Is Cold Calling Dead? .. Or just in need of rethinking

31 replies
I haven't been in direct sales in a number of years, but what I read and hear a lot lately is that cold calling is antiquated or doesn't work and you should be using facebook, linkedin, twitter, etc.

To me, social networking sounds like a plan if you have a huge network and you are already aquiring new business primarily via referrals. BUT, if you're a newbie, this idea seems like the fastlane to the poor house.

The "gurus" talk about working off referrals from day 1, but that's a bunch of baloney if you don't have any clients/customers to begin with.

So, I'd like to get an idea of what your experience is with the following scenario:

1. B2B sales - small to medium size business.
2. Proposal needs to be signed off by owner/CEO.

How do you contact? Cold call? Researched email?
Sharing your sales process as far as prospecting and contacting business owners would be helpful as I'm considering getting back into the game.
#calling #cold #dead #rethinking
  • Profile picture of the author hotlinkz
    If you have a "thick skin" and tenacity, cold calling is still effective. Social marketing can help break the ice; and a good campaign would probably be more effective and time efficient than basic cold calling.
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  • Profile picture of the author Michael Clough
    Yes, definitely cold call.....after a while you'll get so used to it that when someone says no.....you say next!

    I do b2b for Mobile Text Marketing and for SEO, as well. I also follow up with Video emails....which helps tremendously! New concept.
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    • Profile picture of the author DazedandConfused
      Originally Posted by Rowdy Yates View Post

      Yes, definitely cold call.....after a while you'll get so used to it that when someone says no.....you say next!

      I do b2b for Mobile Text Marketing and for SEO, as well. I also follow up with Video emails....which helps tremendously! New concept.
      Howdy Rowdy,
      Do you normally have the email address/contact before? (ie:manta or other) or is the Video enticement the way you get that?
      How much do you prep prior, and is you cold call the initial contact?

      Regards,
      D&C
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  • Profile picture of the author JenniferMarie
    Cold calling isn't dead. I'll agree that social media has definitely switched up the playing field for initial contact, but I think cold calling has been severely underrated lately. There's definitely something to be said for just picking up a phone and getting it done. None of this back and forth FB message to FB chat to Tweets and so on. LOL
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    • Profile picture of the author dcristo
      Originally Posted by JenniferMarie View Post

      None of this back and forth FB message to FB chat to Tweets and so on. LOL
      But for the discerning customer, may be that is what is needed? The personal experience instead of the intrusive cold call which starts off on the back foot straight away.

      @MichaelHiles

      Has anyone ever told you that you look like George Calombaris from Masterchef Australia? You look shockingly similar.
      Signature

      Are you wanting to learn all the poker lingo?

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  • Profile picture of the author AppsFromHome
    My biggest clients have come from a mix everything - phone call, letter, LinkedIn, Facebook, Twitter...I reach out on all fronts to contact them, they notice the effort, and respond pretty favorably. Cold Calling does take it's toll after awhile.
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  • Profile picture of the author Jarvis Edwards
    In MY opinion, social networking can't match up to cold calling for several reasons:


    1.) Social networking is not necessarily measurable. It's possible to measure the amount of leads or clients etc derived from a social marketing platform, but it isn't really possible to create a matrix and forecast future numbers in most niches, using Facebook, Twitter etc. Since social campaigns are constantly changing the terms and conditions, algorithms etc, it's hard to rely on these formats.

    2.) Cold calling can bring instant results. For instance, I dial 100 dials. I speak with 40 people. 5 of those people make appointments. 1 of those buy. My ratio is now 1%, or one out of 100 contacts buy my products. Knowing this, I can make 100 calls, or 1,000 calls, or 10,000 calls to scale up the amount of money I plan on making. With social networking, the time and/or money invested may not bring any measurable or significant ROI in the short term.

    3.) Cold calling is cheapest. Get some numbers or addresses, get a (good) script, learn the script, dial the numbers (or visit the locations) and get to selling. Many social networking campaigns either require a significant portion of time, or of money to be effective. As stated in #1, the cost may not equal good returns.

    Cold calling SUCKS!!! But...getting out of that comfort zone usually brings the best results..and that's coming from experience!
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  • Profile picture of the author Rus Sells
    Cold calling is the best way to set yourself apart from every one else. But lets get some terms straight.

