Is cold calling dead? The short, surprising answer to most sales people, is no. Does cold calling work? Oh, yes. This is the cold truth. Cold calling is alive and kicking; hale and hearty. And it is ruthlessly efficient. But first, what is cold calling? Cold calling involves sales people reaching out to potential customers who have had no prior contact with the salesperson. For this reason, it is not warm let alone hot. Although it typically refers to sales pitches made over the phone, it can also include face-to-face visits, such as door-to-door sales. I will limit myself to the former, having covered the latter here. Cold calling is a form of prospecting. Both in regard to seeking potential buyers and qualifying and disqualifying prospects.
The resilient sales strategy that refuses to die
Other methods of prospecting include asking for referrals, networking events, content creation (for instance, blogging and vlogging), social media marketing, search engine optimization, online marketing and email campaigns. Until the turn of the century, cold calling, referrals and networking events were your only active prospecting options, by and large. They push. The rest are digital, depend on the internet and are considered modern. By and large they are also passive- they pull. Make no mistake though- they have their place. Make no mistake also that they do not automatically make cold calling redundant.
This is what sales people, typically those that have grown up in the Internet Age think. They see last century tactics as analogue, overtaken by time, not ‘in’. Much to their detriment, especially if that is what works in their business. And that’s the point: There is no perfect way to prospect. The perfect one is the one that works. Therefore, if cold calling is what works in your industry, as it tends to banking and investment banking, then quit fighting it based solely on your debilitating attitude towards it. Embrace it instead.
The efficiency of cold calling
Does cold calling work? Cold calling is ruthlessly effective and efficient. It gives you immediate feedback. Inside 3 minutes you will know who’s buying and who’s not. “Hello Mr. Kageche (Salutation). My name is John and I’m with Zalisha Investment Firm, and we are regulated by CMA (Identification). We specialize in maximizing wealth for our customers and have a 10-year track record of doing so successfully. Our entry point is Kes. 5M. Is this something that would interest you?” (Qualification).
But as with everything else sales, it’s a number’s game.
So, how many calls do you need to make to convert the suspects (everyone you call), to prospects (those that can buy), to customers (those that do)? Typically, you’d be advised to make say, 10 calls a day for 5 days and see how many convert, and work out your conversion ratio from there. For example, if out of the 50, 5 buy then your conversion ratio as you go into the following week is 1 in 10. So, if you want 10 to convert that means doubling your cold calling efforts. Religiously done over a month will give you a clear indicator of the calls you need to make to get the numbers you need to close. You will also have refined your pitch and therefore moved your conversion ratio higher. On the other hand, a lackadaisical approach to it, is why cold calling does not work.
Overcoming the challenges
But it’s not easy for many sales people. And with good reason, Cold calling is often met with resistance, is time-consuming and can be seen as intrusive. Time consuming because of the monotonous effort you must put in, because, remember, you are pushing, Digital prospecting methods that pull are less time consuming re engagement, but are comparatively time consuming before their net catches any fish. But time consuming is not the reason sales people even those that need to cold call, shun it, Besides the generational challenge, the other reason is shame and pride. Sales people that thrive in cold calling, and selling in general, are shameless.
Cold calling sucks
They know cold calling is messy and scary. Cold calling sucks and that’s why it works, “Where did you get my number from?”, “What’s wrong with you people? Don’t you know about privacy? This is illegal and a breach of data privacy. I can sue you.” “Juma died last week?” “Where did you get my number from?” “Arggh! Salesperson!” (Hangs up). Such responses as these trigger feelings of rejection. Shameless salespeople embrace rejection as coming with the territory. “I’m sorry to hear about your loss. We didn’t know. I apologize for the interruption.” Brave ones, using permission selling, will even add, “If it’s OK with you, would you like me to share what I was calling him about just for your knowledge?”
“For someone of your calibre and given the clientele we deal with, getting your number was not difficult. After this call, let me know if you find it worth us having your number or not.” (And they proceed to pitch) Or: “I was referred to you by my CEO.” (If you are calling from an Investment Bank and talking to another CEO or someone with millions they seek to invest, they are highly unlikely to ask, “Who is your CEO?” (And even if they do, tell them, and proceed to qualify.) As for the angry prospect that threatens to sue you, shamelessness and humility respond thus: “I’m sorry you are offended. It wasn’t our intention to do so. It won’t happen again. Thanks for your time.” They handle the responses for what they are. Mishaps and objections.
(Fun fact: Watch the movie The Wolf of Wall Street to appreciate the importance of cold calling)
Does cold calling really work?
These sales people know that ‘every market has its madman’ and they measure this too. This puts its effect in perspective. Do I encounter cutting rejection once with every 10 or is it 20 calls? Don’t be surprised if it’s every one hundred calls. It’s just that the cutting nature of the retort makes you feel as if it’s 1 in every 2. And with every such call or decline to engage no matter how polite, they simply do as the hawker in traffic does. They move on to the next driver in traffic, which in your case is the next contact on your list. Does cold calling work? What do you think?
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