Why is telemarketing expensive, is there a more cost effective alternative?
Telemarketing has long been known to be an effective marketing tool. Can costs be reduced?
If you engage an agency, you can have a very targeted marketing campaign focusing on clients in a specific geographical area, a specific industry sector, or any other variable you can think of.
The problem is, it is not cheap.
Why is this, why is it that telemarketing is expensive?
Simple, there are a few reasons if you care to read on just a little further:
Telemarketing takes time
Even if you have a list of (say 3,000) prospects, it will take time to contact each one. To find the right person to talk to, pin them down in-between meetings or being out of the office and then do a phone demonstration (or chat to them) and get a yes or no.
Sometimes it can take 7-8 attempts to reach a prospect (which for most people that are not used to telemarketing means frustration and time) which may just result in a ‘no’.
Even more frustration as that is a lot of time – wasted.
If you are a telemarketing company, and you have a member of staff, you will have needed to find them.
Finding someone that will sit at a computer, making call after call after call to get results (for a customer) is not easy.
Most people (normal people) would get board and throw the towel in. Many people do telemarketing as a stop gap or single parents as a bit of part time work.
Finding the right person to do calling every day is not easy. So after an agency has spent time interviewing, trialling, firing. They then get someone good.
They need to pay them, incentivise them and keep them motivated all the time.
If you consider the staff salary, plus bonuses, plus the cost of the agency, this is why they charge what they charge.
As with any form of marketing, if you want results, you do need to spend the money first. You need to consider tasking the company, getting them to contact the prospects, chase them and collect results.
Bearing in mind the sales pipeline:
Prospecting Initial contact Follow up Discussion Close
Results will take a minimum of 3 months to show (based on 1-2 days calling per week) as you need to allow the agency to work their way through the sales pipeline above.
Many people expect that the agency could work on a commission only basis however working on the concept above (finding staff, having the staff crunch the data) the companies need to charge.
Telemarketing prices do vary from agency to agency so it is always advised to look around and compare prices.
There are lots and lots of calling companies in the UK (well over 600 actually) so there are lots to choose from.
Do you want an agency that knows your industry?
Do you want a small bespoke company?
Do you want a large call center?
Do you want inbound or outbound calling?
Do you want a senior level telemarketer?
These are all questions that you need to have in mind before getting quotes and finding the right telemarketing company, that is not too expensive.