2.4.1 Inbound Telemarketing
Inbound Telemarketing relies on calls from prospects already interested in a product or service( interested enough to place an order, ask questions that will help them make a purchase, or make an appointment with a sales representative. During the call, the TSR (Telephone Sales Rep) may simply capture the information about the order or may try to increase the size of the consumer's order by suggesting complementary merchandise.
The people who want to reach companies call a special 800 number. This possibility has grown up only since the introduction of toll-free 800 numbers by AT&T in 1967, which made it practical to have call centers receiving calls from the entire country. In brief, toll-free service led to centralized nationwide call facilities which led to increased call volumes at single locations, which increased the incentive to maximize revenue and cut costs. In fact, Americans dialed AT&T 800 numbers over six billion times during 1988( more than sixteen million times a day! AT&T estimates the number of calls is increasing by a billion calls a year. One of the biggest inbound operations in the United States is operated by the Home Shopping Network, which handles 200,000 inbound calls daily for its 24 hours shopping channels (such as channel 60 in Chicago area) and other clients. Airlines, hotels, and virtually every catalog company rely on inbound Telemarketing to take reservations and merchandise orders.
Inbound calls can also focus on customer service or consumer information. For example, at the General Electric's GE Answer Center, a force of 250 answer 250,000 questions a month about how to get the most from GE products, they rely on a centralized consumer product database that allows them to call up information on just about anything that has to do with GE products. Many companies now have consumer information lines to serve customers.
Successful inbound Telemarketing programs are created by paying careful attention to such factors as the type of telephone service chosen, the carrier picked to provide the service, the planning to meet fluctuating call volumes, and the design of the advertising that carries the phone number.
2.4.2 Outbound Telemarketing
The objective of most outbound Telemarketing calls is to sell a product or a service to a new or existing customer. It is through telephone calls that lure customers to buy products or query the condition of customers using a product in order to improve selling and hold customer's demand. This is usually a "cold call", a call placed to someone who has no prior relationship to the firm.
Cold calls can generate leads to sell products. A good example of a lead-generating call would be one placed by an insurance agent to a new community resident about home insurance. The agent is trying to get his or her foot in the door and will not try to sell a policy until a subsequent face-to-face meeting. By contrast, a TSR who calls a consumer to subscribe to a product will try to take an order before the call ends.
According to the Direct Marketing Association, large numbers of companies place outbound calls to sell products and services to their customers. They include: 31 percent of all consumer publications, 70 percent of all business publications, 5 percent of all consumer catalogs, 25 percent of all business catalogs, 25 percent of all consumer products and service companies, 71 percent of all business products and services companies, 39 percent of all clubs and continuity offers, 18 percent of all financial services organizations, and 50 percent of all computer hardware and program software organizations.
Outbound Telemarketing also can be used to notify existing customers of an unexpected delay in shipments or other problems in an order, or to qualify leads from prospective customers by determining their interest in a product before passing the name on to a field sales representative for a personal sales call.
2.5 ANI, ACD, ARM, and WATS
There are two important technologies used in modern Telemarketing: ANI (automatic number identification) and ACD (automatic call distribution).
When too many phone calls reach a particular number, they can be placed on hold, and assigned to the next available representative through automatic call distribution. In off-peak periods, calls can be evenly distributed among stations. If callers have waited a long time, overflow service can automatically shift the calls from a high traffic ACD group to a less congested one. ACDs process incoming or outgoing calls very quickly and effectively. These computerized devices are most effective when you have 15 or more lines in use on a consistent basis. The points to check out in ACDs include record keeping of calls made from individual telephones, backup operation in the event of a power outage and internal switching capabilities. And, with 800 automatic number identification, integrated data/phone terminals show the Telemarketing operator not only what phone number the caller is dialing from, but also important facts from that database about the caller's information before the call is answered. If desired, certain proprietary software can be used to capture name, address, and demographic information on incoming calls, without having the operator key it in.
ARM (Automatic Recorded Message) can be extremely cost-effective when a specific telephone presentation is to be made, i.e., a political message or an insurance company name change being relayed to a group of policy owners.
WATS (Wide Area Telecommunication Service) is available for outgoing and certain incoming calls, WATS lines are rented by long-distance carries based on hours of usage, location of calls (known as zones or bands) and a variety of other factors. Discounts are given for volume calling. The main disadvantage is the high cost for additional lines.
Chapter 3
Factors That Influence thesuccess of Telemarketing
There are many factors that can influence Telemarketing's success or failure. The main important factors are preparation, staff training, information system, and management.
In any labor-intensive organization, the employees can make or break the bottom line. This is especially true of Telemarketing. The key component in a successful Telemarketing operation is management's ability to run the department. Even if the strategic concept is on target, and the prospect list is highly qualified, Telemarketing is doomed to failure without a richly sophisticated and experienced management to guide the Telemarketing effort. To capitalize on the sales potential that Telemarketing offers, a company must have a professional Telemarketing staff with a comprehensive grasp of the complexities of this type of management.
3.1 Preparation
Preparation for the Telemarketing campaign will take telemarketers from the planning stage right up to the first day of the actual campaign. During this time, telemarketers will have to establish their evaluation/control criteria and write their script. There are several points for preparation, such as:
- Space
- Equipment( telephone and others
- Materials
- Setting up the facility( Confirmation of arrangement for facilities and preparation of facilities.
- Recruitment of staff and hiring of callers.
3.2 Staff and Callers Training
A good staff and callers training is very important; it can let a company do successful Telemarketing directly. Training is an on-going process.
