Telemarketing what is it

Telemarketing – Definition, Types, Skills, Career

February 28, 2020 By Hitesh Bhasin Tagged With: Marketing

Telemarketing is defined as the direct marketing of goods and services to potential customers. It involves approaching, contacting or vetting to assess the interest of the customer and then follow-up to pursue a sale.

Table of Contents

Meaning of telemarketing

Telemarketing is also known as inside sales or telesales and has received severe backlash because of its invasive nature. It is one of the most popular forms of marketing that various companies use to connect with potential customers.

The process includes using multiple tools like phone calls, fax, internet and even conference calls to deal with customers. It also includes sales pitches that are pre-recorded and played over the phone through automatic dialing. Some of the industries rely more on telemarketing than other sectors. These are

Telemarketing legislations

At one point in time, most of the telemarketing companies became so intrusive that governments had to introduce legislation to curb its unpopular activities. Some states have a Do Not Call option that a subscriber can choose so that a telemarketing company cannot disturb him.

In some states, there are specific rules in place that forbids a telemarketing company to call on private numbers. As per the Federal Laws, a company cannot make direct or indirect contact between the hours of 9.00 PM to 8.00 AM local time.

The company also cannot make calls on Sunday or a holiday. Some state laws have restricted the timings before 9.00 PM and later to 8.00 AM so that the ordinary people are not disturbed.

Types of telemarketing

Telemarketing involves various activities like telesales, appointment setting, surveying, a call-to-action, and database cleaning and maintenance. The process can be divided into the following categories –

1. Inbound

In this type of telemarketing, the companies reach out to customers after inbound inquiries about services or products. The demand here is created by publicity or advertising. The inbound telemarketing includes taking orders for various products via handling of incoming calls that are generated by catalogs, direct mail, and advertising

2. Outbound

This is a type of proactive telemarketing the company reaches out to existing and potential customers actively in a straightforward manner. As more actual selling is involved in outbound telemarketing, the representatives are required to be trained and knowledgeable.

3. Sales

This type of telemarketing involves persuasive tactics by salespeople

4. Lead generation

In this type of telemarketing, the telecommuters reach out to customers after collecting information about their interests, profiles and demographic data.

Service styles of telemarketing

The service styles of telemarketing are as follows-

1. Database cleansing

The database service style of telemarketing is used for outbound telemarketing to clean the website by removing incorrect or outdated data and preparing new contact details that will be used in future campaigns of telemarketing.

2. Appointment setting

The appointment setting service style of telemarketing is used for both outbound and inbound telemarketing to create telephone or personal face-to-face appointments to create opportunities for sales

3. Call to action

The call-to-action service style of telemarketing is generally used for outbound telemarketing for getting a response from the customers

4. Surveys

The survey service style of telemarketing is generally used for both inbound and outbound telemarketing. Its purpose is to gather information and pertaining data for qualitative research from particular target markets

5. Telesales

The telesales service style of telemarketing is used for outbound and inbound telemarketing. Its purpose is to make a sales transaction over the phone through the credit card payment option.

Skills needed in a telemarketer for telemarketing

The skills required for a telemarketer for effective telemarketing are as follows-

1. Honesty

Honesty is a desired trait in human beings. The best sales are achieved by people who are honest in their dealings. They face minor issues like problems with customers and order cancellations.

2. Adaptability

A telemarketer will have to talk with numerous people in a single day that will have different opinions, tastes, preferences and queries. He needs to be adaptable so that he can face every change enthusiastically.

3. Listening Skills

Listening is an important skill to have in a telemarketer. This trait helps to listen to a person’s questions, queries, needs, concerns and doubts so that he can frame his responses as per the personal preference of the customer.

4. Resilience

An essential quality that a telemarketer should have is tenacity and resilience power. The telemarketing job is very unpredictable and a person has to face lots of rude behavior and rejections. He can make a success of his role only if he is resilient enough to ignore abusive and bad behavior and keep on working

5. Voice and tone

A telemarketer should speak in a clear and precise voice so that others can hear and understand him correctly. He should keep his tone reasonable and enthusiastic so that his approach looks convincing to others.

