Should your Business Use a Telemarketing Firm?
By
VendorSeek
Telemarketers will make and take a large volume of calls on your company's behalf. Like all aspects of life, there is a bright and dark side to making the decision as to whether to establish telemarketing in-house, or to bank on outsourcing for these services. This particular article will focus generally on the outbound sector of telemarketing.
 Telemarketers often referred to as telephone sales representatives (TSRs), make different types of phone calls to generate sales for your business. TSRs endeavor at direct sales, making leads, schedule appointments, verify information, and conduct research and surveys, all depending on the nature of your business. In considering outsourcing for the service, it is always good practice to look at the TSRs as an extension of you and your own business; after all, they will be dealing with your customers who have no idea that you have chosen to outsource (if they even know what that means) for these services. The following are factors to think about in developing and choosing a telemarketing division for your business:
Outsource, Of Course The orchestration of a large, in-house telemarketing division for your company can be a monumental investment. You would have to consider hiring new employees, finding the space, providing furniture and other resources, and not to mention the beginning and on-going training that would have to be provided in order for the venture to hopefully become a success. Many businesses decide to outsource to avoid the time and money it would take to establish their own telemarketing sector, along with other positives that stem from the decision.
Telemarketer providers can very easily handle a rapid or slower period of growth. They will have the resources ready to take on more people if the time of year or the growth of your business becomes a factor. Providers also will bring with them their experience (which you cannot put a price on- especially if your business has no prior experience in telemarketing). They can help with creating lists, scripts, running tests, and managing campaigns. In addition, the outsourcing firm will most likely have the hardware, software, manpower, and afore mentioned 'expertise' to nicely complement your business.
The Calm before the Search  Before jumping into the partnership with an outsourced provider, there are several things to consider. There is a multitude of providers and you need to find one that will make the best match for you and your business. Think about what you want your main objectives to be in using the provider and what you want them to achieve for you. Choose a firm with successful experience in dealing with other businesses in your industry; this way, they will not only have the prior success on their side, but can help with the development of the campaign.
You will need to properly estimate what your expected call volume will be. You would not want to come up with a number that is too high or too low to reflect what the reality will be; if so, the provider may not be able to handle your calls at optimal status. In coming up with your number consider any elevations or valleys in calls that may deal with special sales, time of year, company growth, etc.
"If you want work well done, select a busy man- the other kind has no time."
There are other ancillary aspects to consider as far as the compatibility of software between the provider and you goes and in deciding what extra or special features you may desire in the outsourced firm. You want to smoothly exchange data with the provider in order to monitor levels of success. It would be a very good idea to have the option to 'tap in' to their calls to make sure that your customers are being handled to your liking. You want to be able to see data of sales and recent updates. Also, providers may have special areas of expertise whether it is in technology, retail, education, etc., so you may want to see what options are provided and what will make for the best match for your company.
Offshore? Many businesses have made the decision to adopt call centers that are located 'offshore' (based out of the United States). Many companies have decided that 'offshoring' is a solid business decision mainly because it is cost-effective; but the legality and ethics of the situation have recently made their way into American headlines. As stated, it could be greatly cheaper to use an offshore call center. Rates can be as much as 25% lower than using a call center in the U.S. that is a complete replica. To reiterate, the ethics of the situation come into play because many businesses (whether they knew or not) have been tied in with some illegal activity in regards to not staying faithful to the laws upheld here in America. Industry and customer perception may come into play and going offshore will leave smaller companies more susceptible to negative reactions.
 Communication issues can be a factor if deciding to outsource offshore. TSRs with heavy accents may find it more difficult to engage in conversation with your customers and vice versa. Usually, these places will have a formulaic script set up to ensure that there is little communication breakdown, but this may serve to be advantageous or disastrous depending on the nature of your business. There are places such as Canada and the Caribbean Islands where you can still reap the discounted benefits and where you will find the communication issue not to be a problem.
Which Telemarketer to Prefer Obviously, your bottom line is going to be in mind while finding a telemarketing firm. Depending on expected volume, the impending pricing may vary. The outsourced firm may charge your company per minute or per dedicated representative for instance. Pricing is very important, but don't forget to remember that most likely your customers will make no distinction between your company and the voice on the other end of the line; your customers will think that they are dealing directly with your company, so finding a firm that will handle your calls with the same passion and desire for success should be something to be heavily considered despite the cost.
