Telemarketing – cost effective or just plain costly?

Discussion in 'Press Releases' started by ebonybailey, Apr 25, 2007.

  1. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Telemarketing – cost effective or just plain costly?

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    Marketing by its very nature is a volatile beast at the best of times and with the maze of marketing activities on offer, it can be difficult to determine the most effective route to pursue.

    A successful marketing campaign takes planning enterprise, and smart use of a company’s resources, whether they are in-house or outsourced. Michael Jackson of EB Marketing suggests that Telemarketing is one of the most successful forms of marketing available and in fact gives one of the best returns on investment.

    Whilst on the oustide the telemarketing approach may look like a simple and easy way to generate new business is not as straightforward as it first may seem. To the contrary, it requires good communications between the telemarketing company and the client through both the good times and the bad. It also requires a new vibrant way of approaching telemarketing to be a success and with cost effectiveness at the forefront of any campaign; it must ultimately demonstrate measurable results.

    It is common practice for many telemarketing agencies to offer either appointment setting or lead generation, so why do they not offer both? And why not at no extra cost?

    Enter Pipeline Management

    Pipeline management is simply the process of arranging appointments where the potential client is ready to discuss requirements of whom has a budget, and who plans to make the changes now.

    Generating leads for those who show similar interest but suffer from budget issues or for those who are awaiting budget, requires more work and effort, but results in a bigger pipeline for the client.

    Naturally budget is an important factor in any marketing activity, and clearly the Pipeline Management approach is a double winner: the client gets more for their money, and the telemarketing company is able to build a long-term relationship as a result of the size of the pipeline they have built over time.

    But offering Pipeline Management alone will not guarantee a long and happy client relationship – they must be offered more.

    Lead Qualification

    It’s one thing for someone to be interested in meeting; it’s another to know why. Qualifying appointments and leads is paramount.

    Clients must ask themselves:

    • What issues are you currently facing?
    • Who is this a problem for?
    • Who will make the final decision?
    • When will the final decision be made?
    • Has budget been allocated to this project?

    The object of this exercise is simple - to provide a leading edge against the competition, and most importantly when walking through a prospects door you are armed with the relevant information to wow them and close the deal.

    The real value of telemarketing

    The biggest problem many face is the decision on whether telemarketing is the right choice and generally it is an activity that suits everyone. However it is important to take into account the cost of the campaign against the cost of the service or product being sold.

    The ideal length of an initial campaign can and does vary, but generally clients should look at no less than 10 days and the average is nearer to 20 days.

    Because a campaign never finishes in the same way it started due to changes and improvements, a small pilot campaign is always sensible. Many companies agree to 3-month contracts without any prior experience of a telemarketing company, so it is vital to make sure their ability is tested before signing on the dotted line for longer-term campaigns.

    It is advisable never to buy data through a telemarketing company as companies like Corpdata provide similar information directly, and the data will belong to the client rather than the telemarketing company.

    If carried out appropriately, telemarketing is one of the best ways to generate new business, but it is not a simple, quick fix approach and requires a dedicated telemarketing team who understand the needs of the business. Do not see them as outsiders to the business but as an integral part of the sales force and as such, they require the same input and communication as internal sales and marketing departments.

    Ultimately the success of the campaign should never be based on the number of appointments; but on the quality of those appointments.
     
    Posted: Apr 25, 2007 By: ebonybailey Member since: Jun 5, 2005
    #1
  2. LankyMac

    LankyMac UKBF Newcomer Free Member

    54 0
    This is good advice for anyone thinkning about telemarketing!!

    Apart from the bit about buying data from corpdata as they buy from the company I represent! (Sorry, had to get my bit in!)


    But, seriously this is very good advice!

    Kind Regards

    Darren
     
    Posted: Apr 25, 2007 By: LankyMac Member since: Jan 27, 2004
    #2
  3. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Darren

    Thanks. Seem to have a good response from it.
     
    Posted: Apr 26, 2007 By: ebonybailey Member since: Jun 5, 2005
    #3
  4. Hobbit

    Hobbit UKBF Newcomer Free Member

    39 0
    It would be great to find a telemarketing solution that worked. We used to have staff that did telemarketing, but it never worked out for us.
     
