Does Cold Calling Still Work In The Age Of Digital Marketing?

Filipinos remain the top social media users in the world, according to Digital in a 2017 report. The number of social media users in the Philippines increased by 12 million or 25 percent between January 2016 and January 2017. The growth is mainly attributed to the rise in mobile phone users in the country. There are 13 million or 32 percent more mobile phone users this year than in 2016. The same report revealed that the average Filipino internet user spends 9 hours online each day with more than 3.5 of those hours via mobile access.

The Digital’s 2017 report is changing the way businesses approach marketing.

Before mobile phones became a staple in households, cold calling was a major marketing strategy. Cold calling is “the solicitation of business from potential customers who have had no prior contact with the salesperson conducting the call.” It was a successful prospecting tactic when nearly all households maintained a landline. A marketer may build his database of prospects, buy leads from a third party or simply browse through the yellow pages. Cold calling may still be a useful way of soliciting business from potential customers, but not as cost-efficient and effective as digital marketing.

Digital marketing is “the marketing of products or services using digital channels to reach consumers.” These channels include the internet, social media, mobile phones (both SMS and MMS), search engine marketing, and others. With more than half of the global population connected to the internet, reaching out to potential customers has never been more accessible.

Know why cold calling doesn’t work anymore and identify the suitable digital marketing strategy for your business.

Cold calling don’t reach as many people as digital marketing

According to recent figures, there are roughly 3 million fixed telephone subscriptions in the Philippines. This is a far cry from the current 30 million Filipinos (or 30 percent of the population) who own at least one smartphone. The number is expected to continuously climb in the years ahead.

The math is pretty self-explanatory. Reach 3 million potential customers via cold calling or a staggering 30 million through a text blast? Filipinos also spend significant number of hours (more than 3.5 hours) per day online browsing the Web, interacting on social media, among others. A unique advertisement on Facebook can reach more prospects than ringing up people all day.

“Calling up is so 90s.”

Marketers used to spend long hours dialing up numbers and throwing in spiels before the person on the other line hangs up. The task was obviously scripted and unbelievably exhausting. Before caller ID features were introduced to fixed telephones, people would almost always pick up the phone. A skilled marketer knew the right tone of voice, opening spiel and tricks to keep the other person’s attention, and eventually convert the cold call into a sale. But this isn’t the 90s, or early 2000s, anymore. People avoid voice calls as much as possible. Tech innovations allow them to take messages without exerting the effort of actually interacting. Through e-mails and SMS, a business can send info on new offerings and promos to its prospects. No more lengthy sales pitches nor the high possibilities of people hanging up mid-spiel.

Cold calling is too costly

Digital marketing is leveling the marketing playing field. There was a time when small businesses could barely afford hiring marketing consultants. Today, a neighborhood coffee shop can reach out to potential customers through the platforms bigger businesses use. Cold calling can be too costly for many startups in the Philippines. You have to consider the manpower, the hours put into this task, and the cost of maintaining a number of fixed telephone subscriptions.

The Digital in 2017 report showed that the Philippines tops the ranking for time spent on social media. Filipinos not only connect with family and friends on Facebook or Twitter, they also browse for new restaurants, coffee shops, or products. They read customer reviews and check out photos to help them with their buying decisions. To reach out to existing and potential customers, a business should have at least one social media page which costs nothing to start. You may just need a tech savvy staff or a consultant to do the social media management for you.

Attracting potential customers via content marketing

With people’s aversion on marketers, cold calling is a tough marketing strategy to execute. This is one reason why some salespersons engage into deceptive practices to win a sale. This year, the UK government banned all cold calling in relation to pensions to stop scammers from opening fraudulent pension schemes. A marketer may be forced to sugarcoat his offerings, leave out disclaimers or give false promises to convert a call into a sale. Why? Because a lead can be lost with the first call.

Digital marketing, though not perfect, offers a better solution. It doesn’t “force” people to buy a product or sign up for a service. It uses inbound marketing or a set of strategies that attract potential customers through content marketing. Content marketing is focused on “creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience.” Instead of reading through a prepared script, a marketer can write a well-researched and appealing article about the benefits of his/her products and services. He can create an insightful two-minute video about his/her company, or post an infographic about services and offerings.

There’s an infinite supply of information freely accessible online and offline. A hardworking father planning on taking out an auto loan can compare and contrast bank interests and add-on services. A family organizing their annual vacation can choose from a long list of travel destinations, plane fares, and hotels. With almost all businesses maintaining presence in the Web, how can your business stand out from the crowd? Explore digital marketing. Know the platforms that suit your business and client base. Create quality and helpful content that add value to you and your target market, and eventually convert a curious audience into a customer.