Ms. Gail M. Chrystal, president of her own direct-marketing group in Arlington Heights,
IL, says that companies can avoid cold calls and still make profits. "The trick
is not to find out who is interested, but to find out who isn't. Eliminate people
who would be a total waste of time," states Chrystal.
A comprehensive lead-generation program will use the same basic target group of
prospects as a cold call list, but the unlikely prospects are already weeded out.
"If a salesperson can only make six calls during a day," Chrystal remarks, "why
shouldn't they be to the most qualified prospects?" Best of all, the technique can
be used to sell everything from copy machines to Lincoln Continentals and can work
for any company with a sales force.
Chrystal states, "A lead must be followed up quickly, in 24 to 48 hours, to be most
effective." Incentive programs can motivate a sales force to follow up on leads,
and remembering that turnover in a position may provide a prospect that is ready
to buy can also increase the number of contacts salespeople make.
The steps to developing a well-planned, successful lead-generation program include:
- Decide on the product to be promoted and determine
its unique selling points, cost differential and benefits to purchasers.
- Define the target audience for the product.
- Develop a program using as many of the following elements
as your budget allows: A space advertising and/or direct-mail lead-generation campaign;
a comprehensive sales follow-up program including mail, telemarketing and personal
contact; and a strong incentive program to motivate the sales force to follow up
on leads.
- Pinpoint the best list and media available for the
target audience.
- Set up a call report program to record results of follow-ups
on leads.
- Be creative.
"I've even recommended sending videotapes to prospects in the case of high-ticket
items," says Chrystal. Some suggested techniques to use in developing the creative
approach are:
- Personalization--Obviously the more personalized the
mailing, the better. If you're going after the top executive, the campaign must
be extremely compelling, have an expensive look and be very personalized.
- Toys--Sweepstakes houses use this technique often with
pieces that have to be punched out, stuck on, peeled off, etc. These "toys" require
a recipient to go through the entire package.
- Premiums--A free offer nets good response, but a less-qualified
response. Companies should never offer their own products as a premium, unless it
is an attempt at a cross-sell.
Another key ingredient for success in direct mailing is a compelling cover letter.
In general, the fewer pieces in a mailing, the longer the letter should be. Recipients
tend to think a longer letter has an important message about a product, notes Chrystal.
Targeting the mailing or selecting lists is also critical. "People always think
they have to send their package to the company president. They discount the influence
the actual product user can have," Chrystal emphasizes. "A mailing to secretaries
about typewriters is more effective than a mailing to the person who writes the
check. Multiple mailings appealing to the motivation of several different titles
with purchasing influence are the most effective methods of targeting," she concludes.
When a lead-generation program fails, it is usually due to a lack of sales follow-up:
- Many companies obtain lead cards weeks or months after
the prospects have responded to the initial probe.
- The sales force lacks motivation because they doubt
that the generated leads really are qualified.
- There is only one contact with the prospect.
While lead-generation programs are proven, they often meet with resistance. "I never
read junk mail" is a common objection. "My answer to that," says Chrystal, "is that
direct marketers are like accountants. We're always looking at the bottom line.
Unlike other forms of promotion, you know exactly how much money you make from any
given ad, mailing or lead-in direct response. This is an $87 billion business--it
works!"
With all these suggestions, your sales force should be in for some toasty profits,
instead of cold feet.