It is annoying for both parties
Cold-calling is very much annoying for both sides – the caller and the person he or she is cold-calling – because it is something that happens without permission. It is intrusive, it needs to happen at that time and the person needs to be ready to speak to you and have the interest at that time.
Cold-calling is sequential
Cold-calling is something that you do 1 by 1 by 1 because you cannot cold-call several people at the same time, so you basically stack them. You do one cold-call at a time, then move to the next one and go through the whole process again. Therefore, the number of cold-calls that a sales staff can actually make is limited to the time that they have. There are autodial tools out there that dial different numbers and when one of them is picked up, the others are hung up so that the sales representative can talk to the person who picked up. However, the calling itself is not something that can be automated since you’re not able to do 100 calls at the same time and with the same amount of resources.
Cold-calling is sequential, it cannot be done in mass and it’s very manual.
Getting passed the doorkeeper
The person that you want to speak to won’t always be available when you cold-call them. Before you speak to the right person, you may have to cold-call them 4-5 times. The funnel usually goes like this: you first speak to the doorkeeper (secretary, receptionist, etc). They are trained to give objections to people who he/she thinks are cold-callers by asking: “What is this in reference to?” At that point, you need to qualify and get through the doorkeeper which you most probably won’t. So that’s the point when your whole process gets broken.
Cold-calling is intrusive
In the sense that the person you’re cold-calling needs to be willing to talk to you when you want him/her to as opposed to when they feel like doing so or when they’re ready. Even if he/she is available and the receptionist does put you through, the person then needs to say that he’s interested in learning more about your offer. They will mostly say “send me more info” and that info will never be looked at. Furthermore, in order to send them the right info after cold-calling, you need to know what they’re interested in. But they almost never give you that chance because of the intrusive nature of cold calling. They feel forced into doing something without understanding the value that they could get out of it. As a result, you lose the first contact chance with cold-calling.
Demoralized sales staff
Over a long period of cold-calling, staff will become demoralized because it is predominantly failure-based, as most cold-calls end in a fail. Therefore, sales representatives will eventually become tired of cold-calling and will feel demoralized. Consequently, the quality of their work will decrease and that will affect your overall sales performance.
Not to mention that it takes a long time for a new sales staff to become an experienced cold-caller. Most of them will give up and this is an unfair barrier because cold-calling is not really the right metric to see whether somebody can sell or not. Account management and objection handling are the main criteria, the main qualifiers to see whether or not a salesperson can sell. Cold-calling is a very old business tactic which is no longer relevant in our time.
Very low scalability
Let’s imagine you have a team that is cold-calling 100-200 people/ day but you want to make it to 1000 per day. Scaling that will require you to hire 5 times more salespeople and training them will require you to have team leads and pay salaries of 10 times more sales people for 3-4 months before they are fully trained and are getting the money (your investment) back.
Very little flexibility
Now, let’s imagine that a market that you are targeting is not a good market to target. You’ve just hired a bunch of people to target a market that’s not really fitting your product. With cold-calling, there’s very little flexibility. For example, if you want to target Spain, you need to hire Spanish speaking sales staff. If, however, that market is not the right one, what do you do with those people? You’ll need to fire them. This is a major disadvantage of doing outbound sales based only on humans.