No matter if you're just starting in sales or you have a lot of experience, you've definitely asked this old question: Does cold calling actually work?
Cold calling is when salespeople directly call people they have yet to meet to sell something. It's a method that's been around for a long time. Even though we have email and social media now, cold calling is still a must-do in a lot of sales work. Think of it like this:
- Cold calling is a classic way salespeople talk to new customers over the phone.
- It's a big topic among salespeople, and they are always getting mixed feelings.
- Even with all the new ways to talk to each other online, cold calling has stayed.
- Salespeople still have to make these calls, no matter what.
In this blog post, we'll cover all you need to know about cold calling and cold emails. We'll explain what they are, why they matter, how they work on people's minds, and give you a simple, step-by-step guide to doing them right.
What Is Cold Calling?
Cold calling is a sales technique in which a salesperson reaches out to potential customers who have yet to express interest in a product or service before. It involves making multiple calls to a large number of people, also known as 'prospects,' and is often seen as a difficult task.
The goal of cold calling is to generate interest and initiate further discussions that may lead to a sale. While it can be unpredictable, cold calling is an effective way to find new customers and gain insights into the market, especially when there has yet to be prior contact. As a sales rep, mastering the cold calling process is crucial to success.
It is important to note that cold calling differs from warm calling, where the prospect already has some knowledge about the product or service.
Why is Cold Calling Important?
Cold calling is an essential sales strategy for selling and promoting products or services. It allows for direct communication with potential customers, forming real connections that are not possible solely through online methods. By calling someone unexpectedly, you can gather valuable information about their needs, preferences, and potential problems, making it a crucial step in the sales process for even the best salespeople.
This information is beneficial for the entire sales team, as it helps them better understand their target market and tailor their products and messaging accordingly. Additionally, cold calling is an effective way to expand your customer base and generate more sales. It also helps increase brand awareness and generate interest, ultimately making it a good fit for businesses looking to grow and succeed.
Does Cold Calling Work?
Cold calling can really pay off if you do it the right way. It's great for finding new customers, making connections, and sealing deals. Sticking to tried-and-tested methods and not giving up can make cold calling an important part of selling.
The Psychology of Cold Calling
Cold calling is all about understanding how people think and talk to do well. It examines how to convince people without directly saying it. By using tactics such as copying their tone and words, salespeople can create a good connection and trust with potential customers.
Also, using ideas from how society affects our choices can make cold calls work better. Knowing what the person on the other end is thinking and changing how you talk to match can really decide how the call ends. The way cold calling works points out that being a good listener and understanding others can help make strong connections and get good results. Getting really good at these mental tricks can take your cold-calling game to the next level.
How do you Cold Call In 2024?
Making a good cold call takes several steps. For newbies, it's wise to stick to these important cold-calling tips to nail selling over the phone. Every step is key to ending up with a great cold call.
1. Create a Targeted Prospect List
When you start cold-calling, it's very important to make a list of good leads. This list should include folks who want what you're selling. To make a solid list of people to call, you need to do your homework. Start by creating a targeted prospect list and figuring out who you want to sell to and what kind of customers are the best match for you based on factors such as job title, seniority, location, company name, industry, and company size.
By investing in meaningful prospect research, such as browsing social media profiles on platforms like LinkedIn and conducting discovery calls, you can gain valuable insights and tailor your approach specific to each company. This can turn a cold call into a warm call and increase your chances of making more sales. Make sure to keep your list up to date so it stays useful and helps your cold-calling work well.
2. Research, Research, Research
Digging into info about who you'll call is key for a good cold call. If you've talked or connected on social media before, it can help a lot. Knowing their job and how big their company is lets you make your sales talk better.
Look into common issues they face and things they don't like to make your plan smoother. Make a custom cold call plan that grabs their attention right from the start with your first call. It should be an effective cold call that meets their needs. Pick the best time to call by thinking about when they're free and likely to answer. Typically, avoid calling during busy parts of the work day, such as first thing in the morning and the end of the day.
However, research has shown that late afternoon on Tuesdays or Thursdays is a good time to make cold calls, as this is when the majority of successful calls lasting over five minutes occur and can lead to higher response rates. So, make sure to optimize your calling schedule for the best chance at success.
