Cold calling - are you doing it right?
Every single small and mid sized business is interested in cold calling but hesitation (read: fear) holds them back. Contrary to popular opinion, cold calling isn't dead and when done right is a great channel to reach new leads. Here's a few tips from our team on making effective cold calls.
Cold calling has been around since the 1870s, but still remains an unlikely and often dreaded sales exercise. So much so, that 63% of sales reps identify cold calls as the worst part of their job. However, cold calling does yield returns when done well. While the average sales person should be securing a meeting for every 35 odd calls made, the overall success rate sits between 2 and 3 %. In fact, phone calls remain very effective in the sales cycle, especially when making remote sales or if you are unable to meet in person. C-Suite level buyers often prefer phone calls to emails or social media outreach.
If you are going to embark on the adventure of cold calling identified leads, doing it well and in a respectful but time effective manner is very important. Our team at Ri-Think makes hundreds of targeted cold calls every week, and we put our minds together to come up with the most important tips for when making cold calls.
- Pick the right day and time
The time of the day you call has a pretty big impact on how the call goes. Generally calls made on Tuesdays, Wednesdays and Thursdays give better results, with Wednesday yielding the best ROI. In addition, calls made between 10 am – 12 pm and 2 pm – 4 pm show a higher response rate and better quality conversations. We always refrain from making calls at lunchtime – calls around 1 pm give you a very low success rate.
2. Introductions are important
People always like to know who they’re talking to. Make sure to introduce yourself at the beginning of the call. Keep it friendly and cheerful but to the point. This is the stage where people are trying to figure out whether they will take the time to talk to you or not.
3. Ask whether it’s a suitable time for them
Cold calls are generally unexpected calls which the receiver will likely answer while occupied with another task ranging from driving to being in the midst of an email to being in a meeting. Asking if it’s a good time for them and/or whether they have a couple of minutes for you, is a great way to show you respect their time. If it’s not a good time, schedule a call back and the person is likely to remember you and will be more responsive then.
4. Ask Open ended questions and respond
I’ve received far too many calls where the salesperson either jumped directly into the pitch or simply asked me questions that led to yes / no answers in order to determine what to sell to me. There is a massive missed opportunity here. Asking open ended questions instead achieves three things: one - it gets your potential buyer to open up and share information, two - it makes the buyer feel like you genuinely care about their problems and want to know more, and three - it allows you to gradually build rapport and a relationship over the phone. This style of calling leads to better qualified leads and a higher conversion rate.
The other crucial part of this equation is responding appropriately. I encourage my team to acknowledge what the person is saying and validate their feedback where possible. This leads to the caller responding to what the person has said, instead of moving on to the next talking point. Responding to their statement also results in improved objection handling and in many cases, further open ended questions. As far as cold calls go, curiosity can take you a long way.
5. Speak less, Listen more
Remember, the call is for you to connect with the buyer and learn about their pain points. To achieve this, you must ask the right questions and let the buyer share information. Spend your time actively listening to the buyer and speak when it’s relevant. You should be aiming to set up a meeting following the call, during which you can give your full pitch or demo. The cold call is to introduce yourself, build that initial rapport, gauge interest, talk about your service and leave them wanting more details.
6. Outline next steps and close effectively
Have you ever had a call where the call ended and you didn’t really know what was happening next? Too many sales professionals love having a good yarn, but don’t do so well on the follow through. It is critical you outline next steps before ending the call. If the call was positive, will you be sending meeting times? If the response was lukewarm, will you reach out again or are you going to email anything further? Say it was a hard no, do they know where to reach you if they change their minds? As the seller, you need to be proactive and leave the potential buyer with a clear understanding of what comes next and how you will help.
Finally, always end on a positive note. You’re probably going to reach out to this person in the future or if you’re in a small market like New Zealand with two degrees of separation, you’ll probably cross paths in the future.
Cold calling doesn’t need to be dreadful. It can be engaging and pleasant if you approach it with the same energy and humanity that you show when calling a friend. People buy from people and in our hyper digital world, phone calls continue to remain the most preferred method of communication for B2B buyers. If you're still nervous about making cold calls, get in touch with us and our team will do it for you!