    Typically cold calling is actually walking in and making an in person introduction and pitch. Picking up the phone and making a call is not cold calling its telemarketing.
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  • Profile picture of the author dcc1980
    I really like face to face
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  • Profile picture of the author SubUrbanHype
    Cold calling isn't dead. But it is not the most time effective. Because cold calling is basically "how many people are you willing to ask to get a 'yes'." You have to be creative now to do this stuff.
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    • Profile picture of the author John Durham
      Originally Posted by SubUrbanHype View Post

      Cold calling isn't dead. But it is not the most time effective. Because cold calling is basically "how many people are you willing to ask to get a 'yes'." You have to be creative now to do this stuff.
      When you get 100 clicks on an ad and make only 2 sales does that mean google is dead?

      No.

      Cold calling will never change... it HAS never changed... You just have to get comfortable with how it works.

      Successful offliners DO IT, and unsuccessful ones dont.

      If you listen to zig ziglar for a couple of days before you start cold calling... You'll kick butt just like people have every since he started teaching. It hasnt changed.

      People have just gotten soft and they want alot for a little effort, and when they find out that you still have to train like a champion to be one... They want to reinvent the wheel. But no matter how many times you reinvent, you still have to be more of a champion than the 80%. That means hard work, longsuffering and hard core disciplin.

      It works... But NOTHING worthwhile is easy to become good at. The one thing that hasnt changed is that if you want success, you have to want it more than anyone else, and be willing to stay in the trenches, even after it gets uncomfortable.

      Here's when it gets comfortable: "When you have 20k in the bank and you arent desperate anymore". Then its a breeze. Until then, you cant be a giant unless you can stay in the ring like one.

      Its cliche, but; No pain no gain.

      This has never been, and will never be the most popular cliche, but its one of the most true ones.

      Getting to the other side is worth it though.
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  • Profile picture of the author SubUrbanHype
    When I said "you have to be creative now to do this stuff" I meant you have to be creative to market yourself, and just see what works.
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    • Profile picture of the author John Durham
      Originally Posted by SubUrbanHype View Post

      When I said "you have to be creative now to do this stuff" I meant you have to be creative to market yourself, and just see what works.
      Agree

      Jump on the bull and then figure out how to stay on... Yup. Someone can tell you how to hold on, but you still have alot of balancing muscles to develop and natural reactions... A script is the same. Its the bull riding instructions... you do the development and growing of all the muscle fibers that help you keep balance.

      No matter what you are saying, it really comes down to "doing it enough to develop your personal instincts".

      lets say you are learning "boxing"... Someone can show you how to hold you guard up, but if you dont train you are still going to get knocked out, even though you have been taught the classic way to hold your guard.

      Its really about trying and finding out what works for you. Doesnt take long if you stick with it!

      Even when a person has a perfect script they have to test their voice inflections for awhile to see what works for them... I agree, you just have to try, try, and try again.

      Every call center has a successful script with a track record of success, but still each person in the room has to be creative with their timing and delivery and voice inflections...Its about testing from call to call until you find your groove.

      Get on and have fun developing your muscles, and EXPECT that you are going to have to do that. Expectations management is part of succeeding. Add into your equation that you may have to develop some, that way if it doesnt work at first you arent let down- you expected that- so then you can get through it knowing that.

      You will find your personal groove if you do this, and just be willing to fail until you find it. Trust me its there.
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  • Profile picture of the author MichaelHiles
    Cold calling isn't "dead".

    But it's questionable whether or not it's the most effective method in B2B, particularly as the size of the company increases.

    The most recent statistics still hold that 70% of B2B buyers initiated first contact as the result of a Google search, while 10% bought as the result of a cold call. And the 70% continues to increase while the 10% continues to decrease. In fact, over the past 5 years, the numbers of calls required to make initial contact has increase 40%.

    John and I have gone around and around about this topic, and in some low-end sales in some markets, cold calling can certainly be effective. However, most folks will find that if you're actually dealing with the complex sale environment, you're not going to 1-call close someone in a B2B setting (the decisionmaking environment involves multiple stakeholders for larger businesses) and people don't generally make emotional buying decisions in a B2B setting... most B2B sales is ROI driven.

