1. Cold Email vs Cold Call: 5 criteria to determine the winner

Cold email and Cold Call are both traditional sales prospecting methods used by sales representatives to land more sales for their company. But which one is better for sales outreach?

In this comparison, we'll look at** 5 factors** to determine a winner:

• which one generate the most leads

• which one has the best ROI

• which one is easy to set up

• which one is the less time consuming

• which on is the less expensive

1.1 Which one generates the most leads: Cold email or cold call?

To determine which one generates the most leads, let's do some maths. We'll go with a base of 100 prospects.

Leads generated by cold email on average:

• 100 cold emails sent

• 55% open rate (conservative)

• 7% reply rate (conservative)

• 30% positive rate (conservative)

• lead generated = 1,55

Cold email lead conversion rate is 1.55%

Using conservative numbers, we can notice that cold emailing generated about 1,5 meeting per 100 cold emails sent.

Leads generated by cold call on average:

• 100 cold calls (it takes on average 8 calls to reach a prospect)

• 8 calls

• lead generated: 0,08 (only 1% of cold call generate leads)

Cold call lead conversion rate is 0.08%

Using standard analytics about cold calling, we can notice that this sales prospecting method generates about 0,08 meeting per 100 cold calls made.

Result: Cold email generates the most leads.

Obviously, cold email and cold call performances vary depending on the industry but cold email is the clear winner here. It generates the biggest amount of qualified leads.

1.2 Which one has the best ROI: cold email or cold call?

According to different studies, email ROI is at $40 per 1$ spent which is huge. However these kind of studies talk about email and not cold email precisely. So let's run some maths together.

We'll assume here that deals are closed on a rolling basis from opportunities created in previous months of doing sales prospecting, as sales cycles can be long.

Cold email ROI

Cost of cold email set up:

• $4000 spent monthly on 1 sales representative

• $500 in softwares

The total cost for cold emailing should be around $4500 per month.

The ROI of cold email should looks like this:

• Offer: $20,000 ACV (Annual Contract Value)

• 1000 cold emails sent

• 55% open rate = 550 emails opened

• 7% reply rate = 38,5 replies

• 30% positive replies = 11,55 calls

• 40% closing rate = 4,6 deals closed

For a 1000 prospects contacted, cold email can generate as much as $92,400 for $4500 spent which a ROI of $20,5 per $1 spent.

Cold email ROI can be much higher

This amount can be much bigger if you're doing the sales prospecting part yourself.

Cold call ROI

Cost of cold call set up:

• $4,000 spent monthly on 1 salespeople who is both a cold caller and a closer

• $1,000 in softwares

The total cost for cold emailing should be around $5,000 per month.

The ROI of cold call should looks like this:

• Offer: $20,000 ACV (Annual Contract Value)

• 1200 cold calls done (60 per day)

• replies = 96

• bookings generated = 9,6

• 40% closing rate = 3,84

For 1,200 prospects contacted, cold call can generate as much as $76,800 for $5000 spent which a ROI of $15,36 per $1 spent.

Cold call ROI can only be interesting if the offer is big

Result: Cold email has the better Return On Investment (ROI).

We tried to use realistic numbers instead of using the exact same ones for the comparison. Either way, cold email would have won the battle with its unparalleled scalability.

The ROI of cold email can be even higher as it is more scalable than cold call. Cold Calling requires lots of human workforce to carry the tasks.

On the opposite, you only need one salespeople to scale cold emailing and maybe a few virtual assistants.

1.3 Which one is the easiest to find data for reaching out?

Cold calling is definitely not the winner here.

Indeed, finding phone numbers is a grey area, especially personal ones.

On the contrary, cold emails are much easier to collect, whether it's through browsing the web or using software for it (e.g., databases or email finders).

Result: Cold email data is easier to find than cold calling ones

You can use email finder tools like Findymail to find B2B valid emails super rapidly.

1.4 Which one is easy to set up: cold email or cold call?

With VOIP softwares like Aircall, you can now set up cold call for sales teams within 5 minutes. On the opposite, cold email requires more sales training to teach the team how to avoid the spam folder.

When it comes to finding leads, both are similar.

Example of the VOIP interface of Aircall

Result: Cold Call is easier to set up.

Modern cloud-based call center softwares make the experience of cold calling frictionless while Google & Outlook algorithms make the life of cold emailers harder and harder over the years.

1.5 What is the less time consuming: cold email or cold call?

Like we saw above with the ROI of cold email and cold call, cold call requires many sales representatives (SDRs & BDRs) to carry on the task.

Compare to cold call, you only need 1 good salespeople to scale cold email campaigns in the thousands of emails sent per day and maybe a few virtual assistants on the side.

Cold call is definitely time consuming

Result: Cold email is the less time consuming.

Once you know how to do cold emailing, it's the least time consuming sales outreach method ever.

1.6 What is the less expensive: cold email or cold call?

In the ROI comparison, we noticed that cold email is less expensive than cold call.

With cold call, you need to hire tons of sales representatives. Employees and/or freelancers are expensive, especially in the B2B sales space.

Example of a cold email software pricing

Result: Cold email is less expensive

From $0 to thousands of dollars spent every month maximum, cold email will never be as expensive as cold calling.

Salaries of sales reps can be much lower in some countries

1.7: Cold Email vs Cold Call result: cold email wins

Cold emails is better for sales outreach than cold call. Cold email is less expensive, more scalable, has a better ROI and generates the most leads.

Cold email is the best for outbound sales

However, it seems that traditional startups and SMBs base their sales outreach strategy with cold call more than with cold email. Why?

Cold email is not suitable for any type of businesses while you won't have problems to reach out plumbers or gardeners with cold calling. Cold email at scale is also harder to master.

2. Other questions about Cold email vs Cold Call

These are two recurring questions we get asked at Breakcold.

2.1 What type of people are doing cold email vs cold call?

Generally, cold emailing is performed by Growth Hackers, Head of Growth and cold email agencies but also by solopreneurs.

On the other hand, cold calling is performed by sales development representatives and business development representatives.

Example of a sales organization using cold emails and doing cold calls

2.2 What Cold Email and Cold Call have in common?

Cold email and cold call have the following in common:

• they are used to generate leads

• they both have a good ROI

3. How to use Cold Email and Cold Call to close more sales

Although cold email is better than cold call for sales outreach, it doesn't means you cannot do both.

3.1 Engaging with prospects before reaching out

Before cold calling or cold emailing a prospect, you should always try to engage with them on social media if they are a minimum active. That way, when you'll contact them, it will be easier to craft a hyper-personalize sales pitch and they will remember you.

A way to engage leads with a social selling software (Breakcold)

3.2 Sending a cold email before cold calling

Before cold calling prospects, send them a cold email. Cold call is still perceived as an aggressive technique to use in last resort (depending on the industry obviously).

Don't forget to review your cold email sequences before sending them

3.3 Cold calling using company news of prospects

It's hard to hook your buyer persona on the phone. You only have a couple of seconds to get their attention and only need to face many objections.

By having their recent news in front of you while you call them, you'll be able to build a relationship faster.