Telemarketing can be a powerful way to grow your business. It normally involves calling customers via the telephone to introduce a product or service with the intention of making a sale.
Typically, telemarketing involves obtaining a list of potential customers, former or existing customers, to whom you would like to sell a product or service.
The list of potential customers can be provided by specialist list suppliers, or it might be an old list of your own customers or even a current list of customers you already have and are actively engaged with.
The most common forms are:
Call centre telemarketing is usually defined using three key terms:
There is no question that telemarketing can produce results, but it's also not easy with a range of factors that can contribute to a successful telemarketing campaign, including the quality of the customer data, the skill of the agent, the perceived value of the product or service.
Rest assured, there are specialist call centre telemarketing companies that can help improve the odds of your telemarketing campaign being a success.
Just a word of caution, though—many businesses seeking telemarketing solutions are looking for a 'commission-only' model, where the telemarketing provider is only paid on sales.
Unfortunately, this is a very high-risk strategy for the telemarketing business.
Whilst not a preferred model for many, telemarketing companies may be open to it if it includes a trial period on a fixed-price model to determine the expected conversion rates before agreeing to the commission-only models.
With call centre resources significantly cheaper overseas (e.g. Philippines, South Africa and New Zealand), one of the key decisions you need to consider is whether you engage a telemarketing company in Australia or use one overseas.
There is no blanket rule, and it ultimately comes down to what you want to achieve for your business.
Some key points you may want to consider:
Offshore locations can be anywhere from 20% to 70% cheaper than running the same telemarketing campaigns here in Australia.
If you were looking at a commission-only model, they would seek a lot more money (as it’s a higher risk).
There are many ways telemarketing companies charge for their services, including:
Ultimately, the conversion rates typically come down to four things:
Typically, as a rule, good telemarketing conversion rates vary between 2% and 7%.
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