6. Motivation

A telemarketer should be highly motivated because his role is such that he needs to persuade others to buy from him. If he lacks this skill, then how is he going to convince others and generate lead. Moreover, he needs to be motivated so that he can contact innumerable people and still sound fresh and willing after every individual call.

7. Keen learner

A person involved in telemarketing has to be open to learning. His willingness should never be in question because his job profile is such that he will have to hold numerous conversations in a day and to be on the look-out to learn new things. This is possible only when he is a keen learner

8. Computer literate

The times are changing, and telemarketer work involves phone calls as well as web calls. If a telemarketer is not computer literate, then it would harm his job, role, and responsibility

9. Well organized

The telemarketer must be well-organized so that he can handle all his tasks in a coordinated manner.

Careers in telemarketing

The telemarketing team is filled with professionals from an entry-level position to salaried posts in management. The most common careers in this field are as follows-

1. Marketing manager

He is in charge of the marketing campaign and responsible for recruiting team members, assigning them suitable tasks, handling the budget and approving the materials that will be needed. It is a leadership role, and the marketing manager should have a bachelor’s degree in a marketing-related subject.

Several marketing managers study further and achieve advanced training or a Master of Business Administration Degree to further their prospects.

2. Copywriter

The copywriter is the person who crafts the script for phone conversations in telemarketing campaigns. It involves creating different marketing materials with versatile content. It includes white papers, eBooks, blogs, website text and advertising copy.

The copywriter should be educated with a bachelor’s degree in marketing, psychology, communications, journalism or English. He should have a portfolio of work samples that conveys his experience and ability to handle the job

3. Telephone associate

The role of a telephone associate involves working via phones to make the first contact with the customer. It does not require too much of experience because a phone associate will gain the same by seeing measuring metrics, marketing scripts and information from brand research and development.

The education of a telephone associate includes a degree or in the process of attaining a degree in marketing, psychology, communications or business. Although they do not require much work experience in case a potential candidate has it, then he gets preferential treatment over others.

Role and responsibilities of telemarketing

The roles and responsibilities of telemarketing are as follows-

Techniques of telemarketing

The telemarketing process requires an effective technique to succeed in such competitive times. These are as follows-

Advantages of telemarketing

The advantages of telemarketing are as follows

1. Human connection

The telemarketing involves human interaction that builds a connection and helps in lead generation and sales

2. Flexibility

An essential advantage of telemarketing is that it is very flexible. It is prepared to identify and understand the needs and wants of a customer and act accordingly. Surveys are conducted to know and update the changing demands of the consumer base so that the companies can move forward in tandem with the wishes and requirements of its customer base.

3. Customer service

Telemarketing helps in creating a strong customer base that is loyal and facilitates repeat orders. It has the advantage of providing excellent services and penetrating new markets.

4. Saves time and money

Telemarketing is considered a valuable tool for small business entities as direct contact via web calls and phone calls helps it in saving lots of time and money

5. Minimizes cost

Small business entities are using telemarketing to communicate and interact with the customers. The expenses incurred during field sales are way higher than those committed through the process of telemarketing and this is why it is proving beneficial for business entities

6. Compare results

An advantage of telemarketing is that it is possible to know and measure the effectiveness of advertising through this process. The telemarketing company can compare the result with previous ones to establish plans based on these results

Disadvantages of telemarketing

The disadvantages of telemarketing are as follows-

What is telemarketing? Definition and examples

Telemarketing usually means contacting customers and potential customers by telephone, but can also include using fax or the Internet. Direct mail and face-to-face meetings are not part of telemarketing. The two main categories of telemarketing are business-to-consumer (B2C) and business-to-business (B2B).

It is a widely used method of contacting people to promote products or services, raise money for charity, gather information, generate leads, and carry out surveys. With new technology, the term also includes videoconferencing calls, which in the vast majority of cases occurs with existing customers.

Political parties use telemarketing during their election campaigns when carrying out polls to determine people’s voting preferences.

According to the UK’s Direct Marketing Association: “The average ROI [return on investment] for B2B telemarketing is £11 for every £1 spent, but I’ve seen campaigns achieve ROI of 12,000%… a few phone calls to the right people can land you some big accounts.”

