The Telemarketing Effect

I remember when I started my first business back in 1997. I expected floods of customers as soon as the doors opened. How wrong I was! I soon learned that its important to drive customers to your door. Your customers are out there....hundreds of them. Funnily enough they have no idea that they are your customers. You need to get in touch and discuss what your business offers.

Most people know by now that direct marketing is one of the most potent forms of marketing and selling available. I believe that Telemarketing sits on top as THE most efficient way to legally mass market. A close second is fax marketing.

Its great because it's cost effective and builds brand awareness. More importantly, it works. It works because the caller is able to contact around 200 people per day. Out of those 200 people approximately 5% express a genuine interest in the product or service being offered. These are called leads. Leads gathered this way are very valuable. On average we find that leads convert into sales at approximately 48.80%.

On average we find that leads convert into sales at approximately 48.80%.

Lets consider an example. In this example a business used Telemarketing to generate 20 new leads per day to their business. After accounting for the cost of the telemarketing as well as costs of production etc; the NET Profit was $45000. How you say? Lets take a close look at the numbers. They reflect an average business selling products at a price of $300. Each product costs $150 to produce. After all things considered they banked $45K after 3 months. To some companies this is peanuts...not in my book, but you will have to agree that the Return On Investment (ROI) is very good with telemarketing.

Before you get over excited....it's important that you have realistic expectations! If your profit margin is very slim, you will need to do some math to see if telemarketing will work for you. For example say each lead that we provide costs $30 but you only make $30 profit per sale without telemarketing. Clearly it would be pointless to pay for a telemarketing campaign that makes you $0.00 per sale (Well...I suppose there is recurring sales to consider). But for the most part, companies experience a profit margin that exceeds the cost per lead by a long way!

The other thing to consider is your sales technique. You will need to be prepared to deal with 20-30 hot leads each week. If you dont have time to call them, you will miss out on sales. I recommend that you get a sales script ready in advance. Even better, hire a dedicated sales person!

Now Some Telemarketing Facts - By Willy Harper

Telemarketing sales is commonly recognized as telesales in many countries. Outbound telesales is generally a technique of direct selling, where a seller requests potential clients to purchase services or products, during the telephonic conversation or during Web conferencing or else through a personal appointment planned in the course of the call.

Outbound telesales helps to generate sales, which is crucial for a company to continue to exist. A lot of companies make use of telemarketing sales method to boost their sales figures. An efficient telemarketing method generally includes two calls, but at times it might require even more calls. The opening call ascertains the consumer’s requirements, while the second call inspires the consumer to go for a purchase.

Telemarketing sales may well include either a pre recorded telephonic message or a live caller and can be executed from office, home or a call center.

Telemarketing + Follow Up = SALES AND PROFITS