The Dos and Don’ts of Cold Calling For SaaS: Avoiding Common Mistakes

Cold Calling For SaaS

The debate rages on as to whether or not cold-calling is effective for SaaS business executives. As a proactive approach to reach out to people who are unfamiliar with your product, service, or brand, it can be a powerful tool – but does it work?

According to Crunchbase, organizations that utilize cold-calling have experienced 42% more growth than those that don’t. What’s more, an impressive 69% of buyers have accepted cold calls from new providers – proof that when done with finesse and confidence, cold-calling can be a powerful tactic for expanding a business.

Cold calling is no easy feat, though. According to another study, cold calling has a relatively low success rate at 2% compared to other sales strategies, which appears quite surprising considering that nearly half of the buyers prefer to be contacted through cold calls. On average, it takes eight attempts to reach a prospect, and once they are qualified, one in five leads will convert into a sale.

In order to be successful you have to know the right Dos and Don’ts for a successful cold call.

This blog post will go over some important things to do (and not do) when it comes to cold calling if you want your SaaS business to hit it out of the park: We’ll look at why this practice might be effective for marketing your product, as well as what kind of mistakes can hamper its effectiveness. Read on to learn how to avoid these common errors so that you get more eyes on your business!


Definition of Cold Calling for SaaS


Cold calling involves making direct, unsolicited contact with prospective clients or customers in order to introduce a SaaS product and generate interest. It’s essentially a way for SaaS businesses to target specific audiences and spark conversations about their solutions.

Cold calls are typically conducted over the phone and require significant research about the customer, but using a combination of data-driven insights, skilled sales reps, and creative outreach strategies, such as personalized cold emails or even text messages, can help connect with potential users and drive revenue.

Cold calling can be time-consuming, but it can lead to new relationships and opportunities that may not be attainable through other methods, like digital marketing tactics. It’s an invaluable tool for increasing brand awareness and creating lasting connections with potential buyers.


Importance of Avoiding Common Mistakes


When it comes to cold calling, there are a few common mistakes that can spell disaster for your SaaS company. These errors can be costly and have a negative impact on the success of your cold calling efforts. Fortunately, there are ways  to avoid these missteps and ensure that your cold calling efforts are generating positive results.

Below are  some key Dos for a successful cold calling strategy for SaaS companies:


1. Do prepare before making the call


Preparation is key for successful cold calling for SaaS because being informed about both parties involved goes a long way in creating productive relationships. It involves two main steps:


Research the prospect


It is important to do thorough research before picking up the phone. This includes understanding industry practices, researching the existing customer base, finding out more information about your prospect’s pain points and competition, and familiarizing yourself with the industry jargon. Doing so will help cut down on the amount of time spent on each call and make sure that you have leverage when negotiating or prompting interest.

Gathering as much data as possible can help create thoughtful conversations that create an individualized experience for prospects which might lead to a successful conversion.


Create a script


A persuasive script will capture your prospect’s attention. According to Cognism, simply asking a prospect how they’ve been can increase B2B success rate by up to 10.01%. LinkedIn also has found that adding a shared LinkedIn group at the start of the call increases the chance of securing a meeting by 70%, while throwing in a reason for calling can increase success rates by 2.1%.

Cold-calling certainly seems like an effective tool if done correctly. Here are a few tips:

  • It should highlight the key benefits of your tool and emphasize any special offers or discounts. Be sure to tell them exactly what they could expect should they choose your product, including time frames, costs, security measures, and customer support.
  • Think about ways to make your pitch stand out and be memorable so it catches their attention right away.
  • Always use language that is clear and professional to help build trust with the customer.
  • Be confident in yourself and your tool when delivering the script – showing genuine enthusiasm can make all the difference.

2. Do focus on the prospect’s needs


Doing research into what would be most beneficial to the customer make it easier to have a meaningful conversation with them, improving the chances of closing deals quickly. Not only that but understanding their needs will help build rapport and trust, setting you up for long-term success in SaaS sales whilst ensuring that customers get what they actually need from your tool and not just a one-off purchase.

According to Rain Group, when cold calling, consumers take a number of factors into account when making purchase decisions – most notably, your ability to deliver the value they need (96%), the level at which you can collaborate with them (93%), the way you educate them with new ideas (92%) and the insights you can provide on their industry (92%). These points should be top of mind when crafting your approach.

