What is Cold Calling? [A Guide on Mastering the Art of Cold Calling]

What is cold calling?

It's sort of like trying to get into a party without an invitation, except you can't just turn up with a bottle of tequila and instantly become everyone's best friend.

If you're feeling a little unconfident going into a cold calling role, you're not alone.

63% of sales reps say that the one thing they most hate about their job is having to make cold calls.

Here's the thing, though:

Cold calling can be essential to sales success. So, something's got to give in order to get tangible results.

With the right cold calling techniques, you can regain your confidence and handle even the most grumpy prospects effortlessly. This article will show you how you can succeed with your cold calls.

To start, let's define cold calling.

Cold Calling Definition

Cold-calling is the art of calling someone who has had no prior engagement with your business, with the goal of turning a conversation into a next step, such as a meeting with an account executive, or a direct sale.

It sounds tricky, but with the right techniques, sales agents can become masters of cold-calling.

Just watch Jordan Belfort's cold calling technique in Wolf of Wall Street to get the picture.

Many salespeople dread making cold calls, and this, coupled with the fact that hot and warm leads tend to take priority over cold ones, means that this form of prospecting is rarely looked at.

For this reason, many sales organizations hire dedicated cold-callers (known as BDRs or SDRs) to perform this duty, removing that conflict of interest.

But Does Cold Calling Actually Work?

If you've had a bad run of cold calls, where you've been dismissed mid-sentence or hung up on, you might start to believe that cold calls just don't work.

Wrong.

Around 69% of consumers accept cold calls and around 82% of them will accept to meet with you after they've talked to you on a cold call.

It takes patience, agility, and a lot of practice, but cold calls certainly turn into sales for companies in every industry.

If you have:

• A fail-proof script
• A deep understanding of your target audiences
• A knowledge of expected objections and how to tackle them
• An ability to speak authentically without going off-topic

You can use cold calling to further deepen your business's knowledge of its target customers, and the best ways to turn conversations into sales.

Why Is Cold Calling Important for Inbound Sales?

Cold calling is still very much alive and kicking.

Cold calling empowers sales representatives to anticipate what the customer needs beforehand. It allows the team to connect with people well before the competition does. Plus, it's way cheaper than going door-to-door.

Still, you shouldn't make cold calls without knowing as much as possible about the prospect you want to engage.

That's one of the biggest mistakes most businesses make today.

Between social media and sales intelligence tools, there's really no excuse to call a person or brand you know nothing about.

Bear in mind that the results gained from cold calling techniques vary by industry, though most will benefit greatly from them.

Here are 5 reasons why cold calling is still very important when it comes to inbound sales:

1. Get in Front of New Customers

Inbound marketing is great, but it doesn't reach everyone. Cold calling allows you to proactively target potential customers who might not be aware of your brand or the problems you solve. By reaching out directly, you can introduce yourself and your offerings to entirely new audiences.

Tailor your cold calling lists to target specific industries or company sizes most likely to benefit from your product or service.

2. The Chance To Identify Targets And Decision Makers

Another key benefit of cold calling is the ability to identify key targets and decision-makers within an organization. Cold calling allows sales teams to gather critical information about a prospect's company structure and identify the individuals who have the authority to make purchasing decisions.

Utilize cold calling techniques such as open-ended questions to understand the prospect's pain points and decision-making processes. This approach can lead to more effective follow-ups and higher conversion rates.

3. Strengthen Product Demo Effectiveness By Pre-Qualifying

Cold calling can significantly enhance the effectiveness of product demos by pre-qualifying leads before scheduling a demonstration. During a cold call, sales reps can assess the prospect's needs, budget, and level of interest, ensuring that only qualified leads are invited to a demo. This pre-qualification process saves time and resources, making product demonstrations more impactful and increasing the likelihood of closing a sale.