Telemarketing cold-calling

Telemarketing cold calling or canvassing means contacting new customers. The consumer has probably never bought anything from the company and has no idea that he or she will be approached.

Telemarketers purchase lists of names to call from list service agencies, which have information on people according to age, ethnic group, interests, profession, socioeconomic level, academic level, etc.

If a telemarketing team is tasked with promoting a lawn mower, it does not want to telephone people who live in apartments. It will purchase lists of people who have a garden, and if terms are offered, people with good credit ratings.

According to BusinessDictionary.com, telemarketing is:

“Contacting, qualifying, and canvassing prospective customers using telecommunications devices such as telephone, fax, and internet. It does not include direct mail marketing.”

Telemarketing vs. telesales

Telemarketing is a relatively recent term, while telesales has been used for a long time. Today, they are virtually interchangeable, but technically they do not have the same meaning.

Telemarketing creates prospects and lets consumers know about what a company has to offer them – it provides the opportunity for both the company and customer to get to know each other better. Telesales turns those opportunities into sales.

However, as the term ‘telemarketing’ is used often these days with the same meaning as ‘telesales’, it is best to explain exactly what you mean in more detail when using one of them.

Telemarketing is not for everybody. Like any marketing strategy, it has some disadvantages. However, for many businesses the method clearly works, otherwise it would not be so popular.

Subcategories of telemarketing

Telemarketing – a controversial subject

While telemarketing has become an extremely popular tool to promote products, it is also a divisive strategy in modern marketing, because consumers find it annoying and risky. Most people do not like being called by strangers unexpectedly.

A large number of organizations use unethical – or at least extremely irritating – practices in telemarketing. For example ‘robo-calling’, a technique that uses a pre-recorded message delivered to thousands of telephone subscribers in one broadcast – the telephone rings, you answer, and hear a promotional recording.

Ever since we first started using the telephone, it has been an important marketing and sales tool.

Scammers use the telephone to swindle people, especially elderly individuals who live on their own and have symptoms of dementia or some kind of cognitive impairment. Fear of being conned or having a family member swindled has made many people anti-telemarketing.

Telemarketing legislation

Because of scammers, as well as intrusive and unpopular methods used by a number of telemarketers, most governments have introduced legislation.

In the United States, some jurisdictions have ‘Do Not Call’ lists through legislation or industry organization. Telemarketing teams are not allowed to contact participating consumers. Companies that call people on these ‘Do Not Call’ lists are liable to hefty fines.

The US Federal Trade Commission implemented a National Do Not Call Registry in an attempt to minimize intrusive telemarketing across the country.

The National Do Not Call Registry has the following warning on its homepage:

“Scammers have been making phone calls claiming to represent the National Do Not Call Registry. The calls claim to provide an opportunity to sign up for the Registry. These calls are not coming from the Registry or the Federal Trade Commission, and you should not respond to these calls.”

If you want to work in telemarketing and have never done it before, look for a reputable company with a comprehensive training program that is selling a good product or service. Bear in mind that for the best jobs you will need to have experience, so be prepared to start at the bottom.

In the United Kingdom, you can register with the Telephone Preference Service to opt out of receiving any unsolicited phone calls. You can either register your landline or mobile online or call 0345 070 0707. The service is free and takes up to 28 days to come into effect.

Companies are allowed to call people on the Telephone Preference Service list for genuine market research purposes, provided their calls do not include any collect or marketing data for use in future sales calls. Unfortunately, many companies break and overbend those rules.

Some people protect themselves by using a call blocker. It is a device that can be attached to the telephone or which may already be part of the device. The call blocker can be used to stop different types of calls from getting through. Some of them ask the caller to give his or her name beforehand.

Telephone service providers usually have ways customers can reduce the number of nuisance calls they receive – some of their options might not be free of charge.

Is telemarketing for you?

Many people see telemarketing as a cushy and easy job. You sit on a comfortable chair in a warm room, talk to lots of people, and earn money.

In reality, however, it can be an extremely challenging, competitive and stressful job. Not everybody is cut out for telemarketing. If you hate pressure, targets and deadlines, telemarketing is probably not your ideal job.

Even though many of the required skills can be learned in training and improved over time, a good telemarketer needs to start off with a set of innate qualities.

