Telemarketing

Telemarketing is a form of direct marketing: the messages are delivered individually to potential customers. It requires an immediate response – when the phone rings, the natural response is to answer it. It provides a company with immediate feedback – you can find out what a potential customer thinks straight away. It also provides a captive audience – the person who answers the phone usually stays to listen for a few minutes. The success of telemarketing campaigns is measured in the cost acquisition, cost per acquisition, cost per inquiry (CPI) or cost per order.

With outbound telemarketing, telemarketers (also known as telemarketing operators) call prospects (potential clients) from a list. Lists can be bought from list brokers. A cold list is a list of people who have had no prior contact with the company. Calling the people on the list for the first time is known as cold calling. A qualified telemarketing list includes the details about prospects who have the need or authority to purchase.

Common reasons for cold calling include:

ü lead generation – contacting cold prospects (people who don’t yet have a relationship with the company) to create hot contacts (people who are ready to buy)

ü phone sales – selling services over the telephone

ü appointment setting - making an appointment for a sale rep to meet the prospect.

Follow-up calls may take place after a mail shot or a trade show. Telemarketers try to convert these leads into sales. This is called lead conversion. Voice broadcasting is a cheaper form of outbound telemarketing. Instead of having a live operator – that is, an actual person – a recorded message is played to the prospect or left on their answering machine.

With inbound telemarketing, clients call the telemarketing firm, perhaps in response to an advert, to place an order, to make a reservation or contact customer services.

Telemarketing operators are trained to deal with objections (reasons people give for not buying). Telemarketing scripts list the questions that must be asked and what must be said to reassure the potential client.

Comprehension questions:

1. What is telemarketing?

2. What is a cold list?

3. What do common reasons for cold calling include?