With the statistics above in mind, here are two things you need to do:


Ask questions to identify pain points


Cold calling for SaaS sales can be a difficult approach as people tend to be more reluctant to talk on the phone. As such, when making cold calls it’s important to come prepared and ask the right questions that will uncover potential pain points they may have.

To do this, start out by asking high-level questions about their current needs, such as ‘what challenges are you facing in your day-to-day operations?’.

After identifying any common or prevailing issues that could provide an opportunity for you to present your product or service as a solution, delve deeper by investigating further with questions such as ‘tell me more about your experience with [problem] since it became an issue’.

Having a holistic higher-level understanding of the client’s situation before going into specifics will allow you to build strong trust and ensure client success.


Tailor the pitch to their specific needs


Cold calling is a time-honored tradition in sales, and it’s important to tailor your pitch to the needs of your prospective customer.

To increase your chances of success when cold calling for SaaS:

  • Start by researching the company you are contacting so that you can understand what problems or issues they are facing.
  • Next, tailor your introduction and elevator pitch to ensure that both of these focus on how your proposed solution solves a specific problem they have.
  • Finally, drill down even more into the specific advantages and attributes of your product or service, and make sure you bring those details up during the course of the conversation.


3. Do use active listening


Being an attentive listener and understanding the customer’s needs can make the difference between a successful sale and an unsuccessful one. Active listening involves focusing on what the customer is saying, rather than just trying to sell them something. If you can relate to the customer’s needs and ensure that your product meets their expectations, then there is a greater chance of converting them into paying customers.

Plus, actively listening shows that you genuinely care about the customer and their concerns! Ultimately, active listeners will be more successful cold callers in the SaaS domain because they create relationships with their customers which can help drive sales.

Here are two things to do:


Listen carefully to the prospect’s responses


In order to make sure that you’re really paying attention and understanding the conversation, allow yourself plenty of time before speaking so that you can form a meaningful response. Make sure to avoid the urge to rush through the call with sales-type lines; instead, focus on an authentic assessment of their situation, asking questions to gain a deeper insight into each individual and their needs. Doing this will help you learn more about them and also provide them with an enjoyable experience on the call.


Respond appropriately


It is essential to have confidence in your tool and to be knowledgeable about pricing and features so that potential customers can be informed. Below are a few tips to ensure that cold calling can go from a dreaded task to an engaging experience that produces meaningful results.:

  • Begin by introducing yourself and your company, following up with an explanation of why you are contacting them.
  • Work to gain the customer’s trust by using positive phrases such as “I understand their problem” or “my product will solve this issue.”
  • Take the time to answer any and all questions asked, as this may give customers peace of mind when considering which product they should purchase.
  • Lastly, always thank your customer for their time before ending the conversation.


Don’ts of Cold Calling for SaaS


Here are  some tips on what not to do when cold calling for SaaS:


1. Don’t sound like a robot


There are many reasons why sounding like a robot while making cold calls for SaaS is not effective. For starters, it communicates to the customer that you aren’t excited about the product or solution you’re offering, which makes them less likely to listen. If your tone isn’t personal and enthusiastic, it can also seem insincere and unprofessional.

Finally, potential customers may be put off by robotic language, as it makes them feel like they’re talking to a machine instead of an actual person who is passionate and knowledgeable about the service. To make sure your cold calls result in successful sales opportunities, be genuine and engaging when speaking to prospects and focus on how your SaaS can solve their problems.

Here are a few tips so you won’t sound robotic:


Avoid using a script that sounds canned


To make sure your script sounds natural and authentic, practice saying it out loud. This will help you get comfortable with the language and also allow you to make tweaks where necessary. Additionally, ask yourself how else you can communicate the message; try to avoid industry jargon when possible and opt instead for language that speaks directly to the listener.

If you tailor each conversation based on research of the customer’s needs, it not only offers more value but provides a human element. Of course, don’t overdo it – keep in mind that your primary mission is to stay on track with what drew their attention in the first place and explain why your product is beneficial for them.