– Listening Skills: sales is not all talk, much of it is being able to listen. Through listening to a person’s doubts, concerns, needs and questions, you can tailor what you say – or your presentation – according to their preferences. For example, if you are selling appointments to test-drive an SUV, and learn that the person is an avid angler who hates the color blue, you could try to make them imagine they are driving a reliable, silver-colored vehicle up to a well-known fishing lake nearby.

– Honesty: the best sales come from honest people. If you bend the truth there is a considerably greater risk of your order being cancelled, or problems later on with customers and other departments in your company.

– Resilience: telemarketing is full of rejection. You may call dozens and dozens of people and they all say they are not interested – sometimes rudely. You need to be the kind of individual who keeps going – tenaciously and enthusiastically – no matter how bad things appear to be.

– Adaptability: great telemarketers are highly adaptable people. Over the course of just one day, you will be talking to a wide range of people with different tastes, moods, preferences, socioeconomic and academic levels, and degrees of seniority. You need to be able to adapt your approach according to the person you are talking to and what your are promoting.

– Motivation: you need to be a highly-motivated person who can work enthusiastically under his or her own steam. Sales is a numbers game – the more people you call the more business you will generate. You need lots of motivation to contact as many people as possible, and still sound fresh and positive in each phone call.

– Voice: a good telemarketer must have a great voice. You will also need to adopt a tone that suits whoever you are talking to.

– Computer Literacy: in most cases, you will need to know how to use spreadsheets, CRM software, the Internet in general, and other computer-related items.

– Keen Learner: great telemarketing people are always willing and wanting to learn. Most telesales supervisors and managers report that their best-performing people were those most eager to learn during the training courses. You need to be the type of person who is always looking out for new things to learn from colleagues, prospects, bosses, etc.

– Faith: you must believe that you will succeed. That is what will keep you going after calling fifty people and getting nowhere.

– Well Organized: managing time zones, co-coordinating diaries, and complying with CRM protocols mean that today’s professional marketer must be very well organized. If you are tasked with making appointments for a busy team of salespeople in different parts of the country or even the world, you will need to organize not only your time, but also theirs. If you are going to talk to your prospect again, you must take notes, and make sure they are easily accessible when that next conversation takes place.

Telemarketing may not be for you if getting a regular salary is your top priority. In the majority of cases, a telemarketer’s income is linked to how well he or she performs. Sometimes the job is totally sales-related, i.e. employees earn nothing if they don’t sell.

Video – Making a fantastic telemarketing call

This Zone Marketing Global video highlights some important skills and techniques that can be extremely useful when it comes to effective preparation before you make a telemarketing call.

Telemarketing

What Is Telemarketing?

Telemarketing is the direct marketing of goods or services to potential customers over the telephone, internet, or fax. Telemarketing may either be carried out by telemarketers or increasingly by automated telephone calls or «robocalls.»

The intrusive nature of telemarketing, as well as reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash against this direct marketing practice. Telemarketing may also be referred to as «telesales» or «inside sales.»

Key Takeaways

How Telemarketing Works

Telemarketing is the practice of contacting, vetting, and approaching potential customers. It does not include the use of direct mail marketing methods.

Telemarketing may take place from a call center, an office, or, increasingly, a home. Many times, telemarketing can involve a single call to assess interest or suitability, and then follow-up calls to pursue a sale. Various data may be used to narrow down large databases of names to a small number of higher-probability customer prospects.

Telemarketing is used by for-profit businesses, nonprofit charities, political groups and candidates, surveying, donation solicitation, marketing research, and other kinds of organizations.

The term telemarketing was first used in the 1970s with the advent of a new, cheaper class of outbound long-distance telephone services and inbound toll-free services.

Types of Telemarketing Activities

The act of telemarketing can be divided into four subcategories:

Telemarketing may entail a variety of activities, such as surveying, appointment-setting, telesales, database maintenance and cleaning, and providing a call to action.

Numerous North American companies outsource their telemarketing functions to lower-cost jurisdictions such as India, Mexico, and the Philippines.

Telemarketing: Criticism and Regulation

The intrusive nature of telemarketing, together with its association with scams and fraud, has turned a vast number of people against this direct marketing method. Often, telemarketing phone calls are unwelcome, and the companies that operate in this space are persistent.

