An Insight into the Cold Calling Approach to Know its Effectiveness in 2021

Business
Cold Calling

Do you think cold calling is still effective in 2021? It is an old-fashioned sales and marketing technique for lead generation. Though cold calling is one of the underrated lead-gen strategies in the present time, it still can prompt growth and enhance a business’s bottom line. In this blog, we will learn more about cold calling and how businesses can leverage the benefits of this marketing technique to improve their growth rate. 

What do you understand by cold calling?

As mentioned above, cold calling is a sales and marketing technique. It involves making outbound calls to qualified leads or prospects that may or may not know the company before the first contact. On the contrary, warm calling is another popular marketing technique in which the agent targets the leads with some kind of prior contact with the company. 

The cold calling approach can be used to connect with:

  • Individual consumers (B2C) or 
  • Businesses (B2B)

Whether it’s a small business or large enterprise, the cold calling technique is used everywhere for driving revenue. Most businesses either hire sales representatives or outsource them for dialing numbers every day. 

How often should cold calls be made?

Look at the below stats that suggests how often a business should make cold calls:

  • The 6th cold call attempt often reaches about 93% of converted leads. 
  • There is about a 70% increase in the contact rate when making at least 6 cold calls.
  • There are around 50% of buyers who could use a second cold call from salespeople.
  • There are about 45% chances that the prospects will convert to lead after 7 or more cold calls.

Key statistics related to cold calling

Do you know a sales representative makes an average of 33 cold calls every day? (Source: Zety, 2021). Let’s look at more such interesting facts related to cold calling:

  • Many sales professionals believe that making calls to existing customers is the most efficient prospecting tactic. (Rain Group)
  • Around 69% of customers have accepted a cold call from sales representatives in 2019. (Rain Group)
  • To reach a prospect, it takes an average of 8 call attempts. (The Brevet Group, 2020)
  • More than 40% of sales professionals accept that their phone is their most efficient tool for the job, along with CRM software, social-media prospecting, and email. (Sales Insights Lab, 2020)
  • Businesses that believed that cold calling is no longer an effective marketing practice experienced 42% less growth than those still using cold calling. (Medina, Altschuler, and Kosoglow)
  • Around 51% of company owners prefer connecting with sales representatives via phone compared to drop-in visits, emails, faxes, and various other mediums. (Rain Group)

Reasons to choose cold calling

Here are some of the key benefits of cold calling that encourage businesses to choose this marketing approach to attract more customers:

  • The cold calling approach allows businesses to learn more about their prospects directly.
  • There are higher chances of getting a response in case of a cold calling approach.
  • The approach allows businesses to receive instant feedback from their prospective customers.
  • Cold calling is a cost-effective way (especially for startups and small businesses) to reach potential customers.
  • This kind of calling helps sales representatives to conduct sales remotely.
  • Businesses can use cold calling as an excellent sales training practice for their new as well as existing agents.
  • The cold calling approach allows businesses to gather important data related to the target market, which may include the requirements of customers, their expectations related to products/services, issues they are facing, etc. 
  • It also brings the opportunity to know more about the competitors. Their strength and lack of how well they are performing in the market can help plan a more organized and effective marketing strategy.
  • With the cold calling approach, businesses can even try tapping into new markets to attract more customers.
  • Cold calling allows agents to use personalized communication, which helps in making customers feel more valued. This could result in turning the prospect into a customer.
  • The cold calling approach provides the utmost flexibility to the agents. They can make calls from anywhere, on almost any device. 

So, these are some of the key benefits of cold calling. To make this approach more successful, businesses must know what prospects are looking for from cold calls. Research shows that:

  • More than 95% of buyers get influenced by the cold calls that present the true value of their products/services.
  • About 54% of prospective buyers expect detailed information about products and services on the first call.
  • Cold calls that emphasize the solutions to the existing business issues influence more than 65% of customers to schedule a follow-up after the initial contact.
  • More than ¾ sales professionals believe that connecting with the prospects at the right time greatly affects the conversion rates.

Conclusion:

Looking at the benefits of cold calling and the stats about this approach, it is clear that this sales practice is still one of the most effective ways to bring in more business. In 2021 and beyond, most businesses, especially small businesses, and startups will continue to leverage the benefits of the cold calling approach.

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