4. Economical and Hassle-Free

Cold calling remains one of the most economical and hassle-free methods for generating new business. Unlike other marketing strategies that require significant financial investment, cold calling primarily relies on the skill and persistence of your sales team. Implementing cold calling best practices, such as using a well-crafted script and setting daily call targets, can improve efficiency and results.

Additionally, modern CRM tools like ours and automated dialing systems can streamline the cold calling process, making it easier to manage and track your sales efforts.

5. Remote Sales Are Easy

In this digital age, cold calling has become an even more powerful tool for remote sales teams. With the advancement of technology, sales reps can make calls from anywhere, using VoIP services and CRM software to manage leads and track interactions. Remote cold calling allows for greater flexibility and scalability, enabling sales teams to reach a wider audience without geographical limitations.

To succeed in remote cold calling, ensure that your sales team has access to the right tools, receives regular training, and follows a consistent process.

Steps in the Cold Calling Process

Before diving into the details, here's a quick table summarizing the key steps in a successful cold call:

Now, let's break down each step in detail:

Research

Do your homework! Before calling, research your prospect and their company. This shows you're prepared and builds trust. Here's what to uncover:

• Prospect's Needs and Challenges: Understand their industry, common pain points, and current solutions they might be using.
• Company Decision-Makers: Identify the right person to connect with, typically someone with the authority to make purchasing decisions.
• Your Company's Value Proposition: How does your product or service specifically address the prospect's needs? Tailor your pitch accordingly.

Utilize online resources like the company website, social media profiles, and industry news to gather relevant information.

Preparation

Develop a compelling script that addresses the prospect's needs and pain points, while clearly conveying the benefits of your product or service. Set clear objectives for each call, such as securing a meeting or gaining more information about the prospect's needs.

Ensure you have all the necessary tools and resources at hand, including a reliable CRM system to track interactions and follow-up actions. Practicing your script and familiarizing yourself with common objections can also help you feel more confident and prepared during the call.

Initial Contact

First impressions matter! Make a strong introduction and set the tone for a positive conversation. Here are some tips:

• Be Polite and Professional: Use a friendly greeting and introduce yourself clearly.
• State Your Purpose Clearly: Briefly explain why you're calling and the value you offer.
• Respect the Prospect's Time: Be mindful of their schedule and get straight to the point.

Practice your opening statement beforehand to ensure it's clear, confident, and engaging.

Handling Objections

Prospects may raise concerns or objections about your product or service, and it's important to address these confidently and convincingly. Listen carefully to the prospect's concerns, acknowledge their validity, and provide clear, concise responses that alleviate their doubts.

Being prepared with answers to common objections and demonstrating empathy can help you build trust and keep the conversation moving forward.

Closing

Go for the close! The goal is to secure a next step that moves the prospect closer to a sale. Here's how:

• Transition to the Close: Summarize the value you offer and suggest a next step, such as a meeting or demo.
• Offer Options: Be flexible and present a few different options for scheduling a follow-up.
• Be Clear and Concise: Make it easy for the prospect to agree to the next step.

Follow-up

Follow-up is essential to maintaining momentum and nurturing the relationship with the prospect. After the initial call, send a follow-up email summarizing the key points discussed and outlining the next steps.

Regular follow-ups, whether through calls, emails, or other touchpoints, help reinforce your value proposition and keep you top-of-mind for the prospect. Consistent and thoughtful follow-up can significantly increase your chances of converting prospects into customers.

Common Challenges Sales Teams Face During Cold Calls

Okay, so we know what is cold calling and why it's a good thing for business.

But it's still a tough gig, right?

Well, it can be, but only if you're unprepared for the challenges and objections you'll face.

So, with that in mind, let's get you prepared!

