Just like cold calls, nobody really loves receiving cold emails. But when you do it right, cold emailing can be surprisingly effective. In fact, it’s one of the best ways to grow your business with a high return on investment.
The best cold emails can snag response rates between 2% and 10%, and the really good ones can go above 40%.
The beauty of cold emailing? It doesn’t take much money—just time. So, if your budget is tight, focusing on cold outreach can bring in sales and generate the cash flow you need to keep things moving.
Now, with an average response rate hovering around 1%, the trick is figuring out how to make your cold emails stand out and get results.
At Demand Curve, we’re no strangers to cold emails. We get tons of them and help marketers craft their own through our Growth Program. So, we’ve seen firsthand what works and what doesn’t.
Let’s be real—there’s no exact magical formula for a perfect cold email campaign.
But there are some tried-and-true practices that can help you avoid wasting your time and effort. We’re going to break those down and show you how to build a cold email strategy that actually delivers.
Here’s what we’ll dive into:
- What is a cold email, and how does it differ from spam?
- Why should you invest in cold email outreach?
- Crafting an Effective Cold Email Campaign
- Is sending cold emails legal?
- Practical cold email templates to try
- Wrapping it all up
What is a Cold Email, and How Does it Differ From Spam?
Cold emailing is about reaching out to someone you’ve never interacted with, hoping to spark a connection that could lead to a sale, collaboration, or partnership. While this tactic can be used on platforms like LinkedIn or even direct mail, email often proves the most effective.
Real-World Examples of Cold Emailing:
- B2B SaaS companies pitching their solutions to large corporations.
- Consumer brands contacting influencers for partnerships.
- Freelancers offering their skills to potential clients.
- Startups seeking funding from investors through email pitches.
Cold Emails vs. Spam: The line between cold emails and spam is the value and relevance of the message. Spam is typically unsolicited, irrelevant, and sent in bulk without much thought. Cold emails, when done right, are targeted, thoughtful, and provide value.
Think about this: imagine you get an email from someone offering a subscription to a magazine you’ve never heard of. Now, contrast that with an email from a brand you love, sharing an early access code to their new product line. Both emails come from strangers, but the second one resonates because it’s relevant and valuable to you.
The difference is clear: spam feels intrusive and irrelevant, while a well-crafted cold email feels like an opportunity.
How to Stay Out of the Spam Folder: To ensure your cold emails don’t get ignored or deleted:
- Target the right audience. Reach out to people who would genuinely benefit from what you offer.
- Offer clear value. Provide something of genuine interest or benefit to the recipient.
We’ll walk you through how to master both as we explore effective strategies for cold email success.
Distinguishing Cold Emailing from Email Marketing
Before we get into the details, it’s important to clarify that cold emailing is not the same as traditional email marketing. Most people associate email marketing with inbound strategies, where users willingly opt in to receive communications. This includes methods like SEO and content marketing that draw in interested parties.
In contrast, cold emailing falls under the outbound marketing umbrella. Here, companies initiate contact with individuals who haven’t expressed prior interest—think of those sales emails from strangers.
Because of this fundamental difference, you’ll need to use different software for your cold outreach. Many email service providers (ESPs) and CRMs designed for email marketing, such as Customer.io, Mailchimp, and HubSpot, typically do not permit cold emailing on their platforms.
Instead, consider specialized outreach tools that work seamlessly with Gmail or other email clients you intend to use for your cold emails. Some popular options include:
- AutoKlose
- Lemlist
- Mailshake
- QuickMail
- Reply.io
- Streak
Additionally, there are useful tools like Clearbit and Hunter for sourcing your prospects’ contact information. These can help you find email addresses through platforms like LinkedIn and other sources.
Why should you invest in cold email outreach?
So, why should you consider cold email outreach? We’ve already pointed out that when it comes to reaching out to potential customers, email typically outshines all other methods. What makes it such an effective tool?
Precision Targeting: Cold emails allow you to pinpoint exactly who you want to reach. You can personalize your messages to speak directly to individual recipients. This level of targeting is difficult to achieve with ads, which often cast a wide net and can end up reaching people who have no interest in your offerings.
Direct Access: Many decision-makers still handle their own email correspondence. If you have the right email address, your message goes straight to the people who matter most, ensuring your outreach isn’t lost in the shuffle.
Cost-Effective: While there are numerous tools available to help automate your outreach efforts, all you really need to get started is an email account. This means you can jump in quickly without needing to spend a fortune upfront, allowing you to build momentum before you see any revenue.
That said, it’s important to recognize that cold emailing can be challenging. One common misconception is that a successful cold email should lead to an immediate conversion.
Instead, think of cold emailing as a way to initiate a relationship. While a sale may be your ultimate goal, it usually doesn’t happen after just one email. Be prepared to send follow-ups or engage in back-and-forth conversations. Remember, cold email is about sparking a dialogue—so approach it with attentiveness and consideration, rather than a hard-sell mentality.