Not everyone is cut out to be a telephone communicator. Direct-sales people are often ill at ease in a Telemarketing environment: they often miss the face-to-face eye contact, and the body language of the prospect. On the other side of the scale, people with prior acting experience seem to do quite well.
Most experts agree that there are five traits necessary in order to be successful as a telephone communicator.
- Good communication skills( voice quality is clear and pleasant; articulate.
- Persistent and able to bounce back from rejection.
- Good organizational skills.
- Ability to project a telephone personality( enthusiasm, friendliness.
- Flexibility: can adapt to different types of clients and new situations.
The first trait: "good communication skills" is a must. And the best way to evaluate these skills is with an initial telephone interview. Through the telephone interview the professional trainer screens out unlikely candidates.
3.3 Information System
If database marketing was nonexistent at this time, someone would have to invent it. For without database marketing, direct marketing, of which Telemarketing is an integral part, would be a shambles. Without a database a telemarketer cannot have segmentation. Without segmentation a telemarketer cannot have targeting. So, database marketing is a given for success.
The information system is important, it may include customers lists, customers data, selling record, trace record, other relevant data. To establish a complete information system is very necessary to telemarketers. I will discuss it in chapter four in detail.
3.4 Management of Organization
If the Telemarketing manager is high up in the organization, then there is leverage for placing Telemarketing into a high priority position, with the resources and support needed to achieve its objectives. Further, if the program is successful, with heavy resources committed and representing a key element in the corporate strategy, then there is every possibility that the head of the operation will be high up on the organizational ladder.
Both the Telemarketing organization plan and the person to head it are critical decision areas. The person selected must have both the experience and the capability to manage the operation technically as well as the credibility and support of top management. The plan is equally important to chances of success. If cost-benefit analyses, careful preparation, presentation of similar success histories and some pre-selling is not done, the chances of management even approving a trial program are considerably lessened.
In small organizations the plan be even more critical than in larger ones. The approval is not the issue; success or failure of the enterprise could hang in the balance. A marketing plan based on Telemarketing, and gaining the commitment of limited key resources had better be prepared.
Becoming sold on telemarketing and rushing into it without preparation and with expectations that it will cure all is a danger which may be averted with proper staffing and management.
The subject of Telemarketing expertise is important as it relates to where in the organization it resides. The telemarketers themselves can certainly use experience in selling on the telephone, but the expertise and experience must be possessed by the person directly responsible for Telemarketing operations. The best situation is to bring in an experienced manager who has run the type of operation being set up. Second best is to convert an on-board manager, but appropriate training and a strong desire to succeed must accompany the latter choice.
The character and nature of Telemarketing management is critical to the success of a Telemarketing operation in its relationships with other internal organization units and top management. The managers not only must perform their normal management duties but must justify the existence of his operation continually in the face of the newness and poor reputation of Telemarketing as a marketing discipline. The manager can follow set patterns only to the extent that they continue to produce results. Results are the lifeblood of Telemarketing, and the managers must produce them by whatever means they can. The Telemarketing manager's job is a demanding one, and not meant for the average person. For those willing and able to meet the challenge the rewards are there, and no manager will be more deserving.
To sum up, a good management in Telemarketing organization is essential. A complete management will result in successful Telemarketing.
3.5 The 80/20 Rule
"Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule. It's very amazing, we see scores of marketers ignoring it when it comes to allocating advertising and sales dollars, spending the same on all accounts( regardless of potential.
The Telemarketing approach to lead generation and customer activation takes full cognizance of the immutable law( all prospects and customers are not created equal.
Remembering that approximately 80 percent of sales comes from 20 percent of customers. Telemarketers must spend their resources where they have the most return.
Identify the key customers and develop them to the fullest. Next, spend part of efforts in calling on prospects to develop them as customers.
Chapter 4
The Strategies of Telemarketing
Most Telemarketing professionals consider Telemarketing to be a marketing discipline that uses remote selling and services techniques to execute a marketing strategy. In brief, it is far more than an 800 number, or a bank of operators waiting to take your order. Used properly, Telemarketing becomes a driving force in a company's strategic planning.
4.1 Preparing for the Telephone Sales Call
In telephone selling, a haphazard approach usually leads to haphazard results. To maximize your telephone time, it is essential to prepare. Preparation calls for a disciplined system. Successful telephone salespeople start with a call list and develop a system for tracking where they are with each call.
The fundamentals of any effective telephone system include:
- For prospecting, a concentrated block of time that you dedicate to your calls, not just one call between other activities.
- An objective for number of calls you want to complete per day.
- Your client or prospect list for the day -- in priority order.
- A well-organized desk and environment.
- An objective (what you want to see happen) for each call.
- A record of each call. (It should be the client information, details, next steps)
- A memo system to trigger actions and follow-up.
4.2 Getting Through to the Right Person
Getting through to the right person is essential, whether are selling over the telephone or face-to-face. Not only is a presentation to the wrong person a waste of time, but it can also endanger the sale. Several points follow:
- Finding the Decision Maker
When dealing with a small business, it usually is not difficult to identify the individual with authority to make a decision; however, it is not so cut and dried when calling a large organization for the first time. Naturally, when a reliable source has recommended a specific individual as the decision maker, there is not any problem. But without the advantage of such information, getting through to the right person may require some fairly fancy footwork.
