While cold calling may have a negative image, it can significantly benefit your business when executed correctly. By learning the best practices and tricks, you can effectively incorporate cold calling into your customer engagement strategy, fostering personal connections with potential clients.
Explore: What is Cold Calling
Cold-calling is the two scariest words for any sales representative in the field. Even for the most enthralling souls, this ancient practice could trigger nightmares of failure, rejection and failure.
Is that the total truth? Most businesses still employ cold-calling strategies, so reaching out to cold leads must be beneficial. It’s hard to believe in the age filled with open data and emotional sales, but cold-calling is still a crucial part of business.
In this article, we’ll delve into the fundamentals of cold-calling and how you can adapt these techniques to meet your specific requirements in the dynamic present market.
Definition of Cold Calling
The term “cold calling” describes a method of sales solicitation by businesses to customers who haven’t interacted with the person making the call. It is typically used to describe phone-based interactions (hence calling cold calling); however, technically, it also encompasses door-to-door in-person conversations.
Although the majority of companies that employ cold calling today don’t have to adhere to the old definition, the trend is for businesses to utilize the warm call or to call from an inventory of potential customers gathered through lead collection. With unidentified numbers becoming more frequently associated with fraud, the trend is for businesses to utilize the warm call or to call from an inventory of potential customers gathered through lead collection.
This doesn’t mean that the prospect is anticipating a call; however, it could indicate more investigation on the part of the person calling and a previous relationship (via the referral method, LinkedIn, etc. ) as well as a higher chance that the person calling isn’t likely to leave the phone immediately.
Of course, this raises the question: is cold call dead? It is not. It simply requires the correct method.
Tips for Effective Cold Calling
However you feel about cold calls, it’s an integral aspect of customer acquisition, particularly for starting companies. Though cold calling is statistically less successful than other sales tactics–even the most skilled cold callers only boast a 2 per cent success rate, that isn’t a reason not to find ways to enhance your cold-calling techniques. Let’s explore some strategies to increase your cold calls without putting too much pressure on your sales representatives.
1. Optimal Timing for Cold Calling
Strategic timing is key when it comes to cold-calling. According to a recent study, Wednesdays and Thursdays are the best days to call prospects for the cold calling. This is because the beginning of the week is often hectic, and Fridays are typically avoided for work-related tasks. Catching people in the middle of the week when they are most relaxed and amiable can significantly increase your chances of success.
Let’s take a look at the time. It’s not beneficial to call prospects during a 9-5 shift. If you contact them at lunchtime or during high-frequency afternoon meeting times, chances are you won’t have any success. It is better to call between 10 am and 11 morning and 4 pm-5 at night—the golden hours. Between 10 and 11, the people are settling in from their commutes and thinking about their lunchtime wrap-ups. Between 4-5, they’re ready to leave and avoid work-related tasks, so they’re prepared to make the phone.
What will you do during the remaining time? Some of your clients or prospects are cold-call recipients; therefore, you need to shift your sales team’s attention. If you’ve set days or time slots for cold calls, your sales team receives an end to the cycle of rejection and can concentrate on creating relationships with more positive prospects.
2. Effective Cold Calling Techniques
A skilled cold-caller will eventually create their brand of cold-calling. However, there are some strategies we’d recommend you use while trying to establish your style:
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Embrace Rejection
The entire sales industry is filled with rejection, and that’s fine. There are many reasons why not every business or individual will want your product, and there are many reasons to consider. Many sales representatives get stuck trying to identify the most likely person on their list because they’re driven to make a sale. This is fine for more extensive sales, but when making cold calls, work the effort to go through each potential customer. The rate of rejection will rise, as will the success rate. If you’re bursting with enthusiasm for sales, you could use the opportunity to use a CRM dialer to make your calls more efficient.
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Success Requires Endurance, Not Speed
People require time to make decisions, particularly in a competitive market with access to more options and information. The Chances of selling to an individual prospect in the first phone call aren’t to your advantage, but that’s OK. Instead of making a sale, concentrate on getting your prospect to the next step, the funnel. You’ve made it. Can you schedule an appointment or follow up on an initial cold call?
