Of all the marketing strategies in the trade, telemarketing has made a name for itself since the early 1970’s. Whether it is the most preferred method of marketing, is definitely up for debate as it has become a less than favorable marketing campaign with consumers in the last decade.
Telemarketing is a direct marketing strategy of promoting products or services to potential customers via phone, fax, or the internet. Namely, it uses the telephone as its main source of connection to consumers. Whether or not this is a welcome method, remains a sore spot in telemarketing campaigns.
How it Works
Telemarketing is done by telemarketer employees that work in an office, or more recently accepted–working from home, to call potential consumers or by automated calls, also known as “robo calls”. Automated calls, or robo calls, being more widely used. These callers call people to see if they are interested in a product or service, with the ultimate goal of closing a sale.
History
The name “telemarketing” was first used in the early 1970’s with the release of new and economical ways to make and place long distance calls and the use of inbound toll-free services. Since then, telemarketing has stayed fairly true to its roots and its methods have not wavered too much, except for the advancement of the digital age which has been integrated into telemarketing systems.
Types
There are four main types of telemarketing practices:
● Outbound calling or Cold Calling- this practice entails telemarketers reaching out to potential customers and existing customers via outbound telephone calls. With cold calls, there is not a substantial amount of information provided to a company that the potential consumer is a good match for the call. Because of this, many people get easily annoyed by cold callers.
● Inbound or Warm Calls- these calls are catered to a more specific audience such as those who have entered their email or phone number to hear more about a product or service. There is at least some basis for contacting the potential customer as opposed to no initial reach-out by the customer.
● Lead Generation- this is simply a way of gaining “leads” when calling potential consumers. This gives leads to the profiles, preferences and demographic data of these potential clients. This type of telemarketing is also frowned upon by customers who feel like these calls are a pesky nuisance.
● Sales- just as it sounds, the goal is to close a sale on the phone. It takes strategic convincing on the part of the telemarketer to do so.
The Positives
Telemarketing can be a tough business for those who are sitting in a cubicle making hundreds of calls a day, many which can remain fruitless, but there is still a positive side to this practice.
One of the first benefits of telemarketing is that companies can use this marketing strategy at a much lower cost than traditional direct marketing methods and other styles of marketing. Many of these companies can also outsource their work at a cheaper cost to other countries where people can have an opportunity to work. Mexico, India, and the Philippines are a popular choice.
Additionally, this method of marketing, because it is cheap and a fairly uncomplicated way to advertise, can be utilized by businesses big and small and new startups. It’s accessible for anyone who is trying to sell goods or services, all that it requires is contacting customers via phone.
Telemarketing is also a useful and effective way to glean data. Through the use of calling customers, companies can gather useful information and data that can help conduct further research and generate leads.
The Negatives
Telemarketing, although an established marketing method, has undeniably become an intrusive marketing method according to many customers. Many consumers, quite possibly the majority of consumers, find telemarketing practices to be annoying, and in some cases, understandably so. Because consumers find them to be irritating, this creates a negative perception toward certain businesses and brands.
Another con of the telemarketing trade is that it is prone to scams and fraudulence, again giving consumers a bad impression of this particular marketing strategy.
As mentioned above, some companies outsource their work to other countries which can create annoyance with customers when there are language barriers which can make customers feel like they can’t trust a business if they are not able to effortlessly communicate.
Regulations
Because of the negative associations with telemarketing, many countries have developed policies and laws that attempt to regulate telemarketing practices.
There are now DNC or “Do Not Call” registries in which customers can enlist in order to stop receiving robo and telemarketing calls. The DNC registries are managed by the FDC and enforced by the FTC. This enables customers to file complaints if necessary.
USA Regulations
In the United States of America, there are quite a number of rules or a code of conduct for telemarketing firms. These include rules such as no robo calling, ensuring that telemarketers disclose certain information, no inaccurate or misleading info, time limits, payment restrictions, among others. In recent years more Americans have enlisted in DNC registries and there are even ads that promote the service.
Successful Telemarketing
Although the term telemarketing can produce an adverse reaction for many potential consumers, there are still ways in which to be successful as a telemarketing firm.
One of the best ways to curate success in the telemarketing businesses is to provide top of the line training for employees. Training should include scripts, call lists, and many other tools that telemarketers can have handy when calling customers in order to ease the pressure. Employees must be trained on how to speak politely and convincingly in order to close a deal. Likewise, training should also focus on how telemarketers can deal with disgruntled or difficult customers on the other end of the line. This is usually a point of contention for many telemarketers who feel disparaged in their line of work.