    Posted: Jul 24, 2007 By: Hobbit Member since: Jul 24, 2007
    #4
  5. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Hobbit

    Carrying out telemarketing brings in many other areas of amrketing whether you know it or not, for example you may have a signature on your email with a link to your website so they click on it so your website has to look good, proffesional and easy to use.
    I try to be honest with clients from the beginning, if there website needs work I tell them, and in your case this is an issue, I see from your website that the services you offer are very good and I can see it being a hit withthe SME market but the site needs some major redesign work for it to look the part. Maybe that is half the problem with your telemarketing , I can only hope that you are not pointing them to the website. Please do not take this in the wrong way it is meant to help. You are not ready for a telemarketing campaing yet, get your website redone first.
    That said I am happy to have a chat to discuss best practises.

    Michael
     
    Posted: Jul 25, 2007 By: ebonybailey Member since: Jun 5, 2005
    #5
  6. ricky776

    ricky776 UKBF Regular Free Member

    212 5
    this is really good advice
     
    Posted: Jul 31, 2007 By: ricky776 Member since: Jul 31, 2007
    #6
  7. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Thanks Ricky.
     
    Posted: Jul 31, 2007 By: ebonybailey Member since: Jun 5, 2005
    #7
  8. betterlanguages

    betterlanguages UKBF Newcomer Free Member

    119 3
    Not sure telemarketing really works, suppose it depends on the product. I get really annoyed by unwanted telemarketing calls. Definate waste of money.

    Regards

    Mike
     
    Posted: Jul 31, 2007 By: betterlanguages Member since: May 14, 2007
    #8
  9. Phil101

    Phil101 UKBF Newcomer Free Member

    18 0
    I once went for a job interview for telemarketing for a company called Momenta. Their product was to sell childrens road safty products in the UK and Sweden. Some of their products were actualy quite impressive such as childe tracking euipment for camping and so on. I believed in their product but they were in at start up in the UK. Now concider that pay is only based on commision. I couldnt take the risk at the time and to be honest from what was explained to me no matter how much i believed in their product, i didnt believe in telemarketing.

    Its just cold calling at the end of the day like spam but not online.
    It dosent matter how specialised your call ist is at the end of the day
    its just stabbing in the dark when their are lots of better methods to
    getting your product out there without having to spend loads just to
    get a telemarketer trained, set up and paid.
     
    Posted: Aug 3, 2007 By: Phil101 Member since: Aug 1, 2007
    #9
  10. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    It does depend on the product/service but to say its a total of waste of money is just stupid, if that is the case why do people use our services and why are they successful? May be a waste of time for you but not for others, it comes down to morals, i have turned people away and told people from here to look at other areas as i felt telemarketing was not for them.
     
    Posted: Aug 7, 2007 By: ebonybailey Member since: Jun 5, 2005
    #10
  11. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Its just cold calling at the end of the day like spam but not online.
    It dosent matter how specialised your call ist is at the end of the day
    its just stabbing in the dark when their are lots of better methods to
    getting your product out there without having to spend loads just to
    get a telemarketer trained, set up and paid.[/QUOTE]

    A bad telemarketing campaign is stabbing in the dark a good telemarketing campaign is targeted, if you call up a bunch of local business's trying to sell them the same thing, you will find that a high perscentage will be a waste of time, If targetted to a specific group who you know are interested in your type of service and you havea good service to tell then itis very valueable.

    I would also add you have to believe in the product your selling people can sense if you dont, we wont take anything on we do not beleive will work.
     
    Posted: Aug 7, 2007 By: ebonybailey Member since: Jun 5, 2005
    #11
  12. betterlanguages

    betterlanguages UKBF Newcomer Free Member

    119 3
    Sorry, maybe I wasn't clear enough in my comment. I wasn't saying all telemarketing is a waste of money, rather that my experience of it as a consumer is a waste of money for the people paying for the service. Why? I always get calls at inapproriate times, trying to sell products I don't want. The worst part is when companies keep ringing regardless of repeated requests to be taken off their database. My suspicion is that each call gets classed as a "lead" and is therefore paid for by the end client, irrespective of outcome. I've also experienced quite "strong arm" sales techniques, trying to book appointments. Again the suspicion is that the telemarketing company in these instances is paid per appointment. Both of these approaches give the industry a bad name.

    Regards

    Mike
    www.betterlanguages.com
     
    Posted: Sep 5, 2007 By: betterlanguages Member since: May 14, 2007
    #12
  13. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Mike your first point about consumer calls is from telesales people, not telemarketing, and as you rightly point out the company that is setting appointments is obviously paid per appointment, something people should stear clear from for that very reason.

    Michael
     
    Posted: Sep 5, 2007 By: ebonybailey Member since: Jun 5, 2005
    #13
  14. DarrenC

    DarrenC UKBF Newcomer Free Member

    1,315 8
    Michael, interesting press release.