3. Prepare a Strong Opening Sentence
When it comes to cold calling for making more sales, preparation is key. Researching your prospects thoroughly before making the call is crucial. Understanding their needs, challenges, and preferences will help you tailor your pitch effectively. Choose the best time to call when they are most likely to be available and receptive.
Craft a strong opening sentence that captures their attention right from the start. A personalized approach that addresses their specific needs will make a significant difference in the success of your cold call. Remember, being well-prepared and informed can make all the difference in turning a cold call into a valuable opportunity to grab the prospect’s attention.
4. Write an Outline or Cold Call Script
Making a well-planned outline or cold-calling script is a basic and necessary step. Start with saying hello and introducing yourself and your company. Then, talk about the benefits and value your call offers to the prospect. Address any hesitations or objections they may have. Using techniques like mirroring and matching can help build a good connection with the person you're talking to.
Your cold calling script should be short, interesting, and customized to catch the attention of your prospect from [COMPANY NAME]. To keep the conversation going, include open-ended questions that require detailed answers.
5. Practice Makes Perfect
To get really good at making cold calls, the main thing you need to do is keep practicing. Doing it over and over helps you get more comfortable and familiar with what you have to say, making your chats flow better.
By practicing a lot, you can work on how you say things, get better at dealing with hard questions, and learn how to keep the conversation going smoothly. Trying out different calling scenarios can make you better at dealing with all kinds of replies, making you much better overall. With more cold calls and practice, it's a good idea to see each call as a chance to learn from your mistakes and improve in your next cold call, especially by observing and learning from the best sales reps on your team.
6. Smile and Dial
Keep a happy mindset when you're making cold calls. Smiling as you call can make your voice sound more lively and inviting. It helps the person at the end of the phone feel a good vibe from you and can contribute to a positive attitude.
People can actually hear a smile over the phone, leading to a friendlier chat. Call with energy, excitement, and a pleasant manner. Remember, it's not just about going through a written down plan, but really getting to connect with the person you're calling. When you smile as you call, you create a better chance for a nice chat and boost your odds of making a good cold call. Always call with a smile and let your happy vibe help you make a great impression.
7. Use AI-Based Automated Dialers
In 2024, power dialing tools like Outplay, Orum, and FrontSpin can triple your prospecting efficiency. With features like prioritized call lists, single-click dialing, and pre-recorded voicemail, these tools can boost your connect rate.
They offer seamless integration of personalized sales emails, real-time engagement tracking, and account-based cadence playbooks that automate your outreach strategy. Beyond calls and emails, you can also incorporate social touches and SMS responses directly into your workflow, ensuring a comprehensive approach to sales engagement.
How to Follow Up on Cold Calls?
Making a good cold call is important. But what you do afterward is just as important. You need a strong plan to follow up. Here are some ways to follow up on cold calls:
Follow Up By Voicemail
If you can't talk to the person you're trying to reach, leaving a short voicemail is a good way to make sure they get your message. Keep your message between 20 to 30 seconds. Start by saying who you are and where you're from. Then, quickly say why you're calling. Let them know you understand they're busy, and ask them to call you back when they can.
Don’t forget to say your number twice so there’s no mix-up. Think of your voicemail as a natural part of your initial call, creating a smooth flow in what you're trying to say. It’s smart to plan what you’re going to say ahead of time with a voicemail script. This way, you can get straight to the point without wasting time on things that don’t matter. If now works for you, I'd really like to set up a time to chat about how we can help you reach your goals.
Follow Up By Email
Following up on cold calls is essential for building relationships and closing deals. After making a good impression during the call, it's crucial to maintain that momentum through strategic follow-ups. One effective method is to send a well-crafted email within 24 hours of the call. In the email, reiterate your key points from the conversation, express gratitude for their time, and propose a clear next step, such as scheduling a follow-up meeting or providing more information.
Remember to keep the tone professional yet engaging, and personalize the email to show that you value the connection.
Follow Up By Text
Text messaging is a great way to stay in touch. It works well if you follow the rules and keep it respectful. Texts are fast and easy to read on phones, and people usually read them quickly. They are good for short notes, reminders, or updates. You can text someone if they say it's okay. When you do, make sure your message is short, nice, and professional.
Your text should have a clear reason, like setting up a meeting, sharing big news, or just saying thanks for your time. It's important to use text messages wisely because they go directly to the person right away. Sending unwanted or annoying messages can hurt your connection with the person you're texting.
