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If you have been active in the digital selling space, you must have encountered a raging debate on cold calling vs. social selling. Some people believe that cold calling is dead and no longer has a place in the digital era. To them, it has been replaced by the more efficient strategy of social selling. This stance is not misguided, as according to statistics only 2% of cold calls are successful. On the other hand, 89% of top-performing salespeople credit social selling as necessary in helping them close deals. What does this debate mean for businesses, and where should they be putting their efforts? This article discusses both sales techniques in depth.
What is cold calling?
Cold calling is an old sales technique that was quite successful before the advent of the internet. In cold calling, a sales rep calls a prospect with whom he has had no previous communication in the hope of interesting them in a product or service. The immediate problem with this technique is that the prospect was not expecting the call, which makes it intrusive. It then becomes quite a challenge to convert a prospect who is already annoyed by your intrusion about a product/service they may or may not need. To make it even harder for cold callers, over 239 million people are registered with the DNC (Do Not Call) Registry.
Does this mean that cold calling is dead? We venture to say that cold calling is still very much alive. However, the dynamics of a successful cold calling strategy have changed, particularly in the digital age. Because of easy access to the internet, today’s customer has become more proactive. No one sits at home anymore waiting for a salesperson to knock on their door. Instead, customers are looking for the information they need online, reading reviews, making comparisons, and finalizing their buying decisions all before they speak to a sales rep.
What does this mean for business, then? It means that they must re-invent how they do cold calling. This includes incorporating digital methods to research prospects, thereby ‘warming up’ their calls. Businesses that use cold calling services must ensure that they contract qualified, highly skilled callers dedicated to their accounts. Other tactics include having the right script and a value-laden proposal.
What is social selling?
Social selling is a sales technique that utilizes the power of social media to find, nurture and connect with prospects. In social selling, businesses leverage social media platforms such as Twitter, LinkedIn, and Facebook to share helpful information that prospective clients may be looking for. A business may also provide value by answering questions and providing guidance, thereby positioning itself as an expert in the field.
According to a LinkedIn survey, 78% of businesses that have incorporated social selling as a sales technique are more successful than those who don’t.
Social selling does not stop with creating a LinkedIn or Facebook account, however. Businesses must make deliberate efforts to connect with customers by providing value. This, however, is not a chance to bombard prospects with salesy posts, comments, or private messages. Instead, it is a long-term strategy that accompanies prospects on a journey, tactfully positioning itself until they are ready to make a buying decision.
If social selling is new to you, you may be wondering why it is important for a business. Some of the advantages of social selling are:
It improves relationships
Social selling allows you to connect with a prospect at a personal level. People will post their frustrations, pain points, and wants on public forums. By offering helpful and valuable feedback/ solutions, you create a relationship and build trust, accelerating the buying process.
It promotes customer retention
Other than lead generation, customer retention is crucial for a business. Social selling provides an opportunity to keep in touch with customers without being intrusive. A business can connect with past clients by sharing quality content, new products, upcoming promotions, and answering their questions.
It improves brand management
Research shows that 95% of buyers read online reviews before making a buying decision. If your brand appears negatively online, this may adversely impact your reputation and sales. Social selling provides an opportunity for businesses to position their brand as trustworthy and dependable.
It provides valuable insights
Social media provides businesses with a unique chance to find out what clients think of their products or services. Discussion forums and product review sites can give a wealth of information, and businesses can take advantage of these spaces to provide the right information and clear up any misunderstandings.
Everyone is already online
If you are still on the fence about jumping on the social selling bandwagon, think about this. All your customers are online, and most importantly, your competition. Statistics show that there are 3.5B social media users worldwide, and this number will only grow. Any business that is serious about selling will take position itself to take advantage of this dynamic.
Is social selling replacing cold calling?
Industry experts seem to think that with an effective social selling strategy, businesses may eventually get away from cold calling. This is because social selling provides a chance to interact with leads directly, in their terms, and in a space they enjoy, thus creating trust. This is in stark contrast to cold calling, which may be considered intrusive. Research shows that sales teams that leverage social selling create 45% more selling opportunities than those who don’t.
Another factor that favors social selling is that today’s buyer is heavily invested online. People will ask questions in forums and read online reviews before making a buying decision. Similarly, social media use has risen drastically and cuts across all age groups. This means that as a sales strategy, social selling will only grow in importance.
Although social selling seems to be taking all the buzz, businesses should not dismiss cold calling entirely. There is still a strong case for this sales strategy, particularly because you still have to pick up the phone and sell. Instead, businesses should rethink their strategies to make it a viable strategy in 2021.
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This content is sponsored by Pranjal Agarwal.
Photo: Shutterstock
