Though challenging, cold calling can be rewarding at times. A very tedious practice, but a necessary indulgence, this sales approach can be uncomfortable and nerve-wracking while trying to call someone you don’t know and ask them for business. Yes, you cannot convert a cold prospect suddenly but then it can also be a great way to make new connections with people in your industry.
It is true that almost every existent business uses or has used cold calling techniques at some point or another. Here we will be talking in and out about cold calling, and how cold calling can be an effective business strategy when done correctly. So, let’s talk about it.
What is cold calling?
Cold calling is basically a proactive sales outreach method where a salesperson contacts potential customers who have no previous history with the company’s products or services and have shown no interest in the same. Often, such customers have no prior interaction with the company, yet have a high potential of converting into quality leads. The primary purpose of cold calling is to make the customers familiar with the company’s offerings, initiate interest, and ultimately influence the potential customer to make a purchase.
Cold calling facilitates establishing first-level connections with potential customers who might be interested in your brand in the long run but may not be actively seeking it out presently. Guidance by your sales team made through a clear conversation will help your potential customers get rid of any objections they might have to your offerings. The success rate of cold calling can depend on numerous factors such as the quality of the sales pitch, the timing of the call, and the relevance of your brand and its offerings to your customer needs.
Process flow of Cold-calling Sales
Here is a simple set of steps that are involved in the process flow of cold calling. You can follow it to get the most out of this sales technique.
Be prepared to answer questions:
There can be a number of questions coming your way while interacting with the customer. That is particularly most likely to happen when you are cold calling, i.e. you are interacting with the customer for the first time. Be prepared to answer those questions but make sure not to give away too many company secrets. Also, be honest if you don’t know the answer. That way you can retain your credibility.
Make a sales pitch:
When making cold sales calls, it’s important not only for you but also for your prospects that they feel as though they are being sold something rather than just being given information on how good your company is at what it does (which could be true). That said—and this goes back again into preparation—you need some kind of compelling reason why someone should buy from you over their current provider (or another vendor). If possible, try finding out what value each prospect sees in working with yours versus theirs so that when trying out different strategies later on down the road, these factors remain a top priority among others such as price point.
Focus on the customer:
Solving your customers’ needs is the secret recipe of a sales pitch. Do a bit of research on your customer’s business needs, and pain points. Actively listen to the customer and respond with empathy and understanding.
While cold calling may sound nightmarish (even to the most happening salesperson), it’s true that cold-calling tactics still play a key role in emotion-based sales. It’s the first step to sparking a conversation with a potential client. At the end of the day, the sale is an emotional process and without building trust, you can’t accomplish it. Cold-calling for sale is the stepping stone for the same.
Make sure to ask for referrals
A very efficient method of building new relationships and fostering loyal customers is to ask for referrals. Make sure that when you are calling a prospect, you ask them if they can refer your brand to others as well. This will show that you are genuinely making an effort to grow your business and not just asking them out of politeness.
Even during cold calls you need to have call-to-action. If you’re asking a customer for a referral, make sure that he knows you are here to make a sale. For example, you can say, “I ‘d appreciate your support to grow my business”! If your friends need any of my products or services let them know.
Working with CRM software can help
In the age of digitization, CRM has become a mandatory tool. It makes customer relationships easier than ever. Not only does it help in managing your sales pipeline, but it also provides a detailed report on the leads generated by your marketing efforts. With all the lists, your customer reps can reach out to potential leads via cold calls. Using the customer segmentation capabilities of a CRM, it’s easier to segregate customers based on their needs.
CRM software is a collection of applications used by an organization or company to collect data about its customers, suppliers, employees, and other stakeholders (or “people” as they are sometimes called). This type of system can help companies deal with issues like customer service problems or complaints from employees who feel ignored at work because there isn’t enough time spent training new hires on how things work around here!
CRM applications are focused on tracking contacts within an organization; typically this includes email addresses with associated accounts where those individuals’ information lives so that someone else can access it easily when needed (versus having everything stored locally within each department).
Cold calling can be an effective sales strategy when done properly.
Here are some tips to help you become more successful with cold calling:
Cold calling isn’t meant for aggressive selling:
Cold calling should not feel like a sales pitch; instead, it should feel like an informational meeting with a potential client who has questions about your product or service and wants to know more about what makes them different from other companies in the same industry. Remember that these people have chosen to reach out to you at this time because they trust your company’s ability to deliver on its promises—so don’t lose sight of that!
Be polite and respectful during every interaction: Remember that each person is another human being with feelings just like yours (and possibly better ones). If someone asks you why they shouldn’t buy from another company instead of yours because “it sounds better,” for example, respond with something along these lines: “Well…I guess what I can tell you is that our team has been working hard since inception on designing something truly unique within its genre.” This gives them reassurance without making them feel pressured into making a decision now–which could mean losing out on future business down the road because no one else knows about these features yet either!
Make sure that your customers never feel that you are actually trying to get the product sold and that’s it. Instead, focus on building credibility with your customer and an emotional connection. Customers, who are emotionally connected with your brand won’t mind spending a few more bucks on your product. They will know they are getting value for the money.
The best time to call!
For cold calling, time is precious. Studies reveal calls made on Wednesdays and Thursdays give the best results. Since the beginning of the week is hectic and people mostly are busy dealing with previously scheduled meetings, mid of the week they usually are free. Again on Fridays, nobody wants to deal with work on Fridays. Reaching them out mid-week means you are calling them when they are more relaxed. Also, keep in mind that 4-5 pm is the golden hour for sales calls.
What do you do with the rest of the time, then? It’s obvious that all your potential leads are cold-call recipients. Some of them have already traveled to the next step of your funnel. The best you can do is to shift your sales team’s focus and let them build and nurture relationships with the warm prospects.
Cold calling is not a sprint!
Purchase decisions are not made overnight. It takes time. Especially today, when they have more access to information and options, they take time to research and get informed from multiple sources. So, whenever you are doing cold calls, never expect that your potential customer will be interested in purchasing your product right away. In fact, a little difficulty in converting your prospect is a blessing because that gives you enough opportunity to nurture it and turn it into recurring customers, which brings long-term profit. Rather than focusing on making a sale, you can take your hot leads to the next stage of the pipeline. If you can set up an appointment or a follow-up from an initial cold call, you have won.
Wrapping Up
Be extremely creative and strategic when it comes to your cold-calling. Remember that it is a powerful tool, but not an aggressive one. You can’t convert a lead right away or maybe you can, but in general, things take time. If you are looking for guidance for cold calling and the secret recipe for success get in touch with the ConvergeHub Experts.
