Three Ways to Increase Sales Effectiveness with Telemarketing

Telemarketing has come a long way from “boiler shops” full of telephone pitchmakers. In the chapter entitled “Telephone Selling to Telemarketing,” from The Marketing Revolution, by Richard L. Bencin, the author discusses three of the ways a telemarketing program can help companies and their sales forces function in a more efficient, thorough, and less costly manner.

SELLING

Telemarketing can replace face-to-face selling of marginal accounts, from routine order taking to upgrading and reactivation. In addition, it can supplement face-to-face selling of major accounts by enhancing a field sales program to penetrate new customer bases and geographic markets.

And it can be used simply to sell. Recently, company presidents in the Chicago area were surprised by calls from Lee Iacocca, himself, selling Chryslers. He told them that one of his new Chryslers, with the works, was just rolling off his assembly line, and he offered to inscribe the CEO’s name on a gold plate over the dash.

Of course he couldn’t make all of the calls himself – it’s likely that Iacocca was simply experimenting personally with a telemarketing program he was planning nationwide – but the potential is clear. A recording of his voice could be used, for example, perhaps introduced live by hundreds of local telephone sellers.

The key point is that Iacocca had stunning success with direct telephone sales of fleet automobiles and caught both GM and Ford napping. The result? A 32 percent sales increase in fleet sales.

LEAD GENERATION AND QUALIFICATION

A telemarketing program can compile and update lists and get good leads from them. The leads, themselves, can be screened and qualified, and then the high potential leads can be passed on to the sales force for immediate action.

Westinghouse Credit Corporation uses telemarketing for this purpose. Reps at the Westinghouse Credit Telemarketing Center call out to determine interest, they verify mailing information, forward leads to branch offices, and requalify and follow up answered inquiries. This type of support system leaves the company’s field sales force available for in person calls to the most qualified prospects, thus decreasing sales call costs, and increasing the number of closes.

PROVIDE INFORMATION AND IMPROVE CUSTOMER SERVICE

Telemarketing can provide information to consumers, suppliers, dealers, investors, and other targeted market segments. An example would be a consumer hotline for answering product use, purchase, or assembly questions (both servicing existing consumers and helping would-be purchasers to make buying decisions).

Using this method, 3M’s telemarketing center effectively deals with customer equipment problems. After calling the 800 number, the customer describes the problem to a skilled analytical technician equipped with the latest equipment and on-line computer system. On more than 30 percent of the calls, 3M has found the difficulty can be solved in minutes without having to send a service technician. Such on-the-spot service makes a lasting, positive impression on customers used to waiting days or weeks for in person service calls.

The role of telemarketing in today’s business world is expanding at an incredible rate. By using telemarketing in support of a sales force, your company can save time and money by reducing unproductive sales calls, while increasing profits through telemarketing sales, lead generation and qualification, and improved information availability and customer service.