    How do you get around potential customers who think that any company who emails, or telephones to promote their service, is not to be trusted and isn't professional?

    I hear and see this alot, and that's why I rely 100% on people finding my site in the search engines. It's not ideal, but I wouldn't want to be tarnished as unprofessional.

    A quote from one potential customer on a forum

     
    Posted: Sep 9, 2007 By: DarrenC Member since: Dec 9, 2005
    #14
  15. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Darren

    In regards to the quote, that person is an idiot, what did people do before the internet?. Or are they suggesting that the internet is the only form of marketing, and why does it mean that if you are using email, which at the last look was internet based or using the phone mean that you are not markting your business properly? if anything a good business is doing all of the above, either that person is new in business, failing in business or is a ppc provider!!!

    In regards to your question, you can only tarnish your business on the phone if you have some half wit making calls for you, who does'nt understand the product or is just no good at his job, if you hire a good company that understands your product, understands your customer, USP's and has experience of delivering a good service you can't go wrong. Why don't quite get the "can't be trusted and is'nt proffessional" bit.
    I think they may be talking about telesales people, not teemarketing people, you know the type, double glazing calls and the like, where you have some 16 year old being paid peanuts, or a call centre in india with a strong indian ascent called Malcolm. Telemarketers deal with high value products and services that can not be sold over the phone by getting someones creditcard details, they arrange meetings, generate leads etc.

    I hope this helps.

    Michael
     
    Posted: Sep 9, 2007 By: ebonybailey Member since: Jun 5, 2005
    #15
  16. DarrenC

    DarrenC UKBF Newcomer Free Member

    1,315 8
    Thanks Michael.

    Great explanation.
     
    Posted: Sep 12, 2007 By: DarrenC Member since: Dec 9, 2005
    #16
  17. stephendoyle

    stephendoyle UKBF Newcomer Free Member

    657 41
    "if you hire a good company that understands your product, understands your customer, USP's and has experience of delivering a good service you can't go wrong"

    Hi Michael,

    great press release and good sound advice.

    telemarketing should always be considered as its another way to market but is mostly overlooked.

    all my businesses have been based on direct makreting methods and having a mix such as telemarketing, fields sales, affiliates etc....

    i would always run telemarketing with other direct channels such as email marketing, sms, lead response and referral etc....

    again good article Michael.

    Stephen Doyle

    m: 07877658579
    w: www.ccuk-ltd.com
    e: [email protected]

    Super Human Sales Training
    & Killer Copy Writing
     
    Posted: Sep 12, 2007 By: stephendoyle Member since: Mar 7, 2007
    #17
  18. ebonybailey

    ebonybailey UKBF Big Shot Free Member

    3,043 160
    Thanks guys. I am very passionate about what I do, and I think some people get confused about what it is we do, I think part of my job is to educate people about how they do their telemarketing, for example peoples natural thought process is to go for appointment setting, that is nly half the battle, using pipeline management were you are getting short, meduim and long term leads as well is a much better use of our services, let's be honest most people will not make a snap decision over the phone and it may be that the value of the product or service is too expensive to be purchased with a click of the fingers, it may require budget, which is why we get busy in September because people know that budgets come into play in 3 months, so you need to get in the door or at least be making regular contact now.

    Michael
     
    Posted: Sep 12, 2007 By: ebonybailey Member since: Jun 5, 2005
    #18
  19. Yourlocaltrades

    Yourlocaltrades UKBF Newcomer Free Member

    436 32
    I have looked into tele-sales, we had a local company saying "you only pay for leads" but after seeing them, its £750 upfront and £750 four weeks later, and £35-65 depending on how long it takes to get your "leads". i have done tele-sales aswell as door to door, both i found quite easy, i call people now myself from home, i would love to have a "tele-sales campaign" but what a rip off!! (not in all cases, just this one)
    If someone spoke to me about a campaign i would be interested, but this company in particular must of been wearing a balaclava, i swear they were trying to rob me!! i did tell them with there follow up call, that i forgot to mention i have been in sales for ten years, haven't heard from them since!!
     
    Posted: Sep 21, 2007 By: Yourlocaltrades Member since: Jul 18, 2007
    #19
  20. Fred333

    Fred333 UKBF Newcomer Free Member

    75 1
    That is the key have to know you r target market and product or service. That is how you know if telemarketing will be for you or not.
     
    Posted: Oct 11, 2007 By: Fred333 Member since: Oct 2, 2007
    #20