    The industry stats continue to show a radical decline in field sales effectiveness overall in general. That's largely due to the fact that customers "self educate" now, which means "sales" gets involved in the game much later in the customer's buying process. There was a day and time when sales was the source of education (the "consultative selling" approach from the 80s and 90s), but with Google, all knowledge is available with a mouse click.

    We recently did a complete marketing and sales strategy overhaul for a company about $10 million in sales. They were still requiring their sales reps to do cold calling for lead gen.... which is a function of marketing and not sales, but that's a different discussion. The cost per lead based on cold calling was 360% higher in the amount of labor time spent by the reps than after outsourcing it to a call center as a stop-gap measure to reduce costs.

    But after we developed a strong inbound marketing demand generation and lead nurturing system (Marketo implementation), the final cost to per lead was 18% of the original cost and we were able to get rid of 75% of the sales staff and management while simultaneously increasing sales by 28% in a single quarter.

    As a method for a guy getting started in selling services, if you have absolutely no other means of generating relationships and leads, then the phone is certainly a tool that can be used. But all anecdotes aside, the hard numbers across the larger B2B marketing landscape paints a much different picture.

    Go make cold calls, get some sales, have a growth plan.
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    • Profile picture of the author John Durham
      Originally Posted by MichaelHiles View Post


      John and I have gone around and around about this topic...
      What you want another peice of this hiles? lol JK. If there are other ways to do it, Im all about it.
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      • Profile picture of the author MichaelHiles
        Originally Posted by John Durham View Post

        What you want another peice of this hiles? lol JK. If there are other ways to do it, Im all about it.
        LOL

        I'm in favor of what is most cost effective given the context. A small startup guy trying to get a sale TODAY isn't going to do that with a big lead gen system. So picking up the phone to get going is clearly a strategy within reach of the small guy.

        But I can assure you that I wouldn't be in business right now if I didn't bring the noise on the ROI side.

        The bigger problem is the peaks and valleys cash flow problem for a startup guy. You're in the middle of slamming out calls, etc... then you get a deal and have to do the work... you stop selling.

        Whatever your approach, build a system that takes you OUT of the process of whatever you're doing to generate leads and develop customers. That's the much bigger issue I think for the startup guys.

        @dcristo... I've never been told that I look like George Calombaris. Been told that I look like a dumbazz or a goofball though.
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        • Profile picture of the author shockwave
          Originally Posted by MichaelHiles View Post

          LOL

          Whatever your approach, build a system that takes you OUT of the process of whatever you're doing to generate leads and develop customers. That's the much bigger issue I think for the startup guys.

          I hear ya cluckin' big chicken! So are you saying that Outsourcing is a good move or did you have something else in mind?
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          • Profile picture of the author Bob Banfield
            I've done cold calling for many product types, tangible and non tangible. You do get an instant response and after a short while you'll get an idea of your close ratio. Then it's just a numbers game. More no's means you're nearer to the yes's.
            You'll have a distinct advantage because most marketers want the easy option and do what almost everyone else does.
            Is it no surprise they get the results of the majority. Be different, stand out and be proud of your abilities. You'll be head and shoulders above the rest.
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          • Profile picture of the author MichaelHiles
            Originally Posted by shockwave View Post

            I hear ya cluckin' big chicken! So are you saying that Outsourcing is a good move or did you have something else in mind?

            If need be, outsource. Whatever makes financial sense. What doesn't make financial sense is continuing to function in the role of lead generator... or sales rep... or service delivery person doing the work... etc...
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  • Profile picture of the author barry500
    World's a changing that's for sure....but then if it wasn't why would we be in IM ? Companies and buyers may well now turn to Google as default when looking for products or services and social networks such as Linkedin are showing real value to those who utilise them correctly.

    However with services - especially where you need to educate the end user about a need they may not know they have I still like cold calling - 100 dials - 30 conversations- 10 interested - 5 appointments still works. Just make your offer strong and compelling.

    One area I have cooled is direct mail - costs never really did stack up and less so now. Only thing I do as an absolute is make sure I have a contact name in company. If you do not have right data you are on the back foot from the start.
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  • Profile picture of the author jon2011
    Definitely cold calling is still alive. In Direct marketing Cold calling is the process of approaching prospective customers or clients, typically via telephone, who were not expecting such an interaction. The word "cold" is used because the person receiving the call is not expecting a call or has not specifically asked to be contacted by a sales person.

