Telecommunications has become one of the most important aspects of our lives in the digital age. Our ability to communicate over long distances has been greatly improved. A large number of small- and medium-sized companies and entrepreneurs have viewed telecommunications as an opportunity and an effective strategy for marketing and selling their products and services through telephone calls.
As a result, they had reached out to their potential customers, increased brand awareness, built productive customer relationships, ensured due repeat business, and improved their businesses.
On the contrary, many people believe that telemarketing is on the verge of extinction. Why? A result of the evolution of digital marketing techniques over the years. Customers can now access goods and services they want and need instantly through social media and other online platforms. Still, does telemarketing have a place in business?
Which businesses can benefit most from telemarketing in different ways, and what are the advantages and disadvantages of telemarketing? Read on to find out more. But before we go any further, let's define what telemarketing is.
What is Telemarketing?
The use of the telephone or web-based video conferencing by businesses, salespeople, and telemarketers to promote their products and services to potential customers is known as telemarketing. Its sales process involves calling, researching, and approaching prospective clients to pitch their products with the primary goal of generating leads and sales.
Telemarketing is also used by business owners for marketing purposes, such as conducting market research or obtaining accurate information in order to execute various marketing techniques. It is also known as inside sales or telesales and has received a lot of criticism for its intrusive nature. Various companies use it as one of the most popular forms of marketing to reach out to potential clients.
In addition, it includes pre-recorded sales pitches that are played over the phone through automatic dialing. In some industries, telemarketing plays a larger role than in others.
According to the Telemarketing and the Telephone Consumer Protection Act (TCPA), November 2003, "Telemarketing is a practice where a business initiates a Geetika, Deepesh Tiwari, and Preeti Gupta Indian Consumers' Perception of Telemarketing Phone Calls to Propose Commercial Transactions.'
Telemarketing, then, is any form of marketing that is conducted over the telephone. It's a process of selling products or providing customer service by phone, according to Rosette Siriban (2008). Due to changes in market behavior and the declining effectiveness of traditional media, direct marketing has seen a massive increase in popularity. As telemarketing and direct response advertising continue to grow, this trend is expected to continue.
How does Telemarketing work?
Telemarketing is a practice that gained popularity in the late 1970s and early 1980s. Contacting, vetting, and reaching out to potential customers are all part of the process. As a result of changing work practices, businesses can now initiate phone calls from their offices, hire call centers, or telemarketers can do it from their homes.
Telemarketing's primary goal is to gauge the level of interest of a potential customer. Having said that, a phone call helps companies determine if a particular customer is interested in their products or services. This means that the telemarketer will close the deal during that phone call, or move on to other methods of communicating with the potential customer.
Additionally, entrepreneurs rely on telemarketing to conduct market research or to obtain accurate information to execute various marketing techniques.
Different Types of Telemarketing
Using the telephone or internet to market goods or services directly to prospective customers is referred to as Telemarketing. The same as other marketing strategies, telemarketing has a variety of approaches that companies can use to achieve their goals. As an entrepreneur, you need to know the four types of telemarketing that are most effective in growing your company.
Types of Telemarketing
1. Inbound Telemarketing
When a customer initiates a telemarketing call to know more about a product or service, it is called inbound telemarketing. People in this demographic are already aware of and somewhat interested in the products and services that are advertised on various media outlets. Magazines, catalogs, postcards, radio and television commercials, and social media marketing are included.
To be successful in telemarketing, your target market must be engaged. It is a telemarketer's job to provide information about your product to a prospect when he or she calls. Customers place orders with them, rather than having them sell your brand to them in a direct manner. If handled smoothly and professionally, this type of telemarketing provides agents with the assurance that they will produce positive results.
2. Outbound Telemarketing
Outbound telemarketers, as opposed to inbound telemarketers, make direct contact with prospective clients to promote and sell their companies' products and services. When it comes to outbound telemarketing, the customer has no prior knowledge of or interest in the products that the agent will present to them. To ensure a successful and profitable outbound telemarketing campaign, outbound telemarketers must be properly trained on product knowledge.
