Digital marketing is now the most prominent and effective way to gain customers. Considering this fact, have you ever wondered whether the old forms of marketing, such as cold calling, are dead?
In this article, we’ll discuss whether cold calling is still effective. We’ll also share some tips and practices for your marketing efforts.
Is Cold Calling Still Effective?
Yes, cold calling is still effective, but only if you do it correctly. According to research by RAIN Group, 57% of B2B C-level executives prefer that sales agents contact them by phone. This means targeting the right demographic will help with the success of your cold calls.
A study by Wharton School in Pennsylvania and IE University in Madrid concluded that the average age of C-level executives is 57. They are likely more comfortable conversing with people over calls than other means like social media.
On the other hand, younger demographics use social media platforms more, which makes it easier to reach them through such.
So, does cold calling work? The answer is yes, but you must consider who you use it to. The attitude of people towards purchasing products has changed. So, while cold calling is still effective, businesses must research their target market to determine if it is the correct form of marketing for them.
What Is the Success Rate of Cold Calling?
SalesHive, a B2B sales agency, revealed that the success rate of cold calling is 2-3%. Factors like the number of calls you make daily, your products or services, and your target market can affect how successful cold calling is.
Cold calling’s success rate is comparatively lower than other marketing types. To give you a better insight, social media marketing has a success rate of 76% in converting engagements into customers.
Nowadays, people tend to avoid answering calls from unfamiliar phone numbers. Most also spend a lot of time online, encountering various digital advertisements. This has led to a decrease in people entertaining cold calls.
However, the right approach can significantly improve your cold call’s success rate and potentially increase your sales.
How to Improve the Success Rate of Cold Calls
While cold calling’s success rate has declined, it is not yet dead. However, you need to improve your cold-calling efforts, so your business can thrive using this form of marketing.
Here are the things you can do to improve the success rate of your cold calls:
1. Conduct Research
When conducting research, you first have to find out the demographic that will benefit from your product. This includes their gender, age bracket, and even the industries they’re in. You must also understand their pain points and explain how your offer will solve them.
With this information, you can offer your product or service in a way that resonates with them.
2. Create an Engaging Introduction
Your intro can make or break your entire call. Your target market will not stay on their phone if you greet them using a generic intro.
So, create a personalized and engaging intro to prevent them from hanging up as soon as you introduce yourself. You need to make them feel like you understand their needs and can potentially help them.
But don’t draft an entire script! The call should be a conversation between you and the prospect, not a monologue where only you are talking. Ensure your client has time to ask you questions and answer them as naturally as possible.
Can’t think of how to start your call’s spiel? Try these 15 cold calling opening lines!
3. Call at The Right Time
Research the time and day your target market is most active on their phones. This way, you can ensure that you are calling them at a time when they are reachable, which increases the probability of them picking up.
The Federal Law only allows companies to conduct cold calls from 8:00 AM to 8:00 PM. So, knowing the best times to call will prevent you from contacting prospects at inappropriate hours and getting in trouble with the law.
4. Educate Them About Your Offer
Educating prospects about your product or service doesn’t mean telling them random facts about your offer. You can give them a background of your product’s features but just introduce them briefly. The in-depth product discussion can wait until you can set a meeting with them.
Instead of discussing the product and its features, educate your prospects about how you can help solve their pain points and satisfy their needs.
Pro Tip! Asking open-ended questions can lengthen your conversation. However, ensure that the questions relate to your offer so you don’t go out on the topic.
5. Provide Social Proof
Nothing convinces a target market better than social proof. When looking for something online, people look at customer reviews before purchasing. Good reviews mean better chances of a product getting purchased.
It’s the same case for cold calls. Whether you’re offering a product or service, providing your clients with testimonies from past customers can help convince them to purchase.
6. Practice Before the Call
The tone of your voice can affect a prospect’s buying decision. You don’t have to deliver your intro perfectly, but you must always sound upbeat and confident. This tells your prospects that you know what you are talking about.
To ensure that your cold-calling efforts are effective, practice speaking confidently. But don’t just practice the tone of your voice! You must also practice listening actively so you can catch and answer all your prospects’ questions.
7. Know How to Deal With Objections
Your prospects often say, “Sorry, I’m not interested,” or “I don’t need this product/service.” When you hear these things, do you just carry on to the next call or try to persuade them?
Your answer should be the latter but don’t do it in a way that would annoy them. Instead, emphasize how you understand their pain points and how your offer can help them.
Take note that the Federal Law only allows up to three calls per phone number per day.
We have more cold calling tips to increase your success rate in this article.
What Is More Effective: Cold Calling or Emailing?
Cold calling is more effective if you want an immediate response from your target market. Meanwhile, emailing is more effective if your marketing goal is to reach a large audience conveniently. Therefore, whether cold calling or emailing is more effective depends on your objectives.
Times When Cold Calling Is More Effective
Here’s when you should conduct cold calling:
- Your Offer Is Complex.
Promoting a complex product or service on a call is more efficient. It lets your prospects ask questions and clarifications immediately, thus preventing confusion. - You Want to Establish Personal Connection.
Customers are more likely to purchase from a brand if they are emotionally connected. Establishing a personal connection allows you to foster loyalty, increasing sales and customer retention. - Your Prospects Are Not Active on Email.
Some customers don’t have the time to check their emails, while others receive too many. In both cases, your email marketing efforts will be in vain. So, cold calling can be more effective, ensuring your prospects receive and respond to your message.
Times When Emailing Is More Effective
These are the times when emailing is more effective than cold calling:
- You Have Limited Time & Resources.
Emailing is more scalable than cold calling. It allows you to reach a large target audience in a short amount of time. That said, emailing is more effective when you aim to reach people simultaneously. - You Want Considered Response.
Emailing is ideal if you want to give your prospects enough time to consider your offer. It allows them to digest your message and consider whether they need it before responding. - You Want to Provide Supporting Data.
Emails can be more detailed than cold calls. With emails, you can provide people with detailed explanations about your products along with statistics supporting your claims.
Cold Calling Is Not Dead Yet
Cold calling is effective despite the decline in its success rate. With the proper steps, you can improve the results of your cold-calling efforts and yield sales. However, make sure that you are not calling your prospects at inappropriate hours. Respect their time and ensure you’re only making calls within the hours set by the law.
