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Sales Strategy
Jun 16, 2016 | Matthew Cook lock
Outbound sales tactics, like cold calling, have been used by organizations to make sales for decades. Before the rise of the internet, organizations were limited in the ways they could reach out to leads. Therefore, these types of interruptive sales techniques were quite popular.

But inbound marketing has been taking the business world by storm, largely eliminating the effectiveness of outbound sales tactics by offering a more effective and efficient way to sell to customers.

However, many organizations haven’t made the switch to inbound yet. They’re still using outbound sales tactics like cold calling, even though they barely ever result in appointments being set or sales being made.

But soon, it might be even more difficult to cold call as a sales tactic.


New Law in the UK

Earlier this year in April 2016, marketing companies in the UK were forced to start displaying their real telephone numbers while cold calling thanks to a modified law. Those that continue to use fake or blocked numbers to make people answer their phones could face fines up to £2 million from Ofcom and up to £500,000 from the Information Commissioner’s Office. The impact on sales organizations that cold call as a main sales technique will be huge, considering one in every five direct marketing call comes from an anonymous or false number.

Curbing Phone Harassment
According to the UK minister for data collection, Baroness Neville Rolfe, cold calling is harassment and people don’t like it. And she has the data to prove it: over 14,000 complaints are made to the Information Commissioner’s Office every single month about these nuisance phone calls.

And using trickery to make people answer their phones and listen to a sales pitch is not only unethical, but is now also illegal. The modification to the law, which will now force sales organizations to use their working phone numbers to make cold calls, will have three main benefits for consumers: 1) it’ll make it easier for them to refuse calls from sales people and marketers, 2) it will make it easier for them to make a formal complaint, and 3) it will protect vulnerable customers, particularly the elderly, from becoming victims of fraudsters who use these outbound sales tactics.


Similar Law in Canada?

Canadians aren’t any happier about outbound sales tactics than citizens of the UK are. They’re sick of these harassing calls as well. Although Canadian companies aren’t yet affected by this new law, we expect it’s only a matter of time before a similar law passes in the Great White North.

After all, a ban on door-to-door sales is already under consideration in municipalities in Ontario, so it only makes logical sense that a ban on, or strict restrictions for, cold calling might be next. The government of Canada is listening to its citizens and looking for ways to protect them from scams as well.


Move to Inbound Marketing

Outbound sales tactics aren’t effective, and soon they might get even more difficult to use in Canada. I can think of no better time to switch to inbound marketing and inbound sales—the strategy that earns the attention of customers and lures them to your brand, rather than interrupting them. Inbound marketing matches the new buyer’s journey, is in sync with the new way customers shop today, and is the way customers want you to market and sell your products to them today.

Switching to inbound marketing and selling now will not only help you avoid stringent laws and regulations on outbound sales tactics, but it will also result in higher conversion rates and sales, and in turn, higher profits. 


About the Author:

Matt-Cook-SalesHubMatthew has over 20 years of sales and sales management experience. He is the founder of SalesHub, an inbound marketing agency that helps companies generate leads, boost revenue, and adapt to the new way customers buy. When he’s not helping companies improve their revenue, he trains and competes in half ironman distance triathlons to “relax”.

Disclaimer: The views and opinions expressed in this article are strictly those of the author. CPSA does not endorse any of the companies, products and services mentioned within this article.

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