Why Outsource Telemarketing?

The Environment For Telemarketing

The economy is in a very difficult position at the moment whereby almost all industries are facing a down turn.

The retail industry reported its worst March on record and other industries (such as the automotive industry, engineering industry and construction industry) are facing big issues of work either going overseas, or just drying up.

As a result, many businesses are looking for urgent support in generating new sales enquiries and business opportunities.

Due to struggling markets, pro activity is needed within the marketing program as opposed to more passive forms of marketing. Telemarketing is normally the main marketing tool that is called upon by businesses as a way to generate new sales leads, new sales opportunities and new clients (due to it being the most pro active of all marketing services).

Keep Telemarketing Internal Or Outsource?

However the problem exists, do businesses handle this telemarketing work internally or outsource it to a specialist telemarketing company?

There are a few benefits in keeping telemarketing internal, the main one would be product knowledge. Internal staff will have more experience of your product/service than an external source.

Benefits Of Keeping Telemarketing Internal

The core benefit would be product or service knowledge. Staff that are in house will almost always have a better understanding of the company, services etc.

Benefits Of Outsourcing Telemarketing

There are a few key factors that would make outsourcing telemarketing a good option:

  • Training And Recruitment Costs

If you use someone internal to do telemarketing, you will need to recruit the right sort of staff, train them on the sales process, incentivise them and keep them.

This can be an expensive process as good staff are hard to find (as any business owner will understand).

In outsourcing telemarketing all the costs related to training and recruitment are covered. All incentives and bonuses are covered to ensure that staff are keen to achieve result

  • IT Costs

The more staff that are needed to call, the more the support costs will go up. This would include a computer, phone system, but also computer and software licences, e-mail support and networking costs. In the computer age the costs of support is normally quite high and there are always computer issues that arise.

In outsourcing telemarketing all the IT costs are covered as part of the quoted costs.

  • Space

Staff need space to work in. The more staff that are needed for calling, the more space is needed. This is not just space for the staff to work, but also toilet facilities, meeting rooms, training areas, IT support space, kitchen/recreation areas etc.

There will be no costs involved in outsourcing telemarketing as they would be covered as part of the quoted prices.

These are the three main benefits of outsourcing telemarketing to a specialist company. The other one would be results. The telemarketing company would already have staff in place, so results should be quicker to achieve as the infrastructure is already in place, training and IT systems.

The up front costs of telemarketing may well be higher on the surface, however considering all aspects of training, IT etc. the costs may well not be as high once compared like for like.

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The Negative Effects of Working With Inexperienced Telemarketers

Having a good lead generation campaign, will help the lead generation process in getting more quality sales. This is why a lot of business owners, especially those in the business to business industry are interested in hiring B2B telemarketers for their campaigns. But that doesn’t mean that they have been successful in their first telemarketing experience. They quickly assume that any agent with experience will fit their needs. It is a common mistake, and instead of finding a quality service provider they would prefer the cheapest telemarketing company they can find. They don’t want to spend too much thinking that if they don’t like the service they can just easily end the campaign.

Being that this will be the first time they will try business to business telemarketing for their company, it’s understandable that they are squeamish about spending a lot. However, these cheap, overly-eager “telemarketers” can actually cause more harm for your business. They are often unprofessional, lack proper training, uninformed about proper telemarketing practices (such as the proper time to call, how to use voicemails, and when to follow-up). Think about it this way, when you hand over your business list to these people, there is a large chance that they will all decline your offer; they could be forced into a business appointment with your sales people which is actually a waste of everyone’s time; or worse, your company could be reported to authorities for improper telemarketing practices. Your maligned business sales leads could also post offensive and negative comments about your business on various social media sites. Your business sales leads and all types of customers in general will measure your company’s authenticity and reliability based on the first communication you initiate with them. Imagine the stigma that would leave on the name your company. Telemarketing in itself may have a bad reputation, but businesses labeled as telemarketing offenders are even more vilified. You would have no other choice but to rebrand all over again!

All these harmful effects could have been easily avoided by doing proper research to make sure that only certified, professional business to business telemarketers handle all your cold calling processes. In fact, the longer you take to choose your telemarketing representative, the better choices you will have. It’s not about the cheapest, or even who can set up the entire telemarketing campaign the fastest. The important thing is to hire or outsource to the most reliable b2b telemarketing service provider in your industry. Even if it’s a bit more costly that most, at least you can be assured that the integrity of your company name, the welfare of your business leads, and the security of your business are all in good hands.