Use natural language


Cold calling for saas can often be a tricky situation – you want to engage with the customer in a friendly manner, but come across as professional at the same time. Using natural language when cold calling is an effective way of achieving this balance. Natural language involves using words and phrases that sound natural and conversational as if you are talking to someone face-to-face.

During a cold call, it is important to use an upbeat tone, ask open-ended questions, and actively listen to the customer’s responses in order to carry on a productive conversation. Speakers should also avoid business jargon and keep their sentences simple so that the customer can understand what they are saying without confusion.


2. Don’t talk too much


Cold calling can be a great way to introduce your SaaS offerings to potential customers and make sales, but it’s important to remember not to talk too much. Potential customers are often busy, so overloading them with details can lead to staying on the phone for extended periods of time, a lack of engagement, or even getting shut down.

On average, successful cold calls that move to the next stage – a meeting – last around 7.5 minutes. To maximize your chances of success, be sure to make the most of this precious time by being clear, concise and articulate with potential customers.

Focus on presenting the value of your product in an interesting and succinct way that doesn’t require long-winded explanations or full-on pitches. Keep the customer engaged by listening to their needs and reactions, and then tailor each previous call accordingly.

Although cold calling can take some extra effort up front, focusing on streamlining conversations will keep customers interested in what you have to offer while also reflecting favorably on your product as a whole.

Here are a few things to keep in mind:


Keep the pitch concise


Cold calling for a SaaS tool can be daunting, especially if you don’t have the right strategy. To keep your pitch concise and effective when cold calling, remember to focus on the customer’s needs and how your tool meets them. Highlight why they should choose your solution over any other alternatives they may be considering, while also allocating time to answer their questions and address any potential concerns.

Additionally, make sure to emphasize the benefits of using your product; explain why it is the best choice, and point out added value that comes with it.


Avoid overwhelming the prospect with too much information


It’s important to remember that business owners have limited time and, as such, too much information can quickly become overwhelming. Concentrate on the core aspects of what your product is offering so that you remain focused and don’t overcrowd the recipient’s mind.

Keep in mind who your ideal customer might be and what they will find most relevant to their own needs. Presenting too much information can also lead to confusion which delays decisions being made on whether or not to buy in and should be avoided at all costs.


3. Don’t be pushy


It’s important to not be too pushy when engaging potential customers on the phone. If you appear desperate or overbearing on the call, people may think that your product is of low quality or that you are a scam artist. Additionally, they may have their guard up and shut down any attempts by you to sell them your product – leaving you with nothing.

It’s better to take a gentle but confident approach in order to earn their trust and respect, giving them an opportunity to consider your proposition without feeling overwhelmed or threatened. Using polite language, presenting your offer as one component of an overall solution for their business needs, and providing them with resources about your product can all help you avoid coming across as pushy when cold calling for SaaS products.


Respect the prospect’s time and decision-making process


Cold calling for saas can often feel like an arduous task, but there are several strategies that can make the process much easier and more respectful of prospects’ time and decision-making. Most importantly, be considerate of how much time your pitch is taking up, and make sure you respect any decision made by the prospect during the call.

Additionally, always allow the prospect to opt out at any point during a call – this shows that you acknowledge their authority in committing their time or resources to your company.

Be direct with every inquiry, but be sure not to pressure prospects into anything they may not want or need. It’s also best practice to present your company from a wide-angle perspective – describing how everyone in the prospect’s organization might benefit from your services immediately communicates that you value their team processes and effort.


Avoid aggressive sales tactics


Aggressive sales tactics should never be used. The best way to avoid these types of tactics is to keep communication friendly and concise. Focus on providing helpful information in an organized manner by highlighting the features, benefits, and pricing of your product. Ultimately, customers should feel empowered to make their own decisions without rush or pressure.

Use language that is reassuring and inviting, not pushy or deceptive. As long as you’re honest about the value proposition your product offers, customers will trust your sales approach and be more likely to purchase from you.


Additional Tips for Successful Cold Calling for SaaS


Listed below are some additional tips on how to make your cold calling for SaaS successful:


Use technology to your advantage


With the right tech tools in place, you can automate parts of your sales process and make it much easier to reach out to potential customers.


