What Is Cold Calling? The Complete Guide

What is cold calling

Cold calling is a sales technique of making phone calls to your target prospects, who have not expressed interest, to create business opportunities with them. It typically involves a salesperson making unsolicited phone calls to companies or individuals to introduce the company's offerings and generate leads. Cold calling can also extend beyond phone calls to include email outreach or in-person visits, although the telephone remains one of the most common and direct methods.

The primary goal of cold calling is to establish a relationship with prospects who have a genuine need for your products or services so they can be connected to the tools they need to succeed such as presentations, in-depth discussions with experts, demos, and sale finalization. Because cold callers must effectively engage their clients, they must have impeccable communication skills that will help them address client needs and receive a positive response. While cold calling can be challenging and often met with resistance, it remains a valuable strategy for businesses looking to expand their customer base and generate new opportunities.

Cold calling 101

Sales is a numbers game—not the number of emails you send or phone calls you make, but the number of deals you close and the revenue you bring in as a salesperson.

The more you fill the sales funnel with quality prospects and nurture them, the more likely you are to reach your target or even exceed it. And to do that, you can’t depend solely on the leads that flow into your CRM system. 

You need to get out there and reach out to as many people as possible.

This is where cold calls and cold emails come into the picture. In this article, we discuss what cold calling is and discover the hidden nuances that will help you get your prospect’s attention.

Warm calling vs cold calling

In essence, warm calling is to call a prospect after setting a context by connecting with them via email, social media, customer referral, etc. In other words, you begin building a relationship with them before picking up the phone.

For example, let's say your client refers you to a potential customer. This is a warm lead as you have a mutual connection with the prospect. An introduction from the referrer will allow the prospect to be more open with you. In fact, almost 75% of executives prefer to work with salespeople who’ve been referred to them.

Note that you still need to dig deep and research the prospects before calling them in order to be successful.

Cold calling tips

Cold calling can be a daunting task, but with the right strategies and techniques, you can increase your chances of success and make your calls more productive. Here are some insightful tips for effective cold calling:

• Research and targeting: Before you pick up the phone, take the time to research your prospective clients. Understand their needs, pain points, and how your product or service can provide a solution. Tailor your approach to address their specific concerns, demonstrating that you've done your homework and are genuinely interested in helping them. By targeting the right audience, you increase the likelihood of a positive response.

• Contact your prospect: Reaching out to your targeted prospect using a method like email or social media before calling can increase the likelihood of them being interested in learning more about your products or services. Take this opportunity to introduce yourself and your company while providing context for why you’re contacting them.

• Develop a script: While you don't want to sound robotic, having a well-prepared script can help you stay focused and ensure you convey your message. Start with a friendly introduction, state your purpose, and highlight the benefits of your offering. Be flexible and adapt your script to the flow of the conversation.

• Build rapport: Building rapport with the person on the other end of the line is crucial. Begin the call with a polite and warm tone, and try to establish a personal connection by using the prospect's name. Ask open-ended questions to engage them in conversation and actively listen to their responses. Building trust and a genuine connection can make the prospect more receptive to your pitch.

• Handle rejection gracefully: Rejection is part of the cold calling process, so it's essential to handle it gracefully and professionally. Maintain a positive attitude, thank the prospect for their time, and leave the door open for future contact. Rejections can provide valuable feedback that you can use to improve your approach in future calls.

For a more comprehensive list of cold calling tips, read our article “Cold Calling - 25 Tips and Techniques.”

Techniques for cold calling

Effective cold calling techniques can significantly improve your success rate when reaching out to prospects or customers. Here are four strategies to consider:

1. Elevator Pitch: Start your cold call with a concise and engaging introduction. Clearly communicate who you are, the purpose of your call, and the value you can offer. Avoid lengthy introductions and get to the point quickly. An effective elevator pitch should grab the potential client's attention and make them want to hear more.

2. Open-Ended Questions: Engage the prospect in a conversation by asking open-ended questions that encourage them to share information. These questions cannot be answered with a simple "yes" or "no" and invite them to elaborate on their needs, challenges, and goals. This will help you tailor your pitch to their specific situation and show that you are genuinely interested.

