Why You Should Abandon Cold Calling For Inbound Marketing

You may be smiling – but are those who you are cold calling? Image courtesy of imagerymajestic at FreeDigitalPhotos.net

The UK consumer is inundated everyday by call centres asking them for five minutes of their time. Most calls at the moment are about Payment Protection Insurance, Accident Compensation and Solar Panels. However, cold calling potential customers could be for anything from selling groceries to finding out who the prospective will be voting for in the next election.

Businesses that use cold calling could be losing money and achieving lower profit margins than they would have by implementing an inbound marketing system. So what is the evidence for this? Why should you abandon cold calling in favour for inbound marketing?

Cold Calling Has A Low Success Rate

According to some research the success rate of cold calling is somewhere around the 0.3% mark. That means there is one purchase for every 1566 calls. Other research places the figure significantly higher at 2.1%. So for the remainder of the article we will use the average of 1.2% (or one sale every 84 calls).

In comparison, Amazon achieves a purchase rate of 4.5%. Amazon uses a lot of inbound marketing techniques during its sales process from its social media recommendations to its affiliate schemes.

Cold Calling Has A Low Return On Investment

Some of the research already mentioned gave the average time per call as roughly 3.5 minutes. Therefore, it can be assumed a cold caller makes a sale every 5 hours on average. Considering the minimum wage of the UK as £6.31, that means that one sale has cost £31.55 in wages alone. Other costs will also be incurred such as national insurance contributions, operational costs, commissions, etc.

On the other hand, inbound marketing materials can be created by a professional and cost you somewhere between £20 and £100 (depending on supplier). Yet, unlike with cold calling, those costs can be set against multiple sales. Therefore, if your sales page convinces 100 visitors to make a purchase it has cost just £1 per sale, a much more cost effective sales path.

Cold Calling Ruins Relationships Before They’ve Begun

The people you are calling are very busy. When you are calling them up you are interrupting their day, which could annoy them. You might irritate them even further if you tell them that they need to listen to you. The fact is your prospect might not need what you are selling and may feel that you are wasting their time. This will erode the chance of building trust between you and the customer.

Trust is very important in the relationship between a customer and a provider. According to many sources, 81% of a consumers trust information present on inbound marketing materials (and 61% will make a purchase based on that information). However, trust in cold calling is not so high with only 10% of receivers trusting the information from a cold calling company.

Inbound Marketing Is Open 24/7

No matter what, your cold calling can only happen during certain hours. However, your inbound marketing campaigns can run all day, every day. That means you have more chances to secure leads to process down your sales path.

Inbound Marketing Has More Reach

Even if you were just interested in the number of people using Twitter in the UK, you could easily market your products to 15 million individuals in the UK at any one time. However, to call that many people in the UK it would take about 420 years. Therefore, inbound marketing has a far greater reach.


Inbound marketing has so many advantages over cold calling. You can gain the trust of your prospects quicker, cut costs and reach a larger audience in far less time. So when looking at your business model; instruct your sales team to use inbound marketing methods rather than outbound methods.