Once upon a time, at the dawn of the 20th century, in the bustling world of sales, the art of persuasion was taking shape.
Salespeople would go door-to-door with persistence, using their charm to connect with strangers and sell them products and services.
This approach laid the groundwork for the sales techniques that would eventually be applied in telemarketing. Telemarketing, or making sales calls, has become a cornerstone of the sales process. Today, it is the most effective channel for qualifying leads and the most direct method for setting appointments.
The History of Telemarketing 1.0
As the 1920s arrived, a remarkable invention by Alexander Graham Bell transformed the communication landscape: the telephone.
This revolutionary device quickly became a common fixture in households, opening new possibilities for salespeople.
Seizing the opportunity to broaden their commercial reach, salespeople began making telemarketing calls to potential clients without having met them in person.
This allowed them to cover more ground and increase their chances of closing deals. Thus began the era of the cold call.
In 1873—before Alexander Graham Bell invented the telephone—John Patterson, CEO of the National Cash Register Corporation, documented a sales strategy that would later be credited as the birth of the cold call. We refer to it here as "Cold Call 1.0," and its dominance lasted nearly 140 years.
In Cold Call 1.0, Patterson outlined four steps to close a sale:
- The Approach
- The Proposal
- The Demonstration
- Conclusion
His process addressed the most challenging objections and how to handle them... true gems, for example :
- If he objects, find out why, address his objections, and then prepare him to sign again…
- Instill in the salesperson the feeling that if they buy, it is due to their own judgment.
- Don’t scatter your efforts; focus all your strength on a single strong point. Rely on their judgment and lead them to recognize that what you’re saying is true.
- Then, simply hand them the pen and continue. This makes the signing process feel logical.
Did John Patterson's strategy work? Well, the National Cash Register Corporation (NCR, listed on the New York Stock Exchange) was acquired by AT&T in 1991 and today generates over $7 billion in annual revenue. We’d say that, without a doubt, Cold Call 1.0 was a resounding success! But, like all effective strategies, it needed to evolve...
Telemarketing : The Ultimate Weapon of the Ruthless Salesperson. It is only in the heat of the phone conversation that true sales professionals brave rejections and objections to close significant deals.
In the digital age, these salespeople have become even more effective. Gone are the days of impersonal cold calls! Today, sales prospecting relies on the powerful tools of technology, with CRM (Customer Relationship Management) systems at the forefront. These essential software solutions provide sales professionals with a 360° view of their clients. By centralizing all data and interactions related to prospects, CRMs enable salespeople to:
The Evolution: Cold Call 2.0 (Salesforce's $100 Million Strategy)
In 2011, Aaron Ross developed a telemarketing strategy that generated over $100 million in additional revenue for Salesforce. In his book *Predictable Revenue*, he referred to it as "Cold Call 2.0."
Cold Call 2.0 wasn't about the hard-hitting cold calls of the past; rather, it was a structured process that provided prospects with a clear point of reference. Here’s how it worked: when a prospect picked up the phone, they already knew who you were. This eliminated the time wasted leaving voicemails and saved salespeople hours of repetitive and demoralizing tasks each day. It was a brilliant strategy that helped Salesforce surpass its revenue goals!
The process developed by Ross was brilliant because it could scale infinitely... via email! Ultimately, the Cold Call 2.0 strategy was implemented not by phone, but through computer-based methods.
The "Predictable Revenue" strategy developed by Ross involved 5 simple steps.
- Define your Ideal Customer Profile (ICP): Identify the characteristics and criteria of customers who are most likely to purchase your product or service.
- Build Lists : Build targeted lists of prospects that match your Ideal Customer Profile.
- Run email campaigns : Send personalized and relevant emails to these prospects to engage them and convert them into potential clients. Each email should be designed to provide value to the recipient and strengthen the business relationship.
- Sell the Dream : Communicate the value of your product or service convincingly by emphasizing the benefits and outcomes it provides. Your pitch should be compelling enough to motivate the prospect to take action and make a purchase.
- Develop a Sales System and Pass It On : Implement a Structured and Scalable Sales Process** to effectively and consistently convert prospects into clients.
However, it turns out that the seemingly straightforward strategy was not as simple to implement as it was to define.
The issue with "Cold Call 2.0"
How can a strategy that generated $100 million in revenue be problematic ?
Well, for most business owners, it was an unattainable dream. Why? Because most small and medium-sized enterprises lack the team, marketing tools, or the budget that Salesforce has to make the system work. With access to all of Salesforce’s resources and engineers, Ross was able to build a machine for a giant, not for the 77 million businesses and salespeople who bought the book hoping for the same results.
The "Cold Call 2.0" telemarketing strategy requires a significant investment in CRM software, customer data, and well-structured calling campaigns. Without these resources, small businesses struggle to establish a strong pitch and gather the necessary information for a successful sale. Additionally, prospecting becomes a challenge when it comes to making multiple calls without an efficient system to manage contacts and track leads.
The Solution: Introducing Lead Gen 3.0
In 2018, we decided to focus on building a system that incorporated all the strengths of Cold Call 2.0, while making it simpler and more affordable. Although aiming for a $100 million revenue stream for our clients might be ambitious, Lead Gen 3.0 has enabled us to increase our clients' revenues by over €20,000 per month for some, and we have seen others triple their annual sales targets—in just one year.
At Leads Provider, a lead is neither a prospect nor even an appointment. Only phone or face-to-face meetings advance leads and turn them into productive sales encounters.
This process is a synergy of growth, marketing automation, and telemarketing. These three tools are highly effective for generating highly qualified B2B appointments. Through the strategic use of a well-designed script and the employment of effective communication tools, we guide the prospect through an optimized purchasing journey.
Finally, the phone represents the culmination of this process. It provides tangible value to leads by qualifying prospects and bringing them closer to making a purchase.
With Lead Gen 3.0, we have optimized every step of the sales process to ensure that each call turns into a productive sales opportunity.