Challenge 1: A Whole Lot of Rejection

Rejection is an inevitable part of cold calling. Prospects might be busy, uninterested, or simply not a good fit for your product or service. This can be discouraging and can impact morale and motivation. Here's how to handle rejection:

• Develop Resilience: Understand that rejection is a normal part of the cold calling process. Each "no" gets you closer to a "yes."
• Refine Your Approach: Analyze your calls to identify patterns in rejections. Adjust your script, tone, and approach based on feedback and observed trends.
• Stay Positive: Keep a positive mindset and focus on your successes. Celebrate small wins to stay motivated.
• Training and Support: Regular training and role-playing exercises can help sales reps build confidence and improve their skills in handling rejection.

Set realistic daily goals that focus on the number of calls made rather than the number of sales closed. This helps maintain a positive mindset and acknowledges the inherent rejection that comes with cold calling.

Challenge 2: Actually Getting Your Prospect on The Phone

Gatekeepers, busy schedules, and voicemail can make it difficult to connect with decision-makers during cold calls. In fact, it can take up to 8 phone calls to reach a prospect. Here are some strategies to improve your chances of reaching the right person:

• Research Decision-Makers: Identify the specific titles and names of the people you want to connect with.
• Time Your Calls Strategically: Call during times when prospects are most likely to be available, typically mornings or afternoons.
• Prepare for Gatekeepers: Develop a clear and concise message to bypass gatekeepers and connect with the decision-maker.
• Leave a Compelling Voicemail: Craft a voicemail script that is brief, informative, and piques the prospect's interest enough to warrant a call back.

You can utilize social media platforms like LinkedIn to research and connect with potential decision-makers directly. This can be a more effective way to bypass gatekeepers and establish initial contact.

Challenge 3: Poor Quality Leads

Wasting time on unqualified leads can be frustrating and unproductive. Here's how to ensure you're targeting the right audience:

• Refine Lead Generation: Work closely with your marketing team to refine lead generation strategies. Use data analytics to identify high-quality leads.
• Lead Scoring: Implement lead scoring systems to prioritize leads based on their likelihood to convert. This helps focus efforts on the most promising prospects.
• Qualify Leads: Before making the call, verify and qualify leads to ensure they match your ideal customer profile. Use pre-call research to gather relevant information.
• Feedback Loop: Establish a feedback loop between sales and marketing teams to continuously improve lead quality. Share insights from cold calls to help refine targeting and messaging.

Challenge 4: Sales Objections

Objections are one of the hardest parts of the sale process.

Let's look at 3 common objections, and some sales call tips for solving them.

1. We're Not Interested

This objection is oftentimes a knee-jerk reaction by prospects once they realize they have just answered a cold call. Often, they just want to get you off the phone as fast as possible.

What To Do About It

Keep in mind that this is a prospect you're contacting for a reason. Thus, the game is not over yet.

This is an objection you can pre-empt in two ways:

1. Ask them for 10 seconds of their time – this often makes them pause because it's not an unreasonable request, and gives you time to present your pitch slowly and carefully before asking for their response.
2. Ask them a direct question that pertains directly to what your product does. Let's say you're selling real estate valuations. You could just say "Any idea what your home might be worth?".

When the price is a barrier, it can be tricky to overcome the objection. It is possible, though.

What To Do About It

This is where you need to sell on value:

1. Identify the price difference between your product and your competitor
2. Understand the key difference in the products' features and benefits
3. Communicate to your prospect how the additional cost brings additional value
4. Try to tie in some form of ROI here

3. I Need More Information

This is usually a pretty good sign, as it tells you they're interested in what you're saying.

However, it can often be a false objection, when the prospect says: send me an email with some details. Generally, they are simply trying to get you off the phone.

What To Do About It

Find out what it is they want to know about. If they are appearing to rush you off the phone, try something like:

"It sounds like I've caught you at a bad time. So I can help you understand how we can be of benefit to you, might it be a good idea to schedule a time to give you a callback?"

Effective Cold Calling Techniques

Cold prospecting is one of those activities that separates the men from the boys, as it were.