Which Companies Should Embrace Cold Email Outreach?
Based on our experience with numerous startups, cold emailing tends to be particularly effective for:
High-Margin Products: Effective cold outreach often involves a personalized approach, which can require significant effort and can lead to higher customer acquisition costs. Companies should ideally have the resources to support a sales team to make cold emailing profitable.
Early-Stage Startups: For founders just starting out, cold email can be a cost-effective strategy to generate revenue. While the labour involved can make it feel expensive, it doesn’t require the same budget allocation for design and distribution as advertising does. All you need is an email address, making it an excellent DIY method for growth before you can explore other channels.
Here are specific types of businesses where cold emailing has proven successful:
- B2B SaaS Companies: These businesses can greatly benefit from reaching out directly to potential clients.
- Products Not Actively Searched For: If your product isn’t something people are actively looking for, cold emailing might be more effective than search ads or content marketing.
- Agencies with High Monthly Fees: Agencies that charge premium rates per client can find value in personalized outreach.
- Businesses Selling High-Value Physical Goods: This includes items like gym equipment or medical devices, where the price point justifies the investment in a sales process.
If you’re on the fence about whether to implement cold outreach, consider this simple framework:
- Profit Margins: Your profit margins should exceed at least $600 for each closed deal, with a payback period of less than two months.
- Traction Stage: If you’re in the traction phase, you might need to focus on selling at lower margins to establish yourself. The aim here is to engage in activities that don’t scale until you’re in a position to explore scalable channels.
Crafting an Effective Cold Email Campaign
To maximize the impact of your cold email campaigns, follow these five steps:
- Make a Great First Impression
- Write an Engaging Email
- Test Your Emails
- Send Your Emails and Follow Up
- Measure Your Results
As a bonus, we’ll also share an advanced tactic for those with a bigger budget to enhance their outreach even further.
1. Make a Great First Impression
Many cold emails never even get opened, often because they fail to grab attention right from the start. The first impression your email makes is crucial and consists of three key elements:
- From Name: Your sender name should clearly represent you or your company. Avoid any gimmicks here—opt for a real person’s name, like a founder or sales representative. Adding a personal touch can significantly boost the chances of your email getting opened. Try formats like “[First Name] [Last Name]” or “[First Name] at [Company Name].”
- Subject Line: This is the first thing people see, so it needs to stand out in a good way. Steer clear of clickbait or misleading language. Instead, aim for something that piques curiosity while being relevant to your recipient.
- Preview Text: This is the brief preview that shows up next to your subject line in the inbox. It usually highlights the opening line of your email, so make sure it grabs attention!
- Consider using a specific question or a sincere compliment to draw the reader in. Personalizing this part shows you’ve done your homework and gives them a reason to read further.
If these elements aren’t optimized, your email might end up ignored or, worse, in the spam folder.
2. Write an Engaging Email
If your email makes a good first impression, your audience is likely to open it. Now, it’s your email body’s time to shine. Here’s a simple structure to follow:
- Opening Line: This crucial line sets the tone and is also part of the preview text. It should spark interest and make readers want to dive in.
- Context: Explain why you’re reaching out. For example, mention that you noticed they’re using a specific tool that might present a challenge for them. The more tailored, the better.
- Value Proposition: Transition naturally into how you can help. Focus on the benefits your product offers rather than getting bogged down in features.
- Wrap-Up: Finish with a clear call to action (CTA). Since it’s your first email, ask about their interest rather than directly requesting a meeting. Phrases like “Do you think we might be a good fit?” Are far more inviting than “Let’s book a call.”
Remember, it’s not just about sending one perfect cold email. You’ll want to draft multiple versions—at least two or three. This way, you can test different hooks and offers to see what resonates best. Don’t hesitate to break a few rules if it means finding what works!
3. Test Your Emails
Once you’ve drafted your emails, take a moment to test them out. Send your cold outreach to your personal email address and check how it appears on both desktop and mobile devices. You can also use testing tools like Zurb to see how your email displays on various devices.
This step is often overlooked, but it’s essential to catch any mistakes before your emails go out to potential clients. Keep an eye out for:
- Large blocks of text
- Broken links
- Typos
- How your subject line looks on mobile devices
4. Send Your Emails and Follow Up
After proofreading and testing your emails, it’s time to hit send. If you’re contacting a bigger audience, think about using tools such as Mailshake or Streak. These tools allow you to A/B test different subject lines and email copy by sending them to smaller segments of your list.
Setting up a dedicated subdomain just for your cold outreach is a smart move. This way, you can keep your main domain’s email deliverability intact while experimenting with your campaigns.
Regarding follow-ups, we recommend reaching out twice if you haven’t heard back—once after three days and again after seven days. Here are some tips to make your follow-ups more effective:
- Add Value: Rather than just saying, “I wanted to follow up,” offer something useful, like a resource or a case study that relates to your original email.
