Cold calling Vs Warm calling

Is cold calling dead? Let's be honest. That answer is "No." Cold calling used to be one of the best -- and only -- prospecting strategies salespeople could use.

But in the past 40 years, a variety of more effective alternatives have emerged. While it's likely naive to say cold calling is never effective, useful, or necessary, it's crucial to elevate the rest of your prospecting strategy so it's never your go-to tactic.

In this post, we'll compare warm calling and cold calling, and discuss how to make calls to prospects you aren't very familiar with more productive -- and less intrusive.

What is warm calling?

"Warm calling" means you establish contact with a prospect before sending them an email. You might connect on LinkedIn, communicate over social media, or have a mutual acquaintance introduce you before you actually reach out to them with the intention of making a sale.

A good prospecting strategy is:

• Consistent: It reliably generates new leads.
• High-return: It generates a high number of potential customers for the amount of energy and resources required.
• Targeted: It connects you with the right prospects, not just any prospects.

What is cold calling?

"Cold calling" refers to calling a prospect you haven't previously made a connection with before sending them an email or calling them on the phone to talk to them about your product or service.

With over 200 million people on the?national do not call list alone, T-Mobile releasing data-only mobile packages, and corporations not taking calls unless you have a named contact, it's clear that our desire to speak with people on the phone is dwindling -- especially if those calls are unsolicited.

On top of that, prospects can now research company information, reviews, feedback, and all manner of information online. Cold calling is becoming an unnecessary nuisance -- prospects no longer need salespeople in the same ways they used to.

In fact, it's fair to say that anyone interrupting your day with an uninvited three-minute script is going to have to do some seriously fast and impressive talking to keep you on the line.

The odds aren't on the salesperson's side: Chances are the caller has already had to get creative about how they got through to your desk phone in the first place, and the call itself has probably begun with you being mildly irritated at best.

So, while prospects are annoyed that their days are still being?interrupted by cold calls,?sellers aren't having a good time either. They most likely have managers who demand more than 20-30 calls a day and expect just as many meetings booked per week.

But expectations and reality could not be farther apart. In sales organizations that rely on cold calling, lead flow is slowing down, the sales team is getting frustrated, and managers are getting increasingly angry.

The Harvard Business Review reported cold calling is ineffective 90% of the time, and more recent research shows that less than 2% of cold calls actually result in a meeting. Assuming a 0.3% appointment-booking rate and a 20% win rate, it would take 6,264 cold calls to make just four sales.

Few Lead Generation Alternatives to Cold Calling

1. Share interesting content that helps prospective customers solve their business problems on social media.

Once you've built up your personal following, you'll have a natural flow of prospects to your products and/or services.

2. Engage on social media with the right people.

By connecting and interfacing with thought leaders in your industry, and potential users who fit your ideal buyer profile, you'll grow your own audience on social and your potential list of prospects.

3. Share relevant blog posts or interesting articles in online groups.

You'll help kick off the conversation that will help your content be discovered by more people on social media.

4. Set up email notifications when prospects are researching articles on your website.

These moments signify buyer intent such as demos, price lists, and product walkthroughs that could lead to a better chance of closing a deal.

5. Sell based on your expert knowledge.

Don't try to trap customers in a conversational corner to get them to say what you want to hear. Instead, use your knowledge to be consultative and helpful on your call.

6. Use an integrated and intelligent CRM system.

That way, you'll have context for every buyer before you reach out.

7. Skip the call script.

Be human, relatable, and consultative in your calls.

Be it cold calling, do it with an upgrade in the traditionally followed method. In the end, we all need to talk to someone who sounds human on the other end of the call and has a personal touch to attract others. Many salespeople make it a goal to do only warm calling since they're more productive and less likely to result in rejection, which makes them far more pleasant.