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How to Master Cold Calling (Scripts Included)

Cold calling is a way to reach new customers that has many benefits as well as challenges.

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Written by: Yara Simón, Contributing WriterUpdated Oct 21, 2024
Sandra Mardenfeld,Senior Editor
Business News Daily earns compensation from some listed companies. Editorial Guidelines.
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Cold calling is a popular and viable option among many methods to engage potential customers. However, cold calling isn’t necessarily what many think of it as. The practice has evolved in the last few decades and isn’t as impersonal as it once was. Generally, instead of placing random calls, salespeople have found more success by targeting the right individuals and companies.

Much has been written about whether cold calling is effective. While the answer will likely depend on your business and the services or products you sell, many businesses believe that cold calling certainly has a place within the sales funnel. 

Editor’s note: Looking for the right CRM software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

What is cold calling?

what is cold calling?

Cold calling is when sales representatives reach out to someone they haven’t connected with before. The goal is to get them interested in a business’s products or services. As the name implies, cold calling typically takes place over the phone.

In the past, cold calling meant working down a list of names of people or businesses that may or may not have needs for your products or services. But this isn’t as efficient as taking time to identify your audience and research them beforehand. While it can be time-consuming, it can lead to better results.

Cold calling differs from warm calling, which is when a salesperson has met or has a connection with a prospect before reaching out again. To complete warm calls, consider using some of the best CRM Software to keep track of your interactions and help other team members pick up where you left off during the next conversation with a prospect or customer.

Key TakeawayKey takeaway
Unlike warm calling, cold calling is when you reach out to a prospect without having a prior connection.

How to script a cold call

Before you can write your cold call script, you need to do some research on your prospects.

1. Identify the industries you’re targeting

Your products and services won’t work for companies in every industry. Skipping this step means you won’t be focusing your cold calling on those who might benefit the most from what you have to offer.

To identify the industries you should target, look at your customers and see if any patterns exist. If this route doesn’t work for you, think about what kinds of companies most need your services or products. Start with just a few industries so that it doesn’t become overwhelming.

2. Find the right prospects

Now, it’s time to make a list of prospects. You can find the right companies on a website like LinkedIn. From there, you can search for the people within those companies who are likely to be decision-makers. 

For example, if your company provides tools for marketing teams, you’ll want to target a person on a company’s marketing team. Aim for a high-level employee within this bracket, as someone newer or in a junior role may not have the authority to make purchase decisions.

3. Gather information about your prospects

To personalize your script, you’ll need to know about the company and the prospects. For the company, you should know what it does and how you can possibly help it. For the prospect, this could include what school they attended or how long they have been with the company.

4. Write your script

After the research phase, you can start writing your script. Your script should include these elements:

  1. An introduction: The best way to start your call is by introducing yourself. You’ll want to keep it short and simple.
  2. A question: This is where the research on your prospects and their company comes into play. This part aims to get them talking about themselves or their company. You may ask them about their new role if they just got a promotion, for example, or something specific about where they went to school. By establishing rapport with them, you are giving them a reason to engage with you. Be mindful of people’s time and try not to drag this part out longer than necessary.
  3. A positioning statement: This is where you go in with your pitch. Using what you know about the prospect’s company and its possible pain points, craft a statement that explains how your products or services can help. Make sure this is about them too, not just your product. Take the time to learn what they need, and listen closely so that you can ask good follow-up questions.
  4. A follow-up: If all goes well, end the call by setting up a follow-up call, which you can use to dig into their problems and your solutions. You should also think about all the reasons they may say they don’t need your product or service. This will help you shift your position as needed.
TipTip
Before you write your cold call script, research the industries that could benefit from your product, the companies within those industries and the relevant decision-makers within those companies. This will help you create a personalized message and prepare for the conversation.

Examples of cold call scripts

graphic of a person sitting at a desk talking on the phone with icons above their head

Your cold call script probably won’t look exactly the same as any other company’s, but here are a few examples that may help you create your own.

Example No. 1

Service/product: An all-in-one analytics tool that results in richer data.

Industry to target: Most businesses use analytics tools to measure data, but looking at your past customers, you decide to target mid-sized marketing agencies.

Prospect: A director of marketing at a mid-sized marketing agency.

Information about business or prospect: The director of marketing has worked at the company for five years. The marketing agency’s clients include prestigious names.

Introduction: Hi, [prospect]. This is [name] from [company].

Question: I see you’ve been at [company] for five years. What would you say has been the most exciting project you’ve worked on in that time?

A positioning statement: In talking to other marketing professionals, I’ve learned that many are frustrated that they must use many different tools to track campaigns properly. Is this a problem you’ve had?

A follow-up: So, if I’m understanding correctly, you wish your analytics tools to [reiterate the points they listed]. Are you available for a follow-up chat to discuss how [product] can help you solve [problem they described]?

Example No. 2

Service/product: Customer service software that helps small businesses improve the customer experience.

Industry to target: Small business is a wide category, but in this case, you decide to focus on online retailers that sell clothes.

Prospect: The founder of a clothing company that sells novelty T-shirts.

Information about business or prospect: The founder started the business because they wanted to create punny T-shirts in Spanglish.

Introduction: Hi, [prospect]. This is [name] from [company].

Question: I love your T-shirts. They are really funny. How do you come up with the slogans?

A positioning statement: When it comes to your customer service experience, what are your biggest concerns?

A follow-up: It sounds like you want to build a better experience with your customers, but you can’t hire a team of support reps. You may be able to do just that with customer service software. Can you schedule a follow-up chat to discuss how [product] can work with your business?

Key TakeawayKey takeaway
Cold call scripts will vary depending on your targets and what you are selling; the key is to engage the prospect and tailor the script to their needs.