- End with a Question: This encourages a response. Try asking something like, “What’s stopping you from exploring this?” or “Are you still facing XYZ challenge?”
The goal with your follow-ups is to build rapport and credibility, making it hard for your prospect to ignore you.
5. Measure Your Results
Getting amazing results from your very first cold email is pretty uncommon. The most successful campaigns evolve over time through testing and experimentation with various subject lines, email bodies, CTAs, and even signatures.
Keep an eye on these key metrics to enhance your outreach:
- Open Rate: The percentage of emails opened. A typical open rate is usually around 25-35%.
- Click-Through Rate (CTR): This shows the percentage of people who clicked on any link in your email, usually averaging around 3-5%.
- Response Rate: This indicates the percentage of people who replied to your cold email, with averages between 5-10%.
- Purchase Rate: The percentage of recipients who eventually make a purchase, which typically falls between 0.5-1%.
These averages can serve as benchmarks, but remember they can vary by industry. Pay attention to how long it takes to close a deal through cold email, as this will help you determine acquisition costs and the time invested per purchase. With this insight, you can assess whether cold emailing is a viable long-term growth strategy.
Bonus: Pretargeting
Here’s a nifty tactic to enhance your cold email strategy: pretargeting.
This strategy involves showing ads to your target audience—those on your email list—before you send them any emails. Why is this helpful? It can significantly boost your open and response rates, especially when approaching cautious prospects from larger, more established companies.
Think about it: when you see an ad for something, it adds a layer of legitimacy to the product. Even if it’s irrational, we often feel that only reputable companies can afford to run ads. Platforms like Facebook and LinkedIn are great for this since you can upload your target email lists and serve ads to those specific individuals.
By combining pretargeting with your cold email efforts, you can create a more effective outreach strategy that captures attention and drives responses.
Is Sending Cold Emails Legal?
There’s often confusion around whether cold emailing is legal. The short answer? Yes, it is! However, it’s crucial to follow specific regulations based on where you and your recipients are located.
In the U.S., the CAN-SPAM Act of 2003 outlines a few key rules to keep your cold emails above board:
- Provide an easy opt-out option. This could be an unsubscribe link or a simple line like, “Let me know if you’d prefer not to receive more emails.”
- Honor opt-out requests within 10 days. Managing this manually can be tough with larger lists, so it’s wise to use an outreach tool to automate the process.
- Avoid misleading subject lines. You can’t lure someone in with a subject like “Urgent: Your account is at risk” if your email is about something entirely different.
- Use a truthful sender name. Your “From” field must accurately reflect who you are or the company you represent.
- Include a valid physical address. This could be your office, a registered P.O. box, or even your business representative’s address.
Over in the EU, the General Data Protection Regulation (GDPR) also allows cold emailing, but with a few extra layers:
- Have a legitimate reason for reaching out.
- Be transparent about how you got their email.
- Make unsubscribing a breeze.
- Regularly clean up your contact list.
Bottom line: Know and respect the rules wherever you’re operating. Staying compliant helps you avoid trouble and builds trust with your audience.
Cold Email Templates
Let’s talk templates. They’re a time-saver, no doubt, but if you lean too heavily on cookie-cutter approaches, your emails will fall flat. Here are a few tired lines that don’t cut it:
- “I haven’t had the pleasure of connecting with you yet, but I came across [prospect’s company] and was really impressed.”
- “I’m really inspired by what you’re doing at [prospect’s company], and I believe my company could add some serious value.”
- “I recently read a few posts on [prospect’s site]—super insightful stuff, great job!”
Sound familiar? That’s because they’re generic and overused. If you want to stand out in a crowded inbox, you’ve got to go beyond the basics.
Your mission? Make your emails feel personal and not like they were pulled from a template. Show genuine interest, do your homework, and craft each message with the recipient in mind. This approach isn’t just more respectful—it’s also far more effective.
Final Thoughts
Personalized emails sent to a carefully targeted audience can yield remarkable results—that’s the magic of cold emailing! While often seen as a sales and prospecting tactic, the most effective cold emails don’t just push for a sale. Instead, they spark conversations and provide genuine value to the recipient.
As you dive into crafting your cold email strategy, keep these five guiding principles in mind:
- Stay compliant with email regulations like CAN-SPAM, GDPR, and any relevant laws in your customers’ regions.
- Focus on prospects who fit your ideal customer profile to ensure your outreach resonates with the right people.
- Leverage cold outreach software to efficiently find prospects and automate your email campaigns.
- Experiment with different variations of your cold emails—try out different subject lines, opening lines, calls to action, and more to see what resonates best.
- Track and analyze your email performance. Leverage the insights you collect to fine-tune your strategy, focusing on the versions that generate the most impactful outcomes.
With these principles in place, you’re well on your way to creating cold emails that not only get opened but also foster meaningful connections. Happy emailing!