Outsourcing your telemarketing
The dos and don'ts!
This article looks at the use of telemarketing to promote business.
1. Introduction
Telemarketing is a marketing system that utilises telecommunications and computers. It involves using the phone in a planned and measured way as a means of achieving set business objectives. These objectives can be anything from answering customer queries to generating sales leads and taking orders. It should be a part of your overall marketing strategy.
(i) Why use telemarketing?
There are many different reasons to use telemarketing. Main ones include making sales calls, sales lead generation, sales support, market research and surveys, building databases, testing new markets and international expansion.
(ii) In-House or external agency?
You will need to decide whether to set up your own telemarketing operation or appoint an outside agency. It can be more cost effective to use an outside telemarketing firm as your needs require, rather than developing and running the operation in-house Once you have set specific goals for the telemarketing program, you should weigh up the relative merits of each option. You should also consider using them in combination.
2. Setting up in house
Office design can significantly affect performance. Use a consultant experienced in call centre design to assist you if you are unsure. Design the office so that individuals can make or answer calls in private yet still feel part of a team. Use good sound insulations that they can communicate without disturbing others. Workstations should be comfortable, equipment should include lightweight headsets and antiglare screens. Antiglare screens are not a legal requirement. Any employer should provide workstations and equipments that meet the Display Screen Equipment Regulations 1992. Many call centres have separate rest areas to take breaks and do not permit tea and coffee at workstations. This reduces problems with computers and also ensures breaks are taken.
3. Introducing a Telemarketing Programme
A telemarketing operation by itself cannot reach its full potential; it must work with other parts of the business. Co-operation is the key to success. Everyone involved in marketing, sales and production, needs to understand the reasons for its introduction, what benefits it will bring and the impact it will have. Sales people may feel threatened by telemarketing, so explain how it will complement their activities.
The first step is to do an overview of your business operations to see how telemarketing can be used to improve your marketing strategy. You should then identify your telemarketing objectives. Having identified ways of using telemarketing, you can carry out a cost-benefit analysis to see if it is worth doing. If you decide to go ahead with telemarketing, the next thing to do is make detailed step-by-step plans for implementing and running the operation.
You should also ensure that you are aware of best practice guidelines in undertaking telemarketing. These can be obtained from the Direct Marketing Association, which produces the DMA Code of Practice. In particular you should be aware of: (i) guidelines in respect of politeness and times of calling; (ii) Use of the Telephone Preference Service if you are planning to make calls to consumers who are not current customers.
4. Implementing a Telemarketing Programme
These are four main stages:
(i) Target: Identify the targets for outgoing calls. Once method is by existing customer life-cycle analysis (how recently did they buy something, how frequently to they buy, what value are their purchases) you can also identify prospects by geographical location, from lapsed customers and brought in lists of names. Incoming calls are usually generated through advertising, which must itself be targeted. Ideally, target groups should be ranked by potential return on investment; some may be expensive to reach initially, but prove highly profitable later. (ii) Test, measure and adapt. It is worth testing every telemarketing plan before going ahead. These are specific methods for calculating how big a sample to try, but for a campaign of any real size you should work on 500 to 1000. After determining the sample size you can work out the level of human and telephone resources needed for the trial period. The trial gives you a chance to monitor results and modify the details of your programme. (iii) Implement: Whether or not you proceed with a full programme depends on the test results. (iv) Evaluate: To evaluate the success of an operation, you will need everything from costs and productivity levels to rates of response and conversion (contracts into sales). Telemarketing should over time produce quantifiable results. With accurate figures, you can establish future activity budgets and be able to compare the cost-effectiveness of telemarketing against alternative sales and marketing methods.
5. Setting budgets
If you decide to implement a telemarketing programme, then you must set budgets for the programme. When setting budgets you should consider: the investment required, operating costs, the cost-saving benefits of the programme and the extra revenue likely to be produced through addition orders.
6. Databases
You will need to purchase or develop a database to store information on customers and prospects. You need to decide which functions and facilities the system should provide now and in the future. Databases range from simple systems (like a computerised card index system) to relational databases which allow data to be analysed in various ways. Consider what categories of information the database should hold, data entry methods (eg directly during the customers telephone call or later by transfer from paper records), accessing the information, generating reports, and quality standards and procedures (ie to keep data accurate and up to date)
The ideal source of telephone contracts is your own database; however you may wish to buy in contract lists from a specialist agency. Shop around; list-provision is competitive business. Similar lists may be available through several brokers at a different price. Lists go out of date very quickly; the "decay rate" can exceed 20% a year. Some brokers guarantee their lists to have no more than 5% out of date contacts. The quickest way to check the accuracy of a list is by phone.