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Minimize Your Losses
If you’ve been practising, you can determine quickly if the prospect is exciting and worth a chat. If you are confident that your conversation doesn’t have any direction, stop the conversation. Conversations with someone you’re sure is dead aren’t just an unnecessary waste of time, but it’s also a waste of your time. Also, it’s not helping your mood. It’s OK to splash in any pool, but if it is freezing cold, step back and get forward.
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Follow Instructions: Be Open but Cautious
Your script is there to serve a purpose. It’s not a written document. Each prospect is unique and responds differently to different levels of enthusiasm, vocabulary, and directness. One prospect may be enthusiastic and ask lots of questions, while another might have limited time and only require bullet points. Both of them are viable customers; however, you must be able to adjust your approach to keep them entertained.
3. Strategies to call cold
Let’s now examine a few ways to do this. These are the actions you should carry out for every cold call, regardless of how you conduct yourself:
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Fundamental Research
There’s no need for a complete customer profile. However, you should be aware of the essential information. Look up your potential clients on social media and review the internal communications to determine how they interact with your business. If you’re not finding any answers, then take a look at similar prospects and the issues they face. You should enter this conversation with something more than the product you provide.
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Follow-Up Strategies
A majority (80%) of all sales occur after the fifth contact occurs after the fifth attempt. Even if the prospect didn’t subscribe or schedule an appointment, send them a follow-up email regardless. You never know what may transpire.
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Maintain Detailed Notes
Who did you call? When did you reach them? Did they answer? Have you left a voice message? Did you follow up with an email? Did you get any concrete results after the phone call or email? These metrics will help you stay in order and on the right track. It’s impossible to recall this information for hundreds of potential customers and clients, so make a note of them. Better yet, put the details into the CRM.
4. Utilize These Cold-Calling Examples
Strategies and methods are helpful; however, let’s look at the power of cold calls in action. Continue reading as we guide you through cold telephone and email examples showing you how experts do it.
An example of a cold phone
Here’s a great script sample:
“Hey there! ([SALES REP NAME]) here from [COMPANY NAME here.
I’m contacting you today because your company is focused on providing honest and superior customer service. At [COMPANY NAME[COMPANY NAME]], we’re also all about it. We’re backed by fantastic customers like [CUSTOMER1and] as well as [INSERT POSTAL MEDIA PROOF[INSERT SOCIAL MEDIA PROOF].
Most of these companies have [RESULTS-based results dependent on the prospect’s wants and needs, like increased revenue, cost savings, etc.[] within [TIME] of implementing us.
I’d like to speak with you to discuss your specific requirements and how your current resources look. I also have some suggestions for you to get [RESULT]. Call me back at [NUMBER] when you feel it’s your most convenient time, and feel free to respond to the email I’ll be following up with. Thanks!”
This script makes use of the importance of a few key points.
- It describes the way that similar businesses profited from the invention.
- This indicates that the person calling knows basic facts about the recipient and isn’t calling unthinkingly.
- It doesn’t sell it; instead, it suggests a time to meet and discuss it.
- It reassures potential customers that they’ll receive an email in the future and increases the likelihood that they will delete it.
Naturally, this script will only work for some cold-calling scenarios. It’s not a script that exists.
Example of cold email
Sometimes, you send an email but need the prospect to call. Cold emails are certainly more complex than cold phone calls. Not only do you lose the personal touch of voice communications, but your message will likely be tossed into the spam folder or discarded before the recipient even notices the good intentions you have for them.
In this regard, your cold mailer must be perfect before someone opens it. This is one of our top examples:
“Hi [NAME OF PROSPECT],
I saw the name on SourceI and wanted to know if you could assist me. I have a suggestion [INSERT INDUSTRY PROBLEM or PAIN POINT] from which I believe [COMPANY NAME] would greatly benefit. However, I’m having difficulty connecting.
