If your sales people are still cold calling lead after lead, then your profits are probably plummeting. Your sales people are probably having a tough time hitting their quotas. But it’s not their fault. The hard truth is if you’re still making your sales people cold call to make sales, then it’s your fault your profits aren’t great. And pressuring them to make more calls in an hour won’t make a difference.
Your sales people need to stop cold calling immediately. Here’s why.
Cold Calls Don’t Work
Less than 2 percent of cold calls actually result in a meeting being scheduled. Why? Because only 2 percent of your customers actually want to be contacted by phone. More than 80 percent of decision makers won’t buy from a cold call, no matter the circumstances.
Plus, this selling technique actually costs you 60 percent more per lead than other, more effective methods like email marketing, social selling, and warm leads. Cold calling flat out sucks, and the statistics prove it.
Why Doesn’t Cold Calling Work Anymore? Buyer Behaviour Has Changed
Though cold calling used to be more effective in the past, the internet has made it largely ineffective today. Not only can buyers screen their calls thanks to caller ID, but they can get all of the information they need to make their purchasing decisions on the internet. They don’t need your sales people calling to offer product details, give them pricing information, or to explain why your products are better than your competitor’s. In fact, they don’t want these cold calls at all. These one-size-fits-all approaches to selling don’t work for customers who now want customized and individualized services.
In order to stay ahead of the competition and stay profitable, you need to adapt to the new way customers buy. Buyer behaviour has dramatically changed, and it calls for drastically different sales tactics.
Doubling your cold call frequency won’t offer you the sustainable growth you’re looking for. If anything, it’ll just annoy your prospects and cause you to lose out on sales opportunities that you could have otherwise won if you changed your sales process.
What You Should Do Instead
There are so many reasons you should stop cold calling immediately. Cold calling’s ineffectiveness and high cost per lead are just some of the factors you should consider. But the main reason why you should stop is because there is a far better option available: inbound marketing and selling.
Inbound marketing is in sync with the way people now shop. It leverages the internet to gain the attention of the right consumers. It’s about creating and distributing relevant and personalized content that your buyers want. It’s about attracting leads and pulling them towards your brand, instead of chasing them down—which your sales people will love.
Instead of being interruptive and annoying, like cold calling, inbound is helpful. Your buyers are going online to find information about companies, products, services, prices, and more before making their purchasing decisions. So why not be there with the content they seek, at the right time and in the right place, in order to create awareness about your company and its offerings and convince buyers that you’re the right organization to buy from?
Inbound is not only the most effective way to sell to today’s customers, but it’s also the least expensive option, too.
So instead of making your sales people cold call leads who might not be interested in what you’re selling and who might get frustrated with the interruption of the call, why not implement inbound marketing? You’ll benefit from more qualified leads, more sales, and lower costs. It makes sense to switch to inbound.
Posted By Author Mike Lieberman, CEO and Chief Revenue Scientist
Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.