Cold calling, the practice of contacting prospective customers who have not expressly consented to be contacted, has long been a staple of sales. However, opinions are divided on whether it remains an essential sales tactic in today’s digital age.
Some argue that cold calling is outdated, intrusive, and ineffective compared to modern digital marketing and social media outreach. Others contend that human touch and rapport building are still critical for sales success, and cold calling, when done right, can be a powerful tool for connecting with potential customers.
In this article, we will examine the key arguments on both sides of the cold calling debate, look at relevant data and statistics, and provide actionable insights for salespeople and leaders to determine if cold calling should remain a core part of their strategy.
The case against cold calling
Here are some of the main reasons why many argue that cold calling is no longer an optimal sales tactic:
– Customers dislike unsolicited sales calls: Surveys consistently show that most consumers have an unfavorable view of cold calls. They find them annoying, disruptive, and an invasion of privacy. This resentment undermines the sales process from the first interaction.
– Low contact and conversion rates: Estimates suggest only 2-3% of cold calls result in making contact with the desired prospect. Of those contacts, less than 1% typically convert into sales. The low odds of success make it an inefficient use of salespeople’s limited time.
– Customers prefer digital channels: Buyers today often conduct their own online research and expect sales outreach on channels they already use heavily, like email, social media, and live chat. Cold calling interrupts these digital workflows.
– It relies on interrupting people: Cold calling works by interrupting prospects during their workday. But with the rise of remote and flexible work, prospects are in meetings or focused on projects more sporadically throughout the day. It’s harder to find them available for an unexpected sales call.
– Limited prospect information: Cold callers typically have very little context or background on the prospects they are contacting. Without insight into needs or pain points, calls feel generic and irrelevant to the prospect.
– Strict regulations: Laws like the U.S. Do Not Call Registry restrict who can be contacted without prior consent, drastically shrinking the pool of prospects for cold calling. Violations can incur major fines.
The case for cold calling
However, there are still compelling arguments in favor of cold calling as an impactful sales technique when executed strategically:
– Human relationships still key for sales: Establishing a real human-to-human connection and rapport through a conversation can differentiate a sales rep from digital-only outreach. This helps create trust and sales opportunities.
– Allows sales reps to showcase skills: Cold calling requires salespeople to be skilled at pitch delivery, active listening, objection handling, and thinking on their feet. These selling skills can impress prospects.
– Higher value prospects: While overall conversion rates are low, those that do convert from cold calls tend to be more qualified, sizable opportunities. The lack of incoming leads forces reps to proactively target ideal prospects.
– Scalability to large prospect pools: Smart call routing technology and sales development teams allow cold calling to be scaled to contact hundreds or thousands of prospects in a cost-efficient manner.
– Breaks through digital noise: Buyers are inundated across numerous digital channels. Cold calls can uniquely break through and directly engage a prospect by dominating their attention on a phone call.
– Pre-frames the sales rep: A cold call allows a rep to explain who they are, their company, and value proposition. This context frames any future digital touchpoints better than cold emails or social outreach.
– Flexibility around compliance: While tough regulations limit some cold calling activities, techniques like emailing for consent first create compliant pathways to conduct phone prospecting.
– Data to refine efforts: Recording results from cold calls provides user behavior data to refine scripts, targeting, and training to improve effectiveness over time.
Cold calling by the numbers
Relevant statistics and survey data on cold calling shed more light on its evolving perception and performance:
| Survey Data and Statistics | Finding |
|---|---|
| 80% of consumers have a negative view of unsolicited sales calls | Gallup, 2018 |
| 57% feel cold calls waste their time | Salesforce, 2022 |
| 69% of those annoyed by cold calls will purposely avoid buying from the company | Marchex, 2021 |
| B2B cold call contact rate averages 2.29% | Outreach, 2021 |
| High-performing sales reps contact 5.4X more prospects via cold calling than low performers | Gong, 2020 |
| 53% say a strong first cold call improves their perception of a sales rep | LinkedIn, 2020 |
This data highlights the generally negative perception around unsolicited cold calls but also the potential power of cold calling in the hands of skilled sales professionals. While contact rates remain low, those who do adopt consistent cold calling tend to see stronger results. And prospects appreciate and respond better to reps who can connect effectively on that initial call.
Optimizing a modern cold calling approach
Given this analysis, cold calling retains relevance for organizations – but needs to be refined as part of an omnichannel sales strategy. Here are best practices for integrating and optimizing cold calling:
Allow prospects to opt-in first
Obtain explicit consent where possible before placing cold calls. Techniques like sending individual emails requesting a call, using website chatbots, and calling from an enticing public phone number help secure interest first. This shifts calls from “cold” to “warm” and boosts pick up rates.
Align with digital targeting
Use digital engagement data like website visits, content downloads, and email opens to identify high-intent prospects worth prioritizing for calls. Retargeting warms them up before a call comes.
Personalize with research
Arm sellers with background on prospects’ roles, challenges, and interests from sources like LinkedIn and past engagements. Personalized, relevant calls get better results than generic pitches.
Refine scripts and rebuttals
Equip reps with tested call templates optimized for specific prospect types. Prepare rebuttals to common objections around interest level, timing, or value proposition. This enables skilled execution.
Time calls strategically
Leverage data on role-based behaviors – like when CFOs tend to be available – along with time zone insights to place calls when target prospects are most reachable and attentive.
Combine with digital nurturing
Follow up effective cold calls with tailored email drip campaigns, content shares, and social media connections requests. Multichannel follow-up boosts conversions.
Monitor and analyze results
Track key call metrics like duration, sentiment, repeat contacts, and pipeline influenced to identify top performing reps and fine-tune calling scripts and targets over time.
Motivate through competitions
Gamify results by setting up team leaderboards for most calls placed, highest contact rates earned, or pipeline generated. Competitions boost engagement in cold calling.
Provide ongoing coaching
Sales leaders should monitor call recordings and performance data to provide sales development reps personalized feedback on areas like active listening, objection handling, and closing. Ongoing skills development ensures cold calling success.
Conclusion
The statistics show that the majority of prospects still dislike and tune out most cold calls. However, well-targeted, personalized, and skillfully executed cold calling provides a proven way for salespeople to cut through the digital noise to make important human connections with potential buyers open to quality vendor conversations.
Rather than abandon cold calling outright, sales leaders should focus on optimizing contact strategies, aligning touches with digital nurturing, choosing targets wisely, and coaching seller skills. This allows organizations to balance digital efficiency with human relationships.
When integrated strategically as part of this modern omnichannel approach, cold calling remains an impactful way for motivated sales professionals to drive pipeline and revenue growth.
