Does cold calling really work? The short answer is yes. Cold calling still works. If you can implement modern-day strategies, it will work for you too.
Many people have been saying cold calling is dead. But it isn’t true. The success rate in called calling is only 2% (Via Zippia). Still, it is used as an effective outbound lead-generation technique.
On the other hand, 27% of sellers believe they get new clients using a cold calling strategy. However, business buyers are more comfortable with cold emails than phone calls.
Well, these conflicting statistics may encourage you to ask whether cold calling truly works or not. Don’t worry! We will break it down for you.
Is Cold Calling Truly Effective?
Everyone is busy with their life and work in the fast-paced digital world. So, calling some stranger isn’t a gentle choice, right? But what if it gives benefits to both of you?
Yes! In cold calling, the chances might be low. But if your expert cold callers work with patience and passion, it will boost your business to some extent.
Regarding B2B cold calling, 50% of decision-makers like to be contacted over the phone, and 71% of buyers want a salesperson to reach out to them (Via Rain Group). It’s effective because the human voice has the power to build trust more than spammy cold emails.
This is why cold calling is still an effective technique.
However, there is a catch!
Cold calling is hard for both cold callers and customers. Sometimes callers face verbal abuse. Therefore, it’s considered an interrupt-based strategy which is demoralizing for callers. In addition, research shows that the conversion rate in cold calling is decreasing compared to other modern strategies like social media marketing (Facebook, Linkedin), text messaging, referrals, webinars, etc.
Apart from this statistical debate, we ensure that cold calling is still alive. Thousand of cold callers are working throughout the world. With engaging scripts, businesses are acquiring valuable data and qualified leads.
Why They Say Cold Calling Doesn’t Work?
Cold calling is the act of making unsolicited calls to promote and sell a product or service. However, like any other marketing strategy, cold calling has its drawbacks. That’s why many business researchers and owners believe that it is no longer effective.
Here are some reasons behind this belief:
Changing Customers’ Behavior
Nowadays, people buy things differently because of technology and the internet. They can look up information online, read reviews, and compare prices before deciding to buy something. So, they might not like getting calls from salespeople they didn’t ask for.
Low Success Rate
Cold calling typically has a low success rate. It involves reaching out to a large number of prospects with the hope of converting a few of them into customers. The conversion rate is often much lower compared to other sales and marketing techniques.
Rise of Inbound Marketing
Inbound marketing has become popular. They focus on attracting customers through content marketing, social media, and other channels. This way, the customers who come to the company are already interested in what they offer.
Focus on Relationship Building
Modern sales approaches prioritize building relationships with potential customers. rather than pushing products or services directly. Building trust and rapport takes time, and cold calling may not be the most effective way to achieve this.
Stats and Data on Cold Calling Effectiveness
Despite the challenges, cold calling remains a valuable and effective sales prospecting tool. Here we have some relevant and fascinating data that depicts that cold is still effective for many businesses.
According to Rain Group Study:
- About 57% of important decision-makers like getting cold calls, and even about half of managers and directors feel the same way.
- In the past year, around 69% of buyers accepted calls from new salespeople, showing they are open to talking to new contacts.
- When salespeople reach out to buyers, an impressive 82% of them agree to meet, which is good for finding potential new customers.
Different industries may have different results:
- In some industries, like 75% of them, prospects attended events or set up meetings after receiving cold emails or calls. It means these methods can work well in certain fields (Via DiscoveryOrg).
Studies of Cold Calling Success in 2023
Some reputed sales leaders and executives recently conducted a survey on LinkedIn. They asked people how many unsolicited sales calls they agree to listen to when someone is trying to sell them something.
The results were encouraging for the cold-calling industry. Out of the people who took part in the survey, 59% said they don’t want to accept any cold calls at all.
However, 14% of respondents said they do accept 2-3 cold calls per day. Note that 19% of people said they listen to all the cold calls they receive. The rest of the participants wanted to keep their opinions private on the survey.
This gives a clear picture of how cold calling can still be very effective in 2023 for businesses that want to sell their products and services. More than 35% of cold calls are being well-received by potential customers. These people appreciate getting suggestions and help from salespeople when considering buying something.
Expert Opinions on Cold Calling in 2023
Experts were asked if cold calling still works, and they all said yes. They explained that cold calling is not dead. But sometimes it fails because salespeople try to sell without knowing anything about the people they’re calling. In today’s world, it’s hard to trust someone you don’t know at all.
Lisa Earle McLeod, the founder of McLeod and More, who wrote a popular book called Selling with Noble Purpose, said the biggest mistake in cold calling is not doing research on the person you’re calling. He mentioned that spending just two minutes online can give you important information about your potential customer.
Michael Edwards, a Vice President at the EBQ company, also agreed that cold calling is not dead and is still one of the best ways to connect with your audience.
However, one expert warned that while cold calling is not dead, it could harm sales if salespeople continue to use outdated and annoying methods. They suggested that we can do better and find more effective ways to sell products and services.
So, the experts have clearly answered the query, “Does cold calling really work or not?” They confirmed it does work, even though some people think it’s no longer useful.
According to statistics, research, and experts, cold calling is still alive and effective.
What do you think about the cold-calling industry? How do you do real estate cold calling? Does cold calling really work for you?
Do you find it effective in generating enough return on investment (ROI)? Can you score qualified leads with your cold calling strategy? We’d love to hear your thoughts on this!