3. Handling Objections: Anticipate objections and address them confidently. Common objections may include concerns about cost, timing, or the need for the product or service. Rather than brushing aside objections, acknowledge them and offer a solution or explanation. Demonstrating empathy and a willingness to overcome objections build trust and increase the chances of a positive outcome.

4. Follow-up: Cold calling doesn't always result in an immediate sale or conversion, so it's essential to have a follow-up strategy in place. If the prospect is not ready to commit, schedule a follow-up call or send relevant information for them to review. Consistent follow-ups can often turn a cold lead into a warm one.

Does cold calling work?

A popular belief out there is that ‘Cold calling is dead, but this isn’t necessarily true. 

Cold calling is often confused with ‘bad calling’. So, to clear the air, cold calling is not about picking up the phone and dialing a random number to deliver an ineffective sales pitch. No, that would be bad calling, which is spammy, unsuccessful, and, yes, dead.

On the other hand, cold calling is one of the most effective ways to improve your sales—if you do it right. 

With a CRM system, you also get insights into their interactions on your business’s website and with the emails you send them—how many times they’ve opened your emails, the clicks on the resources you’ve shared, and more. 

Doing all of this takes you into the territory of warm calling, an evolved version of traditional cold calling. 

Let’s take a look at the difference between the two.

Cold calling strategies have changed with the evolution of sales techniques and the emergence of prospecting tools such as LinkedIn Sales Navigator, Clearbit, and Leadfeeder. There are numerous avenues with abundant information available about people and businesses, so why not take a few moments to research your prospect by:

• Doing a quick Google search 

• Visiting their website

• Reading their recent social media posts

• Browsing their engagement on LinkedIn

This will help you prepare and engage better with your prospects. Once you understand their industry, business, and pain points, engage with them on social channels. Establishing a relationship with your prospects before you call will help create a sense of awareness about you and your company.

Old calling statistics

While cold calling has been known to be a source of frustration for sales representatives, statistics show that this practice produces positive outcomes when it comes to lead generation and business growth. Just because cold calling comes with negative connotations doesn’t mean it can’t be successful.

• 75% of prospects from specific industries report having attended an event or meeting because of a cold call or cold email they received

• 82% of buyers report accepting meeting invitations extended via cold call

• 57% of C-level buyers and VPs have stated that they prefer cold calling as an initial contact method

With numbers like these, it’s no wonder many companies still implement cold calling as a sales technique. That doesn’t mean, however, that cold calling is easy.

• On average, sales representatives make 8 calls to a prospect before getting into contact with them

• It takes 1.5 hours of cold calling every day for five days to gain one appointment or referral on average

• 55% of cold calls are never answered or interacted with in any way

• 80% of cold calls go to voicemail and most prospects will not listen to a voicemail for longer than 30 seconds

When trying to turn your cold calling efforts into success stories, remember that the quality of your calls and voicemails is the most important aspect. To garner interest and build relationships, you need to be prepared, professional, knowledgeable, and adaptable.

How to warm a cold call

Back in the 70s, cold calling prospects directly to their office made sense because it was the only way to reach them. But now, people are reachable through multiple platforms. Here are a few ways to break the ice with your prospect.

Social Selling

With social media dominating the world, 84% of CXOs use social media to support purchase decisions. Use this to your advantage and engage with your target personas on platforms such as LinkedIn, Facebook, Twitter, etc. This type of prospecting enables better lead generation and warms up your cold lead. 

Cold Emails

Creating the perfect email takes a lot of time. But, it is also the perfect inroad for a cold call. A cold email with an eye-catching subject line, personalized content for every persona, nailing their challenges, and packed with value has a huge chance of being opened or even responded to. Using an email management system, you get instant notifications when your prospects open your email or click on resources you have shared. With this information in hand, you can call them at the right time. In case you didn’t get the response you were hoping for, you can create a sales cadence for a follow-up strategy.

Voicemail

So you’ve warmed up your prospect and finally made the call. But it ends up in their voicemail. Don’t lose heart, because this happens 97% of the time. Instead, leave a voicemail to let them know you have tried contacting them. Remember, leaving a voicemail is as important as the call itself. Similar to cold emails, have an intriguing voicemail script ready that will get you a callback.