If you are busying in a database and are intending to contact consumers you should ensure that your contact is permissible under the Data Protection Act. If you are intending to contact consumers from a bought in database, you should ensure it has been screened against the list provided by the Telephone Preference Service. Details of the Telephone Preference Service are available from the DMA.
7. Call Management
Call management affects the service you provide to callers and the cost-effectiveness of your telemarketing operation. Incoming calls can be managed in several ways.
(i) Special Automatic Caller Distributor (ACD). ACDs transfer incoming calls to the first available person or play a message indicating that they are in a queue. ACDs also produce useful call management information. (ii) Call Sequences. These answer calls with a message saying that the call with be taken as soon as possible or giving the caller an option to leave voice mail for a return call.
ACDs and Call Sequences can be located on your premises and are available from a number of companies. Additionally, caller controlled systems let a caller select the person or department with whom they wish to speak by pressing buttons on their telephone or through voice recognition.
8. Recruitment and Training
The performance of a telemarketing operation depends on the people on the phones. They need skills in creating rapport, overcoming objections, responding to criticisms and direction conversations. Make your initial evaluation of candidates over the phone so you can assess how well they sell themselves. Do they come across as genuine, interested individuals who enjoy contact with people? Do they display sensitivity by modifying their conversational style in response to moods? Are they clear communicators? Do they listen well, taking in all the information you give them? Can they work in a demanding atmosphere without becoming discouraged? This is particularly important for staff making calls - rejection is part of the job. Training is vital; appropriate courses for telemarketing managers and staff are widely available.
9. Leading and Motivating
All telemarketing teams need a leaders, someone with excellent interpersonal skills and the ability to motivate staff. Team leaders should start and finish each day with upbeat team briefings. Before making calls, ensure everyone knows their target for the day. At the end of the day, discuss results and close on a positive note. Locate the team leader near the team so people can feel involved in the action. Encourage team members to swap information and raise problems. Monitor calls unobtrusively to see who needs help in developing their style and skills.
10. Scripts
Staff on the phone need to direct every conversation in planned and controlled yet natural way. You will need to develop a script or guide covering all stages of the conversation, from greeting callers and answering questions to taking orders and signing off. It should use everyday language, allowing time for listening as well as talking, and most importantly, spell out what additional information is required from callers, Many telemarketing departments provide their agents with computer-based scripts. These often have built in intelligence eg when an answer is filled in by an operator the computer provides the most appropriate question to ask next. Information from callers can be typed directly on to a form on screen.
Writing a multi-option telemarketing script is a specialised skill; consider hiring a professional to do it. Before using a script with customers, let staff spend time role playing. This will iron out any problems and familiarise them with the script. It is useful to tape trial conversations and check that they sound natural. Well prepared scripts should control the message being delivered and ensure that customers receive correct information. They give staff confidence and reduce training time as well as regulating the length of the call. It also ensures that the right information is collected and makes it easier to analyse results. However, there can also be drawbacks; in the hands of the inexperienced, scripts can sound false and contrived and they can diminish imitative in more experienced staff.
11. Using an outside agency
The growth of telemarketing in the UK is reflected in the number of agencies offering a full range of services to clients. Some specialise in Inbound telemarketing (handling incoming calls), others in outbound (making calls on your behalf), but many operate in both fields. Before short listing agencies, make sure you know exactly what services you require. Visit each agency in person, see how it works and talk to the staff. Would you be happy having them represent your company? Check the agencies client list and ask permission to contact several clients for references. Get a list of inbound numbers handled by the agency, call them yourself to see how your enquiry is dealt with. Find out about their database system and what management information it can provide. Ask for a written response to your brief, with detailed costing. Confirm that the agency has the capacity to handle full implementation if the trial goes well. Make yourself available for feedback meeting during the trial period.
It is essential to monitor performance. Arrange for regular reports on all key activities including lost calls, response rates and data quality. Make test calls yourself and check that everything is operating within specified timescales. Listen to live calls to see how customers are reacting, or spend time on the phone yourself. Find out why prospects are declining an offer, perhaps script changes are possible. Be sure to reward outstanding results and thank staff personally.
12. Useful Tips
(i) Look at the marketing procedures used by your competitors, especially telemarketing programmes. (ii) Consider getting an 0800 telephone number. These are available from several telecommunications companies are popular in telemarketing. 0800 calls are charged to you; this is much more convenient for your customers and has advantages such as increasing response rates.
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