Outsourcing Cold Calling: Is it worth it?
Isn’t it weird how calling up strangers that fit your business pattern and talking to them about their problems can drive a major part of your company’s revenue? Well, since the practice still works (really, really WORKS!) we can say that cold calling is still alive.
Today, a lot of enterprises use cold calling to persuade their prospects into buying their products. The only catch here is that for effective calling, you need to have trained professional salespeople who are crafty with words and know how to deal with the issue faced by the client. It takes a minute to learn but years to master. Nevertheless, it is an integral part of sales.
Nowadays, outsourcing of this activity is very prevalent among businesses and it works like a beauty for them. But is it beneficial for your business too? Let’s find out.
Advantages of Outsourcing Cold Calling
1. Boosts Productivity
Acquiring new consumers is more strenuous than retaining your old ones, but both are important for maintaining growth in your revenue. When your sales department is forced to deal with the “worst” part of their job, which according to 63% of sales experts, is cold calling, it makes them stressed and unproductive.
Outsourcing it will release them from this burden and they can redirect their efforts to more profitable tasks like retaining existing consumers. Data suggests retaining current customers is 6 to 7 times less costly than acquiring new ones.
An outsourced team means that you will have devoted professionals only for cold calling. They can focus entirely only on cold calling, generating new leads, while your team is brainstorming strategies to retain existing customers.
2. Lower Costs of Production
It might not appear from afar, but in-house cold calling is a hole-burner in your budget. Effective cold calling requires remarkable expertise and experience for which your sales team requires the desired training.
An average B2B company spends about $2,000 a year in providing coaching to the sales team which can be considerably reduced if you outsource cold calling.
Your average rep spends very little time on prospecting and calling in comparison to the money you spend on it. Outsourcing cold calling will hence significantly lower your operational costs as it mostly works on a performance-based arrangement. It means that you get more sales for the same amount of money you spend. If you’re having budget issues, outsourcing this part of your sales efforts will definitely help.
3. Increases Accuracy
When you are dealing with cold calling, your data must be very fine so as to track your progress and define your ideal prospects. Outsourcing it leaves little space for any error that might occur in the data when compared to an in-house sales employee.
The third-party agency will keep you updated about the campaign and will strive to offer the best service through new technology and processes tailored according to your needs. Outsourcing will lower the risk of an agonizing cold call mistake, making it more accurate than your own department.
4. Provides Warm Leads
Outsourcing your cold calling also helps you find warmer leads than when you do it in-house. This is because it’s the core job of the agency and the professionals are specially trained for it.
When a prospect is cold-called, they usually know about your brand and are not taken by surprise. This means that they are open to more interaction. It is a wonderful opportunity for your sales team to catch up on them and convert them to clients. Outsourcing your cold calling can make lead generation more effective than normal.
5. Measurable statistics and insight
Outsourcing cold calling is the most convenient method of applying the practice when it comes to the statistics. The agency that you outsource your operations would want to give you maximum benefit in order to retain you. They will make sure you get maximum RoI for your investment so that they can establish a long-term relationship based on trust.
Stats suggest that inaccurate data has a direct impact on 88% of businesses, with the average company losing 12% of its revenue. Outsourcing cold calling will ensure that you never have to face the brunt of inaccurate data analysis. It will be a part of their job role to analyze the calls, collect market information, and provide you with valuable insights.
RELATED POST: Does Cold Calling Work? – Future of Cold Calling
Disadvantages of Outsourcing Cold Calling
1. Lack of Control and ownership
Outsourcing any kind of activity always leads to a loss of control to some extent. While outsourcing cold calling, you cannot be sure about how your program is working – whether they are going by your script or are interacting with your prospects the way you want them to. It might happen that the outsourced team lacks vital product knowledge.
If these problems persist, it can hamper your cold calling success. But this issue can be eliminated with proper research. Invest in an agency that takes time to understand your business, vision, and thought process.
2. Disintegration in the sales team
Sometimes, when you outsource cold calling, it becomes difficult for your in-house team to align their efforts with the third-party agency.
This leads to disintegration in the team as they fail to pick up the client from where the agency leaves. However, this loophole can be easily filled with proper communication. Put your in-house sales team in direct contact with the agency so that they are aware of the information that is delivered to the client while cold calling.
Who should outsource cold calling?
Just because outsourcing it has proven to be extremely beneficial in the last few years, it does not mean that you need to outsource it.
Depending upon the size and industry of your company, you need to determine whether your sales team is fulfilling the standard expectation or not.
If they’re struggling, you should consider outsourcing to provide a more focused approach to your operations. Your in-house team might not be a cold call centered team, which is why the requirements are not being fulfilled. Further, it’s also wise to weigh all the pros and cons of outsourcing col calling in your industry and then make an informed decision.
Do your own research and then take the call!
If you are to decide between cold calling as an outsourced or in-house operation, there should not be any hasty decisions. It is a big step and you must know all there is to know before making a decision.
Discuss it with your team, weigh the pros and cons of both, and look at the data. You could also reach out to your network and take opinions of people in the same situation as you. Find out about all the cold calling agencies in your nearby area and their campaign plans, seek advice from expert B2B sales and marketing consulting firms, see what fits you best and then take the final decision. If done right, outsourcing can be the boost that you have been missing all this while.
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