What’s best for cold calls - power diallers or manual, researched calls?

Quantity or quality, the eternal question. This is a debate that rages fiercely, with advocates for both on LinkedIn and Twitter, in a constant battle.

Power Dialer enthusiasts will insist their method results in more meetings booked. Whereas those who carefully research their cold call prospects, will insist their method results in less, but better qualified meetings. Ultimately, the question comes down to, which leads to more conversions and eventual sales

In this blog, we discuss the merits and pitfalls of both methods.

So here it is. 

Power Dialling VS Manual Dialling

Both approaches have their advantages and disadvantages, so it's important to consider the context before making a decision.

A power dialer is a software tool that automates the process of dialling phone numbers and connects sales representatives with prospects. It can significantly increase the number of calls made in a given time period, as it eliminates manual dialling and streamlines the calling process. Power dialers are often used in high-volume sales environments where the focus is on reaching a large number of prospects quickly.

Researched cold calls, on the other hand, involve conducting thorough research on the prospects before making the call. This approach allows sales representatives to gather information about the prospect's needs, pain points, and preferences, enabling them to tailor the conversation and offer a more personalized solution. Researched cold calls are typically used in situations where a higher level of personalization is required, such as in B2B sales or when targeting specific industries or niches.

To determine which approach is more suitable, consider the following factors:

• ‍Target Audience: If the target audience is large and diverse, and the goal is to reach as many prospects as possible, a power dialer may be more effective. However, if the target audience is more niche or requires a personalized approach, researched cold calls may yield better results.

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• Sales Cycle: Consider the length of the sales cycle. If the sales process is relatively short and transactional, a power dialer can help reach a larger number of prospects quickly. However, if the sales cycle is longer and requires building relationships and understanding complex needs, researched cold calls may be more effective.

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• Resources: Evaluate the available resources, including the number of sales representatives and the time they can allocate to each call. Power dialers can help maximize the efficiency of sales representatives by automating the dialling process. Researched cold calls, on the other hand, require more time and effort to gather information and tailor the conversation.

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• Personalization: Consider the level of personalization required in the sales process. Power dialers are more suitable for situations where a generic pitch can be effective, while researched cold calls allow for a more personalized approach based on the prospect's specific needs and pain points.

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What are the disadvantages of using a power dialer for sales calls?

• ‍Lack of Personalization: Power dialers are designed for high-volume calling, which means that the level of personalization in each call may be limited. Sales representatives may have less time to research and understand the specific needs and pain points of each prospect, leading to a more generic approach.

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• Potential for Burnout: The fast-paced nature of power dialling can be demanding for sales representatives. Constantly moving from one call to another without breaks can lead to fatigue and burnout, potentially affecting the quality of conversations and overall performance.

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• Higher Call Volume, Lower Conversion Rate: While power dialers can increase the number of calls made, it doesn't necessarily guarantee a higher conversion rate. The focus on quantity over quality may result in lower conversion rates compared to a more personalized approach that takes the time to understand and address individual prospect needs.

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• Risk of Compliance Issues: Power dialers need to comply with regulations such as Do-Not-Call (DNC) lists and other telemarketing laws. If not properly configured or managed, there is a risk of inadvertently contacting individuals who have opted out of receiving sales calls, leading to compliance issues and potential penalties. In the UK, regulator Ofcom stipulates that companies must ensure a 0% call drop rate - power diallers run the risk of having many calls abandoned. 

In summary, power dialers offer increased efficiency, time-saving benefits, and call management features. However, they may lack personalization, increase the risk of burnout, have lower conversion rates, and require careful compliance management. It's important to consider these advantages and disadvantages in the context of the organization's specific goals and target audience before deciding to use a power dialer for sales calls.

What are the advantages of using a power dialer for sales calls?

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• ‍Increased Dial Count: Power dialers automate the dialling process, eliminating the need for manual dialling. This significantly increases the number of calls that can be made in a given time period, allowing sales representatives to reach more prospects

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• ‍Time-Saving: With a power dialer, sales representatives don't have to spend time manually dialling numbers, waiting for unanswered calls, or dealing with busy signals. The dialer automatically dials the next number as soon as the previous call ends, maximizing the time spent on actual conversations with prospects.

