Cold Calling

AAA

DEFINITION of 'Cold Calling'

The solicitation of potential customers who were not anticipating such an interaction. Cold calling is a technique whereby a salesperson contacts individuals who have not previously expressed an interest in the products or services that are being offered, as opposed to warm calling. Cold calling typically refers to phone calls but can also entail drop-in visits, such as with door-to-door salespeople. In finance, cold calling can refer to a method by which brokers obtain new business by making unsolicited calls to potential clients.

INVESTOPEDIA EXPLAINS 'Cold Calling'

Cold calling is a difficult task in sales because of the wide variety of responses from the potential customers, ranging from simple hang-ups to verbal abuse. Cold calling is becoming increasingly controversial as newer, more effective methods of sales channels become available, including email, text message marketing and social media such as Facebook and Twitter. Compared to cold calling, these new methods are often considered to be more efficient and effective at generating new leads.

RELATED TERMS
  1. Pound The Pavement

    Diligently and tirelessly working towards a desired objective ...
  2. Warm Calling

    The solicitation of a potential customer with whom a sales representative ...
  3. Activity Quota

    A minimum level of sales-oriented actions that must be met by ...
  4. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, ...
Related Articles
  1. Investing

    What is a typical day in the life of ...

  2. Investing Basics

    Spotting Sharks Among Penny Stocks

  3. Professionals

    How To Target Ideal Customers

  4. Brokers

    Alternatives To The Cold Call

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center