Tips for effective cold calling

Master the art of cold calling with these essential tips to enhance your success and efficiency.

Utilize a CRM to manage your pipeline

A CRM system is an invaluable tool for cold calling. It helps you organize your leads, track your interactions and follow up effectively. By using a CRM, you can:

  • Track call history: Record details of each call, including the outcome and next steps.
  • Schedule follow-ups: Set reminders for follow-up calls to ensure no potential lead falls through the cracks. Use the CRM to note where and what to follow up with relevant content.
  • Analyze performance: Use CRM analytics to identify patterns and improve your cold-calling strategies over time.

Research your prospects thoroughly

Before making a call, invest time in researching your prospects. Understanding their business needs and pain points will allow you to tailor your pitch and establish a connection.

  • Visit company websites: Learn about their products, services and recent news.
  • Utilize LinkedIn: Gather insights about the prospect’s role, responsibilities and professional background.
  • Read industry reports: Understand the market trends and challenges that might be affecting the prospect’s business through their industry’s articles.

Craft a compelling opening

The first few seconds of a call are the most important in capturing your prospect’s attention. A well-crafted opening should be:

  • Concise: Keep your introduction brief and to the point.
  • Personalized: Mention something specific about the prospect or their company to show you’ve done your homework.
  • Value-oriented: Quickly convey the benefit or value they will gain from the conversation.
  • Loosely use your script: A script can guide your conversation to ensure you cover all key points. However, it’s essential to stay flexible and adapt to the flow of the conversation.

Analyze and refine your approach

Continuous improvement is essential for effective cold calling. Regularly analyze your performance and refine your strategies. Consider the following:

  • Review call recordings: Listen to recordings of your calls, if you got permission when required, to identify areas for improvement.
  • Seek feedback: Ask colleagues or mentors for constructive feedback on your calls.
  • Experiment: Try different approaches and techniques to see what works best for your target audience.
Did You Know?Did you know
In some states, you need permission to record the call. So before recording any cold call, look at your state laws to see if you need permission or not.

Benefits of cold calling

While cold calling isn’t everyone’s preference, there are benefits of adding this tactic to your marketing strategy.

  • It helps you fine-tune your pitch: You will likely reach out to many prospects and learn what parts of your pitch work and what parts should be reworked.
  • It can be a form of market analysis and research: While selling your product or service is the ultimate goal, you can also use cold calls to gather information from prospects. You can ask them survey questions that will provide more insight into this audience.
  • It’s an opportunity to reach new customers: Because not everyone will find your company on their own, cold calling gives you the chance to introduce new audiences to your services or products.
  • It’s an easy strategy to implement: Cold calling doesn’t require many tools or a complicated structure.
  • It strengthens your strategy: The best marketing strategies are multipronged. Adding cold calling to your strategy means increasing how you interact with your audience.

Challenges of making cold calls

Cold calling can get results, but you might encounter many challenges along the way.

  • It can sour a potential customer on your company: A too-persistent or rude salesperson can turn a potential customer off the company and hurt your company’s reputation.
  • Calls are easy to ignore: Many avoid picking up phone calls, and with caller ID technology, cold calls are very easy to avoid.
  • It has low success rates: According to marketing analysts, cold calling has a 1% to 3% success rate. This means that it might take a lot of calls and time to get decent results.
  • It’s widely disliked: Many dislike cold calls, so even if you can get someone to answer the call, they are often less willing to engage.
  • It could feel spammy: With the number of robocalls that many receive, cold calls can also feel like spam.
  • It can be disheartening: Cold calling can be a discouraging process for salespeople because they may also have many negative experiences.
Did You Know?Did you know
A script is important to the cold calling process because it can prepare you (and any new salespeople you hire) for the conversation and make you feel more confident.

What are the best times to cold call?

graphic of a weekly calendar and a clock

There are certain days and times when you should avoid making cold calls. For example, Mondays and Fridays are not the best days for a cold call. Mondays are busy as people get back to work; by Friday, people are ready for the weekend. Instead, choose Wednesdays.

The best times are between 11 am and noon, right before lunch, and between 4\ and 5 pm, when people are not likely to start new tasks.

TipTip
When cold calling, you can always check with the potential customer the best time to call their company, as it could be different depending on the business.

What laws govern cold calling?

Cold calling is not illegal, but there are laws in place to protect people. You must follow these rules when cold calling:

  • Call individuals at home between 8 am and 9 pm If you call someone at work, you can call at any time, if it’s not a business-to-business call.
  • Identify yourself and explain why you’re calling.
  • Put individuals on a “do not call” list if they ask.
  • Don’t call those on the National Do Not Call Registry.
  • Get written approval if you accept money directly from a bank account.
  • Tell the truth.
Did You Know?Did you know
Some cold-calling laws are specific to each state, so always check with your state to ensure you won’t mistakenly break any cold-calling law.

Evolving efficacy of cold calling in modern sales strategies

Cold calling remains a viable strategy for engaging potential customers, though its practice has evolved significantly. By targeting the right individuals and companies, salespeople can create more personalized and effective interactions. While cold calling faces multiple challenges, its benefits can make it a valuable component of a diversified sales approach. 

Effective cold calling requires thorough research, a well-crafted script and the use of tools like CRM software to manage leads and track interactions. By continuously analyzing and refining their approach, sales teams can improve their success rates and ensure more meaningful connections with prospects.

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Written by: Yara Simón, Contributing Writer
Yara Simón is a content writer with a decade of experience covering entrepreneurship, with a focus on the marketing strategies that help businesses grow. She writes about content marketing, SEO, branding, and omnichannel marketing strategies for business.com. Yara also writes about Latinx culture and social justice issues. Her work has appeared in Latino Leaders Magazine, Remezcla and Latina.
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