Cold Calling - Explained
What is Cold Calling?
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Table of Contents
What is Cold-Calling?How does Cold-Calling Work? The Difficulty of Cold-CallingCold Calling ExamplesAcademic Research on Cold-CallingWhat is Cold-Calling?
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.
Back to: MARKETING, SALES, ADVERTISING, & PR
How does Cold-Calling Work?
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.
Academic Research on Cold-Calling
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