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Is Cold Calling a Relevant Sales Strategy in 2021?

In Business
April 23, 2021
Is Cold Calling a Relevant Sales Strategy in 2021?

Cold calling has had its share of negative reviews, particularly from pundits who find it old-fashioned and tedious. Some have gone as far as declaring it, for all intents and purposes, dead. Arguably, cold calling, particularly when done the traditional way, has its challenges. 

By definition, it involves calling up total strangers to interest them in a product or service. The prospects will not have requested to be contacted and so will not be expecting it. This makes cold calling intrusive, and for some people, annoying. Statistics do not make the situation any better, showing that only about 2% of cold calls are successful. 

In the face of this negativity, should businesses rely on cold calling as a sales strategy in 2021? The answer is yes. In these challenging economic times, companies will need all the help they can get to spur new growth and drive sales. Those who ignore the potential benefits of cold calling do so at their peril. 

This is because when done right, cold calling is a potent lead generating tool for B2B business. Research done by the Rain Group shows that 69% of buyers accepted a call from new salespeople in the last 12 months. Further, 57% of C-level buyers prefer to speak to salespeople on the phone. This proves that cold calling is indeed alive and well.

What does ‘doing cold calling right’ mean?

Perhaps some people think that cold calling is a waste of time because they are doing it wrong. In the 1990s, salespeople relied on what was known as the ‘spray and pray’ technique. In other words, they dialed as many numbers as possible in the hope that someone would show interest in their product or service. Surprisingly, this worked well, and sales soared. 

In today’s digital world, this old technique has no place. Technological advances such as the availability of smartphones have changed consumer behavior. Unlike the past when customers were happy to hear about a product from a stranger on the phone, today’s customer is in charge. 

Statistics show that 89% of consumers research online before making a purchase. This means that by the time you get to them with a cold call, they are likely to have already made a buying decision. Similarly, younger, tech-savvy millennials now have more buying power, and this is a group that has no patience for truly cold calls.

To answer the question then, doing cold calling right means adapting your cold calling strategy to align with these changing dynamics. Below, we discuss five ways in which your business can do that:

Researching the prospect

When sales reps made prospecting calls in the 1990s, they had no way of knowing who they were calling, their interests, needs, or preferences. Today, it would be unforgivable to make blind cold calls without first researching your prospect. 

Company websites, social media platforms such as LinkedIn, Twitter, and Facebook can reveal insightful information about your prospect. From this research, you can filter your target market and understand their needs, challenges, and pain points. Having such background information means that you can present your proposition as a solution to their challenges. 

Having the perfect cold calling script

Debate rages on regarding the need for a cold calling script. We firmly believe that even the most seasoned salesperson can benefit from one. Success will, however, be determined by the kind of script you have and how you use it. 

Some sales reps may make the mistake of using the same generic script for all calls. A more personalized cold calling script based on thorough research on the prospect will give better results. Similarly, a perfect cold calling script is one that has been optimized over time based on feedback, observations, and interactions from past calls.

Avoiding a salesy pitch

One of the fastest ways to put off your prospect is to push them to buy something on the first call. Trying to close too soon can give the impression that you only care about making a sale, or you are in a hurry to get to the next deal. 

Instead, take time to listen to the prospect’s challenges and pain points. Ask them thoughtful questions to gain as much insight as you can. Only when you understand them should you propose your product/ service as a solution to their problems. When a customer feels that you genuinely care about them, they are more likely to trust you. This can easily lead to a second phone call, meeting, or even sale. 

Listening to the customer

This may sound like an obvious point, but many salespeople get carried away talking about their value proposition that they forget to listen. The point of a cold call should be to listen to and understand the customer’s pain points to fashion the right solutions for them. 

Listening keenly also means that you will not miss any important points. Similarly, you should not interrupt the prospect as this may sound rude and even put them off. 

Listening out for objections is particularly important. When a prospect objects, you should hear it and address it appropriately. Glossing over it may make the prospective customer feel disrespected, which doesn’t augur well for you. 

Leveraging technology 

Taking advantage of technological advances can make your cold calling process more efficient and effective. Using the right tools will allow you to make more calls per day and have better customer follow-up. In the 1990s, sales reps probably managed only a handful of calls per day. Today, with automatic dialers, you can make several hundred calls in a day. 

Similarly, you can record the calls, send automated voicemails, schedule calls and meetings and record customer preferences. Recording calls, for instance, can help you identify your weaknesses and improve your cold calling script. Such tools can also help you collect data to determine the best time to call prospects, the ideal time to spend on each call, and the right time to push for a sale.