TAG | Telemarketing
Telemarketing is the method of soliciting potential customers over the phone.
It is a form of direct marketing that has been used as an assertive sales method since around the 1950’s.
There are two primary categories of telemarketing, business-to-business and business-to-consumer.
Within these two areas of telemarketing there are several subcatergories; lead generation, sales, and inbound and outbound sales.
Telemarketing is very flexible and can occur in a formal call centre, within a company’s office or even from home.
Increasingly, telemarketing is being off-shored, to reduce sales and marketing costs.
Often telemarketing involves more than one call. An initial call to establish the customer’s needs, and then follow-up calls to encourage the customer to make a purchase.
Telemarketing can also include pre-recorded sales pitches that are played to potential customers using an automatic dialling machine. This is called automated telemarketing, and has also been used for spreading political messages.
The telemarketing industry has come under a lot of criticism for its marketing techniques that many view as intrusive.
There are often associations with scams and frauds, and it is an industry that has been linked with pyramid schemes.
These issues were one of the triggers that have led to increased regulations on the industry, primarily to protect the consumer and their privacy.
There are professional associations of telemarketers to maintain certain ethics and standards to encourage the publics confidence in the practices of the industry.
There have also been ‘Do Not Call’ lists generated to ensure that those customers that never wish to be solicited over the phone are left alone. The first of these official lists didn’t happen in Australia until 2007.
In Australia the Australian Federal Government along with the Australian Communications and Media Authority are responsible for monitoring the telemarketing industry.
There are many telemarketing companies in Australia that offer a range of different sales techniques.
Different companies offer different services, from large companies which are able to contact large numbers of potential customers, to smaller companies with a more personalised approach.
Telemarketing services often operate on cold calling large numbers of people to generate sales. But increasingly, companies are choosing to offer a more thorough service.
More prevalently telemarketing services involve several calls. An initial call to establish the customers needs and then several follow-up calls, if necessary, to secure a purchase.
This is a more modern technique and is often about establishing a personal connection with the customer.
The advent of “No Call Lists” which were brought in by the Australian Communications and Media Authority in 2007 have meant that telemarketing services need to focus on quality of calls rather than quantity, as less people are available to contact.
With outsourcing to overseas companies becoming more and more common in order to reduce costs, telemarketing businesses have had to change what they offer.
High quality sales techniques and local knowledge are increasingly important. Customers are often more receptive to a telemarketer when they know they are calling from their city or country.
Australian based telemarketing services have the advantage of being aware of many issues that might affect their customer’s desire to make a purchase. Current events, cultural and societal issues are all understood by sales representatives based in Australia.
It is also a highly scripted and controlled industry. The ability to record calls, with the customers consent, companies are able to monitor their sales representatives and guide them in their techniques.
Telemarketing services reflect the market, as various businesses become more competitive or desire quicker growth, direct marketing techniques like telemarketing become necessary.
