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The Pros and Cons of Cold Calling and How to Do it Right – ReadWrite



Debraj Chatterjee

Cold calling is a marketing technique where a salesperson contacts a prospective customer hoping to interest them in a product or service. In this case, the prospect neither asked to be contacted nor expected the call and may or may not be interested in the product/service. Traditionally, cold calling was done over the phone (telemarketing) or through in-person visits. In the digital era, cold calling is done through email marketing and social media solicitations.

A brief history of cold calling

This sales technique has a long history, but cold calling as we know it today took shape in the 1980s, driven by improvements in communication technology. Additionally, consumers were more amenable to sales calls, contributing to tremendous growth in the industry.

However, towards the late 1990s, the market was infiltrated by fraudsters posing as sales agents, and customers started getting weary of relentless calls. With the arrival of the internet soon after, cold calling as a sales strategy was suddenly fighting for survival.

Pros & Cons of Cold Calling

Cold calling, by its very definition, is not the easiest of sales techniques. This is particularly so in the digital age, where customers screen their calls and treat telemarketers with suspicion. Similarly, today’s buyers get all the information they need online and have little use (or patience) for someone selling a product over the phone.

Does that mean that cold calling is dead? Traditional aspects of cold calling, such as soliciting strangers, have no place in modern marketing. However, when combined with other marketing strategies, cold calling can benefit a business.

If you are considering cold calling for your business, here are the top pros & cons that you should have in mind:


It will help you reach new customers/ form new business connections.

Cold calling can be an effective way of growing your customer base. If you reach a customer who wasn’t aware of your product, you get a chance to introduce it to them and even send them more information. This can be particularly useful if you contact the right demographic, that is, prospects who are likely to be interested in your product or service. This means that you form a business connection that can be beneficial in the long run.

It can be done anywhere.

Cold calling does not require a team to be sited in an office working the phones. Your salespeople can work from their homes, on the road, or wherever they are. This is particularly true during movement restrictions occasioned by COVID 19. Being able to work remotely means that your team doesn’t stop selling.

It provides instant feedback.

Speaking to prospective customers about your product or service will give you a chance to get real-time feedback or reaction. Sending a cold email, for example, doesn’t guarantee that the recipient will read it or even reply. When you speak to someone on the phone, you will get immediate feedback that may help inform your next steps or tweak your sales strategy.

It allows your salespeople to perfect their skills.

A good product pitch should accompany an excellent cold calling strategy. Understandably, first-time sales agents may be full of nerves as they make cold calls. Speaking to clients repeatedly can help them build confidence and adjust their pitch accordingly based on customer feedback. Prospective customers will well receive a well-delivered, natural value proposition.


It may irritate/annoy customers

Most consumers consider cold calls a nuisance. Consumers who are not listed simply screen their calls and send unwanted calls to voicemail. This makes it a tough market for unsolicited sales calls. Constant rejection can be demoralizing, even for the most experienced sales agents.

It is time-consuming

Statistics show that only 2% of cold calls are successful. That means if an agent makes 100 calls in a day, they will have only spoken to two prospective customers. Think of the sheer amount of time it takes to make 100 calls. This means that cold calling is both time-consuming and inefficient.

It can damage your brand.

There is a good reason why millions of people are on the Do Not Call Registry or refuse to pick numbers they don’t recognize. They don’t want to be bothered by sales agents. If your agents keep calling people who don’t want to be called, they can begin to perceive your brand negatively.

It is difficult to reach decision-makers

People who have the power to make real buying decisions are protected by a wall of secretaries or assistants who are already wary of salespeople. Unless you know who you specifically need to talk to, it is not easy to cold-call your way through to the top decision-maker.

How to do Cold Calling Right

We have seen that cold calling has some shortcomings that can spell doom to your sales strategy if left as is. However, it is possible to leverage this sales technique by incorporating some strategies.

Understand your prospective customers

You can leverage numerous tools to learn more about your customers before you make a cold call. Utilize these to learn when they visit your website, what products they are interested in, and what questions they have. This gives you a platform from which to launch your pitch when you get to talk to them.

Offer consumers something they find valuable.

Gone are the days when businesses contacted customers only when they wanted to sell them something. To attract prospects to your brand, offer information, demos, trials, or content that you think they might need. This not only gets them to come to you but positions you strategically for a sale when the time comes.

Use a mix of strategies.

To survive in a highly competitive market, you cannot only rely on working the phones. Give useful information on your website and request customer email addresses in exchange. This gives you a way to contact prospects directly. Learn where your prospects spend time on social media and update your company profile.

Share helpful content and invite comments and questions. Finally, referrals are a powerful way to get your foot in the door, so ask for referrals from your happiest customers.

Debraj Chatterjee

Debraj is a Founder of LMN SEO Services and oversees strategic, operational and invest Peng aspects of the company’s wide ranging digital content & digital revenue activities.


Fintech Kennek raises $12.5M seed round to digitize lending



Google eyed for $2 billion Anthropic deal after major Amazon play

London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs



Deanna Ritchie

As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations



Deanna Ritchie

As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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