Aug 10
31
Is cold calling becoming obsolete? Do only old-fashioned business people do cold calling? Is cold calling actually effective at increasing business? Many people feel that they have to do cold calling to succeed in business. Social media has changed everything.
What is the definition of cold calling? Cold calling is part of the sales process whereby a sales person gets in touch with prospective customers or clients who were not expecting the call. The word “cold” is used because this interaction is unsolicited. The main point behind the phrase “cold calling” is that it is an attempt to reach someone who doesn’t know you, hasn’t been introduced to you and wasn’t expecting your call. The term “cold” by itself doesn’t necessarily mean “without any knowledge”. With all of the information available via the web, sales people would be remiss if they didn’t learn something about a prospect before they called them. But no matter how much information a sales person learns, if the person doesn’t know the caller, the call is still considered a “cold call.”
The cold calling process has been refined to enable a sales person to hone in on their prospect target market in order to develop a database of prospective customers based on a variety of target criteria, such as company size, type and location. By using sites such as Jigsaw, SaleSpider, Hoovers and LinkedIn, companies are better able to increase the chances of successful cold calls by identifying those prospects who are most interested in what they are selling.
Rather than cold calling becoming obsolete, it is being redefined and enhanced by the proliferation of modern technology and social media.
Cold calling in the traditional sense of the word is becoming more difficult as attempts to reach someone by phone or email are becoming more challenging due to federally maintained do-not-call lists and other obstacles. However, on the positive side, this same use of technology and social media is transforming the entire sales process including cold calling. Sales people no longer have to blindly make calls to their prospects in the hopes of reaching someone and making a connection. Rather, they can learn important information prior to making that first call or sending that first email. The Internet makes it easier to qualify leads and learn more about their needs, history, reputation and any other information that will enable the sales person to make a better connection and start off this relationship-building process from an informed perspective. Modern technology enables sales people to better attract, interact, track and manage their prospects via the Internet.
Traditional cold calling is becoming warmer because of the proliferation of modern technology and the increasing usage of social media. In addition to better qualifying leads, companies are able to use search strategies to drive traffic to their websites, make it easy for visitors to request information about the company and hand off what is now “warm” prospect contact information to their sales people, thereby reducing the need for endless cold calls that lead to dead ends. The volume of cold calls is, therefore, reduced and techniques such as attraction marketing are becoming more prevalent. Attraction marketing is specifically designed to teach prospects about what your company does and how it will benefit them and/or fulfill their needs.
Company websites that have live chat functions serve as another method of qualifying leads and turning cold prospects into warm or hot prospects. Visitors to your website have an interest in what your company offers and live chats create an instant opportunity for sales people to connect with potential customers/ clients.
The sales process of today is one that is enhancing and transforming cold calling by giving sales teams both the tools and the insight to reach out to the right people, at the right time, with the right message. Cold calling still exists; it has simply become more effective as a result of the ease of information gathering via the World Wide Web.
About the Author. Julie Weishaar has 10+ years of experience in strategic marketing initiatives, marketing communications, event planning, marketing management, business development, customer service, vendor and public relations, managing promotional campaigns, branding and, more recently, in Internet marketing programs including natural search optimization, link building, blogging, business analytics, social networking, and article marketing.To learn more about Julie's expertise, please visit her website at newhorizons123.com.
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Via LinkedIn Groups
Group: Innovative Marketing, PR, Sales, Word-of-Mouth & Buzz Innovators
Discussion: Cold Calling Redefined by Social Media
Cold calling has if become obsolete but even when persued aggressively do not yield tangible results.On the contrary cold calling makes the customers annoyed when some one unknown disturbs them when the customer is engaged in some important task.
Posted by Vijay Walia
Hi Vijay. I agree that cold calling can be annoying which is why it is a good thing that "cold" calls are becoming "warmer" with the use of social media. Learning more about the situation and needs of a potential client enable the caller to focus his/her "cold" calls on those that are more likely to be interested in what they are trying to sell.
Thank you for your comment.
Via LinkedIn Groups
Group: Writers
Discussion: Cold Calling Redefined by Social Media
The effectiveness of cold calling depends on the target. Younger people will tend to avoid the phone unless you have sent them an Email beforehand. They think of the phone call as an interruption. Older people aren't as computer savvy. They will be most responsive to you calling them directly. They think of the phone call as a personal outreach.
Of course, none of this is absolute. Because I work in PR, I find it most effective to employ a combination of everything. With book — or any form of art — they can't comment on the piece itself unless they have seen it. That means either putting something in the mail — old fashioned, but it works because so many other have abandoned this step — or send it to them in an Email. The problem with the latter is you first have to make them want it since most people won't open attachments.
Tom
Posted by Tom Kidd
Hi Tom. I tend to agree with you about the generational aspect of what works and what doesn't in business. I think the younger folk would probably respond better to a text message before a call. Have you noticed how they are using texting to replace talking? The older folk have to find their glasses before even attempting to send a text message – I know this from personal experience!
Good point about some old fashioned methods like mailers oftentimes still being effective marketing initiatives. The key word in any marketing strategy is integration and what is the most effective strategy is totally dependent upon the industry and particular circumstances of each individual business.
There is no "one size fits all" marketing strategy.
