- Cold calling is an older marketing tactic, and its goal is to generate intent.
- This form of marketing is called “cold” because the customer has not agreed to the communication beforehand or expressed an interest in the product or service.
- Skepticism toward calling is growing because of advancements in marketing technologies, but some experts believe it still has an important role to play.
Cold call statistics from Crunchbase show that 69% of prospects accept cold calls. According to Rain Group, 49% of buyers prefer it when their first point of contact is a cold call, and 82% take meetings from a cold call.
Cold calling is more effective in some industries than others. It is used as part of the sales strategy in some B2C and B2B companies. Notably, it is popular in the banking, insurance, travel, and hospitality industries.
Consider the pros and cons of cold calling if you are looking for new ways to generate intent in potential customer prospects.
Pros of Cold Calling
1. Make customers aware of your business
Your website may never be discovered by a company not actively looking for your range of products or services. Cold calling allows you to contact new customers that typically fit your customer profile. It offers your business an opportunity to inform them about what you are offering.
2. Reach people anywhere
Calls can be made to prospective clients anywhere without needing to send out a salesperson. Sales teams can make a phone call from anywhere, allowing them to work independently. There are no extra costs involved other than the price of a phone call.
3. Improving marketing skills
Besides being an added marketing opportunity, cold calling allows your sales reps to improve their marketing skills. Sales reps can improve their sales pitch, especially if they are new. Valuable insight from the instant feedback of the cold call can enhance their pitch on the spot.
4. Gain valuable insight
Other forms of marketing (email and social media) can be ignored, but a cold call will be answered. This allows your salesperson to connect with the potential customer and find out valuable insights. Additionally, the call may lead to a connection that can turn into a business relationship.
Cons of Cold Calling
1. It can be intrusive and alienating
For most corporate clients, a cold call can be annoying and intrusive during their busy schedules. Some may ignore your call, sending allowing it to go to voicemail. Also, if you catch a prospective client at a bad time, they may cut you off from making your sales pitch.
The chances are that some customers may be permanently alienated.
2. Results can be inconsistent
Cold calling is just another lead generation method, and sales reps will inevitably run into many rejections. It is a long process to use if you want to reach out to corporate clients. Even though figures show a willingness to listen, it can be difficult to predict sales generated by cold calling.
How to succeed at cold calling?
There are a few common mistakes that can be avoided when cold calling:
- Prospects are more inclined to listen to someone with domain experience because scammers have made them skeptical about sales calls. Building credibility and trust from the beginning of the call is essential. Sales reps can do this by touching on their industry experience, where they have served, and their understanding of the potential customer’s pain points.
- Mechanical and monotonous conversations that remind the listener of a robot or someone reading a script are best avoided. The sales rep must be well versed, must speak genuinely while also taking time to listen.
- Timing is essential. Before making calls, sales reps need to consider the personal schedule and behavior of their corporate clients. For example, early on a Monday morning is inconvenient for most people.
- Potential customer research is vital before making a cold call. The tools are available to help you narrow down the group of people to contact. This allows your sales reps to reach those prospects most likely to express an interest in your business.
- Finally, study your calls and review your tactics. Both the calls with sales conversions and those that weren’t successful are valuable. They allow you to see what you are doing right, which tactics to tweak, and which to ditch.
Cold calling may not be suitable for all businesses. However, even though it presents challenges as a marketing method, it may help your business connect with corporate clients that would otherwise be hard to reach.