- Getting Through the Third Party, the Screener
A third party stands between the salesperson and the individual he is trying to reach. It may be a receptionist, an assistant, or a spouse. The most commonly encountered third party is probably the private secretary, and he is also the most skilled at screening calls.
- Speaking with Authority
This is especially important in getting through the screener, whose job is to separate trivial calls from important ones. Getting through the screener will never be a problem for you if you remember that you are important.
- Leaving a Message
Leaving a message that works is an integral part of selling on the telephone. Often, you will not be able to get through to an individual on the first call, so it will be necessary for you to call back or to leave a message.
- Calling Back
When an individual is difficult to reach and does not return your call, do not hesitate to call again. All these techniques take practice, but developing them is an essential part of good telephone selling. In short, you must get through to the prospect before anything can be sold.
There will always be some instances when a caller will have to make a series of calls before finally getting to talk directly with the prospect. One must work on establishing rapport with the screener, while maintaining an image of authority. Whether he leaves a message after the first call or the fourth, leaving an effective message also requires authority and a quiet suggestion of urgency.
4.3 Developing and Maintaining a Database
Developing a basic customer database is very important. Creative enhancements to the database can improve sales efficiency dramatically, but the first question to be answered is "What data should be included in the basic database?" The database requirement varies by category of business and/or type of customer.
For telemarketers, a key source of data is the call report. The call report should capture the history of each account and give direction for future servicing. Basic data, which should go into the database, include the following:
- Key contact
- Title
- Telephone
- Best calling time
- Time zone
- Mailing and shipping address
- SIC # (standard industrial classification) if a business firm
- Source of original contact
- History of purchases
- Current buying pattern
- Special requirements
- Credit limit
- Personal notes
- Other products/services in the discussion stage
- Log of call by dates
- Follow-up call cycle
With these data safely stored in the computer, carrying on meaningful dialogues with a customer base becomes a piece of cake. The computer makes sure that each telephone salesperson is given a list of scheduled follow-up calls each day. Prior to each call the total picture of the account appears on the screen. Complete recall results. Even though a salesperson might have a block of four hundred accounts, he or she can be as knowledgeable in conversation with a given account as if the salesperson had none other to serve.
4.4 The Telephone Presentation
Before talking about the telephone presentation, a caller should analyze ten questions first.
- Do I use short, simple, uncomplicated words?
- Do I mention a benefit to the prospect?
- Do I express my prime message so it would be understood?
- Do I maintain a positive mental attitude?
- Do I emphasize the benefits of doing business with me and my company?
- Do I have a professional way of "qualifying"?
- Do I stick to a logical order in my presentation?
- Do I have all the facts about my offering so I can answer any questions?
- Do I smile before I pick up the telephone?
- Do I ask for the order?
If the answer is "NO" to any of the above questions, positive steps must be taken to correct it. There are some rules that telemarketers should consider in marketing a telephone presentation:
-
Study your product or service: Write a list of all important features and, more important, their functions and benefits. Consider their price, quality, availability, and how they have helped others.
-
Analyze your prospect list: Determine your present customers, what they have been buying, and whom they've been buying from lately. If former customers, why did they stop buying? What do you know about them? Have you done your homework to determine their possible needs and wants? Also, what might they know about you that would make it easier for them to understand your company? The more information you have , the easier it will be to select the proper opening remarks and the best sales approach to use.
-
Write out or use your computer to list the key ideas you want to cover: Make sure all vital points are included. By covering all the main points you want to review, you are essentially preparing a presentation.
-
Get attention and interest, which is the warm-up portion vital to success in any effort to sell by telephone: Always smile, then (a) greet the prospect by name. During your opening comments, refer to how you obtained his or her name and company; (b) introduce yourself by making a simple statement of your name and company; (c) make an attention-getting statement by appealing to the prospect's self-interest or curiosity. It should be brief and to the point. A statement such as this deserves a great deal of care and preparation.
-
Create a desire for the product or service: Your voice alone has to do the selling. You have to tell your prospects what you are offering, why they need it; what it will do for them; and how, when, and where they can get it. The price and service may be discussed. Be creative and add a little sparkle to your sales talk. By knowing your product, you should be in a good position to create this appealing statement in such a way that the prospects can visualize from your words exactly what you mean.
-
You must describe the product realistically: Speak in terms that your prospect will understand and relate to. Smile before you pick up the telephone.
-
Give all necessary facts: Don't assume or leave anything to the interpretation of the listener( be specific.
In addition, the following are some techniques of selling that the caller should take into account. (Please see Table 4.1)
- Be prepared to talk when your prospect answers your call: Know about your product, its applications, availability, pricing, and benefits. Don't call unless you can devote your entire attention to the call. Review all past relevant information about the prospect before you pick up the receiver to dial.
- Speak distinctly in an ordinary conversational tone: You are talking with prospects and you want to make them friends and customers. Avoid technical phrases or jargon they may not understand. Talk your story; don't read it. Help your prospect to buy( use word pictures to specifically describe your product and what it will do. Be specific in size, color, application, and so forth. Use sparkle in your presentation. Avoid generalities and vague comparisons. Give customers a choice when you ask for an order or set up an appointment.
- Be polite, don't argue: You may win an argument and lose the sale. Smile before you pick up the phone so the customer hears a smile in your voice.
- Follow through: Do what you agree to do, whether it was to put something in the mail, follow up at a later date, set up an appointment, or contact someone else. Don't be discouraged in the course of your selling effort. The cost of using the telephone is so low that you can afford many unsuccessful calls to develop one good prospect or make a sale. The more calls you make without a sale, the closer you are to getting one. You should understand how to improve after each call.
