What is cold calling?

Cold calling occurs when sales reps contact potential clients and customers who haven’t expressed any interest in their product or service. These sales reps typically call these prospects to teach them more about their company and product or service. Sales representatives usually reach out to prospective customers who are likely to be interested in the product and usually receive most of their prospects’ contact information from current client referrals.

They are different from warm calls, which involve reaching out to prospective customers who have expressed interest in the product or service by filling out a form on the company’s website or giving their contact information directly to sales reps.

Benefits of cold calling

There are many advantages of training your team to conduct cold calls. Common benefits include:

• Collect potential leads:A huge portion of the sales process is finding strong leads who would benefit from your product or service. Cold calling allows you to reach out to potential prospects to learn if they’d find your product valuable. This helps you create an effective leads list.
• Increase brand awareness:As you reach out to potential customers, you can educate callers on what your product or service is, the features you offer and how it helps clients. This makes them more aware of who you are and will keep your product or service in mind for potential future use.
• Build stronger connections:Talking with prospective clients over the phone allows you to get to know them better and develop a relationship with them. This causes them to build more trust in your brand and product.

Types of businesses that use cold calling

Some examples of businesses that use cold calling include:

Software as a service

Many business-to-business companies, especially those that sell software as a service, will reach out to potential customers through cold calling. Many sales representatives will network with business professionals who typically refer them to other professionals. They’ll work to establish and strengthen these connections over coffee, lunch meetings and in-person sessions at the clients’ offices.

Real estate

Many real estate agents will receive contact information from satisfied clients who have friends or family who are potentially interested in purchasing or selling a house. This could also include buying or selling commercial property. The agent will then reach out to them to establish their home buying needs to help them locate their dream home or sell their current home.

Marketing agencies

Many sales representatives who work for marketing agencies, especially agencies just starting out, will cold call potential clients who may need marketing or promotional assistance. If the company is located in a smaller community, they may reach out to community members in the area to inquire about their marketing needs. Others may visit business’ websites and contact the firm directly to deliver a strong sales pitch.

Roles companies can hire for

There are a few different types of employees who conduct cold calls on a regular basis. Roles to consider hiring who can do your cold calls include:

Sales representatives

Sales representatives work in the sales departments for most companies and sell products or services to prospects. Many sales representatives work to generate quality leads and will schedule in-person meetings with potential clients to teach them how the product will help overcome their organization’s challenges or meet their personal needs.

Real estate agents

A real estate agent works with homebuyers and sellers to purchase or sell either residential or commercial properties for the best price. They work closely with clients to determine their personal and financial needs to help them buy or sell property. Real estate agents are often independent workers responsible for finding their own clients through both cold and warm calling strategies.

Recruiters

Recruiters work with a company to help it meet its hiring goals and find quality candidates that are great fits for a company’s available positions. They’ll often locate and screen candidates before prepping them to interview with their client’s company. Most recruiters are responsible for locating companies in need of hiring assistance and will reach out to these clients on their own.

Tips for making cold calls more effective

Follow these tips to help your sales team more effectively make great cold calls:

Research your prospects and their industry beforehand

Before you initially reach out to your leads through these cold calls, you must have a strong idea of who they are and the challenges their business may face. You can do this by researching the client’s industry and their competitors. This helps you more effectively demonstrate how your product or service will meet their needs and solve a problem they’re currently facing.

Craft a strong opening statement

As you call your prospect, have your opening statement ready. This is what will initially grab their attention and make them want to listen to the rest of your pitch. Stay well prepared and straightforward with your opening line. Get the conversation started on a friendly note by including an introduction, a professional greeting, a statement about the prospect you’re calling and a list of benefits your service or product offers. Finish the call by giving them an opportunity to ask you questions.

Request an appointment to discuss further

Give your prospect a better chance to get to know yourself and the benefits of the product better by asking them to meet with you in person. This provides a more personal setting for both of you and allows them to ask as many questions as possible. Remain confident and specific when setting up this appointment and offer a clear day and time to meet to give them an exact meeting date to attend.