You can also take a look at our blog on Inbound vs Outbound Marketing
3. Business-to-Business (B2B) Telemarketing
As a B2B transaction only, B2B telemarketing allows businesses and entrepreneurs to contact one another to sell a product or service, as well as establish business connections. Aside from that, it's a great marketing tool for building credibility with existing and prospective customers, generating new leads, and spotting new business prospects.
4. Business-to-Consumer (B2C) Telemarketing
On the other hand, business-to-consumer (B2C) telemarketing reaches out to direct customers who need a specific product or service. Since its primary function is to promote and sell goods directly to clients, B2C telemarketing includes evaluating, understanding, and segmenting large target markets and demographic groups.
Recommended blog - B2C Marketing strategy
Advantages And Disadvantages Of Telemarketing
To increase sales and profit potential, telemarketing can be a cost-effective method for a business to use. As a result of this sales strategy, small businesses can expand beyond their local market. Even though telemarketing allows businesses to reach out to more potential customers, it can take a while for positive sales results to appear.
On the other hand, connecting with customers generates leads, some of which may turn into sales. It will be easier to decide whether or not telemarketing can benefit your small business if you know the pros and cons of the method.
Advantages and Disadvantages of Telemarketing
Also read: 10 Top B2B Marketing Strategies
Importance of Telemarketing
"Is telemarketing still effective?" "Does it still contribute to the growth of the business?" Definitely! As businesses grow, telemarketing continues to play an important role. Many business professionals continue to strategically implement this practice to generate leads and boost sales, even though several online platforms and other digital marketing tools have evolved. Telemarketing has several other advantages in addition to these.
Importance of Telemarketing
Offers a More Interactive and Personal Sales Service: Despite technological advances, many people still prefer to communicate by hand. Customer service is one area where clients want to speak with a human expert, which leads to a long-term customer relationship.
When they're in the buying stage, 61 percent of mobile users call a company, according to a Google study. The majority of respondents have used the call button to speak with a real person.
Expands Business Reach: Telemarketing offers businesses the opportunity to promote and sell their products over long distances. Consequently, they have the opportunity to reach more prospects, establish a larger sales territory, and build a customer base. Several business opportunities can also be identified through it.
Determining what aspects of their operations, products, and services need to be improved is another benefit of the survey. Businesses will be able to gather direct and immediate feedback from clients through telemarketing.
You introduce yourself and tell a bit about your company or product at a function attended by several prospects. Prospects can be met in a relaxed, informal setting through networking. It may take some time, however, for those prospects to become customers.
You can also sneak a peek at our blog on All About Holistic Marketing
Four Tips For Success in Telemarketing
1. Make sure you have the right tool for the job at hand
Numerous telemarketers aren't employed by large companies. To get as many calls as possible in a given period, they optimize their processes. A modern Voice over Internet Protocol (VoIP) solution can help you save money on your phone bill, as well as provide you with a variety of modern phone system features that make it easy to dial outbound leads in bulk.
2. Don’t do anything illegal
You'll need to follow certain rules depending on who you're calling and where you're calling. Each state in the United States has different laws regarding cold calling, so make sure the list you're calling isn't filled with numbers on the National Do Not Call Registry. You should also make sure that you comply with local laws if you are recording calls.
(Related blog: 5 Factors Influencing Consumer Behavior)
3. Connect the tools that you use
Third-party integrations are abundant in modern VoIP software. As soon as your agents pick up the phone, they can access all the information they need about a lead. Because they won't have to waste time looking up the lead's information, they'll also be more prepared when they make their phone call.
4. Analyze your performance and don’t be afraid to step in
With today's dialing software, it's simple to create detailed reports for each agent and campaign you run. On this basis, you can determine which agents are performing well and which are underperforming. When it comes to difficult or important calls, you'll always be in control of the situation.
Among the reasons why telemarketing is unsuccessful is due to agents' lack of knowledge. To execute a successful and profitable telemarketing campaign, it is essential to have the confidence and product knowledge to do so.
Consider hiring professional telemarketers to help you promote and sell products and services to increase your company's sales. The assistance of experts can also provide your company with improved customer service and access to the latest technology.
All companies, regardless of size, can profit from telemarketing with the right tools and sales agents. Hopefully this blog, I believe, has been able to give you a coherent picture of telemarketing.