Article 2 from Registered Representative
The following article was reprinted from an issue of Registered Representative.
A Blueprint For Warming Up Cold Leads
The Pitfalls of Raw Lists
Successful cold callers know that there are different types of lists, and they recognize that some run much colder than others. Furthermore, they understand that certain lists possess specific characteristics that make prospects more responsive to outreach. Unfortunately, a frustrating scenario plays out over and over at brokerage houses across the country. A manager hands a rookie rep a six-inch-high computer printout labeled “wealthy investors” and promises, “There’s gold to be mined in that list.” Consequently, the rookie calls steadily, dialing number after number, only to face hang-ups nine out of ten times. By the end of the day, this brutal experience understandably leaves him ready to quit the business.
Fortunately, prospecting for new business with cold-lead lists doesn’t have to be that gruesome. Instead, by employing some simple techniques, you can warm up even the chilliest list—ultimately making people actually eager to speak to you.
Choosing the Right List
Aligning Lists with Your Objectives
The most important factor to consider when choosing a prospect list is your own sales objective. For example, if you’re trying to open retirement accounts, you should never target a list of commodity investors. Likewise, you probably won’t do well if you talk to retirees about opening speculative options accounts. Using the wrong list invariably annoys prospects and almost invites them to hang up on you. Therefore, your first step requires you to define exactly what kind of product or service you intend to offer.
Broad vs. Targeted Outreach
Depending on your goal, you must choose the appropriate list depth. If you simply want to develop new clients, you should use a broad list. Conversely, if you have a specific product in mind, you must select a more targeted list. While this may sound tricky, the industry has turned list management into a precise art; as a result, you can easily find a specialized list to cover virtually any target product.
Sourcing Your Leads
To acquire these names, most professionals rely on list brokers. These services sell demographically precise lists of names—either on 3 x 5 cards or as digital files that you can load directly into a prospecting program. Typically, these names cost between 4 cents and 12 cents each, depending heavily on the quality and the total quantity you purchase.
To help you get started, here are some of the better-known list brokers in the industry:
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InvestorLeads.com
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Diehl Marketing Service
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Bill Nichols
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RFC Marketing
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Dave Zussman
Keys to Selecting Quality Lists
Qualifying Your Data
To achieve the best results, you must always “qualify” your lists before you buy them. In other words, you need to define the exact quality of the names on that list before investing your budget. To do this effectively, you should evaluate your options using six primary criteria:
The 6 Primary Criteria for High-Quality Lists
1. Type of Name
List brokers usually divide data into two major categories based on the individuals you will target: business names and consumer names. Business lists include professional titles, workplace addresses, and corporate phone numbers. Although many salespeople instinctively opt for business contacts, experience shows that you will generally secure better results if you call consumer names instead.
2. Net Worth
Always ask your list provider for the approximate net worth of the individuals on the list. Keep in mind, however, that providers calculate these figures as averages rather than absolute guarantees. Specifically, when you prospect for affluent clients, you should select a list that maintains a minimum average net worth between $300,000 and $500,000.
3. Recency (Newness)
According to the Census Bureau, the average person moves every two years. Consequently, you hold a very slim chance of working an active list if the data is more than two years old. Therefore, you must always verify the exact age of the names before purchasing.
4. Reachability
This metric defines the exact percentage of people on your list who actually maintain listed, working telephone numbers. As a rule of thumb, most consumer lists carry about a 70% reachability rate. On the other hand, philanthropic lists—such as those featuring political contributors or environmental donors—often drop to a dismal reachability rate of just 10% to 20%.
5. Deliverability
While similar to recency, deliverability specifically verifies the date of the absolute latest contact with the named individual. Naturally, fresh names yield the highest conversion rates because other sales teams have not yet hammered them with calls.
6. Responsiveness
Without question, responsiveness represents your most critical benchmark. Ultimately, you will find far more success if you target a list of people who have a proven track record of responding to products or services similar to yours. For this reason, lists of known OTC stock investors or commodity buyers represent your absolute best choices for prospecting.
To contact our main office:
voice: 561-208-6060
fax: 877-315-4146
e-mail: info @ investor leads.com (please remove the extra spaces)
1438 W Lantana Rd Ste 275
Lantana, FL 33462
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