The debate between cold calling and inside sales is a hot topic in the world of B2B sales. Of course, both methods have pros and cons, but which is suitable for your business? Let’s explore the differences between the two.
As a general strategy, telemarketing involves a lot of cold calling, but cold calling is also used in inside sales. Cold calling can be a great way to reach potential customers who may not be familiar with your company or product. It can also be an excellent way to build relationships with potential clients. However, finding new leads can be time-consuming and challenging.
Inside sales have become increasingly popular, thanks partly to technological advancements. It’s a more targeted approach that can be more efficient than cold calling since you’re reaching out specifically to people who are already interested in what you have to offer. However, it can be more expensive than cold calling, and you need a sound system to track leads and follow-up calls.
Even now, both look similar, right? So, let’s have a deeper look to know the difference.
A Closer Look into Cold Calling vs. Inside Sales
Cold calling uses a sales team to generate a list of contacts to interact with over phone calls. The time spent is inefficient and is calculated by the results, not the number of calls. According to a report, only 1-3% of the answered cold calls convert into appointments, and 80% of sales require five follow-up calls after the initial conversation. [source]
Instead of relying on a list of prospects, inside sales reps have to find their prospects. The sales leads are closer to an intimate relationship, formed through trust over time and research, than those of outside sales. The inside sales model, by definition, has a longer sales cycle since it takes a more thoughtful approach to sales.
Cold calling is an outbound lead generation strategy that exposes businesses to new prospects. Representatives perform a scripted conversation from 80 seconds to 1.20 minutes, depending on the customer’s potential. Thus, there’s no room for a customer-representative relationship until the prospect becomes a strong lead.
Whereas, inside sales professionals make strong connections swiftly with potential customers through campaigns to build their business. They clearly understand their customer’s needs and pain points using automation tools while interacting with them. Finally, they create a great rapport with their customers and gain their trust.
Sales reps, especially newbies working on cold calling, have excellent training. It facilitates practicing a sales pitch over and over until it gets perfect. It also helps to gain real-time feedback and valuable information for sales reps to adjust their pitch as required. Additionally, relevant information can be acquired to make personal connections.
Inside sales work with the help of sales intelligence tools to determine the best ways to close deals. In addition, it helps you with the histories of the buyer persona by analyzing the method of approach to strengthen sales procedure and to improve the team’s performance by introducing them to up-sell and cross-sell offers.
So, What’s Best? Cold calling or Inside sales?
The right approach for your business will depend on your specific situation and goals. Both cold calling and inside sales touch on tracking customers in businesses. Without cold calling, no new prospects are exposed to companies; without inside sales and new technologies, sales conversion rates cannot increase.
Though there are only some advantages to cold calling, it isn’t a complete waste of time. It can still be more effective with additional efforts, and the knowledge gained from personal connections cannot be replaced.
Inside sales professionals develop knowledge of products and services before interacting with the lead. They use tools to communicate and track relevant information to increase sales making it more convenient and faster.