Bytestart - The online small business portal
Search over 1500 Articles!


SEO Startup - Create and manage your own professional website and use the Search Engine Optimisation features to get your site noticed by Google. All for just £200 + VAT Click here to find out more.


Telemarketing – cost effective or just plain costly?

 print  e-mail 

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 outside the telemarketing approach may look like a simple and easy way to generate new business it is not as straightforward as it first may seem.

Successful telemarketing 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:

  1. What issues are you currently facing?
  2. Who is this a problem for?
  3. Who will make the final decision?
  4. When will the final decision be made?
  5. 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.


About the Author
Mike Jackson is director of telemarketing company Ebony-Bailey Marketing. This article is provided for general consideration only and the information contained herein is not to be acted upon without professional independent advice.

Posted March 7, 2007


Related Articles


Latest articles in Sales Guides
 
How to sell to the big retailers
[April 30, 2008] If your new business makes a product that you want to sell to the general public, then one of the most important factors in your future success will be great distribution.
 
Do you know what your sales people are saying to your customers?
[March 18, 2008] Do you really know what your sales people are saying to your customers? Here are some of the common mistakes you must stop your sales people from making, otherwise your customers will desert you.
 
7 offline ways to publicise your business
[March 6, 2008] Promotional activity in the real world can be just as beneficial for publicising your new web venture. Here are seven proven ways to publicise your new business website.
 
Why we fear selling and how you can overcome it
[November 13, 2007] The fear of selling is something which most first time business owners suffer from. In this article we look at what lies behind a fear of selling and what you can do to overcome it.
 
Cold Calling - Cherry picking your prospects
[September 20, 2007] Cold calling and sales performance expert Andy Preston explains the underlying causes of this ‘cherry picking’ behaviour, suggesting that sometimes the most unlikely call could be the one which results in big business.
 
Making your first sale - Practical Tips
[June 21, 2007] Some practical advice for new businesses looking to secure that all-important first sale!
 
Body language - Actions speak louder than words
[May 31, 2007] How you can use your knowledge of body language to build trust and help close your next deal
 
Cold-calling strategies for success
[April 24, 2007] In the business-to-business world, a well-executed cold call can be one of the fastest and most cost-effective routes to new business - yet most people never learn to do it properly. Here are some strategies to help you succeed.
 
Sales techniques - are these 3 common sales mistakes holding you back?
[April 16, 2007] Whilst the technology revolution has enabled many businesses to become more efficient in their day to day activities, it could also be, unwittingly, hampering sales efforts.
 
Telemarketing – cost effective or just plain costly?
[March 7, 2007] Telemarketing can be an effective way to get new customers. Many telemarketing companies offer lead generation and appointment setting services but there are several factors you should consider before appointing an agency.
 
Our Partners
Hiscox Office Insurance
Instant Online Quotation

Bibby Financial Services
Funding your business

Cashflow Problems?
Try Invoice Financing

Save on Car Rental
Discounts with Budget

Public Liability Insurance
Get online cover now

Company Information
Online credit checking

2 Years FREE Banking
Alliance & Leicester

Company Formation
Instant online setup!


Key Services
£20 Free Postage
& 30 Day No Ties Trial

SEO-friendly website
for just £200

Virtual Office Service
For full details click here.

FREE Call Answering
Hot Office - More info

Click Here - Alliance & Leicester

Sales Guides

Marketing Guides

PR Guides

Online Marketing

Click Here