Pros and Cons of Cold Calling | Fora Financial Blog
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Pros and Cons of Cold Calling
July 11, 2018
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Pros and Cons of Cold Calling

When promoting your small business, you’ll probably try different strategies. From email marketing campaigns to sponsored social media posts, there are many ways to market your business and (hopefully) recruit new customers. Notably, one approach that business owners have utilized for years is cold calling, which is when a business contacts an individual to share their sales pitch. It’s important to note that cold calling is unsolicited, and typically the phone call recipient hasn’t heard of the business that’s contacting them.

Although it can be helpful to spread the word about your business to new people, it can also be extremely challenging to convince them to purchase your products or services. For example, let’s say that a person searches online for “pool cleaning business,” which happens to be the service that your company offers. If your business’s website appears in search results, and the person fills out a form, it’s clear that they’re open to having you contact them with more information about your offerings. In comparison, if you cold call someone, they might not be looking for outside pool services, or might already have a provider that they like. In addition, they might not even have a pool!

In this post, we’ll explore the pros and cons of using cold calling to market your small business. By considering both the benefits and the setbacks that cold calling can bring, you’ll be able to consider how it could (or wouldn’t) help you make more sales.

Pro: Reach New Customers That You Wouldn’t Otherwise

If an individual isn’t actively pursuing the products or services that your business is offering, there’s a good chance that they won’t ever come across your store or website. Due to this, it’s your job to go out and find them! With cold-calling, you can contact people that fit your typical customer demographic, and tell them about what your business offers.

Con: You’ll Annoy People

Let’s be honest, most people don’t enjoy unexpected phone calls. They likely don’t want to take the time to hear your pitch, and will want to get off the phone as soon as possible. Plus, since the call is unscheduled, you might catch them at a bad time, or get sent to their voicemail. Due to this, you could alienate these individuals permanently. This is the risk you take when cold calling – people could immediately make up their mind that they’re not interested in hearing your pitch and don’t’ want to be bothered.

Pro: Can Be Done Anywhere

Other common sales methods require you or your team to be out and about, trying to acquire new business. Although with new technologies this is less common, cold calling is amongst the original ways that enable sales employees to work independently, from essentially any place. Your team can make cold calls from their homes, in the office, or on-the-road. This can be a huge advantage, and may allow you make sales regardless of where your team is located.

Con: Can Be Inconsistent

Even if you’ve had some success with cold calling, you shouldn’t make this the entire focus of your sales and marketing strategy. Cold calling could work at times, and you could gain some additional sales, but then you might hit a rough patch in which the people you’re calling aren’t receptive. Typically, you won’t be able to predict how many sales you’ll generate from cold calling, and this inconsistency could put your business is financial jeopardy.

Is Cold Calling Right for Your Business?

Although cold calling can help you connect with people that you wouldn’t otherwise be able to reach, it can also present significant challenges. If you’re going to incorporate cold calling into your sales strategy, you should adopt phone sales tips, such as following an agenda and asking people about their needs, so that you can explain how your business would be able to help.

Are you cold calling customers? Tell us about your experience in the comment section below.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at marketing@forafinancial.com.
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