Many new sales reps won't last more than a few months. Others will go on to be sales champs

If you want to be one of those salespeople generating millions using effective cold calling techniques, check out these sales tips for cold calling reps.

1. Don't Run From Rejection, Embrace It

What is cold calling without rejection? Rejection is something many salespeople face when making cold calls.

It's unavoidable, not least because nobody can close 100% of their calls.

No one, well no human can close 100-percent of their potential customers. Rejection is part and parcel of the game.

Here's how to deal with rejection:

• Don't take it personally. It's just your job, and they're probably just doing theirs.
• Learn to expect a No. It will make that Yes all the more rewarding.
• Find out why. Seriously, just ask them.
• Have a bitch session with your colleagues. It can feel good to vent and talk about all the awkward and uncomfortable conversations you've faced this week. Then put them aside and get back to the hustle.

2. Make Use of The Tech At Hand

There are a plethora of tools and technologies out there that the modern salesperson can use so that they don't have to waste time doing inefficient and tedious sales tasks.

A typical sales tech stack is made up of:

• Sales intelligence tools: These tools provide insights and data about prospects, helping sales teams identify potential leads and understand their needs and behaviors.
• Enablement and engagement platforms: Provide training materials, sales content, and automation tools to streamline communication and keep prospects engaged throughout the sales cycle.
• VoIP phone and dialer: These systems enable sales reps to make calls over the internet, often with features like call recording, analytics, and automated dialing to enhance productivity.
• Email provider: Essential for communication, these services offer tools for crafting, sending, and tracking emails, ensuring messages reach the right audience at the right time.
• Video conferencing: Allows face-to-face meetings with prospects and clients regardless of location, fostering stronger relationships.
• A sales CRM: Acts as the central hub for managing all your customer interactions and data, keeping your sales team organized and on the same page.
• Reporting and analytics tools: Provide insights into sales performance, identify trends, and help measure the effectiveness of sales campaigns.
• Sales and marketing automation: Automates repetitive tasks like lead scoring, email nurturing, and appointment scheduling, freeing up salespeople's time to focus on high-value activities.

3. Don't Be Afraid To Go Off-Script

Cold calling scripts are ideal for training and developing new reps, but there's a problem:

They sound like scripts.

Use them to learn how to guide and navigate a conversation, and elicit a positive response for your prospects.

Once you've got a bit of experience under your belt, though, try switching over to a more natural and fluid conversation.

You can still achieve all of the same goals as you would with the script, but you're going to have better engagement from your prospects as you'll be having real, meaningful conversations.

Before you make the switch, try practicing with your colleagues by doing a few role-plays.

4. Create A Proper Calling Schedule

Cold calling for 8 hours straight is pretty emotionally draining.

To combat this, try setting up your day so that you have calling sessions, with time for administrative tasks and meetings in between.

For example, a typical day might look like:

• 8.30-9am - admin
• 9-10.30am - 90min calling session 1
• 10.30-11am - admin
• 11am-12.30pm - 90min calling session 2
• 12.30-1pm - lunch
• 1-2pm - internal meeting
• 2-3.30pm - 90min calling session 3
• 3.30-4pm - admin
• 4-5.30pm - 90min calling session 4

In addition, leverage your sales reporting tools to identify which times and days work best for cold calling.

You'll find that certain days work better than others, and certain times of day will be more successful too.

For example, people are less likely to answer their phones when they are deep in work mode.

However, if you can catch them coming in and out of tasks (typically around lunchtime and regular coffee breaks), they're more likely to answer your call.

5. Nail The Voicemail

The last of our cold calling tips and tricks is this:

Around 80% of your calls are going to go through to voicemail.

To maximize your sales effectiveness, you'll want to have a really powerful voicemail script nailed down.

Here are three examples:

Make sure you leave your phone number and let them know you'll follow up with an email as well.