Chapter 4
The Strategies of Telemarketing
Most Telemarketing professionals consider Telemarketing to be a marketing discipline that uses remote selling and services techniques to execute a marketing strategy. In brief, it is far more than an 800 number, or a bank of operators waiting to take your order. Used properly, Telemarketing becomes a driving force in a company's strategic planning.
4.1 Preparing for the Telephone Sales Call
In telephone selling, a haphazard approach usually leads to haphazard results. To maximize your telephone time, it is essential to prepare. Preparation calls for a disciplined system. Successful telephone salespeople start with a call list and develop a system for tracking where they are with each call.
The fundamentals of any effective telephone system include:
- For prospecting, a concentrated block of time that you dedicate to your calls, not just one call between other activities.
- An objective for number of calls you want to complete per day.
- Your client or prospect list for the day -- in priority order.
- A well-organized desk and environment.
- An objective (what you want to see happen) for each call.
- A record of each call. (It should be the client information, details, next steps)
- A memo system to trigger actions and follow-up.
4.2 Getting Through to the Right Person
Getting through to the right person is essential, whether are selling over the telephone or face-to-face. Not only is a presentation to the wrong person a waste of time, but it can also endanger the sale. Several points follow:
- Finding the Decision Maker
When dealing with a small business, it usually is not difficult to identify the individual with authority to make a decision; however, it is not so cut and dried when calling a large organization for the first time. Naturally, when a reliable source has recommended a specific individual as the decision maker, there is not any problem. But without the advantage of such information, getting through to the right person may require some fairly fancy footwork.
- Getting Through the Third Party, the Screener
A third party stands between the salesperson and the individual he is trying to reach. It may be a receptionist, an assistant, or a spouse. The most commonly encountered third party is probably the private secretary, and he is also the most skilled at screening calls.
- Speaking with Authority
This is especially important in getting through the screener, whose job is to separate trivial calls from important ones. Getting through the screener will never be a problem for you if you remember that you are important.
- Leaving a Message
Leaving a message that works is an integral part of selling on the telephone. Often, you will not be able to get through to an individual on the first call, so it will be necessary for you to call back or to leave a message.
- Calling Back
When an individual is difficult to reach and does not return your call, do not hesitate to call again. All these techniques take practice, but developing them is an essential part of good telephone selling. In short, you must get through to the prospect before anything can be sold.
There will always be some instances when a caller will have to make a series of calls before finally getting to talk directly with the prospect. One must work on establishing rapport with the screener, while maintaining an image of authority. Whether he leaves a message after the first call or the fourth, leaving an effective message also requires authority and a quiet suggestion of urgency.
4.3 Developing and Maintaining a Database
Developing a basic customer database is very important. Creative enhancements to the database can improve sales efficiency dramatically, but the first question to be answered is "What data should be included in the basic database?" The database requirement varies by category of business and/or type of customer.
For telemarketers, a key source of data is the call report. The call report should capture the history of each account and give direction for future servicing. Basic data, which should go into the database, include the following:
- Key contact
- Title
- Telephone
- Best calling time
- Time zone
- Mailing and shipping address
- SIC # (standard industrial classification) if a business firm
- Source of original contact
- History of purchases
- Current buying pattern
- Special requirements
- Credit limit
- Personal notes
- Other products/services in the discussion stage
- Log of call by dates
- Follow-up call cycle
With these data safely stored in the computer, carrying on meaningful dialogues with a customer base becomes a piece of cake. The computer makes sure that each telephone salesperson is given a list of scheduled follow-up calls each day. Prior to each call the total picture of the account appears on the screen. Complete recall results. Even though a salesperson might have a block of four hundred accounts, he or she can be as knowledgeable in conversation with a given account as if the salesperson had none other to serve.
4.4 The Telephone Presentation
Before talking about the telephone presentation, a caller should analyze ten questions first.
- Do I use short, simple, uncomplicated words?
- Do I mention a benefit to the prospect?
- Do I express my prime message so it would be understood?
- Do I maintain a positive mental attitude?
- Do I emphasize the benefits of doing business with me and my company?
- Do I have a professional way of "qualifying"?
- Do I stick to a logical order in my presentation?
- Do I have all the facts about my offering so I can answer any questions?
- Do I smile before I pick up the telephone?
- Do I ask for the order?
If the answer is "NO" to any of the above questions, positive steps must be taken to correct it. There are some rules that telemarketers should consider in marketing a telephone presentation:
-
Study your product or service: Write a list of all important features and, more important, their functions and benefits. Consider their price, quality, availability, and how they have helped others.
-
Analyze your prospect list: Determine your present customers, what they have been buying, and whom they've been buying from lately. If former customers, why did they stop buying? What do you know about them? Have you done your homework to determine their possible needs and wants? Also, what might they know about you that would make it easier for them to understand your company? The more information you have , the easier it will be to select the proper opening remarks and the best sales approach to use.
-
Write out or use your computer to list the key ideas you want to cover: Make sure all vital points are included. By covering all the main points you want to review, you are essentially preparing a presentation.
-
Get attention and interest, which is the warm-up portion vital to success in any effort to sell by telephone: Always smile, then (a) greet the prospect by name. During your opening comments, refer to how you obtained his or her name and company; (b) introduce yourself by making a simple statement of your name and company; (c) make an attention-getting statement by appealing to the prospect's self-interest or curiosity. It should be brief and to the point. A statement such as this deserves a great deal of care and preparation.
