When To Use Cold Calling In Your Sales Strategy
When To Use Cold Calling In Your Sales Strategy
“I went to Google, typed in San Francisco chauffeur or San Francisco limousine, I just filled out an excel sheet and I just started dialling for dollars, right? First ten guys I called, three of them hung up before I got a few words out, a few of them would listen for like 45 seconds and then hung up, and three of them said ‘I’m interested, let’s meet.’. And if you’re cold calling and three out of ten say ‘let’s meet’, you’ve got something.”
Sales calls can be one of the most effective ways to reach out to new prospects. While cold calling can often be difficult, the rewards can take you from a small start up to a billion dollar company in a few short years.
What Is Cold Calling?
Cold calling is a process that comes very early in your sales strategy and it is essential for your sales strategy. It is your first communication with potential customers, prospects, or sales leads.
Cold calling is about creating an initial connection. By approaching them with candour and open professionalism, you can attract potential customers, engage their attention and learn more about them. Thus, it is also known as canvassing or prospecting.
When & Why To Use Cold Calling
We can learn a very important lesson from the opening example: cold calling has a very high chance of rejection.
Consider the calls you get from sales call agents or the salesmen that visit your home… how often do you stay on the call right through, or show interest in their pitch? Is your answer less than the number of times you hang up the phone or shut the door? Most probably, yes.
With so much rejection, then, why and when should you use cold calling?
When To Use Cold Calling?
Well, the simple answer is that if you create a good strategy, the rewards will far outweigh the rejections. To figure out when and whether to use cold calling, think about your product, targets and industry.
- Do you have a system in place that can promote sales over the phone?
- Do your prospects make purchases over the phone? (Tip: survey prospects to discover this)
- Are your industry competitors using cold calling successfully?
If your answer to these questions is ‘yes’ then you’re in a good position to use cold calling.
When not to use cold calling and why
While you should consider the benefits of cold calling, it’s important not to push a strategy that might not benefit your business, lest you waste your money and resources. Here are scenarios where it might be best if you don’t use cold calling.
Your competitors aren’t succeeding at it
There are two sides to this. Your competitors might be failing because their strategy is not effective or cold calling might not be great for their target market.
If it’s the former, then you can go ahead and use cold calling, developing a strategy that’s better than your competitors. This will get you better returns and give you an exclusive advantage over your competitors.
If it’s the latter, then it may not be a good decision to pursue it.
Your targets don’t buy over the phone
Include this question in your survey, “Do you often buy over the phone? And why?”
This way, you can learn why prospects don’t buy over the phone. Do they not get cold calls? Are the pitches they receive not convincing? Or do they not like cold calling?
Use their answers to decide whether cold calling is an effective technique or not. Don’t use cold calling if the majority of your targets find it ineffective.
Why Should You Use Cold Calling? The Benefits
Even if your prospects don’t tend to make purchases over the phone, you should still consider these benefits cold-calling can have for your business:
- It can open your business to new opportunities.
- It can help you define the direction of your business.
- You can use it to define and personalize your customer journey.
- Your cold-calling system can develop into a niche digital business of its own.
- The technique allows you to create a relationship with your customers.
- If done well, you sell your business and product to the receiver and give them a feeling of trust in your business.
Effective Ways To Use Cold Calling
1. Create a customer database
It’s important to find prospects before making cold calls. Of course, you could just call anybody out of a phonebook. But, you are likely to see better returns if you target people that show an interest in your product or service.
There are many standard ways that you can identify target customers:
- Referrals from current buyers
- Getting contacts at networking events or conferences
- Buying lists from data providers
- Web scraping
- Develop consumer profiles
- Lead sourcing and tracking platforms
You can also get creative with your data collection. For example, organize an event where you have an information sheet for the attendees’ contacts. Or offer discounts to customers if they refer a friend.
This cold calling method helps you focus your cold calling for better success.
2. Listen & learn your customers’ preferences
Another important thing is to put the customer first. Yes, you want to make sales but you don’t want to be impersonal, either. You need to find out the needs and preferences of your customers.
You should inform your customer about your goods, as well as listen to what they have to say. Explain the benefits you offer, but also find out how they feel it could benefit them.
You want them to feel heard, understood and acknowledged, so that even if they do not make a purchase immediately, they may become a loyal customer in future.
3. Use a template script
There are two main benefits to having a script. First, you can feel safe and confident in what you have to say. Many businesses fear cold calling because it feels unpredictable and has the potential for rejection. Being prepared with questions to guide the conversation can alleviate this.
The second benefit is that you can establish questions that help you achieve the aims of your call. Draft questions that ask about the product, and how you can improve it. Or ask about their spending or preferences to help you develop a customer bio.
However, this must be a template and guide. A set, no-improvisation script can feel cold and impersonal for the customer, and restrictive for the caller.
4. Consider different cold calling mediums
Cold calling doesn’t just have to be on the phone. You can approach customers through a range of platforms.
You can go old-school and visit door-to-door. You can also use digital mediums like emailing and sending text messages and direct messages on social media.
5. Utilise cold calling software
The right CRM software can help you bring all these ways of utilising cold calling together. Myphoner, for example, offers lead tracking and scheduling to help you find and follow up with prospects easily.
Our platform also offers features like power dialling, email communication, call-time monitoring, & campaign management.
With Myphoner, your sales agents have all the information they need in one place, supported by efficient tools to make cold calling easier and more effective.
Now that you know more about cold calling, take a moment to scroll back to the top and read the quote again. These are the words of Travis Kalanick on what cold calling did for Uber at its beginning… and look where the company is today. Certainly, the best proof that cold calling can do wonders for your business.