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Topics Covered: <a href='/resources/search/?query=Sales'>Sales</a> | <a href='/resources/search/?query=Cold Calling'>Cold Calling</a>
Sales Strategy
May 3, 2017 | Canadian Professional Sales Association lock

Are your sales people missing their targets and having trouble closing deals? Are your company’s profits plummeting? If you’re still using cold calling as your main method of sales, then it’s no surprise that your sales are suffering. 

Pressuring your sales people to make more calls in an hour won’t work. You need to overhaul your sales strategy.

Cold calling is dead, and you should stop using this sales tactic immediately. Here are just a few reasons why.

1. It’s Ineffective

It’s a proven fact that cold calling doesn’t work. It’s a largely ineffective sales tactic that just won’t get you anywhere. In fact, did you know that only 2% of clients prefer to be contacted by phone? And did you know that less than 2% of cold calls turn into scheduled meetings? And that small number doesn’t even include closed sales—just meetings! The fact is over 80% of decisions makers flat out refuse to purchase anything from cold calls, no matter how much they might actually benefit from the product or service, no matter who’s calling, and no matter what circumstances surround the call.

2. It’s Expensive

To increase your profitability, you not only have to increase sales, but you also have to reduce your spending. Cold calls cost you 60% more per lead than other selling strategies, including social selling and email marketing. So not only is this method less effective than others, but it’s also far more expensive. You spend more money to get fewer sales. It just doesn’t make sense to continue using this sales tactic from a strategic standpoint.

3. It’s Aggressive

You should already know that your leads don’t want to be pressured into a sale. But when you make your sales people cold call them, that’s exactly what you’re doing. Cold calling is a very aggressive—and annoying—sales tactic. People do not respond to it anymore. And thanks to caller ID, most aren’t even answering the phone when your unknown number shows up. All you’re doing is pushing potential customers away.

4. It’s a Waste of Time and Resources

Your sales people should be your biggest assets—the ones bringing in your much-needed revenue. So why are you wasting all of their time—and your resources—on cold calling? Considering only 2% of calls will lead to appointments, does it really make sense to have your sales people researching leads, learning about their companies, figuring out how to spin your products, and making call after call, all day every day? You have no idea if these leads are interested in, or able to buy, your products or services in the first place. That’s a lot of effort being put into unqualified leads who may never buy.

It’s a huge waste. Don’t you think their efforts could be better spent?

5. The Internet Has Changed the Game

Do you know why cold calling doesn’t work anymore? It’s because the internet has completely changed the sales process and resulted in drastic changes in buyer behaviour. In the past, people may have welcomed your sales people’s calls. These calls allowed them to gain information and become more knowledgeable. But now, potential clients have all of the information they need about your company and your competitors, your products and their features and prices, and so much more online. You’re not adding value by calling them anymore.

Buyers now want to purchase on their own terms—how and when they want to. They want to be in charge. And you must adapt your sales process to these new buyer behaviours if you want to stay profitable. If you want sustainable growth, you have to stop cold calling, and instead, implement the inbound methodology. Engage an inbound marketing agency that offers sales enablement to get started.

About the Canadian Professional Sales Association
Since 1874, we’ve been developing and serving sales professionals by providing programs, benefits, and resources that help you sell more, and sell smarter. 

Contact us today at MemberServices@cpsa.com or 1-888-267-2772 to see how we can help you and your team reach new heights in sales success.

Copyright ©2017 by The Canadian Professional Sales Association
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