Suspicious activity together with a backlash from the public has led many countries to lay down laws and police how telemarketers can operate.

Do Not Call (DNC) registries

The United States and Canada have national «Do Not Call» (DNC) registries that give their residents a choice about whether to receive telemarketing calls at home. In the U.S., the registry is managed by the Federal Trade Commission (FTC) and enforced by the FTC, Federal Communications Commission, and state law enforcement officials.

Consumers who are registered in the DNC database can file a complaint if they receive a call from a telemarketer, which could lead to a stiff fine and sanctions for the telemarketing firm. However, calls from charities, political organizations, and telephone surveyors are permitted and therefore may be received by a consumer despite having their number listed on the DNC registry. Also permitted are calls from businesses with whom the consumer has an existing relationship, as well as those businesses where consent to call has been provided in writing.

Telemarketing sales rule in the U.S.

Other than giving people living in America the option to not be called by certain telemarketers, the FTC also:

What Is an Example of Telemarketing?

If you receive a call from somebody you don’t know who seeks to sell you products or services, you are talking to a telemarketer. These individuals contact people usually with the intention of selling something and can be very persuasive.

Is Telemarketing an Easy Job?

Telemarketing isn’t for everyone. People working in this profession are generally hung up on continuously throughout the day. After being told where to shove it, you’ll be expected to quickly make another call without losing any enthusiasm. Not everyone is capable of dealing with such rejection or able to bounce back immediately. It takes a special kind of person to be able to deal with that and stay upbeat for eight-odd hours a day. You’ll also need to be really good at selling things.

Do Telemarketers Make Money?

Yes, though how much varies by company. Telemarketers are paid by the hour, by sale, or a combination of both. Commission is often a key component of salaries as it incentivizes staff to make sales. Usually, to earn a decent wage and avoid getting fired you’ll need to make your employer money.

The Bottom Line

It’s always wise to be extra diligent when you get a cold call about purchasing a good or service. Don’t be pushed into doing anything you don’t feel comfortable with. Telemarketers can be very persuasive and talk us into doing something that maybe isn’t in our best interests.

Know your rights, don’t be afraid to ask questions, and take some time to make a decision if you need to. Most telemarketers are honest people but there are a few scammers out there, which is why we sadly always need to treat unknown callers with an element of suspicion.

Telemarketing

Telemarketing is the process of using the telephone to generate leads, make sales, or gather marketing information. Telemarketing can be a particularly valuable tool for small businesses, in that it saves time and money as compared to personal selling, but offers many of the same benefits in terms of direct contact with customers. In fact, experts have estimated that closing a sale through telemarketing usually costs less than one-fifth of what it would cost to send a salesperson to make a sale in person. Though telemarketing is more expensive than direct mail, it tends to be more efficient in closing sales and thus provides a greater yield on the marketing dollar.

Telemarketing is especially useful when the customers for a small business’s products or services are located in hard-to-reach places, or when many prospects must be contacted in order to find one interested in making a purchase. Although some small businesses operate exclusively by telephone, telemarketing is most often used as part of an overall marketing program to tie together advertising and personal selling efforts. For example, a company might send introductory information through the mail, then follow-up with a telemarketing call to assess the prospect’s interest, and finally send a salesperson to visit.

Telemarketing can be either inbound or outbound in scope. Inbound telemarketing consists of handling incoming telephone calls—often generated by broadcast advertising, direct mail, or catalogs—and taking orders for a wide range of products. Representatives working in this type of telemarketing program normally do not need as much training as outbound reps because the customer already has shown an interest by calling in.

Outbound telemarketing can be aimed directly at the end consumer—for example, a home repair business may call people in its community to search for prospects—or can be part of a business-to-business marketing program. Representatives working on this side of the industry generally require more training and product knowledge, as more actual selling is involved than with inbound operations.

Major applications of business-to-business telemarketing include selling to existing accounts, outbound new account development, inbound order processing and inquiry handling, customer service, and supporting the existing field sales force. As the costs of field sales continue to escalate, businesses are using telemarketing as a way to reduce the cost of selling and give more attention to marginal accounts. Telemarketing programs can be either handled in-house by a company or farmed out to service bureaus. Operations range in size from a one-person in-house staff member at a small business to a major corporation or service center that may have as many as 1,000 telephone stations.

