Why Warm, Inbound Leads Trump Cold Calls

3 Benefits to Warm Sales Leads

You do your research, you identify your prospect, get your elevator pitch in order, and 3-2-1: You pick up the phone and hope for the best. Sound familiar? The first challenge you face is the familiar sound of voicemail. If your experience is similar to mine, 9 out of 10 calls you make end by leaving a well-crafted message as to the purpose of your call and an intent to connect at a defined future date. (For suggested tips on "best time to cold call," check out this article from HubSpot). If you are lucky enough to get a live body on the other end of the phone, your next challenge is the flawless execution of your elevator pitch. If your pitch is a success, and you are able to set up a meeting, you are on your way to closing your next deal.

What if, on the other hand, YOUR phone rings and it's a potential client on the other end calling YOU? No, you don't need to be pinched, you are not dreaming. This actually happens. Companies that commit to creating targeted content to solve problems and routinely answer questions that their customers are searching for find their phones ringing all the time. These are what we refer to in the sales world as "warm leads" or "inbound leads." Here are 3 reasons a warm lead trumps a cold call any day of the week.

Inbound leads turn you from sales rep to consultant

When you call a prospect and they agree to set up a meeting, you are a salesperson. Chances are your prospect is leery and guarded and more mentally prepared to say "no" because they aren't completely sure they have an unrecognized need.

Flip the coin, and your prospect called you: Guess what? You're now a consultant. They believe you have expertise that can add value to their business. They are not entering a relationship with you thinking that they are going to be "sold" to. Having been in sales for more than 20 years, I can tell you that I would rather be a "consultant" than a "sales rep" any day of the week.

Inbound leads close faster than outbound leads

A warm lead closes faster than a cold lead. Why? Remember, the prospect called you! According to Search Engine Journal, leads that are driven by search have a 14.6% close rate compared to outbound leads (like direct mail and print advertising) that have a 1.7% close rate. Why? Inbound leads come from people who picked up the phone or logged on to a website because they're actively shopping and intend to make a purchase in the near future. Outbound leads – like cold calls – can often lead to time wasted because your prospect is caught off guard and might agree to meet with you but hasn't given much thought to your product or service until this interaction. 

Inbound leads cost less than outbound leads

In a survey conducted by HubSpot of over 900 marketing prossionals, organizations that used inbound marketing practices experience a 61% lower cost per lead than organizations that predominately leverage outbound marketing. The average outbound lead was $346 in comparison to the leads generated by inbound marketing, which were $135. The survey also found that regardless of the size of your organization, inbound leads cost less, hands down. (Photo Credit: HubSpot)