What is cold calling?

Cold calling is a sales strategy where businesses or salespeople reach out to potential customers, aiming to sell products or services. Many businesses use cold calling to sell their products or services to individuals or businesses typically unfamiliar with the brand or salesperson making the call. While phone-based conversations are the usual method of cold calling, door-to-door sales are also a technique, although not as popular as they once were. 

Cold and warm calling

The increasing number of scams today makes cold calling more difficult because people associate an unknown number with a potential scam. Companies that still rely on cold calling to grow their business often change the meaning slightly and obtain calling lists through lead gathering, referrals, or a third party whose analytics indicates potential interest in their product or service. The sales representative making the cold call considers this type of potential client or customer “warm,” meaning they aren’t expecting the call, but there’s a better chance that they won’t immediately hang up.  

Cold calling tips

Cold calling, as a marketing tool, can help startups acquire their first customers or help established businesses reach more clients during slow periods. Below are some tips to help you increase your cold-calling success rate:

• Numerous studies show that the best days to make cold calls are Wednesdays and Thursdays. Using this strategy avoids hectic Mondays, which typically overflow into Tuesdays, and most employees want to get important work done before the weekend, making Fridays less than ideal.
• Cold calling throughout an entire workday typically garners little success. Some recent studies show that the two best times of the day to make a cold call are between 10:00–11:00 a.m. and 4:00–5:00 p.m. The strategy behind this is that most people plan their wrap-up for lunch between 10:00–11:00 a.m., and by the time 4:00 p.m. arrives, they’ll gladly take a call to get minor work done before leaving for the day.

Assigning your cold calls for these days and times can set your sales team up for greater success, allowing you to focus on other customer acquisition methods during the rest of the week.

Please note that none of the companies, institutions, or organizations mentioned in this article are affiliated with Indeed.

Cold calling strategies

Regardless of your sales style, the following actions can boost the performance of every cold call:

• Do basic research. Before making the call, research your prospect by checking internal correspondence for any company interactions and their social media for hints on likes and dislikes or topics of conversation. If you can’t find relevant information, use one of your similar prospects as a template. You don’t need a complete customer profile—just the essentials to engage them in a conversation.
• Always follow up. Send a follow-up e-mail or make that follow-up call, even if you aren’t confident with the interaction or didn’t book the appointment you hoped for. Cold calls rarely close on first contact, so you still have a chance if you follow up.
• Keep detailed records. Keeping good records is important because it’s impossible to remember details from hundreds of prospects, such as:
  • Who did you call?
  • What day and time did you call?
  • Did you leave a message?
  • Did they pick up?
  • Was the call positive?
  • Did you send a follow-up e-mail?

These metrics can keep you well organized and on course to make a successful close.

Cold calling techniques

Most salespeople eventually develop their unique style over time. Here are some commonly used techniques to help you along the way: 

Be confident and enthusiastic

Potential customers can tell when they’re speaking with someone confident about what they’re selling. Speak clearly and let your enthusiasm for your product or service show. Begin your conversation with a confident, friendly tone. For example:

Caller: Hi, [Prospect’s Name], this is [Your Name] from [Your Company]. How are you today?

Prospect: I’m good, thanks. What is this about?

Caller: Great to hear. I hope I’m not catching you at the wrong time. My reason for calling is brief but could be valuable for you.

Now, briefly introduce your company and the value it brings to the prospect, keeping them genuinely interested in how your call can help them.

Don’t run from rejection

There is always rejection in the sales industry. Not everyone wants your product or service for various reasons, and it can help soften rejection when you expect it. Avoid searching for only the “perfect prospects” on your cold-calling list. Calling them all will lead to more rejections, but you will also likely see an increase in your successes.

Learn when to cut your losses

It generally doesn’t take too long to learn the difference between an interested prospect and one not going anywhere. When you talk to someone demonstrably uninterested, save yourself and the company time by finding a cordial way to end the call.

Always probe for interest

You can ask open-ended questions to gauge a potential client’s interest. For example:

Caller: I’m curious, are you currently facing any challenges with [relevant pain point or challenge]?

Prospect: Well, we’ve been dealing with [pain point].

Now, explain how your product or service can address their pain point in detail.

Remember that it’s not a race

Try to avoid rushing. People typically have more access to more information and options than ever before, meaning they require time to make decisions. Focus your efforts on moving your prospect to the next sales funnel stage instead of trying to close a sale. Setting an appointment for a follow-up or signing up for e-mails or monthly newsletters is a win, too, making the customer that much closer to purchasing. 

Stick to your scripts, for the most part

Your script can guide you through general conversations with your prospects, but not all prospects are alike. Some potential clients may respond to different energy levels, directness, and vocabulary. Learning how to shift sales scripts when faced with a prospect who asks many questions versus one who’s limited on time and just wants quick bullet points can help keep them engaged. 

Use active listening

Give your prospect a chance to speak and listen actively to their concerns, questions, or objections. Good communication helps build a two-way conversation, better informing you on how exactly your product or service can help the prospect.

Cold calling examples

Below is an example of a cold phone call when introducing your company or leaving a voicemail: 

Hello [Prospect’s Name],

My name is [Sales Rep Name] and I represent [Company Name], a leader in delivering honest and superior customer service solutions. I wanted to bring to your attention the remarkable success stories of organizations such as [Customer 1] and [Customer 2], which have thrived through our collaboration, as evidenced by [insert social media proof].

Our tailored approach has consistently resulted in [results], responding to the unique needs and aspirations of businesses like yours. Organizations typically observe significant [results] in [time] of implementing our solutions.

I’m eager to discuss how [Company Name] can specifically address your organization’s needs and optimize your current resources. Please get in touch with me at [number] at your earliest convenience or reply to this e-mail. I look forward to collaborating with [Prospect’s Organization] to achieve mutual success.

Thank you for considering this, and I hope to connect with you soon.

[Sales Rep Name]

[Company Name]

This script isn’t ideal for every cold-calling situation. Still, it can capitalize on several significant points, such as:

• similar businesses benefitting from the product you’re offering
• the caller having done research and knowing basic information about the prospect
• suggesting they connect and discuss instead of pushing the product
• stating that the prospect will receive a follow-up e-mail, making it less likely that they’ll delete it

Here are some strategies and techniques to use in a cold-call e-mail:

Subject: Collaboration Opportunities at [Company Name]

Dear [Prospect’s Name],

I trust this message finds you well. My name is [Your Name], and I recently discovered your name on [source]. I have a valuable solution to address [insert industry problem or pain point] that could significantly benefit [Company Name].

If you’re not the right person to discuss this opportunity with, could you please guide me accordingly? 

Thank you for your time and consideration.

Best regards,

[Your Name]

[Your Position]

[Company Name]

[Contact Information]

Here are some general guidelines to follow when sending a good e-mail:

• Ensure your e-mail will land in the recipient’s inbox.
• Use an intriguing subject line to prompt them to open it.
• Explain why you’re contacting the prospect to alleviate any fears of stolen personal information.
• Keep it short and to the point with a direct call to action.