If you own a business and are looking for new ways to generate leads, chances are that you have looked into cold calling. Many businesses leverage cold calling in order to make contact with new clients and generate sales. Although it’s an effective method, with 82% of buyers saying they have accepted sales meetings after receiving a cold call (source), there are still businesses that fail to recognize its value.
What is cold calling?
Cold calling is a sales technique through which businesses directly connect with customers. This is most commonly done through phone calls, but also includes house visits and in-person sales pitches.
For a call to be considered a cold call, it has to take place between a business representative and a potential customer who has never interacted with the company before. Its purpose is to enable sales reps to make connections with new customers from their target market, which will eventually translate into sales.
The difference between cold calling and warm calling
The difference between cold calling and warm calling is that cold callers reach out to potential customers who have never interacted with the company before, whereas warm callers reach out to people who have already expressed interest in the company.
Although warm callers have an easier job, cold callers are more beneficial to businesses. Cold calling strategies allow you to bring in new customers, introduce them to what you offer, and get them on board, thereby allowing you to build your customer base. On the other hand, warm callers simply keep in touch with existing customers. They are, therefore, not bringing anyone new to the table. Although both are essential for overall sales success rates, cold calling can yield you that extra edge.
Reasons why cold calling still works
If you are a business owner who has given up on cold calling, here are a few reasons why it still works and why you need to rethink your cold calling marketing strategy.
The Internet is saturated
Too many businesses rely on the Internet and social media to execute their marketing strategy, which is not an effective tactic. There is too much content on the Internet for your brand to be able to break through. You therefore need to supplement your online marketing efforts with more personalized marketing, such as cold calling.
People appreciate receiving calls from sales teams as it feels more personal, counteracting the impersonal digital approach that many businesses are adopting. Besides, unlike digital approaches to marketing, sales calls allow you to connect directly with potential customers, which gives you a competitive edge.
The beauty of cold calling is the fact that your technique can change instantaneously based on the feedback you are getting. If you are sending cold emails or running a digital marketing campaign, it is difficult to know how it is being received.
However, when you talk to someone on the phone, you instantly know whether your cold calling technique is working or not. This allows you to adapt to whatever the customers want. Although you go in with a cold call script, you don’t have to stick to it, and can modify it as the situation dictates. This flexibility enables you to cultivate a more effective and specialized approach.
You can answer questions
One thing that a cold caller can do that no other marketing professional can is answer questions. This is a great advantage when you are making calls to prospects. It is often the case that potential prospects will not invest in a product or service because they don’t really know what you are offering. You might therefore be losing customers without realizing it.
However, when you talk directly to someone on the phone, if they have any worries or questions about what you are selling, you can answer them on the spot. You can ease their mind about any potential qualms they might have, with the result that they might develop an interest in your business.
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5 effective cold calling tips and techniques
Although cold calling can go a long way towards turning potential customers into actual sales, it is only effective if you do it right. There are certain cold-calling strategies that are more beneficial than others. Below are expert tips to improve your conversion rate.
One of the most important tips that anyone can give a cold caller is to make sure that they are enthusiastic when making calls. Cold calls can often come across as very monotonous and boring. If this is the case, potential buyers will consider you a waste of time and immediately hang up the phone. After all, if you are not interested in what you are selling, how can you expect them to be? In order to achieve cold calling success, you need to be enthusiastic about what you are selling. This will draw buyers in and make them more likely to listen to your unsolicited calls.
Do your research
Research is an essential element of the cold-calling process. You need to know exactly who you are talking to, and what they need. This allows you to approach sales with insights, as you are not going in blind. If you call someone with no idea of who they are, the company they work for, or the things they need, how can you expect to hold a conversation with them?
It’s important to go into your call armed with information. Not only will this allow you to build a connection with the prospect, it will also allow you to cater your sales pitch to their needs, thereby improving your sales strategy.
Don’t stick to your script
Cold calling scripts are there to help you remember the key points of your sales pitch but sticking to it 100% will hinder your chances of achieving closed deals. You will fail to build meaningful customer relationships if all you are doing is reading a script. You should use your script to guide you but don’t let it dictate the conversation. After all, as sales professionals, you should have the ability to organically carry a conversation.
Create a calling schedule
If you don’t have a dedicated telemarketing team to handle your calls, it’s important to create a dedicated calling schedule. In other words, make time every week to call prospects. According to Indeed’s cold calling statistics, the best time to call prospects is just before lunch, or at the end of the working day on Wednesdays and Thursdays.
Learn from your mistakes
You need to understand that not every call you make is going to lead to a sale. However, this is not a bad thing, as you can learn from your cold calling mistakes. You get instant feedback with cold calling so you will know if a call is successful or not. If it has not been successful, find out why, and adapt your strategy for your next call. This will allow you to develop your sales skills and ensure that your pitch improves with each new call.
Telemarketing is one of the most effective forms of marketing. TelUp understands how beneficial a strong telemarketing campaign can be for a business, which is why we are dedicated to ensuring that you have all the telemarketing resources you need. We work closely with you to develop a sales strategy that reflects your business.
Our telemarketing services go beyond simply cold calling, we also:
- Set up appointments with prospects
- Encourage customers to visit stores and showrooms
- Register participants in conferences and webinars
- Offer call center service and outsourcing services