The Effectiveness of Cold Calling in Improving Customer Onboarding
22 February, 2023
Though one of the least used methods of acquiring new prospects, cold calling has proven effective in some circumstances. Cold calling comes with numerous challenges, including customers hanging up rudely, verbal assaults and no responses. According to a study by Gitnux, 65% of prospects agree to proceed with cold calls, and of this, 79% agree to give the agent on call a chance. The success of a cold call highly depends on the seller’s persistence, but in general, it takes over 25 times more effort to acquire a new customer through this method.
“The caller needs to strike a rapport with the prospect, and if this fails, he can still take more measures to redeem himself. Most sellers will contact the prospect 4 times at most to inform them about the product, but according to research, the average is 18 calls per customer,” advised Gitnux’s sales manager.
Another report suggests that cold calling is an outdated method that should no longer be used. Although businesses know the difficulty of cold calling, some still believe it works and apply it to their daily customer onboarding strategies. The process is not as seamless as before, thanks to the evolution of technology. People today rarely welcome unknown sales calls and will often resist.
For this reason, sales teams waste a lot of time trying to find contact numbers that don’t have a busy tone or voicemail. It is nearly impossible to get past the gatekeepers to converse with prospects who are actually interested.
A study on cold calls in the Caribbean real estate market suggested that most potential customers will find your cold calls bothersome if you don’t first develop trust with them. Real estate is a sensitive field. For a prospect to offer a listening ear, they must know and trust that you are not a conman. One real estate agent reported that prospects would hang up the moment they hear what you are pitching because numerous people have been robbed through such methods.
The Latin American market is no different, either. Prospects hardly give agents a chance to explain themselves because of their past experiences. For cold calling to be effective, it should be the final step in an ongoing customer experience in which the candidate interacts with the business constantly. One useful strategy is to engage each prospect over several touchpoints, such as LinkedIn and email. Once you’re in, you can increase your contact rate and the number of sales you make.
This comprehensive strategy demonstrates that you value the prospect’s time and might prove you are not a conman. It demonstrates your readiness to provide a fully customized solution tailored to their requirements.
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