One of the advantages telemarketing has over other direct marketing methods is that it involves human interaction. Used correctly and by professionals, the telephone is a very cost-efficient, flexible and statistically accountable medium. At the same time, the telephone is still very intimate and personal, one person speaking with another.

FEDERAL DO-NOT-CALL LIST

In 2003, the popular uproar against telemarketing calls grew so loud that legislators in Washington took notice and took action. Following the lead of several states, federal legislators passed a law in 2003 that made it possible for people to register to have their home phones included on a do-not-call list and by so doing «opt-out of telemarketing.» The law is the Do-Not-Call Registry Act of 2003. This act authorized the Federal Trade Commission (FTC), under sections of the Telemarketing and Consumer Fraud and Abuse Prevention Act, to implement and enforce a do-not-call registry to be established and run by the commission. The registry is nationwide in scope, applies to all telemarketers (with the exception of certain non-profit organizations), and covers both interstate and intrastate telemarketing calls. Commercial telemarketers are not allowed to call a number that is on the registry, subject to certain exceptions.

Although solid numbers are hard to find, one commonly accepted estimate is that the do-not-call regulation had cut the number of telemarketing calls by half during the first two years in effect. Telemarketing firms report seeing their lists cut from 35 to 55 percent.

The industry is still adjusting to the new reality that has been created by the do-not-call registry. They will continue to search for ways in which to generate new telephone lists that include potential clients that are not on the do-not-call list or clients who by virtue of signing up for a sweepstakes event have created for themselves a «relationship» with the seller. Companies with whom a person has done business or with whom a person has signed up for a drawing are allowed to call that individual whether or not his or her phone number is on the do-not-call list. Consequently, companies that use telemarketing are researching ways to go about rebuilding their calling lists.

Although much reduced during the first years of the 21st Century, telemarketing is still an option for some types of businesses. In particular, business-to-business telemarketing is still a useful tool within a larger marketing strategy for companies that sell to other companies.

Selling

Telemarketing can either supplement or replace face-to-face selling to existing accounts. It can complement the field sales effort by reaching new customer bases or geographic markets at relatively low cost. It can also be used to sell goods and services independently, with no field sales force in place. This method often is used for repetitive supply purchases or readily identifiable products, though it can be effectively applied to other products as well.

The inside sales force can be used to replace direct contact for marginally profitable customers. A general rule of thumb in business says that 20 percent of customers account for 80 percent of sales, so conversely the remaining 80 percent of customers generate just 20 percent of sales. But businesses must keep in mind that marginal does not necessarily mean unprofitable. And the existing customer base is perhaps the most important asset in any business; increases in sales most often come from current accounts, and it generally is less costly to maintain current customers than to search out new business, particularly with the reduction of access resulting from the FTC do-not-call list. Telemarketers can give these reliable customers the attention they deserve. The reps can phone as often as needed, determine the customers’ purchasing cycles, and contact them at appropriate reorder times.

In making such a consolidation between a direct and inside sales force, the company must be careful in determining which accounts should stay with field sales and which should be handled by telemarketing. Some businesses start their telemarketing operations with just small or inactive accounts, gradually increasing the size of accounts handled.

Lead Generation

Through telemarketing, a company can compile and update lists of customer prospect leads and then go through these lists searching for sales leads. Telemarketing can screen the leads and qualify them according to priority, passing the best leads to the field sales force for immediate action. The inside sales force also can identify the decision maker with the buying power and set up appointments for the outside sales force.

Gathering Information

Telemarketing can provide accurate information on advertising effectiveness, what customers are buying, from whom they’re buying, and when they will buy again. It is also commonly used in conducting surveys.

Improving Customer Service

Studies show it costs five times more to win over a new customer than to keep an existing one. By using telemarketing as a main facet of customer service, companies can go a long way toward keeping customers happy.

In addition, when used in conjunction with current computer technology, a telemarketing program can be analyzed in terms of costs and benefits, using quantitative data on the number of contacts, number of presentations, total sales, cost per sale, and income per sale.

