Why “call often” is like “one size fits all” — Not the best fit for any customer
We’ve heard phrases like “call often,” “call everybody,” and “call until you get an order” on the sales floor.
But we should evaluate whether this approach produces the best ROI, particularly when cost per call is high. This is a key issue with sales productivity.
Outbound calling has direct costs of the rep’s time, mileage and/or telecom utility costs, and indirect overhead costs. Plus, the opportunity cost of not calling a customer who would have ordered instead. Let’s expand on the last component and explore its role in determining sales productivity.
Sales 2.0 is about nurturing and facilitating the buying cycle, even in a transactional sales model. Your B2B customer is buying what they need, driven by the demand for their products and services. Not from their benevolence to your salesperson, to borrow from Adam Smith the pioneering economist.
In other words, a company that is larger, expanding faster, and experiencing increased end-consumer demand is simply going to buy more often. So when we apply an average – which is what a “call often” mandate implies – we aren’t putting the customer’s buying cycle first. This doesn’t respect the customer’s buying cycle.
Let’s see an example of how this can adversely affect your sales. Assuming an average two-month buying cycle, take a look at this contact pattern:
Clearly, the fallacy of “one size fits all” becomes immediately obvious. “One size fits all” is usually not a good fit, for anything in life.
Further, overlay the fact that even for a single customer, the buying cycle may change from one order to the next, such as when the customer:
- Placed a one-time sizable order because of year-end, or seasonal effect
- Bought a number of items but now needs to follow-up with related products
- Buys product categories with different replenishment rates
- Other factors (marketing offers) or lower-than-anticipated sales
Sales organizations that have the ability to read each customer’s unique buying cycle, and make contact at the most opportune time, are typically rewarded with higher probability of a sale, higher add-on sales, penetration in more categories and higher margin sales. This is not only valuable to the seller, but provides better customer service and increased customer loyalty.
And, let’s not forget the decreased fatigue for both customer and sales person from avoiding undesired contact. It’s the proverbial “strike while the iron is hot,” which after all, only makes sense.
So instead of “call often,” think “call at the right time.”
Anticipating each customer’s buying cycle requires a good read of past data, trending based on current events, relative buying behavior, and sales and marketing stimulus. Tools like predictive modeling can make this more accurate. Segmenting customers based on their individual buying cycle and devising proper sales contact frequency is a start. We would be even better served if all sales and marketing initiatives revolved around the customer’s buying cycle.
President & CEO at Valgen
Seasoned analytics executive and entrepreneur with a track record of producing significant and sustained revenue gains for Sales teams in Transportation, Technology, Financial and transactional businesses.