Monday, July 8, 2013

New Standards in Cold Call Prospecting

woman on telephone
Make better cold calls in commercial real estate brokerage.

In commercial real estate brokerage you really must make the cold calls every day.  It is a critical part of the prospecting process.  That being said, the system or process requires real focus and practice.

So many brokers and agents give up too soon when they are prospecting on the telephone.  They expect results immediately and when they don’t see them they stop making the calls.  Whilst optimism is a good thing when you start making the calls, the conversion rates of cold calls to meetings is something to be understood.

Here are some facts for you:

  • Most people you talk to today will not have an immediate need or an interest in property.   What you should do here is find out if they could require help in the future.  If that is the case, then you simply put them in the database and commence the ongoing contact of a call or meeting once every 90 days.  The 90 day cycle is really important as it helps them remember you as a broker or agent of relevance.
  • It has been proven by many salespeople over time that it takes about 2 or 3 calls to get to the right person and or to get that person to move to a meeting.   This industry is very much oriented towards personal contact and relationships.  Your database must allow you to keep up the call contact in a logical and relevant way.

So let’s set some rules and some new standards to help you convert more prospects from your calling processes.  Here are some ideas to get you started:

  1. Personally make the calls at the same time each day.  Setting a habit to the process is really important.  You need about 3 hours to make the telephone calls.  
  2. In most cases the best time to make the calls is in the morning first thing when nothing else can take over your day.  If however you do have something really important to do, then move your ‘call window’ to later in the day but do not drop the process.
  3. Split your call time 50/50 between established contacts and new contacts.  That means that half of your allocated time will be spent on each.  The process of new contacts is really important and will fill your ‘pipeline’ of new business over time.
  4. Track your numbers between outbound calls, meetings arranged, and listings converted.  Initially you should be able to create at least one meeting per day with a new person.  That will come from 40 outbound calls over 2 or 3 hours.
  5. Practice your call dialogue so it is natural and conversational.

The rules are not hard; they are just helpful if you want more from your property market and prospecting efforts.  Start the process and soon the results will come in.

If you want more tips on cold calling, join our Newsletter on this website and we will give you lots of ideas.