Telemarketing
What do cars, art, service
agreements, fine wines, books, wigs and stocks have in common? They
can all be sold by telephone. According to Dr. Gary Goodman, an internationally
known telemarketing expert, companies are proving it every day.
A telephone company used
to claim, "It's the next best thing to being there." When used effectively
for sales and marketing, the telephone may actually be better than
being there.
Is the traveling salesperson
at the end of the road?
It is still true that face-to-face
communication is more personal and in some instances necessary. However,
in this fast-paced world in which we do business, the time needed
to make all sales through face-to-face contacts and the costs of travel
may be an expensive luxury for both the seller and the buyer.
According to Goodman, the
average cost of a sales call in an urban market is between $160 and
$300, whether a sale is made or not. In more remote areas where the
miles between customers add up, that cost can multiply faster than
the frequent flier points you accumulate.
Telemarketing isn't new.
Sophisticated telemarketing is.
Telephone selling has been
around for a long time. In the past, even poor salespeople could count
on getting sales with the telephone. Their limited success, however,
had to do more with the law of averages than professional technique.
Because we can reach so many people by telephone in a short period
of time, the law of averages says, if you reach enough people, you
are bound to get some sales.
Telemarketing is becoming
increasingly popular with companies trying to budget time, human and
financial resources. Telemarketing is especially cost-effective for
selling and servicing the needs of small and medium-sized customers
or for customers in more remote rural areas.
In addition to actually
generating sales, telemarketing can be used to:
- Generate leads or prospecting.
- Provide customer service
and support.
- Retain existing customers
with regular contacts.
- Obtain and update customer
information.
- More than just dialing
up
Telemarketing activities
are effective only when they are integrated with the company's overall
marketing plan. Effective telemarketing strategies must be planned,
managed and measured for results. Telemarketing strategies include:
- Development of a customer
database.
- Setting realistic goals
and targets.
- Training the telemarketers.
- Developing a good script.
- Evaluating the quality
and quantity of contacts.
Sophisticated telemarketers
are professional communicators who can listen, ask questions and stimulate
a positive dialogue with a potential customer. Laws like the Telephone
Consumer Protection Act protect the public from pushy, aggressive
and irritating telephone sales. If you use telemarketing as a sales
strategy, be aware of current and changing legislation which could
affect how, where and when you contact potential customers.
Only the skilled succeed
The skills of a telemarketer
can make the difference between success and failure. Effective telemarketers:
- Express confidence in
their voice.
- Speak grammatically.
- Listen effectively.
- Project a positive and
professional image through the telephone.
- Manage time and information
efficiently.
- Have in-depth knowledge
about the product or service they are selling.
- Have the self-confidence
to handle rejection.
The lost and found
Another effective use of
the telephone for marketing strategies is to contact inactive customer
accounts or lost customers. According to a study published in Small
Business Reports (August 1993), companies can reactivate 20 percent
of their "dead" accounts by setting up a telemarketing program. A
telemarketing program to reactive lost customers should include:
Feedback on reasons why
the customer left.
- Techniques for correcting
problems.
- Customer incentives
for "buying again".
- A system for tracking
the information gathered for improving customer loyalty.
- Mind your manners
Telephone etiquette is
as important as the sales pitch in a telemarketing campaign. Tips
for minding your telemarketing manners:
- Introduce yourself and
your company.
- Ask permission: "Do
you have 5 minutes to answer some questions?"
- Keep the sales pitch
brief and to the point.
- Do not use trick questions
to try to get information.
- Do not use guilt or
intimidation to try to get a sale.
- End with a polite "thank
you".
- If the telephone contact
does not result in a sale, at least it can leave a positive image
of the company with the potential customer.
Inbound telephone services
A popular technique for
using the telephone to increase sales is inbound services. Toll-free
(1-800) numbers for advice, information and product ordering generate
billions of dollars in sales across the country. Inbound services
can be delivered from any place where adequate telephone lines exist.
Rural states like North Dakota have abundant opportunities for profitable
business operations using telephone technology.
Integrating technologies
While computers, telephones,
and televisions have evolved into more sophisticated and useful tools,
the blending of these technologies increase their value even more.
This integration is creating personal communication systems which
can empower individuals by increasing their ability to share information.
Personal telecomputers can transmit information to an office-based
computer for record-keeping or use by others. A modem, telephone line
and portable computer allows you to transmit a day's worth of correspondence
and nformation to another computer in seconds.
Video conferencing and
satellite communications, used in conjunction with televisions, networked
computers and telephones, dramatically expand our ability to share
information, solve problems and even brainstorm ideas. When we are
linked by telecommunications with others far away, we can achieve
results which would once have required expensive travel.
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