-
Create a desire for the product or service: Your voice alone has to do the selling. You have to tell your prospects what you are offering, why they need it; what it will do for them; and how, when, and where they can get it. The price and service may be discussed. Be creative and add a little sparkle to your sales talk. By knowing your product, you should be in a good position to create this appealing statement in such a way that the prospects can visualize from your words exactly what you mean.
-
You must describe the product realistically: Speak in terms that your prospect will understand and relate to. Smile before you pick up the telephone.
-
Give all necessary facts: Don't assume or leave anything to the interpretation of the listener( be specific.
In addition, the following are some techniques of selling that the caller should take into account. (Please see Table 4.1)
- Be prepared to talk when your prospect answers your call: Know about your product, its applications, availability, pricing, and benefits. Don't call unless you can devote your entire attention to the call. Review all past relevant information about the prospect before you pick up the receiver to dial.
- Speak distinctly in an ordinary conversational tone: You are talking with prospects and you want to make them friends and customers. Avoid technical phrases or jargon they may not understand. Talk your story; don't read it. Help your prospect to buy( use word pictures to specifically describe your product and what it will do. Be specific in size, color, application, and so forth. Use sparkle in your presentation. Avoid generalities and vague comparisons. Give customers a choice when you ask for an order or set up an appointment.
- Be polite, don't argue: You may win an argument and lose the sale. Smile before you pick up the phone so the customer hears a smile in your voice.
- Follow through: Do what you agree to do, whether it was to put something in the mail, follow up at a later date, set up an appointment, or contact someone else. Don't be discouraged in the course of your selling effort. The cost of using the telephone is so low that you can afford many unsuccessful calls to develop one good prospect or make a sale. The more calls you make without a sale, the closer you are to getting one. You should understand how to improve after each call.
CHAPTER 6
Field Interviews By Telephone
6.1 The Design of the Form Used in the Field Interviews
The purpose of the field interviews is to survey the some of responses and opinions of households on Telemarketing, and then to compile statistics and analyze the results.
All of the field interviews are made by telephone. The interview form (Please see Appendix) includes a brief introduction and nine questions.
Part one:
Hello,
I am a graduate student doing a research on "Telemarketing," I would like to know your opinions about this marketing method. Your response is very important to me. Please take few minutes to answer a few questions. This brief introduction and request began the interview.
Part two:
Question 1. Have you ever received a "Telemarketing" phone call?
This is the most essential question, if the answer is "No," skip to last question and end this field interview. It was anticipated that almost all respondents would have received at least one call.
Question 2. How many times have you received Telemarketing phone calls in the past six months?
This question was intended to give some insight into how many times householders in the area of the survey received Telemarketing phone call in the past six months. Statistics were then compiled.
Question 3. Have you ever purchased anything as the result of a Telemarketing phone call?
This question was designed to determine whether the person interviewed had ever accepted a Telemarketing appeal or not. If the answer was "No," the interviewer skipped to question 6 to determine the reason.
Question 4. If you accepted the Telemarketing, what was the most important factor?
This question was meant to determine what the attractive factor was if the buyer accepted the Telemarketing.
Question 5. Were you satisfied with your purchase?
This question was asked to determine whether the buyer was satisfied or not with the products purchased as a result Telemarketing.
Question 6. Why didn't you purchase? (This question is for question 3 whose answer is "No.")
If the person rejected the Telemarketing in question 3, this question was asked to determine the reason.
Question 7. If sellers from whom you regularly purchase keep in touch with you by Telemarketing, what is your feeling?
This question was meant to determine the buyer's feeling about the sellers who keep in touch with buyers by Telemarketing.
Question 8. In your opinion, who is better at Telemarketing?
This question was intended to give some insight into how the sex of telemarketer influenced the buyer.
Question 9. What would be your response if you received a Telemarketing phone call? (This question is for those whose answer to question 1 was "No.")
If the person had never received a Telemarketing phone call, this question would determine what is his or her response would be if he or she receives one.
6.2 The Choice Method of Field Interviews Samples
The choice of samples in this field interviews was from "AMERITECH PAGESPLUS: NEAR NORTH SUBURBAN WHITE AND YELLOW PAGES (1993-94)", issued by DonTech.
This research used a near random sample method to choose people to contact. First a ten column and ten row table of random numbers was selected. Then ten 3x5 index cards were numbered from one to ten. These were shuffled and turned face down. One was drawn to select the column. The cards were shuffled again and a second drawing was made to determine the row. The first three digit number in the column and row selected was used to determine a starting page. The following one digit number was used to select a column and the next two digit number was to select a name. If an obvious business number was drawn, the next residential number was substituted for it. There are 556 pages, four columns per page, and about 80 rows in each column in this telephone book. A sample of 150 items was chosen from it and it was hoped that 60 effective responses would be obtained. As there were 556 pages and a sample of 150 was desired, one name was taken from every third page. When there was no answer at the number called, two additional attempts were made to contact an adult at the selected station. Altogether there were 60 useful responses yielding a forty percent response rate.
6.3 The Results, Statistics, and Analysis of Field Interviews
From the sixty effective responses, statistics were compiled and an analysis made for each answer in every question. To present the results more clearly, a flow chart (Please see Figure 6.1) and some pie graphs are used to display the responses and explain them. The following are the research results:
Figure 6.1 Flow Chart of the Results of the Field Interviews
The following are percentage analysis of field interviews for every response:
Q1. Have you ever received a "Telemarketing" phone call?
