Cold Calling – Definition

Cite this article as:"Cold Calling – Definition," in The Business Professor, updated December 4, 2019, last accessed December 4, 2020,


Cold-Calling Definition

Cold-calling is a sales technique that entails approaching a potential client or customer who had no previous discussion or engagement with a salesperson. When cold-calling is used by a salesperson, it entails paying a visit to a prospective buyer without any prior notice or appointment.

Cold-calling differs from warm-calling which is a sales strategy that is applicable to prospects that have engaged in prior discussions with a salesperson on the product of a company. Cold-calling is an old sales technique, it has gradually lost its appeal among salespersons given that individuals do not appreciate being called by strange salespersons without any previous contact.

A Little More on What is Cold-Calling

Despite that cold-calling is an old strategy, it is still an effective sales tactic used by salespersons. There are different cold-calling techniques used for marketing purpose, a salesperson can call a prospect (who does not know the identity of the salesperson) for an appointment aimed at marketing their products. Another technique is paying a door-to-door visit to prospects to market goods to them.

Cold-calling is otherwise called telemarketing. Some countries have strict regulations against cold-calling, as they are deemed illegal in certain contexts. In cold-calling, salespersons solicit patronage from prospects who they have no prior conversations or relationships with. While some cold-calls are successful, most cold-calls are turned down by prospects.

The Difficulty of Cold-Calling

Cold-calling is a quite difficult strategy that requires much vigor on the part of a salesperson. It requires persistence and sometimes, the capacity to endure while taking insults from prospects. Prospects give different responses to cold-calls, depending on their perception of the caller, their mood and sometimes their midset. Some customers dislike been called by strangers, for people like this, there is a tendency that they shout down on the salesperson, or even hang up.

Recording successful cold-calling is also a tedious task, according to a data by marketing analysts, the highest cold-calling success a professional salesperson could attain is 2%, this means out of every 1000 cold-calls, only 20 will be successful.  Due to the downsides of cold-calling, it is no longer an appealing technique to salespersons, as newer sales tactics have been developed and are more effective than cold-calling.

Cold Calling Examples

Cold-calling can be used in diverse industries, regardless of the nature of the product a salesperson is marketing, cold-call can be used. In the brokage industry, for instance, cold-calls are often put to new clients to convince them about a product. Brokers willing to sell varieties of products often use cold-call to attract new clients.

Salespersons who market insurance policies can also use cold-calls to tell prospects about the products they have and convince them to purchase. Cold-calling can also be used by real estate agents, booksellers, and publishers, among others. Individuals who offer specialized services can also use cold-calling to tell people about the services they offer. For instance, a mechanic, cleaner, plumber or babysitter can do a cold-calling to attract customers.

Reference for “Cold-Calling” › Delivery Management › Sales and Marketing…

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