Cold Calling: What Is It, and Why Do I Keep Hearing About It?
Cold calling is a common phenomenon, and it’s actually quite simple: you pick up your phone, computer, or tablet and reach out to a company or individual you have no prior relationship with to ask if they’re interested in your product or service. Most of us have experienced this to some extent, but few have witnessed a well-executed cold call.
Cold calling tends to get a bad reputation, largely due to salespeople executing it poorly. The norm today often involves making as many calls as possible with a pushy pitch designed to trap hesitant decision-makers into a lengthy conversation about a product that may not be relevant, wasting time for both parties involved.
This method is outdated and, frankly, ineffective compared to the more modern approaches available. This is especially true in the B2B space, where personal relationships and subject-matter expertise are essential. In B2B, a “pushy” approach often results in burning through 8 out of 10 leads, which isn’t sustainable given the limited number of potential clients within a specific target market.
So, What Is the Right Approach to Cold Calling?
We’ve covered the wrong approach, which involves high energy, rapid talking, and a lot of sales tricks. But what about the right approach?
There are countless ways to approach cold calling and just as many tips and tricks to get a prospect to say yes. In reality, there’s no single “right” or “wrong” way to do it—there are simply effective and ineffective methods based on your sales goals. Start by clarifying what you want your sales team to achieve. What identity should they embody? What’s the company’s overarching goal, and in which direction do you want to steer the business?
If you’re selling high-ticket products with only a few thousand potential customers in your country, you’ll likely need a personalized, data-driven approach. If you’re selling a compliance solution with a massive target market, having your team call 100 companies a day with a well-crafted script might be more effective. Or, if you’re selling software for $50 a year to businesses, cold calling may not be ideal—instead, leverage time-efficient marketing efforts.
Different Approaches to Cold Calling for Different Goals
- Script-Based Approach: Here, the focus is on volume, as you’re trying to penetrate a new market or promote a new product. This method works well under the right conditions: having conducted thorough research on your Ideal Customer Profile (ICP) before starting cold calls. A script should always be problem-oriented. Too many callers still try to throw a 60-second pitch at someone they haven’t even engaged with yet. So, use the script approach, but use it wisely.
- Shotgun Approach: In this high-volume tactic, the focus is on calling over 200 prospects daily. You’re likely using a dialer program, and it doesn’t matter if your prospects are exhausted or if your number is flagged for spam. This method only works for B2C and is becoming obsolete—even there. We’re no longer in the dot-com era, and decision-makers globally have experienced aggressive selling countless times before. Use this method at your own risk, but be cautious not to damage your brand or integrity along the way.
- Data-Driven, Personalized, and Relationship-Building Approach: This approach emphasizes building relationships with companies and decision-makers. Instead of pushing a quick sale or meeting, you focus on genuinely connecting with the person on the other end.Here, techniques like Neuro-Emotional Persuasion Questions (NEPQ) come into play. In these calls, your goal is to build rapport and identify the right problems. Start by listening and asking thoughtful questions, ideally developed in collaboration with someone experienced in problem-oriented selling. Additionally, take notes on everything relevant that you hear. This is the data-driven aspect. Record everything your prospect shares based on the questions you’ve crafted. This process works best with a CRM, like HubSpot, to track your interactions. While it takes time to document every detail, this information becomes valuable when 9 out of 10 say “no”—because you’ll have detailed information in your pipeline. When the timing is right, you’ll be well-prepared to address their needs, unlike those who rush through calls without noting down issues, thoughts, and personas.
What to Take Away for Your Sales Team
Cold calling can be a powerful technique, but like any tool, its effectiveness depends on how it’s used. By understanding your customer’s needs, personalizing your approach, and building relationships, you can make cold calling a valuable part of your sales strategy. It’s not about pushing products on people but understanding them and offering solutions that make a difference. Remember, the best salesperson isn’t the one who talks the most but the one who understands best. So listen, learn, and let your cold calling strategy evolve alongside your market and your customers. Success in sales is about creating value—and that starts with the right approach.
