Cold calling is a marketing and sales technique in which business representatives or salespeople initiate telephone conversations with potential customers with whom they have not had contact before. This is the initial point of contact for attracting new customers, introducing products or services, and establishing business relationships. These calls are known as ‘cold calls’ because the customer often has no previous contact or interest and is unaware that products or services will be offered during the call.
How Cold Calls Work:
- Contacting: A salesperson or business representative receives a list of potential customers and starts calling them one by one.
- Introduction: The caller introduces himself and his company, explaining why he is calling.
- Product or Service Presentation: A salesperson presents products or services by emphasising their value and benefits to the customer.
- Questions and Objections Handling: Often, customers raise questions or objections. The seller must be prepared to answer these questions and resolve objections.
- Action Offer: Cold calls often end with an offer to take a specific action, such as making an appointment, getting a delivery or ordering a product.
- Follow-up: After the call, the salesperson often follows up with the customer to check if he/she is interested and if further information is needed.