Cold calling is one of the scariest, most intimidating part of sales. Millennials in particular, hate cold calling because they are used to having all information they need online, at their fingertips. They think it’s useless chatter, it’s bothering the customer and not getting them results. The truth is, cold calling still works, with a conversion rate of 6.3%, and that’s why everybody’s still doing it.
Sales Reps Hate Cold Calling and Prefer Emailing
In fact, the “Sales Cadence” research report that InsideSales.com Labs released last year showed some concerning facts about how sales professionals approach their leads. Here’s the sum-up:
- The most common outreach practice is a single email (32 percent of respondents use this method)
- 61 percent of first contacts happen via email
- The second most utilized cadence is a single call and a voicemail (6 percent)
I found it mind-boggling that the most common communication channel for sales reps today is email. It’s certainly more convenient than a phone call, but the truth is sales reps who are not cold calling are missing out on incredible opportunities to start a meaningful conversation with their prospects.
Cold Calling Is Alive and Well
At InsideSales.com, we have collected information on billions of sales transactions, and our machine learning engine analyzes this data constantly to produce new insights on sales best practices. And guess what the latest results were? Cold calling is alive and well, and we have proof.
We analyzed over 1 million cold calls, and 6.3% of these actually resulted in meaningful conversations with a prospect.
By comparison, cold emails open and click-through rates are absolutely dismal at around 0.5%.
“For cold emails, the open rate is anywhere from 1 to 10%, and of these, anywhere between 0.2 and 0.5% will clickthrough to offers. This is from a marketing standpoint, but even when the email is personalized and comes from a sales professional, cold emails still don’t work very well.
What really makes a difference is when users are are opting in to your company’s communication. That’s when you might see a 5-10% open rate, and a 1-2% click-through rate for emails or more,” said Derek Boggs, Demand Generation Manager for InsideSales.com.
Now, obviously, these rates are different for every industry, but wherever I looked, success metrics for cold email don’t look very good– at least no better than cold calls.
The cold call allows you to make a real connection, build rapport with your prospect and allows you to find out more about their needs and problems you can solve.
Cold Calling is Not Dead: Watch the Webinar
To find out more about how sales professionals can properly use the power of cold calling, I tapped into the vision of Jason McElhone, director of Inside Sales and cold-calling expert at MarketSource. Jason has spent the last 27 years cold-calling and his results are out-of-this-world.
Tune in to the InsideSales.com webinar with MarketSource to learn:
- Why cold-calling isn’t dead if you do it right
- How experts execute a cold-call to win
- Cold-calling tips (by analyzing real cold calls)