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Cold Email vs. Cold Calling: Mix of Both & Multichannel Approach

In the fast-paced world of sales, generating leads and closing deals requires a multifaceted approach. Two prominent techniques are cold emailing and cold calling. Each has its own strengths and weaknesses, and when used in conjunction with a multichannel strategy, they can create a powerful sales pipeline. In this blog, we’ll explore the intricacies of cold emailing and cold calling, compare their costs and ROI, and outline the best strategies and practices for an effective multichannel approach.

Cold Emailing: Advantages and Strategies

Advantages:

  1. Scalability : Cold emailing allows sales teams to reach a vast audience with minimal effort. Automation tools can send hundreds or thousands of personalized emails with a single click.
  2. Cost-Effective : The cost per email is significantly lower than making a phone call. This includes software subscriptions, content creation, and minimal human resource expenditure.
  3. Time Efficiency : Emails can be scheduled and sent at optimal times, ensuring that they land in the recipient’s inbox when they are most likely to be read.
  4. Measurable : Email marketing platforms provide detailed analytics on open rates, click-through rates, and responses, allowing for data-driven decision-making.

Strategies:

  1. Personalization : Tailoring emails to the recipient increases the likelihood of engagement. Use their name, company, and relevant information to make the email feel personal.
  2. Compelling Subject Lines : The subject line is the first thing a recipient sees. It should be intriguing and encourage them to open the email.
  3. Clear Call-to-Action (CTA) : Each email should have a clear and concise CTA, guiding the recipient on the next steps.
  4. Follow-Up : A series of follow-up emails can increase response rates. Use a cadence that balances persistence with respect for the recipient’s time.

Cold Calling: Advantages and Strategies

Advantages:

  1. Direct Interaction : Cold calling provides immediate feedback and the opportunity to build rapport with potential customers. It’s more personal and can lead to meaningful conversations.
  2. Real-Time Response : Unlike emails, phone calls allow for real-time responses and immediate handling of objections or questions.
  3. Qualitative Insights : Sales representatives can gauge the prospect’s interest, tone, and readiness to move forward, providing valuable insights that are not available through email.

Strategies:

  1. Preparation : Research the prospect thoroughly before making the call. Know their pain points and how your product or service can address them.
  2. Script Flexibility : While having a script is essential, being flexible and adapting to the conversation is crucial. Listen actively and respond accordingly.
  3. Time Management : Call during optimal times when prospects are more likely to answer. Avoid early mornings and late evenings.
  4. Persistence : Follow-up calls are as important as the initial contact. Have a structured follow-up plan to stay top of mind.

Cost and ROI Comparison

To provide a comprehensive comparison between cold emailing and cold calling, let’s delve into some estimated costs and potential ROI figures. These numbers can vary depending on industry, target market, and specific strategies, but they offer a general sense of the financial dynamics involved.

Cold Emailing Costs

  1. Software:
    • Email marketing platforms: $50-$500 per month, depending on features and list size.
    • For a mid-sized company, assume an average of $200 per month.
  2. Content Creation:
    • In-house content creation: $0 (if created by existing staff) to $100 per email for outsourced content.
    • Assume an average of $50 per email and 10 emails per month: $500.
  3. Analytics:
    • Tools for tracking and analyzing email performance: Often included in the email marketing platform cost.
    • Additional tools may cost $50-$100 per month.
Total Monthly Cost:
  • Approximately $750.

Cold Calling Costs

  1. Phone Systems:
    • VoIP systems: $20-$50 per user per month.
    • Assume 5 sales representatives: $200 per month.
  2. Training:
    • Initial and ongoing training: $1,000-$2,000 per representative per year.
    • Assume $1,500 per representative annually, or $125 per month: $625 for 5 representatives.
  3. Time:
    • Salary costs for sales reps: $3,000 per month (assuming $36,000 annual salary).
    • Assume 50% of their time is spent on cold calling: $1,500 per month per rep, totaling $7,500 for 5 representatives.
Total Monthly Cost:
  • Approximately $8,325.