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• ‍Call Routing and Distribution: Power dialers can intelligently route calls to the most appropriate sales representative based on predefined criteria such as geographic location, language proficiency, or product expertise. This ensures that prospects are connected with the right person who can effectively address their needs.

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How do manual cold calls enable a more personalized approach?

Conducting researched cold calls enables a more personalized approach by providing sales representatives with valuable information about the prospect before making the call. Here's how it works:

• ‍Gathering Prospect Information: Before making a cold call, sales representatives conduct research to gather information about the prospect. This includes details such as the prospect's industry, company background, recent news or events, and any specific pain points or challenges they may be facing. This information helps sales reps understand the prospect's context and tailor their approach accordingly.

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• Customizing the Pitch: Armed with the gathered information, sales representatives can customize their pitch to align with the prospect's needs and interests. They can highlight how their product or service can specifically address the prospect's pain points or challenges, making the conversation more relevant and engaging.

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• Establishing Rapport: By referencing the prospect's industry or recent news, sales reps can establish rapport and build a connection with the prospect right from the start of the call. This shows that they have done their homework and are genuinely interested in understanding the prospect's business and providing value.

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• Asking Relevant Questions: Researching the prospect beforehand allows sales representatives to ask more targeted and relevant questions during the call. This helps them uncover the prospect's specific needs, challenges, and goals, enabling them to provide tailored solutions and recommendations.

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• Providing Value: With a personalized approach, sales reps can focus on providing value to the prospect rather than delivering a generic sales pitch. They can offer insights, share relevant case studies or success stories, and demonstrate how their product or service can solve the prospect's specific problems. This approach builds trust and credibility, increasing the chances of a positive outcome.

All this leads to more meaningful conversations and higher chances of success in converting prospects into customers.

Sources:

HubSpot: How to Personalize Cold Emails and Break Through the Noise

Salesforce: The Art of Personalizing Cold Calls

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How does RocketPhone ensure personalized and contextually relevant conversations?

RocketPhone is a cloud phone system that enables SDRs to make use of all the benefits of higher connect rates and conversion rates.

Let's dive into how:

• ‍Predictive Scheduling: Instead of attempting to dial multiple contacts at once like a power dialler, RocketPhone uses AI to predict the best time to call based on previous interactions. RocketPhone then re-orders your campaign list with time slots for the best time to call. No more regulatory risk but all the benefits of higher connect rates!

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• Customer Information Access: RocketPhone integrates with CRM systems, allowing sales reps to have access to customer information before answering a call. This includes details such as previous interactions, purchase history, preferences, and any relevant notes. 

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• Call History: RocketPhone keeps a record of previous calls and interactions with each customer. Sales reps can review the call history to understand the context of the current conversation and provide continuity in the customer experience. They can refer to previous discussions, address any unresolved issues, and build upon the existing relationship, creating a more personalized and meaningful conversation.

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• Intelligent Call Routing: RocketPhone uses intelligent call routing algorithms to direct calls to the most appropriate sales representative based on predefined criteria. This ensures that customers are connected with the right person who has the relevant knowledge and expertise to address their specific needs. By routing calls to the most suitable representative, RocketPhone enhances the chances of a successful conversation and improves the overall customer experience.

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• Notes and Annotations: RocketPhone allows sales reps to add notes and annotations during or after a call. They can capture important details, customer preferences, or specific requirements discussed during the conversation. These notes serve as a reference for future interactions, ensuring that subsequent conversations are personalized and contextually relevant.

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• Integration with Communication Channels: RocketPhone integrates with various communication channels, such as email and messaging platforms. This integration enables sales reps to have a holistic view of customer interactions across different channels. They can access previous email conversations or chat transcripts, providing them with additional context and allowing for a more personalized and seamless conversation.

By leveraging these features and capabilities, RocketPhone empowers sales representatives to have personalized and contextually relevant conversations with customers. This not only enhances the customer experience but also increases the chances of successful sales outcomes.

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That’s great, but a guru on LinkedIn said cold calling is dead?

Cold calling done poorly is dead. But done well, cold calling still has its firm place on the Sales and Marketing mix.

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