Problems With Cold Calling and How to Avoid Them

There are problems with cold calling that every business runs into but it still stands as an effective method of B2B sales. Many B2B companies find that cold calling can be an exhaustive and ineffective method for their company. Cold calling is the practice of calling sales prospects that have not previously engaged or expressed interest in the company. As a sales tool, cold calling is said to help reach new customers, make personal connections, and improve sales pitches but here are some problems with cold calling to look out for.

Cold Calling for industrial sales are nothing like those in Wall Street. They require significant preparation, and knowledgebase of both the key verticals you operate in as well as the target customer pain points. Image Courtesy of Leonardo DiCaprio.

Cold calling can be off-putting

Cold calling often involves calling a list of leads without any prior research or personalization. This can make it difficult to establish a connection with the prospect, as the salesperson is essentially a stranger trying to sell something to the prospect without any context or understanding of their specific needs. Receiving calls from a salesperson with a pre-rehearsed pitch can be off-putting, especially when the content lacks personalization.

This practice can easily feel intrusive and disruptive. The customers who are called may not be interested or expecting a sales pitch. Many prospects may be busy or uninterested in taking a call from a salesperson, which can result in a negative first impression and decrease the likelihood of a successful sale.

Low conversion rate

According to a study done by LinkedIn, cold calling conversion rates are around 2%. This can make cold calling a time-consuming and resource-intensive process that may not yield a significant return on investment. Cold calling sucks up resources at a company because it requires calling a large volume of prospects. One study found that it typically takes 18 calls to reach anyone, making cold calling extremely low in success.

Another facet of cold calling that leads to low conversion is the lack of time and preparation. Calls are made quickly and without much preparation, which can result in a lack of focus and lower success rates. Without research and preparation, the salesperson can be unaware of the actual needs of the prospect. This leads to an inability to effectively communicate the benefits of the product or service, leading to a missed opportunity.

Cold calls may also be doomed to low conversion rates because of the amount of competition. Although conversion is low, cold calling is a popular sales method. This can make it difficult to stand out and make a lasting impression, particularly if the product or service being offered is similar to those offered by many other companies.

How to make cold calling more effective

As mentioned previously, cold calling can be off-putting and yield sub-par conversion rates. However, there are ways to make sure that an unexpected call is a positive experience for the customer. This becomes especially important in industrial sales (e.g. the sale of photonics products) where transaction volumes are low and values per transaction high. This makes choosing quality over quantity work really well. So, we gathered these 5 tips to make you successful in cold-calling:

1. Familiarize yourself with the industry verticals

Do not attempt to cold call any and every business. It is important to be selective and identify a handful of verticals or businesses that have commonalities. Understanding the needs and interests of a company is essential to making a sale. Because one salesperson can’t be an expert, picking a handful of companies to get familiar with allows a salesperson to appear knowledgeable and trustworthy. Once companies have been identified, it’s a good practice to do some research. research should address questions that help a salesperson understand how a product will add value. What does this company seem to be in need of that can be brought up on a call? How does this company compare to others that your company services? Any information that can make the other person on the phone feel like more than just a name on a list will be helpful.

2. Perfect your introduction

It will not work in your best interest to read off a script. If you go about calls this way your risk sounding robotic and impersonal. Because you are an expert on the product you are selling and the needs of the company you are selling to, it should be easier to talk naturally on a call. Something that should be thought out beforehand is how you will introduce yourself and your product. An introduction should include a quick description of what you’re selling and how it is relevant to the company you are selling to. It is important for this to be quick and effective, as cold calling windows are so small.

3. Be prepared for challenges

When cold calling a salesperson should be prepared for the customer to challenge them. In almost every call, it is unlikely that the customer will hear a pitch and immediately buy a product. So, when conducting research, you should look into reasons a company may not be interested. When a customer challenges your product, how will you convince them that it will fulfill a need? Think about the way similar companies have challenged your product in the past, or issues that may come up according to your research. Try your best to predict possible concerns before a call.

4. Treat the cold call like a conversation

A cold call should never be a long spiel from the salesperson with no room given to the person on the other end to ask questions, express concerns or give feedback. Listening to the customer is pivotal in convincing them to value a product. What knowledge have you gathered that you can use to address their comments and concerns? Something that the customer says could be the key to closing a sale. Asking open-ended questions can be a method that helps the call feel like an actual conversation.

5. Conduct follow-up calls

Sometimes cold calls can lead to multiple calls. If someone is willing to speak with you at another time, it is a great opportunity to lock in a sale. During your initial call, try to schedule a follow-up call if possible. This will show that you’re committed to building a relationship. Also, consider asking for other contact information like email so that you can confirm the date and time of the call.

If you receive an email, send a thank-you email as well. A thank-you email should be sent within 24 hours of your cold call. The email should express your appreciation for the opportunity to speak with them. This helps establish a positive relationship before the next call.

In your follow up you should also try and relay something of value to the customer. This could be a helpful article, a relevant case study, or a recommendation for a tool or service that could benefit their business. This will also show your commitment to the customer and get them interested in your product.

Summary

While cold calling can be a challenging sales tool to use effectively, with the right strategies and techniques, it can significantly boost your sales and efficiency. By following these tips and practicing your approach, you can build meaningful connections with potential customers and increase your chances of cold calling success.