The Truth About Cold Calling

Cold calling has probably been a go-to method in your sales toolkit for years, but let's face it—its efficiency and success rates are often disappointing.

You likely spend countless hours on the phone with minimal returns to show for it. In a field where the return on your time invested (ROTI) is crucial, cold calling just doesn't cut it.

The numbers speak for themselves.

Cold calls typically have the lowest booked meeting conversion rate.

Consider this case study: Where 6,264 cold calls were made and only 19 appointments were booked. That’s a booked meeting rate of just 0.3%.

Of course, there are scenarios where the booking rate is higher and industries where cold calling is the primary driver for sales.

(For example, if you are a Financial Advisor you need to hit the phones.)

But I've worked across various industries and have to share the truth.

There is a stark contrast between cold calling and other methods like email and LinkedIn.

Cold Calling vs. Email & LinkedIn Outreach: Which Wins?

One-on-one email campaigns boast conversion rates ranging from 0.2% to 1.5%, and LinkedIn outreach shines with rates between 2% and 12%.

Most importantly, with these methods you can leverage AI and automation software to handle the bulk of the work, enabling your sales team to send thousands of emails and hundreds of LinkedIn messages monthly.

These methods not only save time but typically allow for more meetings to be booked.

(And the whole point of outreach is to book meetings.) ??

Maximizing Efficiency with Software

When you add automated outreach methods into your mix, you can significantly enhance your ROTI. You can achieve substantial results without being tied to the phone for hours each day, freeing you up to focus on high-value tasks like closing deals and nurturing leads.

The Effectiveness of Automated Email Campaigns

As mentioned, cold email campaigns typically have higher response and booking rates. For instance, response rates for cold emails usually range from 1-5%, with 20-30% of those responses leading to booked appointments.?

Response and Booking Rates:

Staying with the cold calling example.

Here’s how the numbers break down.

If a team sent 6,000 emails -

The results would be as follows:

(Lower End Scenario)

??- Response Rate: 1%

??- Booking Rate: 20%

??- Responses: 60

??- Meetings Booked: 12

(Higher End Scenario)

??- Response Rate: 5%

??- Booking Rate: 30%

??- Responses: 300

??- Meetings Booked: 90

Thus, sending 6,000 cold emails can result in booking anywhere from 12 to 90 meetings, depending on the campaign's effectiveness.

The Time Difference

You can't just focus on the meetings books. Although, it's clear that emails can drive a significant amount of qualified meetings.

You also need to compare the time required for cold calling verse email campaigns.

Assuming an average call duration of 3 minutes and an additional 2 minutes for preparation and downtime, each cold call takes about 5 minutes.

Total Time for Cold Calls:

- Total minutes: 6,000 x 5 = 30,000?

- Total hours: 30,000 ÷ 60 = 500?

It would take approximately 500 hours to make 6,000 cold calls.

Time Investment for Email Campaigns:

In contrast, setting up an email campaign might take 5-10 hours initially. However, once the campaign is running, it requires minimal ongoing effort to monitor and adjust, making it a far more time-efficient option.

LinkedIn: Your Secret Weapon for Prospecting!

LinkedIn outreach can be an even more powerful prospecting tool. LinkedIn done right, results in higher response rates than traditional emails. Additionally, when prospects respond on LinkedIn, you can engage in a direct, conversational exchange through DMs, similar to texting. This interactive communication allows you to gather more information about the prospect and assess if they are the right fit for a discovery call.

(So you don't have to waste your time with unqualified buyers.)

However, you need to send connection requests before messages can be sent, adding another layer before you are able to get a response and booked meeting.

(You can send messages through Sales Navigator without sending a connection request first but I don't recommend that approach.)

Similar to email, you don’t need to manually send connections or messages. There are plenty of software programs that will do this for you like Dripify that automate the process.

(If you want to use Dripify use the code WELCOME5 for a 5% discount.)

The Effectiveness of LinkedIn:

Let's look at the math.

The average acceptance rate of connection requests is 30%. Therefore, sticking to the cold call example, if your team sent 6,000 connection requests you would be able to send 1,800 DMs.

Response and Booking Rates:

Based on industry averages, LinkedIn outreach typically has a response rate of 10-25% with 20-40% of the people who responded leading to booked meetings.

Staying with the cold calling example.

Here’s how the numbers break down.

If a team sent 6,000 connection requests and 1,800 follow up messages -

The results would be as follows:

Lower End Scenario:

??- Response Rate: 10%

??- Booking Rate: 20%

??- Responses: 180?

??- Meetings Booked: 36?

Higher End Scenario:

??- Response Rate: 25%

??- Booking Rate: 40%

??- Responses: 450?

??- Meetings Booked: 180?

Time Investment:

Similar to cold email, you can set up an outbound campaign in 3-5 hours with programs like Sales Navigator and Dripify. Once the campaign is running, it requires minimal ongoing effort to monitor and adjust, making it a far more time-efficient option.

The Role of Cold Calling in Sales

Let's face it: cold calling can be a grind.

But it still has a place in your sales strategy.

Cold calling offers a personal touch that can break through where other methods fail. Even though 8 out of 10 people say they would prefer an email over a cold call, that still leaves 2 people out of 10 who prefer a call.

Question is though:

Are those 20% of people really worth hundred hours of your precious time?

Cold Calling Industry Averages

It's important to note that the industry standard conversion rate for cold calls to meetings booked is approximately 1-2%. However, I've personally observed even lower rates among many teams across various industries, particularly in B2B settings. With many people no longer working in the office, obtaining a cell phone number can be challenging. Even if you do find it, the chances of them picking up are slim, leaving texting as your next best option.

It's just very labor-intensive for little results.

Conclusion

The numbers don’t lie: while cold calling may still remain part of your balanced sales strategy, automated methods like email and LinkedIn outreach often deliver significantly better returns.

Automated outreach methods also significantly boost your ROTI. Imagine achieving substantial results without being tied to the phone for hours each day, freeing you up to focus on high-value tasks like closing deals and nurturing leads.

By leveraging these methods, you can:

• Save hundreds of hours
• Book more qualified meetings
• Get new customers and close more deals

If this sounds like something your company needs we should chat.

Connect with me on LinkedIn and send me a DM with the word "Sales."

I'll show you how to use my LinkedIn Accelerator & Email Method to get new customers.