There are two types of companies in your total addressable market (TAM) those "in market" and looking for your products and services. This is estimated to be about 4% of the market at any one time. And those that are not in market.
So what about the other 96%?
One of the problems with sales and marketing today is that sales and marketing is focused on that 4% "in market". Which means all your competition are there too, which means that often decisions are based on price. You can be on short lists of 3 or 5, up against the same old companies. And while I know you have amazing differentials, the average buyer cannot tell your product from the competition.
How do you break out of this and work with the 96%, which means you won't have as much competition, you will be able to control the sale from the start of the process and maintain your margins?
But what about cold outreach?
Here at DLA Ignite we are working with our partner Supero and their team, Alex, Jensen and Jordan. They used to be cold callers and we have re-trained them in social selling, so what of the results?
Results for cold calling
When they were cold calling they could get 2 meetings a week.
Now with any cold outreach your job is not just to get through to an executive, but also convert that into a next action. With cold calling, of the 2 meetings a week they were able to get, they converted 0.3% to a next action.
Results for social selling
They are getting meetings with 7.2 people of the 100 they contact and then converting 39.5% to a next action.
This is exponential growth!
This is also punching outside the 4% of businesses that are currently "in market", which as I mention above means you are setting your agenda and will be able to maintain margins.
In other words, this business will be less competitive, so you will win more and you will win it at a higher price.
Please note, before I get the comments, there is
- No spam and no automation!
- This is NOT connect and pitch!
The improvement from a classic cold calling response of 1% to 7.2% is impressive
But to go from 1% to almost 40% for a next action - That's EXPONENTIAL GROWTH
Just think about scaling that across your organisation?
If Alex's team are achieving an average of 10 new conversations each week and a 39% conversion to a next step... if you have a team of 50 sales people that's 500 conversations per week (26,000 per year) with 185 follow-up calls per week. Forever!
With a win rate of 1 in 3.
With an average deal size of $100,000.
That's an additional ...... you do the maths.
Now is the time you need to use social selling for cold outreach!
Related: With Win Rates at an All Time Low, and Why Your Board Will Expect You To Have a Plan