ESTABLISHING A SUCCESSFUL PROGRAM

Not all telemarketing programs are successful. Improper execution, unrealistic goals over a short time period, oversimplification, and lack of top management support have caused the ultimate failure of more telephone sales programs than can be imagined. Like any marketing strategy, telemarketing takes time to plan and develop. It takes time to gain confidence in the message, to identify weak areas, and to predict bottom-line results. Some of the most common telemarketing mistakes include: not giving it a total commitment; not utilizing the proper expertise; failing to develop a proper database; improper human resource planning; lack of proper scripts and call guides; lack of quality control, and failing to understand the synergy with other direct marketing disciplines. To create a successful telemarketing program, management must understand and agree to the necessary personnel and financial resources, as well as devoting adequate time for program development and testing. Telemarketing and related direct marketing techniques can produce solid sales. But they need a chance to develop and demonstrate that success. Very simply, it takes time.

Experts agree that companies must be careful in forming telemarketing goals and objectives. Some of the most important factors for success include: developing a complete marketing plan with built-in criteria for accounting and analysis; writing scripts, sales outlines, and presentations to be performed; establishing training and hiring procedures for both supervisors and sales personnel; analyzing and evaluating campaigns, personnel, and cost effectiveness; having support and commitment from management for the telemarketing’s role in the overall marketing effort; establishing reachable goals; and placing a continuous emphasis on follow-up.

IN-HOUSE VS. OUTSIDE SERVICE BUREAUS

When establishing a telemarketing program, a company has the option of setting up the operation in-house, or subcontracting it to an outside service bureau. Both have advantages and disadvantages. In-house programs usually are better if products and/or services require extensive technical expertise to explain. They also can be better for firms making a long-term commitment to telemarketing. Service bureaus, on the other hand, can help firms that need around-the-clock coverage for inbound programs, are supporting television ad campaigns, or are running a seasonal marketing program.

Service Bureaus

One of the main advantages of service bureaus is that they likely can offer lower costs. By grouping programs from several different companies, service bureaus can generate sufficient volume to reduce labor and telephone costs, which make up a majority of total costs. They can also get a program started more quickly because they have experienced telephone reps on staff, along with necessary equipment.

When 24-hour coverage is needed on an inbound telemarketing program, it probably is more cost-effective to go with a bureau. When setting up an outbound program, the experienced managers at a bureau can help a company avoid making mistakes and often can accurately project call volumes and sales per hour. Service bureaus also can help with testing new programs and have a greater ability to handle demand peaks.

On the downside, several client companies often must compete for a service bureau’s attention, and for firms that share service with a broadcast advertiser whose response rates are underestimated, that can be a decided drawback. Stability of service bureaus has also been a problem at times.

In-house Operations

The main reason companies decide to run their own telemarketing campaign is that they can maintain total control over all facets, including hiring and firing, scripts and presentations, budgets, advertising, and compensation and incentive policies. When telemarketing programs are kept in-house, phone reps have ready access to company information, so they can confirm delivery, authorize credit, and suggest alternatives to out-of-stock items.

Since in-house reps are trained on individual product lines, they can handle highly technical calls no service bureau likely would attempt. Such technical expertise also helps companies maintain effective customer service programs through observation (such as via call monitoring). In addition, it is easier to gain company loyalty from actual employees than from people employed by an outside bureau. The biggest drawback to taking a program in-house is the large capital investment needed to get a telemarketing program started. It involves hiring and training new personnel, purchasing new communications equipment, and dealing with a process that is unfamiliar to many in business.

TECHNOLOGICAL AND HUMAN ELEMENTS

Computers have played an important role in the growth of telemarketing. Access to databases provides phone reps with account histories, stock status, order-taking formats, and other vital information. Besides analyzing data, computers are used for scheduling, scripting, and follow-ups. Computers also can be programmed to automatically dial phone numbers and connect the calls to telemarketers only if they are answered, screen out answering machines, and guide the phone rep through the telemarketing presentation.