Thanks for your input
Really interesting article. Is this article available externally, as in outside a private group, so that I can tweet it?
In my industry, cold calling still works, but only if you manage to build rapport with the caller within the first 30 seconds of the call.
I make cold calls when business is slow or I have to add more leads to my pipeline. Otherwise, all other calls are warm calls.
My warm leads are people I've met face to face once or twice or leads that have called in for information and expect a call back.
Some leads are cold because I haven't followed up with them in a long time. Those are the hardest calls for me since I feel like I didn't do enough in the beginning to capture their immediate business.
Then, I realize that not all of my potential clients are ready for my services.
Cold Calling or Calling in general is about timing. I use a script where I offer something really juicy and then say something like I can explain more in detail when you're not so busy (I make the assumption that's I've called at a bad time since I didtn' have a scheduled time to talk to them)…This helps me to gauge if they are into what I am saying.
Via LinkedIn Groups
Group: Creative Designers and Writers
Discussion: Cold Calling Redefined by Social Media
I agree that cold calling still here, being utilized only its also moved into online environment via social networking. Sales is not alone in employing eColdcalling.
Job applicants use online cold calling to attract attention of key hiring people in companies bypassing that online application quagmire. Just about everything a prepared applicant needs for effective research to prepare resumes, coverletters and learn about prospective the companies for interviews is online.
Linkedin is a main resource to "eColdcall" key hiring people or the very least needed resources within the recruiting service, company or educational institute to get names or recommendations to the key interviewing or hiring people.
Posted by Mary Seither
Via LinkedIn Groups
Group: The Professional Business Writers
Discussion: Cold Calling Redefined by Social Media
From what I know, companies still cold call and it's just not old thinking companies. If fact, whole sales teams in do it still. I think I had that job once and sorry, I"m so poor at sales!
Posted by Adrienne Williams
Hi Amy, the article is on Compukol's blog at: http://compukol.com/blogs/compukol/cold-calling-redefined-by-social-media/.
You are right that cold calls or any calls are about timing. As a matter of fact, marketing in general is about timing – getting your message in front of the right people at the RIGHT time! It is also helpful to have a script as you say or just to be prepared for the many different reactions you might receive when making a cold call – this way you won't be caught off guard and not know what to say next. Thanks for your input.
Angie, that is actually good if in your industry you get a whole 30 seconds to make your points. Most other industries give you a lot less than that before the caller hangs up
Mary – thanks for pointing out how being prepared with knowledge gained from the Internet is not just helpful in cold calling from a business perspective but also in cold calling for job hunters – after all job hunters are marketing themselves – right? Even before the social media revolution, calling a potential employer, sending a letter or walking into an interview knowing as much as possible about the potential employer was helpful in making one stand out from those who didn't prepare.
Adrienne, agreed. Many companies have entire departments dedicated to cold calling. Telemarketing is not dead. As a matter of fact, some companies hire temporary or entry-level telemarketers to make the cold calls for them. I am not so sure this is the best approach as many of these people don't really understand the nature of the business and don't prepare for the calls ahead of time which makes their calls less effective. But again, it depends upon the industry and how the telemarketers are trained.
Via LinkedIn Groups
Group: Small Business Online Community
Discussion: Cold Calling Redefined by Social Media
This is a very good article. Cold calling will always be a necessary tool for sales peoples however, it is now extremly important to have as much information on the prospect as possible before the call. This will allow the sales person to express their value statement in the prospect terms.
Greg
Posted by Gregory Hurley
Thanks Greg. Yes – it is imperative that the caller have as much information before making that call – it will change the transition from "hello" to "click" into a smoother and more productive one.
Via LinkedIn Groups
Group: Publishing and editing professionals
Discussion: Cold Calling Redefined by Social Media
As a freelancer, "cold calling," whether by means of social networking or paying an old-fashioned visit to a prospective client, is vital to my career.
I agree that technology is helping us all become better-informed "cold callers." Thanks for the article.
Posted by Cassie Tuttle
Via LinkedIn Groups
• Group: Publishing and editing professionals
• Discussion: Cold Calling Redefined by Social Media
Personally I'd much rather somebody 'cold-called' me via social media than ring my phone or my doorbell when I've just got my fractious, over-tired 2-year-old to sleep at last!
Having someone barge into the silence five minutes later asking if I want to have our driveway done/trees trimmed/porch replaced/donate to charity/change gas or electricity supplier etc when I'm coping with a suddenly-woken, crying toddler is definitely NOT the way to sell me something.
Posted by Linda Weeks
Thanks Cassie, I am glad you found the article helpful. Linda, I can understand your perspective – believe me – been there, done that
Via LinkedIn Groups
Group: "Write It Down"-A Website for Writers
Discussion: Cold Calling Redefined by Social Media
I think the best way to start off a cold call is to introduce yourself by saying: "You have just won a million dollars!"
And when they say, "You're kidding!"
You reply, "Yes, I am kidding." And then go into your pitch. That way, you get them really excited.
Posted by Christopher Hart
Hi Christopher – now that is a novel approach. Just make sure your caller ID is turned off so that they don't hunt you down and shoot you LOL
This article was great indeed, it has its own power to convince readers and give the idea what they want to.