Many online sales gurus claim that “cold calling” doesn’t work. They often show little data to prove this claim or have a product they claim is more effective than “cold calling.” In general, opponents of cold calling have a strong bias against it that doesn’t reflect reality. Cold outreach can produce tremendous results but requires a consistent strategy to work. A good sales strategy requires diversification to produce the best results. But, what is sales diversification anyway?
Sales diversification means not relying on only one strategy or channel to produce sales. The effectiveness of channels like cold calling, referrals, and emails varies overtime. A diversified sales strategy includes a mix of different tactics to reduce the risk of a sales slump or failure to hit quota. Sales organizations typically rely on either outbound or inbound sales strategies and ignore the other.
Stock diversification means building a portfolio that doesn’t put all your eggs in one basket to reduce your overall risk. A similar approach applies when building a diversified sales strategy. Often sales teams invest heavily in a specific channel like email at the expense of others. This leads to a poorly diversified strategy and puts you at risk if your tool stops working. Let’s take a look at sales stocks and bonds.
Some sales strategies are inherently more risky than others and more prone to fluctuations. Based on the current sales landscape I’d call new channels such as social media and podcasting “sales stocks.” These channels are new and prone to riskier than other other channels. One of the major problems with these channels is they’re simply unpredictable. For example, we don’t know what the results of cold outreach will be. As a result, we can’t consistently rely on these channels.
Sales Bonds are sales strategies that produce consistent results for your company. We need to view these channels as reliable sources of revenue. An email list is one example of a sales bond since a well-maintained email list helps keep clients engaged overtime. Another strategy we can employ here is the creation of a referral strategy. These strategies don’t have the same risk as other channels but are important parts of a diversified sales funnel.
Case for Cold Outreach
“Don’t put all your eggs in one basket.” This statement sums up the need for cold outreach, which comes down to the simple idea of diversification. Companies spend a lot of money to manage risk yet often fail to manage risk in their sales process. Sales leaders can make revenue generation predictable with sales strategy diversification.
Cold Outreach 3.0
There are several great resources for learning more about cold outreach online. One of my favorites is the Cold Outreach 3.0 group(Disclaimer: I’m a member) founded by fellow digital nomad Alexander Gray. During a recent conversation we put the following Cold Outreach 3.0 framework together:
- Manual, careful sourcing of high-intent prospects•
- Multi-channel outreach to gauge interest and generate meetings
- Utilizing website visitor analytics tools to get insights into customer journey
- Simple automation that feels personal
- The use of video emails to engage or re-engage prospects
- The use of content marketing to build rapport and stay top of mind
- Clear benchmarking around qualified pipeline and closed deals
- Constant testing/evolution as a part of the process
Alexander’s team build great tools that help teams implement Cold Outreach 3.0 at Growth Boosters.