I have time, I can usually properly research a product well enough now that a sales person is much less necessary than ever before.

Originally Posted by AZBroker Agreed. The skill level of many salespeople will need to increase if they want to be competitive.

Ditto.

Okay this thread is entirely too long.