Cold calling is a sales strategy that’s been around for decades. It’s also one of the most effective and efficient ways to generate leads and close deals.
In fact, according to a study by Salesforce, cold calling converts at nearly twice the rate of any other type of inbound marketing approach email, social media or even direct mail campaigns.
However, not every startup has an army of sales reps ready to make the phone ring off the hook (and those who do tend not to share their secret with others). So if you need more customers fast without hiring an army, read on!
| Takeaways |
|---|
| Implementing an effective cold calling strategy is essential for startup success. |
| Research your target audience thoroughly to understand their pain points and needs. |
| Craft a personalized and compelling pitch that highlights the value of your product or service. |
| Practice active listening and engage in a two-way conversation during cold calls. |
| Overcome objections by addressing concerns and offering tailored solutions. |
| Follow up strategically after cold calls to nurture relationships and close deals. |
| Continuously analyze and optimize your cold calling approach based on metrics and feedback. |
1. Prioritize Your List
To ensure you don’t waste time on cold calls that won’t lead anywhere, it’s important to prioritize your list.
The first step is knowing who your most likely buyers are. Use your CRM (customer relationship management) tool to keep track of leads and their relative likelihood to buy from you.
Once you’ve determined who your most promising leads are, it’s time to move them up in the queue by adding more data points to each one:
How much do they know about what you’re selling? The more information they have, the more likely they are to buy from you.
For example, someone who has already purchased something similar from someone else is much more likely to make a purchase than someone just browsing around looking for something new and exciting.
How much do they know about themselves? This includes both personal characteristics (i.e., age group) as well as company-related ones such as industry type or size (small businesses tend not only to be easier sells but also have fewer competitors).
Building an effective cold calling sales strategy is crucial for startups to generate leads and drive growth. Discover valuable insights and techniques in our guide on Cold Calling Sales Strategy for Startups.
2. Qualify Leads Before Contacting
Qualifying your leads is the second step in cold calling, and it’s an important step. It allows you to focus on only contacting people who are likely to convert into customers.
You should use a combination of information from their website (if they have one) and answers given in previous questions during your initial call with them. If they have a company website, make sure you read through it carefully before reaching out.
This will give you a better idea of what type of business they are running and what products or services they offer. You can also look at their social media accounts for more information about their business model or mission statement which may provide clues as well.
If someone hasn’t given much detail about their company when speaking with them over the phone or via email the first time around then there could be various reasons why this might be happening:
They’re not interested in selling anything right now – perhaps because sales aren’t currently part of their business plan? In this case don’t waste any more time trying to sell something else instead!
Just move onto another potential customer who does want some kind of help; maybe even someone else within the same industry itself if possible…
3. Don’t Jump In With A Pitch
Don’t jump in with a pitch. You need to gain trust before you can push your product or service on someone else.
For example, if a potential customer answers the phone sounding friendly and upbeat, don’t immediately begin pitching yourself as the solution to their problems (or even worse, asking if they have any problems).
This is likely going to come across as very pushy and aggressive not exactly the kind of person someone wants to do business with.
Remember: it’s not about selling anything right now. It’s all about building rapport so that when you are ready to make an offer later on, they will be more open and receptive.
Simplify your B2B marketing efforts with a comprehensive guide on cold calling, designed to help startups effectively sell their products and services.
4. Research The Prospect’s Business
Here, you’ll want to do your best to understand who the prospect is and what they do. This helps you establish a rapport with them, as well as helps you tailor your approach for their specific needs (which could be completely different from those of another company).
It also lets them know that you care about learning more about their business so that they can help themselves grow and succeed and if there’s one thing people like doing, it’s helping themselves grow!
5. Ask For Referrals
The last step to close the sale is asking for referrals. Referrals are one of the most powerful ways to get new customers, so don’t overlook this key step of your sales process.
To make it easy on yourself, ask for referrals from people who have already bought from you or your competitors. That way there’s no awkwardness and they feel obligated to give a referral because they’re already invested in your success – which means more customer acquisition!
6. Start With A Personal Connection
There’s no better way to get to know your customers than talking with them. You can learn what they like about your business and how you can improve it by simply asking for their thoughts.
Asking for referrals is also a great way to get connected with new clients, since the people who refer you are likely interested in what you do.
It’s important that your customers feel comfortable talking with you, so make sure the conversation feels natural and not forced.
The best way to go about this is by asking open-ended questions that aren’t too personal or invasive but still give insight into what makes them tick.
Plus, if they’re willing to share their experiences as part of an ongoing dialogue instead of just a one-time occurrence (like filling out a survey), then there’s less pressure on both parties!
Wondering how to incorporate cold calling into your sales funnel? Learn the optimal strategies for integrating cold calling at different stages in our article on Cold Calling the Sales Funnel.