What is the best one to speak about the opportunity with? And how can I contact them?
I am grateful for the time you take.
[INSERT EMAIL SIGNATURE]”
This is a great cold email with several benefits:
- It informs the prospective customer of the company’s reason for contacting them. This instantly makes the prospect feel more comfortable, as it shows that their information was not given to anyone else.
- It provides a clear option for potential customers that doesn’t require cash exchange, which is an easy CTA.
- It’s short. Nobody wants to go through a long email sent by someone else. They won’t. Particularly a sales email. Simple, straight to the point and with a prominent CTA. This is how you should take it.
Like cold calls, this template may not fit your prospect’s circumstances best.
Statistics on cold calling
In sales, there’s no way to hide from the facts. Cold calling is a controversial selling topic, and because of this, there are scores of research studies about the effectiveness of cold calling, when to call, how people react to it and whether you should be doing it in the first place. Before diving into the success rate numbers, let’s examine some pros and cons.
Customers & Cold Calling
Despite the negative connotations it has, cold calling isn’t generally viewed as unpopular by customers:
- Most potential clients in specific sectors have been to an event or scheduled an appointment based on a cold email or phone call.
- Eighty per cent of buyers admit to meeting with sales representatives who contact them through cold phone calls. (*Note buyers, not prospects..)
- 57% of C-level buyers, VPs, and buyers prefer cold-calling for initial communication (compared to 50% of directors and 47% of managers).
- 70% of customers have received phone calls from new service providers within the last 12 months.
Cold calls are more successful than what the ordinary person thinks they are for. However, even those who prefer cold calling aren’t always thrilled by the quality of their calls, and the results can hurt sales. In reality, 82% of B2B decision-makers believe that sales reps who make cold calls aren’t prepared. Making a prospect respond to the phone is just half the battle. It’s getting a sale to move forward, which is the most important thing.
Read Also: What is cold calling? Meaning, tips, examples, and techniques
Rates of Success For Cold Calling
Let’s take a look at the more challenging numbers for cold-calling success rates:
- It takes an average of eight calls to connect with an everyday prospective customer because of a mix of callers who don’t answer or sales representatives calling at inconvenient times.
- Just 28 % of calls are responded to or even responded to. Fifty-five per cent of calls are not answered, and 17 per cent are not working numbers. The proportion of non-working numbers rises when companies just starting to use purchased lists.
- Averaging 1.5 hours of cold-calling each day for 5 days could get one referral or appointment, which is considered a positive outcome from cold calling.
- The majority of calls go to voicemails. Sales reps aren’t equipped to leave an effective voicemail message.The average customer isn’t likely to listen to an agent’s voicemail message for more than 30 seconds, and the majority of sales voicemails are longer than 30 seconds.
These numbers, though depressing, aren’t surprising. Cold calling can take a significant amount of effort and time, and it may not be worth the effort. It just depends on whether or not the value of the investment is greater than the expense of labour.
However, we’ve found that buyers are OK with cold calls. Therefore, if your cold-calling campaigns have proven unsuccessful, the issue isn’t in the call itself but in the effectiveness of the calls.
Is Cold Calling Still Effective?
Yes, cold-calling isn’t over. But it’s the 21st century, and you shouldn’t use it as the primary tool to prospect. To make use of it efficiently, it is necessary to take the modern world into account. Cold calling isn’t gone, but it’s moving into a new age. Utilizing the advice in the article below, you will be able to redefine selling cold calls for your team members in a manner that reenergizes the first sections in your pipeline for sales.
Cold-calling strategies can lead to long-term results for your company when they accomplish either (or two!) aspects. First, cold calling tells prospective customers of your service or product and will solve their issues. If leads are completely cold, simply making your name visible is a good investment. Additionally, cold calls can introduce potential customers to the following step of the pipeline. Do not focus on completing the sale through a cold phone; concentrate on building rapport with your customer.
Make your cold calling more successful by implementing a powerful and effective CRM.
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