Use a CRM system to keep track of calls and prospects


Cold calling to promote Saas can seem like an overwhelming process and the sheer number of prospects can quickly become unwieldy. A great way to keep organized is to use a CRM system to keep track of every call. Not only does such software allow you to easily view detailed records of past calls, but you can also attach notes and other important data related to prospects for future reference.

Additionally, a CRM system makes it easy to review your conversation history with each prospect in order to give personalized service and more effectively target specific needs.


Utilize call recording for analysis and training


Incorporating call recording into the process can make it much easier to analyze, train and improve your sales techniques. Not only does it help to ensure the accuracy of recordings for reports, review, and tracking when using phone systems provided by telephone companies, but it also allows you to listen in real-time on calls and identify areas for improvement.

Call recording gives you the ability to make sure team members are following procedures and enables you to hone in on certain key points that need more or less emphasis in their approach. By listening closely to patterns of conversation while making cold calls, even novice salespeople can learn proper techniques quickly and efficiently utilizing call recording. It also builds confidence when they know their conversations are being heard and reviewed.


2. Practice, practice, practice


Practicing before cold calling helps you to anticipate customer objections, plan how to handle objections with confidence, and create a successful pitch. Furthermore, practice enables you to focus on the details that matter when selling your product or service.

You can also become comfortable with having natural conversations while physically speaking the words out loud and creating a confident presence on the phone which increases sales.

Here are a few things you can do to prepare:


Role-play with colleagues


Role-playing is an ideal way to make cold calling for SaaS or other services more fun and interesting. You can assign each colleague a different role such as customer service representative, salesperson, or marketing expert, and then each person takes turns pretending to be that role when interacting with the customer.

This allows everyone to use their own strengths while learning new skills at the same time. Setting up a few scenarios beforehand can also help you hone your approach so that everyone gets the most out of the experience.


Review calls to identify areas for improvement


In order to identify areas for improvement in cold calling, it is essential to review calls regularly. To make the most of it, don’t just listen back to hear yourself; actively take notes on what you could improve, such as how you engage with each customer and what your knowledge level of the product is like.

Reviewing calls can also be helpful in deep diving into trends in current customer behavior and preferences, informing any future training decisions.  Aside from this, using a scorecard can help pinpoint exactly which parts of your call experience need tweaking or may even require additional training.


3. Follow up


Following up with prospects reliably proves far more effective than simply calling one time and moving on. Following up demonstrates commitment and an interest in building a professional relationship, and can pave the way to securing clients. It also shows that you are organized and value the customer’s time.  According to Invesp, it takes an average of five follow-up calls to close a sale – that’s 80% of the time. If you want to increase your chances of success, staying in regular contact and following up is essential.

Here are some tips on how to follow up effectively:


Send a follow-up email or message


The best way to ensure you get a response from a cold email or message is to follow up. But how do you know when and how often to follow up?

If you don’t want to come on too strong, the general rule of thumb is to wait a couple of days before sending a follow-up email or message. This gives the recipient time to read and respond to your initial email or message. If you don’t hear back after a couple of days, go ahead and send a follow-up email or message.

You can also give them a call if you have their phone number. The most important thing is to be persistent while still being respectful of the recipient’s time.


Schedule a future call or meeting


When making cold calls to prospects for a SaaS offer, it is important to schedule a call or meeting right away. This will give you the chance to discuss why your product would be a great fit for their business and how they can benefit from it. It can also open them up to showing their enthusiasm through questions. A great way to do this is by offering at least two different times that work with both your and the prospect’s schedules.

Try not to leave the scheduling up in the air – closing on an actual time is essential. Showing that you respect their time right off the bat will give them a positive impression of you and make them more likely to want to continue working with you down the line.

In fact,  data show 42% of customers are more likely to make a purchase if salespeople call them back on time. Building trust and reliability with your customers will go a long way towards successful outcomes.


Final Thoughts


Cold calling can be a great way to reach out to potential customers and grow your SaaS business. Guidelines include researching prospects beforehand, having a personal introduction prepared, focusing on the benefits of your product or service, respecting the recipient’s time, and being polite if rejected.

Mistakes to watch out for include not overstepping boundaries, staying away from hard-selling tactics, and avoiding vague responses. It is also important to learn more about what works best in order to get the most out of each call. Visit our blog for more tips on growing your business and building relationships with customers through effective marketing strategies.

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Ken Moo