Pros and Cons of Cold Calling
Cold calling is a business marketing tactic in which a company will make unsolicited calls to individuals to make a sales pitch on its products or services. Cold calling has been around for a while, but opinions differ on its effectiveness in today’s business market.
We describe some of the pros and cons of cold calling below.
Reaching New Customers
Potential clients may want your services but might not come across your store or company website. By cold calling, you can directly reach out to these new customers.
Cold calling is easy to set up and get started. All you need is a phone and a list of numbers to call. Cold calling also lets you work from anywhere and you can connect with people in different time zones at any time.
Cold calling provides great training in mastering your sales pitch. Cold callers give sales pitches and have to alter their pitch in real-time based on the call recipient’s response. Unlike emails or SMS marketing, cold calling forces you to personally interact with your prospects. The real-time feedback will help you identify your best target prospects and better understand how to keep them engaged with your sales pitch.
No One Likes It
One major downside to cold calling is that recipients generally dislike it because it is intrusive: 84% of prospects complain that cold callers are annoying in their sales efforts. Many prospects find cold callers coming across as too aggressive, too pushy, offering little value, or unwilling to understand their needs.
Most cold callers themselves do not even enjoy cold calling. 63% of sales representatives consider cold calling to be the worst part of their jobs due to the overwhelming negative responses, which include people not answering their phones or hanging up as soon as possible.
Cold calling is very unpredictable in terms of lead conversion. With the number of robocalls skyrocketing and fewer people listening to their voicemails, it has become increasingly difficult for cold callers to reach their prospects. A reasonable success rate is considered to be around 1-2%, in which it can take nearly 20 calls simply to reach one person willing to hear your sales pitch.
Cold calling is still a workable marketing tactic. However, with more people becoming even more averse and unaccepting of cold calls, its effectiveness continues to dwindle. Cold calling should not be outright rejected as one of your marketing tactics; however, it would be best to combine it with other more effective marketing strategies such as SMS marketing and social media campaigns.