What is telemarketing?

Telemarketing is a direct marketing approach used to generate leads, close sales, and conduct market research. 

The approach is conducted by sales representatives who connect with individual prospects, allowing them to make it very personal and agree on bespoke terms you would not otherwise be able to make. 

It’s an incredibly flexible marketing method that has been used for decades across every sector and industry – and with good reason.

This guide will not only answer the fundamental question: “What is telemarketing?” It will also delve deeper into the pros and cons of telemarketing, as well as the process to follow when creating a telemarketing campaign.

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Understanding telemarketing

Telemarketing is a form of direct marketing in which a seller contacts potential or existing customers directly via telephone or email. While the term often carries negative connotations due to its unsolicited nature, telemarketing can be an effective sales strategy when executed properly. This allows for a personalised approach where real-time questions and concerns can be addressed, helping build trust with the customer. 

Types of telemarketing

Generally speaking, there are four main types of telemarketing. 

1. Inbound telemarketing

Inbound telemarketing involves taking calls from interested prospects who have become aware of your brand, products or services in some way.

This can include:

  • Advertising and sponsorship
  • Decals and signage
  • Editorial features
  • Search and social media
  • Word-of-mouth recommendations

 Just because someone contacts your company, it doesn’t mean that the work is done. Effective telemarketers are ready to answer a wide range of queries in a way that encourages sales (and upsells) to new and existing customers.

2. Outbound telemarketing

This is the natural counterpart to inbound telemarketing. This time, it’s your marketing team placing the call or email and following up with prospects who show an interest in your product.

In most cases, a relatively low conversion rate is expected (i.e. the percentage of prospects who go on to place an order). However, effective outbound marketing is not just a scattergun approach; it is about building a relationship and nurturing leads to achieve sales that would not otherwise have occurred.

3. Sales telemarketing

Sales telemarketing is a form of outbound marketing but is typically more direct. Rather than nurturing a relationship over a long time, you are usually looking to make a sale during the initial call, or with very few follow-up contacts required.

This relies on fast-thinking salespeople with excellent communication skills and persuasive abilities. It’s often perceived as more of a ‘hard sell’ approach, and it’s important to use experienced professionals to avoid coming across as pushy or intrusive.

4. Lead generation telemarketing

Lead generation is a pivotal step in any marketing campaign. This is the moment when you confirm that a prospect is not just interested in your product, but is ready to place an order.

In case you do not know, there are key differences that set prospects and leads apart:

  • Prospect: An individual who will be contacted via internet or telephone as part of your campaign. Usually selected based on some initial criteria (e.g. industry or location).
  • Lead: A prospect who has been contacted and has expressed interest in your product or service. ‘Qualified’ leads are typically passed from the marketing team to sales, who follow up and close the deal.

‘Qualifying’ a lead is important in its own right. This happens when the telemarketer confirms, for example, that they are speaking to the right person, that the product is relevant to them, and that they have the budget and decision-making ability to place an order.

Benefits of telemarketing

  • Cost-effectiveness

Any marketing campaign needs to ‘wipe its face’ so that you cover the costs and make a profit overall. Once you have a profitable campaign, it becomes about maximising those profits.

Telemarketing is a highly cost-effective marketing method. It’s relatively cheap, compared with flashy television ads and sponsorship deals, yet you can reach a large volume of contacts very quickly.

It’s also inherently scalable. Sales made early in a campaign can allow you to cover further costs, which gives you momentum to continue generating more and more income.

  • Personal connections

 The personal aspect of telemarketing is hard to achieve via many other channels. In most cases, calls are one-to-one, allowing you to establish rapport and, if necessary, adjust the offer to suit the individual.

It’s also sometimes useful to ask questions, as you may be able to learn more about which aspects of your product appeal more than others, to optimise your marketing message for the future.

  • Easy to manage

A well-constructed telemarketing campaign is easy to manage. This includes basic housekeeping like verifying contact details each time you attempt to speak to a prospect.

Over the long term, this can also extend to how you judge the success of the campaign, and the changes you make before you embark on your next round of telemarketing calls.

Disadvantages of telemarketing

Telemarketing is not without its challenges. It takes a lot of confidence to spend all day placing calls, especially on speculative campaigns with a low relevancy or engagement rate, and telemarketers must maintain their morale in the face of rude or angry prospects.

  • Conversion rate problems

Telemarketing, especially cold calls, has a very low conversion rate (5% at best in B2B settings). This means that sales agents need to place a high volume of calls to generate interest. There are some things you can do to improve conversion rate, including better targeting, and refining your campaign message and offering. 

  • Intrusive reputation

Cold calls and telemarketing in general have a bad reputation. If a prospect is clearly not interested or responds negatively, the best approach is to remain polite, end the call professionally, and move on to the next prospect.

You may have simply reached them at a bad time, or they may not like unsolicited sales calls. Pushing too hard in these situations can backfire, leading to frustration and potentially damaging the reputation of the brand or product you’re promoting. This is why it’s important to respect boundaries.

  • Reputational damage

To avoid reputational and legal risks, any professional telemarketing campaign must comply with relevant do-not-call regulations. 

For example, schemes like the Telephone Preference Service (TPS) and, for B2B telemarketing in particular, the Corporate Telephone Preference Service (CTPS). Companies must renew their CTPS listing annually, and your marketing team should screen their contact list against the CTPS every 28 days to avoid potential enforcement action.

Telemarketing with Toucan Telemarketing

Effective B2B telemarketing is a process, not just a single phone call. At every stage, we work to optimise the efficiency of your campaign, to avoid wasting time by calling prospects who are unlikely to be valuable:

  1. We identify prospects in your target market using our list-building and database enrichment expertise.
  2. We place initial calls to the prospects on your list, gauge their interest and update contact details where needed.
  3. We generate a list of qualified prospects: those who are a good fit for your product/service and capable of placing an order.
  4. We continue to follow up, building a lasting, positive relationship and positive perception of your brand.
  5. We hand over qualified leads to your sales team and/or set appointments directly, so you can close the deal as you wish.

While we work flexibly to adapt to opportunities that present themselves during each call, we maintain a rigorous and professional approach at all times, to leave prospects with the best possible impression of your brand and your business proposition.

In many cases, this can lead to follow-up enquiries from prospects, who may remember your company when they have a need for your products or services at a later date.

Is Telemarketing right for me?

B2B telemarketing remains the go-to option for campaigns of all sizes, due to its scalability and flexibility. With proven performance across every industry and sector, and for all kinds of goods and services, it’s a fantastic way to drive positive ROI and build your marketing momentum.

It’s important to take the right approach: data-driven, respectful campaigns, targeting the right people in your market, using up-to-date contact details, and screening against the CTPS to ensure regulatory compliance.

Toucan Telemarketing has proven success in mounting B2B telesales campaigns on behalf of our clients, working closely with your in-house sales team to generate fully qualified leads ready for conversion, and to maximise the ROI on your marketing spend.

To find out more, contact Toucan today to speak to a member of our team, and let’s get the ball rolling.

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