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Understanding Cold Calling vs Warm Calling

Cold calling versus warm calling: which one is more effective?

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What is the best way to sell to a new lead? This is the age-old question. Salespeople and marketers have tried and tested different methods and approaches and have collected varied results. Two of these methods that salespeople continue to use are cold calling and warm calling. But what is the difference between these methods and which approach is more helpful for your business?

The Difference Between Cold Calling and Warm Calling

Both cold calling and warm calling are outbound calling sales approaches. In these approaches, salespeople reach out to prospects and try to sell or move them down the sales funnel. Let’s take a deeper look at each of these methods and their pros and cons.

What is Cold Calling?

Cold calling is a sales technique where a sales team reaches out to prospects and leads who may or may not have heard of the business. In other words, these prospects have not interacted with your business or purchased products and services from you. They have not heard from your business or representatives before. Some of these prospects may not have even heard of your business.

Cold calling then is the attempt to increase brand awareness and sell products and services to these prospects by introducing them to your brand. Usually, sales teams are given a list of prospects deemed fit for specific products and services. This list is put together through market research of target audiences. Your job then is to reach out to them, educate them about the brand and product, and make a sale or set up a sales appointment.

Pros and Cons of Cold Calling

So, what makes cold calling successful and why do some business managers say that cold calling is dead? Here are the benefits and issues that come with cold calling:

Pros of Cold Calling Cons of Cold Calling
Solo hunting; reach out to customers on your own Customers are usually wary of unknown phone numbers and may not answer
Connect with new customers Customers are usually annoyed by cold calls
Lets you weed out bad leads and uninterested customers Inconsistent results
Sales calls can be conducted from anywhere No proper structure in place; you work alone
Helps increase inbound sales and brand awareness Chances of getting flagged as scam likely or telemarketers

Related: 7 Cold Calling Tips to Close More Sales

What is Warm Calling?

Warm calling, on the other hand, is an inside sales process where sales representatives reach out to prospects and customers who have previously interacted with the brand. These individuals are aware of your business and demonstrated some interest. Maybe they liked a social media post or downloaded an eBook from your website or submitted an inquiry about a product.

Additionally, warm calling also includes gathering feedback through surveys, informing regular customers about new promotions, or inviting them to webinars, etc. In some cases, calls made after cold emails may also be considered warm calling. This is because you have already established a connection and familiarity with the customer.

With warm calling, your job as the sales rep is to answer their questions, provide more information, and engage them. By doing so, you are moving them down the funnel and closer to a sale.

Pros and Cons of Warm Calling

If cold calling isn’t the way to go, can your business benefit from warm calling? Let’s look at how warm calling can convert more customers and what potential issues to keep in mind.

Pros of Warm Calling Cons of Warm Calling
Leads are aware of your business and interested Sales reps may not take these calls seriously enough
Leads are more likely to become customers Over-calling may discourage the prospect
Personalize calls to meet prospects’ needs Customers may prefer other channels of communication
Develop stronger customer and business relations Stock scripts may discourage leads

What Does Your Business Need?

Whether cold calling or warm calling is right for your business depends on your business structure, values, and goals. Also, another factor is where your business lies in its growth process. If you are a new business, then cold calling is the way to increase brand awareness and identify key markets and audiences. On the other hand, if your business is relatively established and has a strong online presence, then warm calling and inside sales will help maintain credibility and attract valuable customers.

How Can Global Call Forwarding Help?

Global Call Forwarding offers a variety of virtual call center tools and features that can support both your cold calling and warm calling efforts. Get outbound calling, particularly, to connect with customers and leads around the globe with local and toll free numbers. You can even use call routing services to maintain connectivity across different locations and time zones. Speak with our representatives to learn more about how we can help your specific business. Call us today at 1 (888) 908 6171 or chat with us online!

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