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I used to be in charge of making cold calls when I first started out in sales. I got a lot of encouraging feedback, and I thought I'd figured out some terrific tactics for maximizing my effectiveness on the phone.
But there was a time when I made a cold call to a potential customer with an offer. I started the call by providing the appropriate disclosures and emphasizing how our service may save this customer's money. A snotty remark quickly followed this, and I crumbled.
I agonized for a week about making more cold calls. One of my justifications? The issue of whether cold-calling is ethical.
What does a girl do in this situation?
Of course, I searched up if cold calling is ethical. But, before I go into details about my findings, let us first define cold calling.
What is cold calling, exactly?
Cold calling is a type of telemarketing in which a salesman attempts to entice potential consumers who have not previously demonstrated interest in the seller's product or service.
Cold calling is often the first—and probably the most critical—step in developing sales prospects for outbound sales teams. To begin a relationship with one of your ideal clients, you will have to make the first contact, briefly describe your solution and see if there is enough interest to pursue further.
Is it ethical to cold call?
Consider your motivation. Are you reaching out because you have something that can "save" your potential client or the person on the other end of the phone or email, or are you simply selling something for the sake of selling it, hoping to catch as many people as possible? (it being a numbers game and all).
If it's the former, I believe it's completely ethical and potentially beneficial. This is an excellent lead creation strategy that you should consider. If you're beginning a new business and don't have any clients or money, cold calling can be your best bet for getting things done quickly.
That's why it irritates me to hear so many marketing experts say that cold calling is a horrible idea and should never be used. Even worse, some people think of cold calling as useless and unsophisticated, desperate, and unethical.
They are wrong.
Don't let anyone persuade you that cold calling is a dead end. Statistics show that buyers widely welcome cold calling, and it is one of the most efficient techniques to acquire new consumers while prospecting.
The more you understand what you're up against – and what works - the more effective cold calling becomes.
Cold calling is effective, as evidenced by statistics. After being cold phoned, 82 percent of buyers consent to a meeting. However, securing a meeting with a potential consumer requires more effort than simply contacting once.
- Buyers are intrigued, ready to take your call, and eager to learn more so they can make an informed selection. Researchers interviewed salespeople and buyers to learn more about the state of cold calling and prospecting.
- During the consideration stage, the majority of customers want to speak with a sales representative (60%). That's when they're most likely to have inquiries that a real person could answer faster than an internet search, such as specific product or service features that influence whether they buy one brand or another.
- Nearly two-thirds of C-level executives (57%) say they appreciate information obtained from sales people over the phone.
- Cold calling is effective, as evidenced by statistics. While there are many ways to communicate with customers and prospects, including email campaigns, text messages, and videos, cold calling should still be a part of your sales plan.
- You may expect sellers and marketers to declare Facebook or LinkedIn are their best-selling tools, given the development of social media as a major marketing tool. That is, however, not the case. The phone is still the most efficient sales tool, according to 41% of salespeople.
- The difference between successful and unsuccessful cold calls is striking—successful calls take significantly longer. Unsuccessful calls last three minutes and 14 seconds on average, whereas successful calls last five minutes and 50 seconds. The longer you can keep a potential consumer on the phone, the more likely your call will be successful.
Buyers still prefer to speak with a live person, even in the age of digital sales methods like email campaigns, social media, and text messages. This is especially true for service issues and more significantly, ticket transactions. Cold calling is a powerful outreach tool for both new and experienced salespeople when done correctly.