Experience as a company and in your particular field is something that should matter to you. This is virtually a partnership, so you want to hire the best people for the job. Researching the prior successes and reputations of any firms in mind is a must. Firms that have worked with your industry before can help you comprise a more successful campaign and can help you foresee any problems that may arise during the course of the venture.
Researching the particular firm should not only be a priority of yours, but the employees working within the outsourced firm should be as well. Again, these essentially will be your workers who are handling your calls from your clients and customers; you want the right person for the job. Do some investigating as to how long the average employee stays with the firm, their level of satisfaction, how they get paid, the presence or absence of benefits, etc.; the satisfaction that you will get out of the outsourced firm will be contingent on their employees' levels of satisfaction in working at that firm.
While this partnership is taking place, you will need detailed and accurate reporting from their end to make sure that this was a solid business decision in the first place. Think about receiving reports for total sales and revenue, sales and revenue per list, sales and revenue per representative, average call duration, average call handling time, etc. You want to get reporting as a whole and broken down over time so you can really assess whether to expand contact with them, downsize it, or disconnect it all together.
"Where there is no desire, there will be no industry."
As previously stated, you want to be able to 'listen in' on calls that are being received by the representatives of the outsourced firm. Some providers offer the opportunity to have you listen in through a manager (piggybacking), but it is recommended that you have the opportunity to listen in whenever you desire without having the representative or their management knowing about it.
Lastly, make sure that whatever outsourced firm you decide to go with has a solid security system. They will have access to your customers' information and you would not want to violate your customers' trust. You need a solid guarantee that your customers' information will be safeguarded from hackers and other malicious informational highway pirates.
Pricing It has been mentioned that several factors will pour into just how much this campaign will cost your company. You have to consider the volume of calls, where the outsourced company is located, the type of project, technology needed, the expertise of the TSRs, etc. Many large telemarketing companies ask for a minimum work order. The minimum can range from 1,000 to 10,000 persons per project or will charge per call or number of calls per hour, which can range from $25 to $60 per hour.
How the outsourced company goes about paying their own employees will effect how they will in turn charge you. Some  companies will offer commission to their TSRs, so the base hourly rate will most likely be lower (but higher if they do not offer commission). Other fees to consider involve initial set up costs (that could be in the several thousands), along with additional training, programming, reporting fees, etc., which leads into the next point.
Make sure that all fees and stipulations are crystal clear before engaging in a partnership with any outsourced firm. Depending on how successful your company becomes (or does not become) there may be additional penalty fees due to your company's stray from the initial projections. A non-disclosure clause in the initial contract is highly recommended, so this way they cannot take your company's recipe for success along with them if they wind up working for one of your competitors (especially if the outsourced company specializes in your industry). Consider other contract options such as exclusivity, translation services, confidentiality, monitoring rights, etc.
Tips to Get Rich - An outsourced firm that offers sales commissions to their TSRs should be more attractive because their workers are more likely going to be more highly motivated, and that is what you want your workers to be.
- The structure of a good script should not be overlooked. If the outsourced firm has worked in your industry on similar campaigns, then they can definitely help you orchestrate a successful one.
- If the nature of the calls warrants a callback, outsourced firms usually offer an 800 number to set you up with. DO NOT take them up on this offer because it is much cheaper for you to establish your own. This way if things go sour, you do not have to worry about setting up another number (which can become confusing for clients and customers); you can simply use the same number while engaged in business with another provider.
- Visit the site that you are considering using (if convenient). It is always good practice to not just take the other guy's word on these matters. Send a representative from your company to 'feel out' the ambience of their work place to see if indeed they are a good fit for your partnership. Also, during training, you should send a representative from your company to ensure that the same values and insights from your business are conveyed and instilled into their extension of your business.
"It is not enough to be industrious. What are you industrious about?"
This article was provided by VendorSeek.com, a site where businesses go to receive free quotes from multiple vendors with no obligation to buy.
|
|
|
Vendor Login
Increase Text Size
Decrease Text Size
