What is cold calling?
Cold calling is when a worker approaches another party unexpectedly or without notice, outlining the business that they can do for them for a fee and asking if they would be interested in purchasing or accepting their products or services.
It is a common approach taken by workers in sales, however any business leader or employee can use cold-calling techniques to increase patronage.
For example, an automotive parts supplier may contact a mechanical business to advise them of the engine parts that they regularly have available for sale and ask if they would like to purchase any for a one-off or ongoing delivery.
Another example is when a website developer may contact a business outlining the website services that they offer, and ask if the business is interested in having its website updated.
Or, a café may contact businesses in its local area outlining that it has started to provide a new catering service that may be useful when important business meetings are held.
The technique is called cold calling because the person making the approach is coming in cold, or without preparing the other party that they would be approaching them, and are making a call, either in person or over the phone.
However in modern times, cold calling also applies to sending an email, a social media direct message or other digital messaging tool, although often the personal approach can be more effective.
How cold calling is beneficial
There are advantages to cold calling over other business-attraction techniques that can make it an appealing option to consider.
Low cost
Cold calling has a minor financial outlay as opposed to other promotional tools such as advertising.
While the time spent making the cold calls will cost the business in terms of the worker’s salary, if the employee or business owner making the calls is not doing anything in that time that directly leads to income anyway, it will come at little cost. The return on investment should outweigh this cost, too.
Builds a network
A cold call does not need to be a hard sell – the worker can simply be calling to introduce themselves and their products or services to their target, in case there may be a need in future.
This builds contacts and networks that can be beneficial. For example, the target may later become aware of other businesses in their network that may require the products or services being offered and recommend where they can find them.
Surveys customers
A business can learn what their competitors are doing better or what customer needs there are when cold calling.
For example, a business may reject the offer because the product costs more than what they already purchase. Or, the target may outline that they do not have a need for that particular service but what they would really appreciate is a supplier that can provide something else.
Without this direct contact with customers, it can be hard to be certain about or pivot to provide what they need.
Cold calling tips
Cold callers do not need to have the gift of the gab or be particularly persuasive, as there are some basic things to keep in mind that can be just as effective at securing success.
Provide a personal touch
The first approach, at least, should be somewhat personal – if not in person, then over the phone so that the other party can hear your voice.
Putting a face or a voice to a name from the outset is useful to gain the trust of the other party, and particularly helps to reassure them that it is not a scam.
Detailed information such as pricing or product specifications can always be provided during a follow-up email or message after the initial contact has been made – there is no need to bombard the target with all this information at once.
Follow up the call
This may not always be an appropriate response to a cold call, as the other party may feel harassed, particularly if they clearly rejected the offer.
However, it should be considered if the response to the approach was good or they were somewhat receptive. For example, if a business rejects the cold call because it does not currently have the need for it, suggest calling them in six months or a year to gauge if a need had arisen in that time. Set a reminder to ensure that the call is made again at the agreed time. Or, give the business time to consider the offer and call again a few days later.
If the initial approach was successful or the other party asked for more detail, ensure that information is provided as soon as possible. This can prevent them from changing their mind, seeking services from a competitor or forgetting that the approach was made.
Time it right
It is always best to make the approach when the other party is amenable to listening to it, however this can be the most difficult thing to predict when making a cold call.
For example, a business manager is less likely to want to hear about a new product or service when they are deeply concentrating on writing a report, but there may be no way for the cold caller to know that is what they are doing at the time of the call.
There are some basic assumptions that cold callers can make to improve the likelihood that their target is willing to listen. For example, avoid calling right before the business closes for the day, when people are hoping to soon finish work. Lunchtime may be appropriate if the target can listen while they eat at their desk in the office, or may be inappropriate if they leave the office to eat elsewhere.
Getting an understanding of how the industry operates can help, too. For example, a manufacturing business may work in shifts, so calling mid-afternoon may be a bad time to catch the right person to talk to as employees are coming in and out of the business at change of shift.
Before making the call, think about what the other party may be doing at the time and delay making the call if another time may be better.
At the least, ask the target if they have time to listen, and if not, ask for a time to call back that may be more appropriate for them.
Write a script
Have an introductory phrase to hand when making the call that clearly and concisely summarises the products or services being offered.
This can help the cold caller from becoming tongue-tied when making the call and ensures that all relevant information is passed on immediately.
It may help to prepare answers to common questions that the target may ask to avoid having to call back or provide that information later.
Dealing with rejection
There can be many reasons why a business will not immediately jump at the chance of purchasing a new product or service when they are offered it out of the blue.
For example, it may not be able to afford it at that time, it may be loyal to existing suppliers or staff may be too distracted dealing with a surging workload to be able to consider it at that point in time.
So when making a cold call, remember that a rejection now does not mean that the offer will not be accepted in future. Be polite and thank the target for their time.
A cold caller may not receive a positive response from making 10 approaches, however that is 10 more businesses that are now aware of the product or service that previously were not. So if they have a future need, the target will know who to turn to.
Cold calling can seem like a risky use of time, particularly when results are not guaranteed. However, leaders and managers who want to ensure that they have tried all angles to secure new business, have the time to make cold calls and are willing to see the long-term potential of the technique can achieve positive outcomes.
