What is Cold Calling and How Does it Work?

Updated: December 19, 2021

Cold calling is a sales technique in which a salesperson makes an unsolicited call to people who are not expecting the call, usually at their place of business. It's always best to ask permission before calling, but cold calling is important for reaching out to new clients and staying top-of-mind with existing clients. Here are some things to know about cold calling.


What is cold calling?


Cold calling is a sales technique that's used when a salesperson is making an unsolicited call to someone who is not expecting the call. Salespeople use this technique to prospect for new leads, establish new relationships with potential customers, or to stay top-of-mind with existing customers.


Cold calling is often considered the most challenging part of sales. It's always best to ask permission before contacting someone, but cold calling is important for reaching out to new clients and staying top-of-mind with existing clients.


Here are some things to know about cold calling:


It's about selling


Cold calling can be challenging


You need to be professional


You need to be prepared


You need to have a plan


You need to know your product


You need to have your goals set


You need to have goals for the call


It's always best to ask permission first


Why cold call?


Most people are not expecting to get a call from a salesperson, so it's best to ask for permission before calling. However, cold calling is one of the best ways to make new connections, stay top-of-mind with existing clients, and uncover new opportunities.


If you're just getting started with cold calling, it's important to understand why you're doing it. Cold calling is a numbers game. You may not always get the chance to talk to the person you want because they're busy or on the other line. But if you keep trying, you'll eventually reach them.


Here are some reasons for cold calling:


To reach new clients To stay top-of-mind with existing clients To find new opportunities


Cold calling is also one of the best ways to make new connections. If you don't know someone personally but want to get in touch, cold calling can be a great way to do that.


How to make a cold call


The steps to make a cold call are fairly straightforward. First, you want to pinpoint your target market. Once you have your list of contacts, you'll want to do some research on their business. Then, you'll want to compose a pitch that will be persuasive enough for them to meet with you.


A cold call is not always easy. You have to have a clear understanding of what the person's problem is in order to pitch the solution in the best way possible. The more prepared you are when you call, the more successful your cold call is likely to be.


Lastly, when you call, always ask permission before making your pitch. If they say no, that's alright - just ask them when might be a better time for them.


When do you use cold calling?


Cold calling is useful because it's the best way to reach new people and stay top-of-mind with existing clients.


Cold calling is a valuable sales technique that can be used to reach out to those who might not have been expecting a call from you. It can be used as a way to reach out to new prospects as well as a way to stay top-of-mind with existing clients.


The key is to always ask permission before you cold call someone. You never want to cold call someone unless they have already given you permission. When cold calling, it's usually best to use a script and have a list of questions prepared in advance. In these instances, it's helpful to have a script that outlines what your call is about and what information the person you're calling might be able to provide you.


If you're having trouble coming up with a script, feel free to check out some of the ones we've shared on our blog.


What is your organization's mission? What are your organization's top priorities? What are your main goals for the next 12 months? What challenges does your organization face? What are your organization's greatest strengths?


Conclusion


A cold call, or cold approach, is the act of reaching out to someone who is not expecting your call. This is often done through a phone call, but cold calling can also be done through post, internet or face-to-face contact.


Cold calling can be a powerful sales technique. It's often the best way to reach out to new clients and stay top-of-mind with existing clients.


Cold calling is not always easy. While there are many benefits to the technique, it can be extremely frustrating to make calls with no response or to get frustrated when prospects are not receptive during the sales pitch.


Keep these factors in mind when cold calling. Remember, you are not obligated to make a sale on every call. Keep track of your responses and successes. You'll want to know that you're making progress and that your hard work is paying off!


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