Cold calling example

In the following cold call example, the sales representative starts with a polite introduction, acknowledges the prospect's name, and quickly introduces herself and her company. She then presents a solution that aligns with the prospect's potential needs and garners interest by mentioning the benefits of the product. The conversation is structured to be concise, with a clear call to action to schedule a follow-up meeting to discuss the product in more detail. This cold call can be used to guide your efforts:

[Ring, Ring]

Sales Representative (SR): Hello, this is Sarah from ABC Technologies. Am I speaking with Mr. Smith?

Prospect (P): Yes, this is he. What can I do for you?

SR: Thank you, Mr. Smith, for taking my call. I won't take up much of your time. I noticed that your company specializes in IT services, and I wanted to share a recent development at ABC Technologies that could significantly benefit your business. We've just launched a cutting-edge cybersecurity solution that has helped companies like yours enhance their data security and protect against cyber threats. Would you be open to a brief conversation to explore how our solution could potentially strengthen your IT infrastructure?

P: Well, cybersecurity is a concern for us, but we're currently using another provider. What makes your solution stand out?

SR: That's a great question, Mr. Smith. Our solution offers advanced threat detection and real-time monitoring, which has proven to be highly effective in identifying and mitigating even the most sophisticated cyber threats. We've also received excellent feedback from clients who have made the switch, citing improved performance and cost savings. I'd be happy to provide more details and answer any questions you might have. Could we schedule a short meeting at your convenience to delve into this further?

Combining cold calling with SMS

Combining SMS with cold calling can be a powerful strategy for reaching potential customers and enhancing the effectiveness of your outreach efforts. SMS, or text messaging, provides a complementary channel that can support and reinforce your cold calling efforts in several ways.

Firstly, sending a follow-up SMS after a cold call can help maintain the connection and keep your product or service at the forefront of a prospect’s mind. This text message can serve as a gentle reminder of your conversation, provide additional information, give appointment details, or even offer a link to resources related to the prospect's needs. Moreover, SMS allows prospects to respond at their convenience, which can lead to more engaged, productive interactions.

Secondly, SMS can be an effective initial touchpoint in a multi-channel outreach strategy. You can send a brief introductory SMS to introduce your company and explain the purpose of your call. This approach can warm up the lead, making them more receptive to your subsequent phone call. It can also help filter out uninterested prospects, saving your sales team time and resources by focusing on those who respond positively to the initial message. When used strategically, SMS can enhance the efficiency and impact of your cold calling campaigns, leading to better results and improved customer engagement.

Is cold calling used by scammers?

Cold calling, often associated with scams and unethical practices, can deceive individuals and businesses through high-pressure tactics and false claims, damaging trust in legitimate businesses. Despite this, when conducted ethically, it remains a valuable sales and marketing tool. Reputable businesses use it to identify leads and establish connections, leading to opportunities and growth. Compliance with regulations and respectful engagement are crucial for maintaining trust and credibility.

A final call 

Although the traditional method of cold calling is fading out, cold calling itself has evolved with modern sales tactics.

Remember, it is all about making these calls ‘less cold’ by developing familiarity with the prospect and setting the context. And, more importantly, understanding and empathizing with your prospect’s needs.

If you get these things right, it won’t be long before many of your prospects become your customers.

Increase your cold calling success rate 

Increasing your cold calling success rate involves a combination of effective strategies and techniques aimed at optimizing your outreach efforts. Not only does success rely on your salespeople, but it also relies on your technology. Utilizing advanced Customer Relationship Management (CRM) software can streamline the cold calling process, track leads, and provide valuable data insights to help your sales team prioritize and personalize their outreach for even better results.

Using a phone system that isn’t integrated with your CRM can make the cold calling process slow and clunky, leading to less than memorable first impressions. Freshsales is a CRM that features built-in cloud telephony to make cold calling easier. Now, your sales representatives can identify prospects, track interactions, access up-to-date contact information, and make cold calls all from one platform. This integration not only improves efficiency but also enhances the customer experience by ensuring that your sales team has access to all the relevant information they need to engage with prospects effectively. By integrating technology seamlessly into your cold calling strategy, you can significantly increase your chances of success and maximize the potential of each call.

Ready to see how Freshsales can help your sales team make exceptional cold calls? Request a demo or start your free 21-day trial today!