Cold calling is a sales approach that involves contacting potential prospects who have not shown prior interest in a company’s products or services, aiming to engage them and include them in the company’s sales funnel.
For many years, individuals like yourself have employed various forms of cold calling as a successful method to boost conversions. Although the definition of cold calling and the techniques employed have evolved over time, transitioning from door-to-door sales to outbound phone calls, cold calling remains an effective B2B sales development strategy when executed with the right tools and tactics.
Does cold calling still work?
Around 50% of B2B sales representatives feel apprehensive about making cold calls, and it’s understandable why. With a success rate of only approximately 2% and a staggering 80% of cold calls reaching voicemail, it’s easy to become disheartened. However, before we attribute technology for rendering cold calling an outdated strategy, let’s examine the facts. According to a study by RAIN Group, about 69% of decision-makers accepted at least one cold call within a 12-month period. Furthermore, it is intriguing to note that 57% of c-suite executives and VPs actually prefer receiving a cold call over other outbound marketing method.
Given these findings, why are the conversion rates for cold calling so low? We have a theory. Research suggests that 44% of salespeople give up on a prospect after just one follow-up call, while in reality, it often takes around 5 follow-up calls to secure a deal. Hence, it appears that the issue lies more in the lack of persistence rather than the ineffectiveness of the strategy itself. Therefore, cold calling still proves to be a valuable component of a business’s lead generation strategy, particularly for accelerating the sales cycle. By effectively presenting your value proposition and addressing objections promptly, a cold call can have an impact on a prospect that cannot be replicated by emails or lead magnets alone.
However, it’s crucial to approach cold calling differently than we did 20 years ago. Nowadays, a B2B cold call is just one touchpoint among many, rather than the primary form of contact. Even if you end up reaching voicemail, view it as an opportunity. A well-crafted message could prompt a prospect to conduct further research on your company, moving them further down the pipeline. Nevertheless, it’s important to acknowledge that cold calling can become costly when managed in-house, primarily due to labor expenses. This is why many companies opt to partner with B2B lead generation firms. By outsourcing initial stages of the sales cycle, such as researching potential clients, creating lead lists, launching email campaigns, making calls to potential prospects, and qualifying interested decision-makers, your sales team can focus on more critical steps, namely, selling.
All these additional costs and time-intensive processes are the reasons why outsourcing B2B lead generation is reported to be 43% more effective.
WHAT IS THE BEST TIME TO MAKE A COLD CALL ?
8:00 am – 11:00 am: Based on a 2019 study conducted, the morning hours witnessed the highest rate of connected calls among sales reps. The peak time for connectivity was at 9 am.
9:00 am – 4:00 pm: Analyzing data from over four years and more than 11 million calls, a phone dialer company conducted one of the largest studies available. Response rates during this time frame showed minimal variation, with the best time identified as 10 am, although the difference was only around 1-2%.
11:00 am – 12:00 pm: After analyzing data from nearly 14,000 calls, data determined that the period right before lunch is the second-best time for cold calling prospective clients. The absolute best time, is between 4:00 pm and 5:00 pm, coinciding with the end of the workday.
The variability in “optimal” cold call times may be influenced by numerous factors, emphasizing that the best time to call depends on your specific prospects. Consider the following questions about your ideal prospects:
- Do they work at a desk where their phone is easily accessible?
- Do they spend more time with employees or customers than in the office?
- Do they frequently travel to different locations?
- Do they work from home and set their own hours?
By understanding your prospects’ work habits and preferences, you can determine the most suitable time to make cold calls.