Tools and Technologies for Cold Calling

The right technology stack can significantly improve the efficiency and effectiveness of your cold calling efforts. Here's a look at some of the most valuable tools and how they can benefit your sales team:

1. CRM Systems (Customer Relationship Management)

A CRM system is the cornerstone of any sales operation, and cold calling is no exception. Here's how CRMs can empower your cold calling strategy:

• Managing and Tracking Leads: CRMs, like ours, provide a centralized platform to store and manage all your lead data. You can track the progress of your cold calls, record interactions, and schedule follow-up activities. This ensures all communication with a prospect is documented and readily accessible to your sales team.
• Integrating With Other Sales Tools: Most CRMs integrate seamlessly with other sales tools like auto-dialers, email marketing platforms, and sales analytics software. This creates a unified workflow that streamlines the cold calling process and improves overall productivity.

2. Auto-Dialers

Auto-dialers automate the repetitive task of dialing phone numbers, freeing up your sales reps to focus on crafting compelling pitches and engaging in meaningful conversations. Here are some of the key benefits:

• Increasing Call Efficiency: Auto-dialers eliminate the time wasted manually dialing numbers and waiting for voicemail pickups. This allows your team to make more calls per day and connect with more prospects.
• Reducing Manual Dialing Time: Auto-dialers can significantly reduce the amount of time your sales reps spend dialing numbers, freeing them up for more strategic tasks. This can lead to a significant boost in overall productivity.

3. Call Recording and Analytics

Call recording and analytics tools allow you to monitor the quality of your cold calls and gain valuable insights to improve your approach. Here's how:

• Monitoring and Improving Call Quality: Call recording allows you to listen back to your interactions with prospects and identify areas for improvement. You can assess your communication style, the effectiveness of your pitch, and address any common objections you encounter.
• Analyzing Call Data for Insights: Call analytics software provides valuable data on your cold calling efforts, such as call duration, call outcomes, and common conversation themes. By analyzing this data, you can identify what's working and what's not, allowing you to refine your strategy and target the most receptive audience.

4. Lead Generation Tools

Generating high-quality leads is essential for successful cold calling. Here's how lead generation tools can empower your outreach:

• Identifying and Sourcing Potential Leads: These tools can help you identify potential customers who fit your ideal buyer persona. They can utilize various search criteria, firmographic data, and industry trends to generate targeted lead lists.
• Enhancing the Quality of Lead Lists: Lead generation tools can help you gather additional information about potential customers, such as their specific needs and pain points. This allows you to personalize your approach and tailor your pitch to resonate with each prospect's unique situation.

3 Examples of Incredible Cold Call Success Stories

To give you a feel for companies that have owned this sales process, let's check out 3 cold calling examples.

1. Timber Rattlers (An MLB's Milwaukee Brewers Affiliate)

Timber Rattlers implemented a Cold Call Training program with the goal of trying to up their cold call success rate. Just 10 days after they completed the program, the company recorded a 40.5% cold call success rate and a 24.1% voicemail response rate.

2. Clayton Strunk (AVI Systems' Sales Rep)

Clayton Strunk, a fiercely competitive sales professional underwent a cold call training program that was conducted by the Cold Call Coach and immediately he was done with the program he started getting more and more successful by the day.

3. Sean Casper (Paradime Media's President)

Before Sean integrated a cold calling program in the company, they were doing poorly using this sales technique. However, once they learned the true art of cold calling everything changed and they started converting twice as much as they did before the institution of the program.

Final Takeaway

What is cold calling has definitely changed in the last couple of decades, but it is still a very relevant and helpful one in today's marketplace. It's only the strategies that have changed over the last couple of years.

Now, more than ever, cold callers are using a myriad of advanced software platforms to help them identify new prospects, build intelligence on their customers, and automate the hell out of every manual task they can.

With a bit of know-how, you can do the same.

And where do you get that know-how?

Well, you talk to us! Book a demo with one of Ringy's experts today, and find out how we can transform your cold calling process.