Sales representatives have long relied on cold calling as one of their primary methods for finding new customers and generating leads. The early days of marketing and sales were all about cold calling lists of potential customers, often with little to no information about them other than their name and contact information.
While cold calling may not be as prevalent as it once was, it is still a mainstay in many industries, especially those that sell products and services to businesses (B2B). In fact, cold calling statistics from RAIN Group, published on Hubspot show that some 82% of B2B buyers accept meetings with a proactive seller.
Industries That Take Advantage of Cold Calling The Most
So, which industries are we talking about? Let’s take a look and try to understand why cold calling works so well for them.
Fintech is a relatively new industry that encompasses all companies that use technology to deliver financial services. These include everything from mobile payment apps to online lending platforms. While fintech firms come in all shapes and sizes, most have one thing in common: they sell to businesses, not consumers.
Whether it’s an API for integrating payments into a website or an app development toolkit, fintech companies typically sell to other businesses. As the combination of two industries where cold calling is still commonly used (financial services and technology), it’s no surprise that cold calling is a popular lead generation strategy in fintech.
One of the main reasons cold calling works so well in this industry is that the products and services offered are often complex and require a high degree of explanation. A short conversation on the phone is often all it takes to get a potential customer interested in learning more.
Software as a Service (SaaS)
SaaS companies offer software applications that are accessed and used online, typically on a subscription basis. This includes everything from cloud-based storage solutions to project management tools.Since SaaS products are delivered online, they can be sold to businesses of all sizes in any location.
One of the main benefits of SaaS products is that they’re not limited by geography. As a result, SaaS companies often have a large pool of potential customers to target with their cold calling campaigns. And because the products are typically sold on a subscription basis, there’s a good chance that a successful cold call will generate more SaaS leads and result in ongoing revenue.
Business consulting is a broad industry that covers everything from management consulting to financial advisory services. Businesses hire consultants to help them solve problems or achieve specific goals.
Cold calling can be an effective lead generation strategy for business consultants for a couple of reasons. First, the products and services offered are often high-value and require a personal touch. Second, consultants typically work with a small number of clients at any given time, so they’re always looking for new leads.
The legal industry is another one where cold calling can be an effective lead generation strategy. If a lawyer catches wind of a company’s legal problems, they can give them a call and offer their services.
In most cases, the worst that can happen is that the company says no. And since most legal services are billable by the hour, there’s always the potential for a big payday if the call leads to a new client.
The online education industry has exploded in recent years, thanks to the rise of platforms like Coursera and Udemy. These platforms offer courses and learning materials that can be accessed online, typically on a subscription basis. In B2B, online education products are often used for employee training and development.
Since creators can sell online education products to businesses of all sizes in any location, cold calling can be an effective lead generation strategy. For example, a DEI course provider could target human resources departments with a cold call campaign after noticing a lack of DEI training in a company’s public job postings.
Why is Cold Calling so Effective in These Industries?
So, why are these five industries so receptive to cold calling? Here are a few common reasons:
Cold Calls are Highly Targeted
First, it’s worth noting that all the industries on this list are highly targeted. Cold calling can be a bit of a shot in the dark when selling a general product like clothing or furniture. But when selling a specific product or service to a specific industry, the odds of success increase significantly.
You can tailor the sales pitch to the specific needs of the target industry. For example, a SaaS company specializing in project management software would focus their cold calling pitch on businesses in the midst of a large project.
Another common thread among these industries is the need for personalized service. Businesses in these industries often seek someone to help them solve a specific problem. They’re not just looking for a general product or service; they’re looking for someone who can provide a tailored solution.
As a result, they’re more likely to be receptive to a cold call from someone who can offer something they need.
Cold Calling Is For High-Value Products and Services
All of the industries on this list offer high-value products and services. Cold calling is a game of numbers, so focusing on high-value leads is essential. That way, the business will still be profitable even if a low percentage of the leads turn into customers.
High-value products can come from a high price tag, a long-term contract, or even a pay-per-use model. But regardless of the pricing model, the key is to focus on products and services that will generate a high return on investment (ROI) for the customer.
Finally, many businesses opt for cold calls because they don’t have the internal resources to do it themselves. Startups and small businesses, in particular, often outsource lead generation to third-party agencies.
That’s because they don’t have the time or staffing to make cold calls themselves. And even if they did, they might not have the expertise to do it effectively. By outsourcing their cold calling to a third party, businesses can focus on what they do best and leave the lead generation to the experts.
Is your business looking for a way to generate more leads? Cold calling could be the answer. If you don’t have the internal resources to do it yourself, there’s no need to worry.
Outsourcing your cold calling to a reputable agency is a great way to get started.
We’ll be happy to answer any of your questions and get you started on the path to success.