According to this response from all interviewed people, most people have received Telemarketing phone calls. That indicates that Telemarketing is very popular with sellers.
Q2. How many times have you received Telemarketing phone calls in the past six months?
According to the people that have received Telemarketing phone calls, 69% of them have received 5 or more calls, and most had received at least three calls in the past six months. That suggests that sellers use Telemarketing very frequently.
Q3. Have you ever purchased anything as the result of a Telemarketing phone call?
According to the people that have received Telemarketing phone calls, more than half of them purchased the product. This implies that Telemarketing is an effective tool of marketing, because more than half of people can accept it.
Q4. If you accepted the Telemarketing, what was the most important factor?
From this answer, reasons were obtained as to why people accepted Telemarketing. The most important reason is a "sincere attitude," the second most important reason is "credit" and "well-known company," the third reason is "professional knowledge" and "time length." From this result, it is concluded that projection of a sincere attitude is extremely important and the development of one should be part of effective screening and training of Telemarketing callers. Telemarketers should enhance their sincere selling attitude to get the acceptances of customers.
Q5. Were you satisfied with your purchase?
According to this result, more than three-quarters of the people were satisfied with their purchases. It appears that sellers know how to sell good products to the customers, and the customers are satisfied with the products, and will buy again.
Q6. Why didn't you purchase?
From this response it can be inferred why customers rejected to the Telemarketing. The most important reason is that they had "no interest in the product," with 60% of people choosing this answer. The next most important reason is their "concern about fraud," then "intrusion of privacy." This result shows if the customers have no interest in the product, or think that product is unnecessary, they won't buy it. In addition, about one-third of the people expressed concern about fraud and intrusion of privacy.
Q7. If sellers from whom you regularly purchase keep in touch with you by Telemarketing, what is your feeling?
In this result, nearly half of the people said they don't care whether the sellers kept in touch with them by Telemarketing or not. And, the feeling of good or bad is exactly equal( half-half.
Q8. In your opinion, who is better at Telemarketing?
This is an interesting response. Half of the people are indifferent to the sex of the telemarketer. But for those who had a preference, most people preferred female telemarketers. Perhaps, customers feel female telemarketers are much more patient and intimate than male telemarketers. That indicates females may be better at Telemarketing.
Q9. What would be your response if you received a Telemarketing phone call?
This response is from people who have never received a Telemarketing phone call. 50% of the people said "I would end the call without listening," 33% of people said "I would be open to hearing caller," and 17% of people said "I would probably find the call intrusive." Because 50% of the people do not like to listen to callers, the telemarketers should improve their strategy of keeping the conversation going to achieve their selling purpose.
From the results of the field interviews by telephone, 90% of people have received Telemarketing phone calls, and most had received 5 or more calls in the past six months. This is not only to indicates that Telemarketing is very popular, but also that the sellers know the positive effects of Telemarketing and use it very frequently. On the other hand, 10% of people interviewed claim they have never received a Telemarketing phone call. Perhaps the reason they have never been called is because samples of field interviews were chosen randomly instead of by the methods used by telemarketers. It also indicates that telemarketers have an opportunity to develop their businesses further. It is possible that telemarketers should reach out to more buyers to get more effective selling.
According to the interview results, 54% of people have purchased from Telemarketers. No doubt, Telemarketing is becoming an effective tool of marketing. To promote sales by telephone is not an easy thing. Maybe traditional marketing methods are more easily accepted by customers. Fifty four percent of the interviewees have purchased products as a result of telemarketers, most were satisfied with their purchases. On the other hand, nearly half of people declined to buy anything. It is also clear from these results that the sincere attitude of telemarketers is the most important reason customers purchase. Of course, Telemarketing cannot allow customers to see the product and talk to them face to face, and people don't like strangers bothering them when they are at home. That results in one third of people not purchasing because of their concerns about fraud and the intrusion of privacy. However, it was surprising that only 20% of people were concerned about fraud, given the high rate of fraud in Telemarketing.
How can companies improve Telemarketing? Companies should teach telemarketers' skills about how to select the right time and to call the right person, keeping good attitude, professional knowledge, and controlling the time amount to let customers order their products. In addition, companies also cannot neglect their credit and reputations. Only good credit and reputations can make companies grow. Remember, 80% of customers come from 20% of customers.
Customer, satisfaction with products is also very important. More than three-quarter of the people were satisfied with their purchases, but nearly one quarter of the people weren't. If the customers weren't satisfied with the product, they will lose confidence to buy again, and the companies will lose their customers. Don't forget the most important reason that customers declined to purchase is their lack of interest in the product. So, attracting customers with an interesting presentation of products that will satisfy their needs is extremely important.
Most people don't care whether the sellers keep in touch with them by telephone or not. And, their feelings of good or bad are equal. Telemarketers should improve their selling abilities, change customers' bad feeling to good feeling, and keep in touch with them to extend their selling. Most people are also indifferent to the sex of telemarketers, but for those who had a preference, 40% of people preferred female telemarketers. Perhaps customers feel female telemarketers are much more patient and intimate than male telemarketers.
Chapter 7
Review of Related Literature
Telemarketing is one part of Direct Marketing, Direct Marketing is one part of Non-Store Retailers. In this chapter, Non-Store Retailers and Direct Marketing are discussed. A full understanding of Telemarketing requires some knowledge of the more general subject of direct marketing, some of the aspects of direct marketing are discussed.
