The Fatigue Factor
By the time the agents had spent 11 hours cold calling, all 134 had quit calling. Yet the data showed that it takes 12 hours of cold calling to generate a closed deal. In other words, the agents quit one hour short of reaching the 12-hour goal.
What does this mean for you and your business?
1. When is the best time of day to call?
If you are cold calling, the data suggests that you will achieve the best results if you call between 10 a.m. and 2 p.m. The least effective time to call is after 5 p.m. Here’s how the numbers stack up:
a. Calling between 10 a.m. and 2 p.m. converted at a rate that was 42 percent higher as compared to the rate between 8 a.m. and 10 a.m.
b. Calling between 10 a.m. and 2 p.m. converted at a rate that was almost 300 percent (three times) higher as compared to the conversion rate for calls made after 5 p.m.
A potential explanation for this result: “I find that many of my clients are rushing off to pick up their kids after school, so later in the day is not a good time for them.”
2. Readjust your mindset
A research study of 1,000-plus consumers from Best Agent Business showed that the one prospecting technique that everyone hated the most was receiving cold calls. Nevertheless, the conversion ratios from the Keller study show that 12 hours of cold calling consistently yields one listing. The issue is how to shift your mindset so that cold calling becomes a sustainable behavior.
In the book “High Probability Selling,” authors Jacques Werth and Nicholas Reuben suggest that you “search for the aces.” In other words, in any given year, only 14 percent of the people you reach will be buying or selling a home. That means at least 86 percent are not “high probability” leads for now. Instead, you’re searching for the 3 to 5 percent who are the “aces,” i.e., who are ready to transact now. The people who “reject” you are really not rejecting you, they’re simply not interested in doing a transaction at this moment in time.
3. Is it worth the price?
The Keller study concludes with this important point: “Spending three hours a day cold calling Monday through Friday can potentially yield $290,063 in total commissions in a year.”
Would you be willing to work 15 hours a week on the phone to make almost $300,000? The answer for most agents is “No.” For those who have the persistence and the discipline to make those calls, the win for their business can be substantial.
DISCLAIMER: Telephone numbers used in cold calling campaigns should be checked against the National Do Not Call Registry. Telemarketers and companies that sell phone numbers are required to search the registry at least once every 31 days and drop consumers who have registered from their call lists.