Linguivocal

podcast and blog about my English learning

Episode#8 – Cold Calling

Posted by shashi on July 17, 2006

Linguivocal podcast epiode # 8

Listen online: (episode length: 09:38 minutes) play_podcast.gif

Yesterday I joined Tom Kaufmann’s discussion. He is Steve’s brother and he lives in Canada. He is in the business and he has written articles about cold calling for the Linguist library. I wasn’t familiar with the term ‘cold calling’ before reading his articles. I really liked his discussion and I enjoyed his discussion. He is very talkative as well humorous person. He makes jokes during the discussion and you have to be very picky to understand his comments. He really makes the discussion lively. Another reason to join this discussion was that I really wanted to know more about cold calling.

I am studying and that’s why, most of the time, I am at the home and I receive a lot of cold calls during the day. Most of these calls are from mobile companies. When I pick up the phone, the salesperson starts off with saying “Hello Mr. Shashi! How are you?” As I don’t know the person at the other end, I just say “I am fine.” Then he tells me that I have been selected by their company to receive a free mobile phone and it will be delivered to me within two days. I really get shocked and I just say “really”. Then he asks me about my current phone, about the handset I am using and the network I am using and how much money I pay to that company. After getting this information, he reveals about his companies chipper plans. Then he tells me that his charges are much less than the company with which I have contract and if I accept his contract I will get a free phone. Then only I come to know that this is a cold call. In fact, when you take contract phone from any mobile company, the handset will be free and it’s a deal from all the mobile companies. However, as a matter of fact, he is not telling me the new thing but the way he starts off, it really look like I am going to get a free handset.

It is really hard to avoid such calls. Initially I thought that it would be a rude or impolite to cut off the phone without listening to these people. However, now I have started dealing in a different way with such calls. When I understand that there is cold call from mobile company, I just jump to the point and ask them what their plans are. I listen to them and politely say I am not interested and thanks for calling and cut the phone off.

It’s really very hard to avoid such calls. Cold calling is a new strategy for companies to improve their sales. The reason is that the cost of phone calls has been dropping over a period and it is chipper to contact a person by phone rather than sending him postage mail. So, it is part of their sales strategy but it is the customer who gets suffered and we have to really find out new ways to avoid such cold calls.

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8 Responses to “Episode#8 – Cold Calling”

  1. In Canada, I think we get one cold call per day. Now, we don’t even answer our land line phone during the daytime unless we are expecting a call. Everyone knows our mobile numbers now…

    …there isn’t anything like this to our mobiles though (which aren’t published in the regular paper phonebook)

  2. shashi said

    Hi Sean,
    It’s hard for me to totally avoid landline calls as we sometime give our landline number for official use like in banks or letting agents. so, I can’t say that if I don’t attend landline call , caller will call me on my mobile phone. I have to answer my landline phone. However, when I get to know that it is cold call I directly say sorry and cut the phone. There is no point in intertaining such people.

  3. Tana (Oriole) said

    Hi,

    Have you registred your phone number with the Telephone Preference Service (http://www.tpsonline.org.uk/tps/ ) to escape from these kind of calls?

    Tana.

  4. shashi said

    Hi Tana,
    I have registred my number with TPS. Lets see what happen! Hope it will lead to less cold calls.

  5. Ken said

    Hi, Shashi.

    I was wondering why that kind of calls are called “cold calling”. I think you are sincere to listen to the guys call you. I always say “I’m sorry. I am busy now” and cut the conversation. However, it might be a good chance to practice English, huh? lol

    BTW, let’s talk on Skype and upload our conversation on your site . How about talking about “Why we study English, and how your life has changed by learning English?” Or do you have other ideas for the our first agenda?

  6. shashi said

    Hi Ken,
    The word “cold” is used because the person receiving the call is not expecting the call or has not specifically asked to be contacted by the sales person.
    I think this topic is good for our first podcast. Lets see how it works….I will contact you by mail or through skype..see you soon..

  7. I work with a Hosted CRM application provider the focuses on the inside sales space (InsideSales.com). Our entire application is build and designed to help sales reps (not telemarketers) effectively sell over the phone. This includes cold calling. I agree with the masses, cold calling is not fun. If done effectively, it can generate effective and somewhat cost effective leads. However, I have found that leads generated by cold calling are on average between 2x to 4x more expensive that a company or sales rep can generate via the web (if also done effectively). This is not the whole story though.

    An example:

    We have a customer that uses our system to power dial a list to generate leads. They were able to generate around 1 lead every 1.5 hours. Considering the cost of employees, systems and overhead, they were paying around $100/lead. From the web (using PPC, SEO, and lead providers) they were paying around $20/lead. This seems pretty strait forward, go with the web leads. What’s more, the cold call leads seemed to be less qualified than the web leads. The web leads generated actual buyers. The leads generated from cold calling identifying companies that were at the beginning of the interest cycle. Thus, in the short term the web leads closed better and seemed more effective. However, they saw an unexpected reversal of value in lead sources. Even though the web leads were smaller opportunities and they closed faster and more often. The leads generated from cold calling we very targeted to the industry and size that that worked for this customer. This customer began to close deals greater than the sum of the smaller deals that came from the web. So in the end, cold calling held its own compared to web leads.

  8. shashi said

    Hi David,
    Thanks for your comment. I am not expert in cold calling but i guess it is more costly than web. And I wish all the companies would start to generate their leads through the web and stop the cold calls….  🙂

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