While technology plays a vital role in keeping telemarketing cost-effective, the human element is critical in making the effort successful. Unfortunately, many firms still view telemarketing positions as clerical-level jobs staffed by people with few skills, no training, and little understanding of the product or service being sold. Often, the manager of a telemarketing operation is the only person in an organization familiar with the discipline. Some firms, though, have come to realize the importance of the telemarketers, as the firm’s image is on the line with every call. They realize the position needs skilled, trained professionals who must be adequately compensated.

For compensation, most companies use a combination of salary, commission, and/or bonuses. Studies indicate that incentives generally aid in sales success, but it is important to link the inducements to the performance desired, be it total sales, calls completed, or presentations given. Some form of quotas are also commonly used so that sales reps know what is expected of them. Firms should be reasonable in setting quotas. If the goals are too high, the reps will become frustrated, leading to morale and worker retention problems. Conversely, low quotas can create an environment in which effort is lacking, especially if the compensation package in place is heavily weighted toward base salary.

Telemarketing positions typically show high levels of turnover, in large measure because the majority of interactions with potential customers end in rejection. Working shorter shifts or using computers to prescreen customers can help reduce the amount of rejection telemarketers experience. Training is another important factor. If the individuals that comprise your telemarketing staff are trained to be specific, control the time and pace of conversation, ask questions and listen without interrupting or rushing the customer’s response, and respond to objections or concerns in a positive manner, they will experience greater levels of success—and hence, a more positive outlook on their duties.

BIBLIOGRAPHY

Cleveland, Brad. «What You Need to Understand About Abandoned Calls—How to lower your call center’s abandonment rates.» Call Center. 1 April 2006.

«DirectTV to Pay Record Fine for Do Not Call Violations.» The Computer & Internet Lawyer. February 2006.

McCullagh, DeClan. «Hanging Up on Telemarketers.» CNET news.com. 1 October 2004.

McLuhan, Robert. «Warm Calling Builds Results.» Marketing. 5 August 1999.

Rosen, Judith. «Telemarketing: Pros and Cons.» Publishers Weekly. 11 January 1999.

U.S. Federal Trade Commission. National Do Not Call Registry. Available from http://www.ftc.gov/donotcall/. Retrieved on 23 February 2006.

«Where Marketers Can Obtain State Do-Not-Call Lists.» Direct Marketing Association. Available from http://www.the-dma.org/government/donotcalllists.shtml. Retrieved on 10 May 2006.

Wilkins, Tony. The Telemarketing Success for The Small to Mid Size Firm. Xlibris Corporation, 2004.

Telemarketing

What Is Telemarketing?

Telemarketing is a form of direct marketing that is used to generate leads, gather marketing information, and/or complete a sale through a phone conversation with a potential customer. Sales pitches that are recorded and played over the phone automatically when dialing a certain number are also considered telemarketing. However, this form of engagement with a potential customer has received less support in recent years with the reputation of being annoying and impersonal.

Examples of telemarketing include:

Telemarketing vs. Cold Calling

Telemarketing is often confused with a cold calling outbound channel. However, although both techniques use a telephone as the main way of contacting a potential prospect, the final goals of these calls are different and used for varying reasons. Telemarketing is more of a B2C form of communication where any engagement with a prospect counts. Cold calling has a more narrow focus, which includes targeted B2B sales where the final purpose of the talk is signing a deal.

Types of Telemarketing

The most common types of telemarketing include outbound calls, inbound calls, lead generation, and sales calls:

Example: An IT-company reaches out to their clients to introduce a new paid feature for their software. The main goal here is to raise awareness and increase sales conversions for the new product.

Example: A prospective customer sees a Facebook ad about new graphic-design courses and contacts sales representatives to find out more information, and possibly sign up for the course.

Telemarketing Advantages and Disadvantages

Telemarketing, the same as any other sales method, has both pros and cons. To make your decision about its efficiency for your business, make sure to understand both sides.

Advantages of using telemarketing include:

Disadvantages of telemarketing include:

How Much Telemarketing Costs

However, cost-efficiency isn’t the only reason why it is better to outsource telemarketing rather than having an in-house team. Other reasons include:

Overall, outsourcing telemarketing is beneficial for both your business and the call center you outsource to. You can cut costs and optimize the sales process, and they often receive higher salaries than average market salaries and get extra job opportunities. If you don’t know how to choose a perfect outbound cold calling center, check our guide dedicated to this topic.