ROI Comparison

Cold Emailing ROI

  1. Response Rate:
    • Typical open rates: 20-30%.
    • Response rates: 2-5%.
  2. Conversion Rate:
    • Conversion rate from response: 10-20%.
  3. Revenue:
    • Average deal size: $1,000.
    • Assume 1,000 emails sent per month.
    • Expected responses: 20-50.
    • Expected conversions: 2-10.
    • Total monthly revenue: $2,000-$10,000.
  4. ROI Calculation:
    • Cost: $750.
    • Revenue: $2,000-$10,000.
    • ROI: 167%-1233%.

Cold Calling ROI

  1. Response Rate:
    • Typical connect rates: 10-20%.
    • Response rates: 5-10%.
  2. Conversion Rate:
    • Conversion rate from response: 20-30%.
  3. Revenue:
    • Average deal size: $1,000.
    • Assume 500 calls made per month per rep.
    • Expected connects: 250-500.
    • Expected responses: 25-50.
    • Expected conversions: 5-15.
    • Total monthly revenue: $5,000-$15,000.
  4. ROI Calculation:
    • Cost: $8,325.
    • Revenue: $5,000-$15,000.
    • ROI: -40%-80%.

Key Takeaways

  1. Cold Emailing:
    • Lower cost and higher scalability.
    • ROI can be very high if the strategy is well-executed.
    • Ideal for large-scale outreach and initial contact.
  2. Cold Calling:
    • Higher cost due to the time and resources required.
    • Provides a more personal touch and higher conversion rates.
    • ROI can vary significantly but tends to be lower than cold emailing in terms of cost efficiency.
    • Best suited for high-value prospects and closing deals.

Multichannel Approach: The Best of Both Worlds

A multichannel approach leverages the strengths of both cold emailing and cold calling, creating a cohesive and effective sales strategy.

Advantages:

  1. Broader Reach : Engaging prospects through multiple channels increases the chances of reaching them and making an impression.
  2. Enhanced Engagement : Different prospects prefer different methods of communication. Some may respond better to emails, while others prefer phone calls.
  3. Increased Conversion Rates : Combining the strengths of both methods can lead to higher conversion rates and a more robust sales pipeline.
  4. Data-Driven Adjustments : Use insights from both channels to refine and optimize your approach continuously.

Strategies:

  1. Integrated Campaigns : Coordinate your email and calling efforts. For instance, send an introductory email followed by a phone call to reinforce the message.
  2. Consistent Messaging : Ensure that the messaging across both channels is consistent and aligned with your overall sales objectives.
  3. Segmented Targeting : Use data to segment your audience and tailor your approach. High-value leads might warrant a more personalized and persistent effort.
  4. Cross-Channel Follow-Up : If a prospect doesn’t respond to an email, try calling them and vice versa. Persistence across channels can increase engagement.

Best Practices:

  1. Use CRM Systems : Implement a robust CRM system to track interactions across all channels. This ensures that all team members are on the same page and can provide a seamless experience for the prospect.
  2. Automation with a Personal Touch : Use automation tools to streamline processes while maintaining a personal touch. Automated follow-ups can save time while personalized content increases engagement.
  3. A/B Testing : Continuously test and refine your email and calling strategies. A/B testing can provide insights into what works best for your audience.
  4. Training and Development : Invest in training for your sales team on both cold emailing and cold calling techniques. Continuous development ensures that they are equipped with the latest strategies and best practices.

Conclusion

In the debate of cold emailing versus cold calling, there is no one-size-fits-all answer. Each method has its own set of advantages and can be highly effective when used correctly. However, the most successful sales strategies often combine both approaches, leveraging the strengths of each to create a comprehensive multichannel strategy.

By understanding the costs, ROI, and best practices of cold emailing and cold calling, sales teams can make informed decisions and optimize their outreach efforts. The key lies in integrating these methods seamlessly, using data-driven insights to guide your approach, and continuously refining your strategy to meet the evolving needs of your prospects.

In today’s competitive sales landscape, a multichannel approach that combines cold emailing, cold calling, and other touchpoints is not just advantageous—it’s essential. By embracing this strategy, you can maximize your reach, enhance engagement, and ultimately drive better sales results.

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