    Cold calling is an important stage and technique in the selling process. Cold calling abilities are also useful in many aspects of business and work communications outside of sales activities and the selling function.

    These cold calling tips won't eliminate your fear, but they will help you make cold calling a more successful experience.

    Here are few cold calling tips:

    1) Focus on the goal when cold calling.
    2) Research your markets and prospects.
    3) Prepare an opening statement for your cold call.
    4) What should be in the opening statement of your cold call?
    5) Prepare a cold calling script for the rest of your cold call.
    6) Ask for an appointment at a specific time when cold calling.
    7) Remember that gatekeepers are your allies not your foes.
    8) Smooth the way for your cold call by sending prospects a small, unique promotional item.
    9) Do your cold calling early in the morning, if possible.
    10) Be persistent when cold calling.


    I hope this will clear doubts on cold calling.
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  • Profile picture of the author merereilly
    People have become complacent and relying on email to take the place of cold calling -- but i think the success rate of cold calling is a lot higher.

    Email is easier because you can thoughtfully prepare your draft and respond after doing research - cold calling is harder because you have to think on your feet.

    Cold calling is more effective, but we've gotten lazy!!
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  • Profile picture of the author DylanJames
    Cold calling is dead. Stick to facebook or better yet Twitter.

    Ok, now back to the real world.

    What a lot of "online" people don't get is that sales is mostly about reaction and adapting. Good salespeople can sound good and get their pitch off. They know their rebuttals and they can close a decent amount of deals.

    GREAT sales people know how to react to the customer and adapt to the situation.

    The more feedback you can get (visual, auditory, etc.), the more you can correctly react and adapt.

    This is why face to face has the highest closing ration followed by telephone then the internet.

    3% (decent online) is a horrendously bad closing ratio and in my view it's a complete waste of time.
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  • Profile picture of the author Austin Rose
    I am an avid cold-caller! I look for great scripts and use humor as well as rapport building skills, I also ask for an email to send them information after I have talked to them on the phone and then follow up with them. I had one client give me 3 referrals and each of those referrals gave me referrals as well. I did however, give them an incentive for the referrals, such as a monetary reward

    I did about 8 years of outbound sales for a company and then took that knowledge and used it to land clients in my webdesign company. I also hardly ever meet people face to face, most of the clients I work with are over the phone, email and texting.

    I definitely have to say it is not dead
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  • Profile picture of the author Rus Sells
    Listen guys,

    There are two people in this thread that I 100% endorse listening to.

    Michael and John!

    Michael comes from the perspective of dealing with larger businesses who in most cases do have to involve many different people who are posted at different stations with in the company before any final decision can be made and the deal is closed. Michael also makes a disclaimer of sorts and says that cold calling is still effective for those who may be new to the industry etc.

    Many here and many who are just starting out are not at this level yet and might not even be interested in getting the "larger" accounts. That's perfectly OK as you decide what's best for you, but his advice is most assuredly sound so learn from what he says.

    Have a growth plan, no matter what type of clients you want, large or small.

    John is a master cold caller/telemarketer so if your looking to make calls on the phone to small business owners, do yourself a favor and listen to him.

    For those of you who are just starting out, your probably targeting small mom and pop type businesses and those are perfect for walking in and introducing yourself or making a phone call.

    This part of the market segment is PERFECT for learning the ropes and can help catapult you into the next level of client, ( Larger Businesses ).


    Both individuals are experts in what they do so learn what you can from either of them.
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    • Profile picture of the author MichaelHiles
      Originally Posted by Rus Sells View Post

      Listen guys,

      There are two people in this thread that I 100% endorse listening to.

      Michael and John!

      Michael comes from the perspective of dealing with larger businesses who in most cases do have to involve many different people who are posted at different stations with in the company before any final decision can be made and the deal is closed. Michael also makes a disclaimer of sorts and says that cold calling is still effective for those who may be new to the industry etc.

      Many here and many who are just starting out are not at this level yet and might not even be interested in getting the "larger" accounts. That's perfectly OK as you decide what's best for you, but his advice is most assuredly sound so learn from what he says.

