Contents
- What are cold calls?
- Differences between cold and warm calls
- Purposes of cold calls in sales
- Pros and cons of cold calls
- Stages of cold calling
- How to make cold calls correctly
What are cold calls?
Cold calls are a method of marketing communication where business representatives make calls to unfamiliar people or companies with whom they previously had no interaction. The main goal of this approach is to attract new customers and ultimately sell products or services. This method is most commonly used in the B2B sector, where goods or services are offered to other businesses. It often involves complex or expensive products, such as software, consulting, real estate, and marketing services.
The target audience in such cases consists of decision-makers (DMs) who have full authority to discuss terms and approve deals. However, cold calls are also used in the B2C sector, where goods and services are offered to end consumers, such as financial, medical, or insurance services.
Differences between cold and warm calls
Cold and warm calls are two methods for establishing contact with potential customers, but there are key differences between them:
| Cold Calls | Warm Calls |
|---|---|
| Contacts are unfamiliar people who have never interacted with the company. | Contacts are individuals with whom there has been prior interaction. |
| Contacts are gathered from public sources or purchased databases. | The phone number is obtained from the subscribers themselves through events or marketing campaigns. |
| Typically follow a strict script, and conversations last a few minutes. | Flexible scripts are allowed, and the duration depends on the flow of the conversation. |
| The goal is to create interest and establish first contact. | Addresses various tasks: reminding about the company or moving the client further down the sales funnel. |
Purposes of cold calls in sales
The primary task of cold calls is to expand the base of potential clients and to search for and qualify leads. They can also be used for conducting market research or verifying databases. Specific tasks include:
- Establish contact with potential clients;
- Determine the subscriber's fit with the target audience;
- Present an offer and generate interest;
- Handle possible objections;
- Schedule meetings or follow-up calls.
- Record the results of the call and the client's needs.
It should be noted that a cold call rarely ends with an immediate sale; the primary goal is to establish a successful contact for further communication.
Pros and cons of cold calls
Cold calls are accessible to any business and often become the first step for small companies in seeking clients. They help expand the customer base and geographical reach. However, the method has its downsides:
- Low conversion rate — the average conversion rate is only 2-5%.
- Cold calls can irritate potential customers.
- High costs for training managers and organizing operations.
To reduce costs, companies often use auto-dialing or outsourcing, which allows for the automation of the process.
Stages of cold calling
The cold calling process can be divided into several stages:
Stage #1: Gathering contact database
Analyzing the target audience and creating a customer profile is the first step. For B2C, it's important to determine age, gender, and social status, while for B2B, the company's niche and the DM's position are key. Contacts can be gathered through:
- Social networks;
- Official resources;
- Purchasing ready-made databases;
- Partner databases.
Stage #2: Crafting a script
A script is a guideline that the manager follows during the calls. It includes questions, answers, and possible objections from the client. Scripts can be rigid or flexible, depending on the complexity of the product.
Stage #3: Making the call
The manager begins calling the database, noting the results. It's important to consider a comfortable time for the conversation.
Stage #4: Analyzing calls
To analyze, it's necessary to gather data on the number of calls and their results, which will allow for process optimization.
How to make cold calls correctly
When making cold calls, it is essential to comply with legal norms. It is important to avoid direct offers and focus on informational content. Additionally, one should obtain permission to continue the conversation. If the interlocutor requests to end the call, it is best to comply immediately.