7.1 Non-Store Retailers
7.1.1 The definition of Non-store Retailers
Generally speaking, most people think that the focus of business activity is to build a store in a populous area in order to attract customers. But in recent years, a lot of businesses have gotten large revenues without shops or stores. That means that the epoch of Non-Store Retailers is coming. The U.S. department of Commerce defined the Non-Store Retailer in 1929 by means of Figure 7.1.
Figure 7.1 The Definition of Non-Store Retailers by The U. S. Department of Commerce
Kotler divided these three parts into more detail. ( Please see Figure 7.2)
Figure 7.2 The Definition of Non-store Retailers by Kotler
7.1.2 Why Non-Store Retailers are Growing
Non-Store Retailers have existed for a long time. However, they have been growing rapidly in the recent years. Here are some reasons.
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Increase in working women. Well over half the female adult population now works, and the number continues to grow, showing strength in all economic and educational levels. As a result, women have less time for traditional shopping. Convenience and time become critical. Someday someone will come out with a catalog of timesaving products for busy people.
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It is not easy to get a store. The population is growing but land is limited. As a result it is very difficult to find a location for a store to run a business.
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Decrease in production profit. Too many intermediaries reduce profits.
According to the research data of International Management Technology Crop., the average growth rate of Non-Store Retailer is 17% in the most recent twenty years. It is higher than the overall retail trade's 10%. Japan has analyzed the motivation of Non-Store Retailers. Here is the result. (Please see Figure 7.3)
7.2 Direct Marketing
7.2.1 The Definition of Direct Marketing
The current "official" definition given by the Direct Marketing Association is:
Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.
It is important to have a thorough understanding of the current official definition. Let's dissect the definition.
A: The expansion of new customers B: The various needs of customers C: The future attraction of non-store retailers D: The expansion of market place E: The growth of the operating earnings of retail store F: The counterplot for difficult to display merchandise G: The saving of investment H: The expansion of the limit for running retail store I: Others
Figure 7.3 The Implement Motivation of Non-Store Retailers
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Interactive: Interaction one-on-one communication between marketer and prospect/customer( is an important key.
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One or more advertising media: Direct marketing is not restricted to any one medium. Indeed, direct marketers have discovered there is synergism among the media. A combination of media often is far more productive than any single medium, such as TV, radio, newspapers, magazines, and mailing.
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Measurable response: Measurability is a hallmark of direct marketing. Everything in the field, with rare exceptions, is measurable. Direct marketers know what they spend, and they know what they get back.
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Transaction at any location: The world is direct marketing's oyster - transactions can take place by telephone, at a kiosk, by mail, at home, at a store.
Direct marketing is accountable. It is advertising that can be justified and tracked. It is ideally suited for small business. Not only is direct marketing measurable, but it can be adapted to fit a budget and changing business goals. Like marketing, direct marketing involves analyzing the needs of a target audience and considering how best to design, package, and market a product or service that meets those needs. It means estimating the size of a market, thinking about the competitive environment, pinpointing customer preferences, establishing a customer profile, and devising a strategy to promote the product or service to that customer. But in direct marketing, the customer communication process is far different( and so, often, is the way products actually reach the purchaser. In the traditional advertising, marketing, and sales process, a product is shipped to a distribution point such as a retail store. Advertising and promotion draw interested customers to the store, where salespeople can close the sale.
Direct marketing uses media to deliver a message that often asks the consumer to purchase through a separate, non-store distribution channel( usually the mail or a private package delivery service like UPS. It may also direct the consumer to make a purchase through traditional channels.
Jim kobs, chairman and CEO of the direct marketing agency Kobs, Gregory & Passavant, describes direct marketing this way:
Direct marketing gets your ad message direct to the customer or prospect to produce some type of immediate action. It usually involves creating a database of respondents.
An overall view of the media from which direct marketers can choose is given in the direct marketing flowchart. (Please see Figure 7.4) Interspersed with the media in the flowchart are the disciplines involved in a successful direct marketing operation.
Figure 7.4 Direct Marketing Flow Chart
7.2.2 How Direct Marketing Started
There are historians who will argue that the roots of direct marketing are actually much older, but in the U.S. it is Mr. Ward and Mr. Sears who are credited with launching and refining the direct mail phenomenon. Both men, based in Chicago, used their "wish books" to market goods to farmers and small town citizens all across the country.
Aaron Montgomery Ward was a traveling salesperson who discovered that he could offer rural customers quality goods at up to 40 percent off if he purchased large quantities of goods for cash directly from manufacturers, and then sold them for cash directly to rural consumers. In 1872, he issued a single-page sheet listing items for sale and explaining how to order them. The single-page sheet quickly grew to 8 pages, and by 1884, Ward's catalog had 240 pages and listed ten thousand items.
As a railroad station agent, Richard Warren Sears took advantage of special freight rates to sell watches wholesale to other station agents, who marked them up and sold them again. When Sears, Roebuck & Company began in 1893, Sears branched out beyond railroad station agents, eventually serving the same largely rural audience developed by Ward. By 1897, Sears, Roebuck & Company had 318,000 catalogs in circulation; by 1907, 3 million.
When Ward's and Sears began, catalog distribution was problematic. The U.S. Postal System was still rudimentary in the late nineteenth century; while urban customers took home delivery of letters for granted, it wasn't until 1898 that "Rural Free Delivery" brought catalogs and first-class mail directly to farmers and small town residents.
