I have worked for many different places that cold call and almost never get anything out of it. Why the fuck do people even do it? I will literally just hang up on other people cold calling me. Does this actually generate any revenue?
It may work if you're cold calling for certain charity organizations and people recognize the inbound number as local (not calling from another state or country).
Cold calling for sales is a joke. I was manager over a call center a few years back that was pushing sales for a field management software (one of the top 3). Agents I trained had to make 250 calls minimum per day for 6-days a week. Now, assuming one of my agents could get their prospect to watch a 20-minute demo and then hand it off to a "specialist" (who was no more than some to close out the 'sale' after said prospect watched the full demo video). Here were the stats on average:
Of 250 dials:
- Over 70 would not answer...leaving us with about 180 that may answer an hang up after they hear the '8-second pitch' ; that then leaves you with about 50 of 250 who you may have a 30-second - 2-minute conversation with per day or less
- Of the 50, less than 2-3 per day would watch the demo
- Of the 2-3 that watched the demo and were offered a plan 'pay today' about 1 or none paid
To answer the big question does it work: No. In the marketing business world I don't know which is less effective for Sales...cold calling or guerilla marketing. But, it's primitive, stains brand names or burns up any reputation a business has and...people don't want cold calls when we all have important calls we have to answer per day. Having that one person call who's "Listen, I work with XX inc. and we work with XX just like you..." Just hang up.
I'll never manage a company like that again. Also, the ugly underbelly of these companies is they hire contractors on to make the calls or set them up with off-shore call centers. Those BPOs that arranged with pay employees on commission only and imagine that no one watches these 'demos'...that means they go home with a base of about $120 per week. They're sold into these jobs telling them: you'll earn commissions over $1K on average per week. Their metrics don't work, retention is horrible/making turnover extremely high and it's stressful dialing people who have been sick of telemarketing calls since the 1980's.