      Have a growth plan, no matter what type of clients you want, large or small.

      John is a master cold caller/telemarketer so if your looking to make calls on the phone to small business owners, do yourself a favor and listen to him.

      For those of you who are just starting out, your probably targeting small mom and pop type businesses and those are perfect for walking in and introducing yourself or making a phone call.

      This part of the market segment is PERFECT for learning the ropes and can help catapult you into the next level of client, ( Larger Businesses ).


      Both individuals are experts in what they do so learn what you can from either of them.
      Indeed Russ, it's 100% a function of context and perspective. In some cases, cold calling is the only thing that a person with an idea has at their disposal.

      The phone is a tool to allow you to convey an idea. It's all about the conversation... conveying your ideas to someone with the intent to solve their problem.

      That is the intent. Right?

      You get the money by solving their problem. So solve their problem. Tell them how you can solve their problem. Tell them why your solution to their problem is the best. Tell them the story. Tell it on a website, tell it on a phone call, tell it on a magazine ad, tell it to the board of directors in person.

      Then when they buy your ideas, be sure to deliver.
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  • Profile picture of the author Rus Sells
    Michael Hiles says,

    "Then when they buy your ideas, be sure to deliver."

    TRUE THAT!!!!
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    • Profile picture of the author midasman09
      Banned
      I work "Small Town America". Towns of 3,000 to 10,000 pop. I don't have the "luxury" of making 100 phone calls and getting 2 appointments.

      I do the old "Barge In....Hand my Sample to them...explain what it is and how it can Help them...quote a price AND a "Discount" for buying NOW!

      So...(with my Pizza BoxTop Flyers where I have 12 Ad Spaces open) it takes me 3 days to get my 12 Paying Advertisers.

      With my "Mobile Sites for Restaurants" program....again....I have 12 Spaces available for my "Mobile Town Directory". I "work" towns of 15 to 20,000 and can get my 12 within a week....for a Nice $360 up front and $180/mo.

      My "average" with my "Personal Visits" has been 1-Outa-3....over the years. If I give 3 In-Person presentations and don't get an order...I stop selling....go get a cuppajava and....ponder what I'm doing. Maybe I have "BO" that day...or ....maybe my "pitch" needs refining. Whatever it is, I then "gather up" and "Charge Forward".....and do whatever needs to be done to GET THE NEXT DEAL! (Short of giving a Freebie)

      Don Alm....Sales Guy
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      • Profile picture of the author rbecklund
        Just taking a break from cold calling... It does work. It might not be the best, but when you don't have much money to sink into marketing efforts, it probably is the best. And while it is tough, it does feel good to go out of your comfort zone.
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        • Profile picture of the author midasman09
          Banned
          I sell "Full Color" stuff (Ads on Pizza Boxes, Ads on Restaurant Menus, Mobile Websites with QR Codes) and........ it is IMpossible to try and "paint a Word-Picture" on a Telephone of what I want my prospects to participate in AND....give me money.

          And....it is VERY EASY....when prospects CAN'T SEE what I'm trying to explain on the Phone....to simply say, "Not Interested!"

          However....when I approach a prospect IN-PERSON.....and HAND him an actual Sample of what I want him to "give me money for"....things are totally different!

          He does NOT have to try and imagine what I'm talking about....he's LOOKING AT IT! He can SEE...exactly WHAT I want him to participate in and Pay me for.

          So....you guys can keep on trying to get prospects to "Imagine" what you're trying to sell them....while "guys like me" who enjoy going DIRECT to our prospects to SHOW them....in LIVING COLOR....what they're buying.....chances are.....I....will get many more Orders and Cashola for my "Time" than you will.

          So....the sooner you can gather up the wherewithal to GO VISIT prospects IN-PERSON.....the sooner your Daily Pay will increase for time put in.

          Don Alm....who'd rather spend 2 hours in the morning....from 8:30am to 10:30 or 11 am....."PICKING UP CHECKS"....than making phone calls.
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  • Profile picture of the author blillard
    I would create a script and hire a friend or sibling to do the calling on a commission basis and see how it goes. Or you could pay them for like 4 hours worth of just to see if they can land you a client. Of course thats only if you don't want to do it yourself.
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