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Encyclopedia > Cold calling

In personal selling, cold calling is the processing of approaching prospective clients, typically via telephone, who have not agreed to such an interaction. 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. It is often very frustrating and difficult for those making cold calls because they are often rebuffed, hung-up on and rejected by those receiving the calls. It could be said that it is equally frustrating for the person receiving the cold call, since they expected something they care about, and instead get a marketing pitch. They may also have been doing something important, such as eating dinner, or waiting on another phone call. Sales, or the activity of selling, forms an integral part of commercial activity. ... The telephone or phone is a telecommunications device which is used to transmit and receive sound (most commonly voice and speech) across distance. ...


Cold-calling is used in many venues outside sales. The term applies to any situation where one person calls another person or organization without a prior relationship. Headhunting firms, for instance, are notorious for this practice. Recruitment refers to the process of finding possible candidates for a job or function, usually undertaken by recruiters. ...


Some sales people have come to the conclusion that cold calling is ineffective, inefficient and a waste of their time [1]. Others have tried to develop schemes [2] to lower the rate of rejection. These approaches are based on the idea that the purpose of the call is not to make a sale, but to build trust and discover the truth about whether there is a good match between the potential client and product or services offered. Sales, or the activity of selling, forms an integral part of commercial activity. ...


There are a number of ways in which cold calls can be effective. One is for the selling organization to start with a high quality, up-to-date database consisting of qualified prospects that have an interest in the product being sold. Another is to use cold calls as a "step in the door". Rather than using the call to try to close a sale, it is used as the initial contact in a long-term relationship. This has the effect of removing the sales pressure from calls and making the goal of the call to build trust. Cold calls can also be used to obtain quality sales leads, references, and testimonials. Closing is a sales term which refers to the process of making a sale. ... Relationship marketing is a form of marketing that evolved from direct response marketing in the 1960s and emerged in the 1980s, in which emphasis is placed on building longer term relationships with customers rather than on individual transactions. ... A sales lead is the identity of a person or entity potentially interested in purchasing a product of service, and represents the first stage of a sales process. ...


Cold calls can also be done in person rather than over the phone, but this is less common because of the high cost of face-to-face sales calls. This can be done anywhere two people meet, including public buildings, businesses, or even residences. It is much harder to turn down someone to their face, so some organizations continue to use it. A number of advocacy group such as PIRGs and Greenpeace use this to spread information and sell memberships at the same time. Pyramid schemes also often use this, but then the cost is borne by lower members in the pyramid while the majority of the profits go to the leaders of the scheme. Door to Door is the sixth and final studio album by American new wave band The Cars, released in 1987. ... Public Interest Research Groups (also known as PIRG) are volunteer-driven, non-profit organizations based mostly out of University campuses around the North American continent. ... This article is becoming very long. ... The unsustainable geometric progression of a classic pyramid scheme A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. ...


Legal issues

Within the United Kingdom, the Privacy and Electronic Communications (EC Directive) Regulations 2003 make it unlawful to transmit an automated recorded message for direct marketing purposes via a telephone, without prior consent of the subscriber. The Privacy and Electronic Communications (EC Directive) Regulations 2003 is a law in the United Kingdom which make it unlawful to transmit an automated recorded message for direct marketing purposes via a telephone, without prior consent of the subscriber. ... The telephone or phone is a telecommunications device which is used to transmit and receive sound (most commonly voice and speech) across distance. ...


In the US, the Telephone Consumer Protection Act has a similar provision regarding automated cold calling where the message is delivered as a recording.


Many US states have enacted "Do Not Call Lists" in which a consumer adds their telephone number to the a list and telemarketers are not permitted to telephone any number on that list without prior permission of the recipient. It is similar to the US Do Not Call List which is managed and enforced by the FTC. It has been suggested that Do-Not-Call Implementation Act of 2003 be merged into this article or section. ...


Within the European Union, the Data Privacy Directive 2002/58/EG forces the governments of its member states to issue laws until June 2007 that prohibit general cold calling. However, the directive allows both an opt-in or an opt-out model, i.e. requiring a national register for phone numbers which either to do (opt-in) or do not (opt-out) welcome cold calls.


See also

Telemarket Office // Early History Telemarketing is a registered trademark owned by Nadji Tehrani who founded TeleMarketing Magazine in 1982. ...

External links

  • Article about cold calling from The Guardian
  • UK (Free) Anti-Cold Calling Register to Help Stop Unwanted Marketing Calls

  Results from FactBites:
 
Cold Calling (480 words)
Cold callers must promptly tell you their name, their firm's name, address or telephone number, and that the purpose of the call is to sell you an investment.
To sign up, go to www.donotcall.gov. Cold callers cannot call you if you are on this registry, unless you are already a customer, you previously gave written permission, or the caller is a family member, friend, or acquaintance.
If a cold caller uses harassing, abusive sales tactics or lies to you about an investment, you should contact the SEC or the North American Securities Administrators Association to find your state's securities regulator.
Cold calling - Wikipedia, the free encyclopedia (374 words)
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.
Cold calls can also be used to obtain quality sales leads, references, and testimonials.
Cold calls can also be done in person rather than over the phone, but this is rare because of the high cost of face-to-face sales calls.
  More results at FactBites »


 

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