Common Cold Calling Mistakes to Avoid
Like any sales method, it's key to know the downfalls of cold calling. Here are a few:
Interrupting
One big mistake when calling someone for the first time is cutting them off while they speak. It is seen as bad manners and shows you're not paying respect. Being polite and waiting your turn is super important in making good phone calls. So, refrain from beginning your call and asking if you called at a bad time. Wait for the person on the other end to finish what they're saying before you answer. Doing this shows you respect them. Plus, it means you will get everything they're telling you about what they need or what problems they have.
Rambling
One mistake to dodge when making cold calls is talking too much. Talking too much can bore the person you're calling and make you come across as rambling, which can be a major turn-off. In modern times, people have shorter attention spans and are more likely to lose interest if you go off on a tangent or give them too much information.
It's important to have a clear plan or list of the main things you want to say, to talk clearly, and to organize your point well. The main thing is to have a good chat with the person to keep them from overloading them with details they don't need, especially if you're trying to sell a product or service to a specific job title in a certain geographical region.
Pitching Too Soon
Starting to sell too quickly on a cold call might work out poorly. It can make the person you're calling feel pushed, and they might say no right away. It's really important to get along with them and connect first before you start selling.
If you hurry this important part, you might push away the client you could have had and lose great chances. Listen carefully to what they need and worry about. Listen well and repeat what they say to address any potential sales objections and understand your prospect’s needs.
After you get all that, you can slowly start talking about what you're offering, treating each call as a learning experience to improve your pitch, tonality, and messaging. Being patient is very important in a sales call if you want to achieve your goal and effectively save your prospect's time.
Failing to Meet Objections
Failure to handle objections during a cold call can have serious consequences. It is vital to actively listen and provide thoughtful responses when potential clients express concerns or inquiries. Dismissing objections or offering inadequate answers can impede sales efforts and result in lost chances. Effectively acknowledging and resolving common objections helps establish trust and credibility with potential clients, enhancing the chances of a positive result. Remember, addressing objections showcases your proficiency and dedication to fulfilling the client's requirements.
Conclusion
In summary, learning how to make cold calls well is important for anyone in sales. It's key to know how valuable making cold calls is for finding new customers and making more sales. While making cold calls can work well, it needs careful planning and a deep understanding of why it works. If you follow the steps in this guide on how to do cold calls well, such as picking out the right people to call and dealing with their concerns in a professional way, you can get better results. Make sure to avoid making common errors like cutting people off, going on for too long, starting your sales pitch too early, and not responding to concerns.
Frequently Asked Questions
How can I overcome cold-calling anxiety?
Feeling nervous about making cold calls is normal and very common. But you can beat it by getting ready in advance. Get your call plan ready, learn about the person you're calling, and rehearse what you're going to say. Work on thinking good thoughts, picture having good calls, and keep in mind that if someone says no, it's not about you; it's just part of the work. Keep challenging yourself and aim to get better. You'll notice that you start to feel less nervous after a while.
What are the best times of day for cold calling?
The best times to make cold calls often change based on when people are available. This can depend on their job, plan, where they are in the world, and more. However, studies show that the best results for calls happen in the middle of the week, especially from 10 a.m. to 2 p.m. and from 4 p.m. to 5 p.m. Trying out different times and seeing how people respond can also help you figure out the best time to call your specific group of people.
How to properly follow up on cold calls?
Good follow-ups include quick emails, voicemails, or texts after you first reach out. Make sure to repeat why you called, say thank you for their time, and ask them to call you back when it works for them. Keep your follow-up in line with what you first talked about and how your brand comes across. You can also use tools that help you plan follow-ups easily.
How do I measure the success of my cold calls?
Measuring how well cold calls work involves looking at different numbers, such as:
- How many calls turn into results?
- How many calls do you make?
- How often do people respond?
- How often do calls lead to meetings?
You can also look into how good the leads are and how long it takes to turn leads into customers. Knowing these numbers and using them to better your cold call methods is important. It helps you do better and get better results as time goes on.
How do you handle rejection during a cold call?
Cold calls often lead to rejection. Keep your spirits up, know it's not about you, and see it as a chance to learn. Always ask for advice, change how you do things, and don't stop. Keep in mind that each "no" is a step closer to a "yes."