Fulfillment -- that is, how packages from Sears and Ward's actually reached rural patrons -- was another challenge. Before 1913, the U.S. Postal Service delivered letters only. Packages were shipped via rail or by private carriers like American Express and Wells, Fargo. To receive a package, one had to go to the nearest railroad freight station. In 1913, the U.S. Postal Service introduced Parcel Post. Within a year, 300 million packages were shipped( a boon to both companies. In the first year of Parcel Post, Sears received five times the number of orders it had the year before, and the increase at Ward's was almost as dramatic. That is about how direct marketing started.
7.2.3 How Direct Marketing Works
Getting a message "direct" to the customer or prospect means using a medium like direct mail or the telephone that can target a specific group of consumers with certain characteristics, instead of a medium like television that addresses millions of people at a time. In direct marketing, the message always requests a response( the "immediate action" that it seeks to produce.
Responses can take a number of different forms. A catalog or a direct mail package asks recipients to purchase items by placing a mail or telephone order. But whether the response comes by mail or telephone, it can be measured. This means that the success of every direct marketing offer is evident as soon as all the responses are in. A lot of responses equals a successful offer, while less than was predicted means the offer failed.
The classic formula for direct marketing success is to build a list of satisfied customers, and then go back to them for repeat sales. That is why a database captures name and purchase information whenever a customer orders a book or a computer, sends in a check to a charity, or decides to go ahead with a security system installation. This "house file" is a direct marketing company's most important asset. It can be used to sell additional goods and services, or generate revenue by renting those names to noncompeting direct marketers. Even traditional marketers, such as package-goods manufacturers, are discovering that communicating with a customer database can boost in-store sales.
Direct marketing is sales, pure, and simple. Although some marketers are beginning to measure its results in terms of image, it is still radically different from traditional image advertising. Direct marketing is response advertising( through the mail, telephone , in a magazine, over the radio, or on TV, that is geared to making a sale.
7.2.4 The Media of Direct Marketing
Whether we use direct marketing for retail support, mail order, or business-to-business marketing, we need to define our market clearly, then select the appropriate media to carry our message to that market. There are many kinds of media for direct marketing:
- Mailing
- Magazines
- Newspapers
- TV
- Radio
- Computer Networks
- Co-ops
- Telemarketing
7.2.5 Why Consumers Like Direct Marketing
Why consumer acceptance is growing so rapidly? Recent statistics from the Direct Marketing Association indicate that:
- Nearly 10 percent of consumers have spent over $300 on merchandise ordered by mail or phone.
- Among their purchases, 27.5 percent were for clothing, 16.8 percent for magazines, and 11.5 percent for books ordered by mail.
- 52.6 percent of the U.S. population ordered merchandise by phone or mail in 1991, spending almost $35 billion on catalog purchases alone.
- 16 percent bought items by mail or phone six or more times than in 1990.
- The total percentage of American adults shopping direct has increased nearly 70 percent since 1983.
- Annual sales of goods and services through direct marketing are over $200 billion.
Behind these impressive statistics are a number of factors. Understanding the causes and symptoms tells us what people want and why. Here are the major reasons.
- Increase in the number of working women
- Inbound telephone marketing
- Debit card shopping
- Wider selection
- Central inventory
- Shoplifting
- Transfer of labor to the consumer
- Improved graphic presentation
- Mail order offers better customer service than do retailers
- People basically don't like to shop
7.2.6 Why Businesses Like Direct Marketing
Businesses like direct marketing for its versatility. Time has demonstrated that there is almost nothing direct marketing cannot sell. It can be used to:
- Sell products directly to customers.
- Sell corporate season tickets for professional sports teams.
- Sell insurance and other financial services.
- Generate leads and convert them to sales.
- Generate traffic for retail stores.
- Launch new credit cards and attract new credit-card customers.
- Establish consumer demand for products that can be converted to retail.
- Get lower cost than other marketing methods.
"Traditional" direct marketing sales through catalogs and direct mail packages also run the gamut of possibilities. Companies have discovered that they can use the direct-response media to sell a lot of commodities.
Chapter 8
Conclusion
The purpose this research is to better understand what Telemarketing is, why companies choose Telemarketing, and how to do Telemarketing. Also it is to survey the responses and opinions of households on Telemarketing by means of field interviews conducted by telephone. The results show how frequently Telemarketing is used, the acceptance percentage of people on Telemarketing, the attractive factors that enticed the people to accept the Telemarketing, the reasons for rejecting offers, whether customers were satisfied with products purchased by Telemarketing, the responses if the people were to receive a Telemarketing phone call, their feelings about sellers keeping in touch with them by telephone, and the influence of sex on Telemarketing. According these responses, telemarketers can find a clear direction for effective Telemarketing and ways of improving it. This information will be good for Telemarketing in the future.
Telemarketing is a dynamic medium. When integrated into the total marketing process, it can increase sales efficiency and profits by qualifying leads, increasing response from catalogs, direct mail, print, and broadcast advertising, and maintaining contact with direct marketers' most priceless asset( their customer base.
Telemarketing can be done on an ongoing basis or on an as needed basis, depending on the desire for new business. Telemarketing is an effective method of building business and it allows a firm to quickly assess customers' needs or interest in your business. However, not every business is appropriate for telemarketing( use your own judgment.
Marketing is truly transition, and Telemarketing is becoming more and more an integral part of all successful marketing strategies. Information technology and database marketing have come of age( in fact, it is these developments that have made Telemarketing possible and assured the need, acceptance, and dramatic benefits of this industry. Whether the business involves selling, advertising, fundraising, market research, or customer service, Telemarketing will be a key to its success.
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