7. To Cold Call Or Not Too Cold Call?
There are numerous advantages to cold calling, but it’s not for everyone. Some people hate telemarketers and are annoyed by cold calls. Others simply don’t have the time or patience to speak with strangers over the phone.
Luckily, there are other ways you can reach out to potential customers that don’t involve risking an immediate hang-up or voicemail inbox full of spam messages. First, let’s look at how each option stacks up against cold calling:
- Cold Calling – The pros include:
- You can get through to highly qualified leads who may not respond as well if they’re contacted via email or social media (i.e., they’ll be more receptive because they’ve opted-in).
- You can use this method when you’re selling something complicated and need all the extra information you can get from prospective clients before making a sale (such as during a sales call).
This way you won’t waste time explaining everything over email!
8. Use The Right Phone Number
Have you ever had a call come in on your phone and it was so vague, that you didn’t know who the person was? If you have, then that’s exactly why you should make sure that the number used for cold calling has your business name or even better, your company’s website in it.
This is not only going to help you remember which calls are from prospects and which ones aren’t.
But it also makes it easier for them to find information about what services or products they want based on their own search history or when they want to go back through their call logs.
Using a different number for each prospect will make things more difficult for everyone involved, so choose wisely!
Discover the well-kept secrets that can transform your cold calling approach, saving you time and resources. Dive into our post on Secrets to Cold Calling That Will Save You a Ton of Time and Money to revolutionize your outreach efforts.
9. Practice Your Opening Line
Practice your opening line on friends, family, and colleagues. Some people may be offended at first, but they’ll get over it. After all, this is for the good of your business! Make sure you get feedback from people you trust.
They can tell you if your opening line is too personal or not relevant enough to what they do or don’t want to hear. It should be brief and to the point.
You’re not trying to give a soliloquy; just make sure that by the time they’ve heard your opening line once (and perhaps again), they know exactly who you are and why they should care about what it is that you do or sell.
10. Have An Elevator Pitch Prepared
An elevator pitch is a short, persuasive speech that can be delivered in the time it takes to ride an elevator.
It’s usually about 20-30 seconds long and gives potential clients an idea of what you do and why they should buy from you.
You should be able to say your elevator pitch out loud confidently at any moment, whether in conversations with prospects or presenting at conferences or events.
11. Ask Strategic Questions During The Sales Call
At the start of your sales call, you will probably want to ask questions to understand:
- What the prospect needs and wants
- Budget for the purchase (if applicable)
- Timeline for making a decision (if applicable)
- Decision-making process of your prospect
Maximize the impact of your cold calls with 13 actionable strategies to enhance your communication and close more deals. Explore our guide on 13 Strategies to Maximize Those Cold Calls and take your cold calling game to the next level.
12. Plan Your Next Move
- Plan your next move. Don’t just hang up! Before you do, take a moment to make sure that you’ve asked for what you want. You can ask for an appointment, or ask if they know of anyone else who might be interested in your product.
You could even try asking them to buy right then and there by offering a discount or coupon code (ideas for this can be found later in this article).
- Remember: it’s not over until it’s over. If someone says no at first, don’t give up! Try again with different tactics until you get the yes that you’re looking for!
Conclusion
Whether you’re just starting in sales or are a seasoned veteran, cold calling can be intimidating.
But if you follow these tips and make a few tweaks to your approach, you’ll find that it becomes easier to get in touch with new prospects and start building up that pipeline of leads. You may even find yourself enjoying the process!
Further Reading
Here are some additional resources to help you further understand and improve your cold calling strategies for startups:
Cold Calling Tips for Effective Lead Generation Short Description: Learn essential tips and techniques for effective cold calling to generate leads and grow your startup business.
A Founder’s Guide to Effective B2B Sales Cold Calling Short Description: Discover a comprehensive guide for founders on how to implement successful B2B sales cold calling strategies for startup growth.
Mastering Cold Calling Techniques for Startups Short Description: Enhance your cold calling techniques and learn how startups can effectively engage potential clients and customers through this informative article.
FAQs
How can I make my cold calls more effective?
Cold calls can be more effective by researching your target audience, tailoring your pitch, and focusing on the value your product or service offers.
What are some common cold calling mistakes to avoid?
Common cold calling mistakes include not researching prospects, using a scripted approach, and not actively listening to the prospect’s needs.
How do I handle objections during a cold call?
When facing objections, acknowledge the concern, empathize with the prospect, and provide relevant solutions that demonstrate the value of your offering.
What’s the best way to follow up after a cold call?
Following up with a personalized email or message referencing the conversation, and highlighting the benefits of your product or service, can increase your chances of success.
How can I measure the success of my cold calling efforts?
Track metrics like conversion rates, appointment scheduling, and revenue generated from cold calls to assess the success and ROI of your cold calling strategy.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.