Is Cold Calling Still Effective in 2021?

Is cold calling still effective in the 21st century? Find out why a cold call is still more effective than email or social media!

Is cold calling effective? Can you trust phone calls to boost sales in the 21st century - a time when people use their phones all the time, but hate making calls?

Well, many marketers will tell you not to cold call, but we argue the contrary. Although it might seem that people nowadays hate phone calls, cold calling is actually more effective than email and social media when it comes to prospecting clients.

So, read on to learn why cold calling still works in 2021 and how it can improve sales for your company. You’ll also find 6 metrics you can use to assess if cold calling is actually working.

Does Cold Calling Really Work?

It’s a common mistake many marketers, sales reps, or even business owners make: that phone calls are now a thing of the past.

However, overlooking the opportunities cold calling provides means you’re getting fewer prospects via email or social media.

When done right, cold calling is the most effective outreach channel (according to 32% of SDR teams). And it doesn’t annoy potential clients like traditional telemarketing does, because the call is planned, scripted, and short.

So, if your brand is suffering in its outreach efforts, cold calling will be a healthy addition to the mix. And hiring a full-time, qualified cold caller is cheaper than you’d expect.

How to do cold calling correctly?

Cold calling that is effective goes beyond simply phoning people on a list and calling it a day. That’s the method most cold calling services use and it has terrible conversion rates.

Cold calling that works is directed at qualified clients with data backing up the calls. Scripts, the contact list, and more are backed up with research.

Here’s the 4-step process we use:

  1. Build lists and write scripts: a list is built with potential clients and their numbers are verified automatically via software. Scripts are A/B tested to see which one works best
  2. Launch campaigns: with the list and script ready, our SDRs start calling prospects
  3. Optimize script and objections: after gathering data from calls, we look back at the script and adjust it to address common objections by prospects
  4. Meeting, setting and scaling: with an optimized script, we focus on arranging meetings and scaling the reach of our cold calling strategy

Besides these 4 steps, all our sales reps are trained in cold calling and join in a daily feedback look to share data amongst themselves.

For instance, all SalesHive SDRs go through an Objection Training program. This program teaches them how to deal with the most common objections prospects will have on the phone, as well as think of strategies to deal with them.

This guidance applies to any niche our SDRs need to work in — from software to manufacturing — and makes them more effective than regular telemarketers.

And with a daily meeting among our SDRs, they can share intel to improve their scripts more efficiently. More experienced callers give tips to the newcomers, as well as insight on how to overcome obstacles they’ve already faced in their career.

Learn more about our cold calling strategy!

How to Measure the Success of Cold Calling?

Just like any other sales strategy, you need to measure the success of cold calling with metrics.

And we have plenty of metrics we use to evaluate if the cold calling is working and how to improve it.

Check out 6 cold calling metrics below:

#1 Cold calling ROI

ROI stands for return on investment and it’s how you measure if the money going into cold calling is actually paying off.

This is the formula:

(Won contract value per month - Cold Calling cost per month) ÷ Cold Calling Cost per month

Use this cold calling ROI calculator to check out your rate automatically.

#2 Monthly cold call conversion rate

This measures the rate of contracts you’re getting from your cold calls:

Contracts sold ÷ cold calls per month

#3 Average call-to-conversation rate

The number of conversations you get from all the numbers you dial, measured by:

Conversations per month ÷ calls per month

#4 Average conversation-to-meeting rate

The meetings you book from your conversations, which is calculated by:

Meetings per month ÷ conversations per month

#5 Closed won rate

This measures the number of deals closed by meetings:

Closed deals from cold calling ÷ number of meetings

#6 Won contract value per month

The money earned by contracts sealed with cold calling:

Closed won deals per month x average contract value

Check out more cold calling metrics

Want more ways to assess the success of your cold calling efforts?

Should I Start Cold Calling at My Company?

If you currently depend on cold emails and social media messaging to reach prospects, perhaps adding cold calls to the mix will increase your sales.

As we mentioned before, 32% of SDRs consider cold calling their most effective outreach method. And adding it to your mix can only boost sales.

In a digital age in which our inboxes are spammed to the limit and our social media feeds bombarded are with ads and offers, phone calls are a sure-fire way of grabbing your prospect’s attention.

Unlike digital methods, your prospect stops what they’re doing to answer the phone and at that moment, they have your attention.

All you need to do is make a persuasive pitch (that’s where an optimized script matters) and convince them to book a meeting.

And cold calling works when you call decision-makers at a company with a script that addresses their common objections.

Higher-ups at renowned companies listen to companies that offer services almost daily — that’s why you need to break the mold with a research-backed proposal.

At SalesHive, we arrange meetings with higher-ups at Ford, the Bank of America, and even Pfizer. And our clients have a dedicated cold caller that can make up to 400 calls daily for their brand.

Get in touch and we can start off an exclusive cold calling strategy for your business!

Learn About Cold Calling

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Decoding the 'Cold Calling vs Email' Dilemma: A Deep Dive into SalesHive's Proven B2B Sales Strategy
Unraveling the Intricacies of Cold Calling Voicemails: A Deep Dive into SalesHive's Proven Strategies for Success
Navigating the Digital Era with the Continued Relevance of Cold Calling in a Texting Age
The Resurgence and Persistence of Cold Calling: Defying the Test of Time
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Revolutionizing B2B Sales: The Superiority of AI Tools for Cold Calling and Cold Emailing
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Understanding Buyer Personas: Deciphering Email Enthusiasts and Cold Calling Connoisseurs
Enhancing B2B Outreach: Combining the Power of Cold Calling and Email for Maximum Effectiveness
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Explore The SalesHive Cold Calling Guide

Each part of our cold calling guide is equally important and needs to be mastered.

Part 1: Sales ROI Calculator for B2B Cold Calling

Before you can improve your cold calling efforts, it’s important to benchmark the ROI of your existing cold calling efforts. We’ve created a handy calculator that you can use to figure out where you currently stand and then you’ll learn about industry-tested methods to boost your KPIs.

A single SDR working full time can make 8,400 cold calls per month which will result in about 432 conversions per month. More conversations lead to more meetings per month, and more meetings will increase the number of closed deals per month.

View Part 1

Part 2: How To Write A B2B Cold Call Script That Works

Cold calling is far from dead– many businesses use cold calling in some capacity, though the intention is certainly different from what it was back in the day.

Originally, cold calling was solely a sales technique that had a whopping 2% success rate and annoyed an entire generation of consumers. Now, many would think that cold calling is dead, but that’s not the case. It has simply evolved in both technique and purpose. Rather than aggressively trying to close a sale in a ten-minute phone conversation, today’s brands can use cold calling to get to know consumers who are not aware of their brand.
View Part 2

Part 3: How To Communicate With Prospects On The Phone

A core attribution to a business’s success is to be financially strategic, in other words, if they already have a system going there may be some friction with talking them into trying something new. You are providing something these people need, resistance is typically caused by natural tendencies to stick with what you know.

It’s going to be very common that you are going to be experiencing a fair share of objections. Objections are not NO’s.
If you get an objection- they haven’t hung up on you yet, so they’re still listening and hoping for you to overcome!
View Part 3
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