Cost savings is usually the main reason a small or mid sized business chooses to outsource operations as opposed to developing a skill bank in-house. Along with low operational costs, outsourcing providers offer multiple benefits in the deal – telemarketing support, detailed analysis for customer service improvement, and more. The process tag of telemarketing outsourcing includes some costs that management should factor into its decision on outsourced versus in-house telemarketing services. Some of these costs are described below.

Wage costs

One cost that offsets low costs of telemarketing outsourcing is the outsourced wage costs that are paid out to the telemarketing companies. Unless the outsourced telemarketing provider is located offshore where labor costs are cheap, this cost is comparable to the payroll costs of employed personnel.

Equipment costs

Small or mid sized businesses that outsource telemarketing seasonally may prefer telemarketing outsourcing over incurring the costs of telemarketing equipment and software. However, if telemarketing is a year round need the value derived from the equipment justifies the cost.

Recruiting costs

Recruiting personnel involves the investment of management’s time and money paid out to personnel and job agencies. Telemarketing companies see high turnover and the costs of recruitment can get inflated.

Training costs

Training telemarketers is an important part of readying them for the job. As telemarketers interact with your customers, the quality of their conversations has a long lasting effect on relationships. Telemarketers need to be trained on various aspects such as conversing according to customer type, accepting rejection with equanimity, product knowledge, using scripts and engaging customers professionally. It is the management’s job to ensure trainings are:

• updated
• delivered on time
• delivered frequently
• structured with up-to-date training techniques

Obviously, designing a training program is time consuming and costly for a business. In the case of an outsourced telemarketing service, the staff is fully trained. It may need additional training to align with your business goals and products, but the learning curve is minimal. As telemarketing services serve more than one client, the costs of trainings and updation get distributed.

Legal costs

Telemarketing lead generation is strictly regulated by federal and state laws. For a business that has operations in multiple states, ensuring adherence becomes a complex task as rules vary at federal and state levels. A business would need to allocate funds for the legal effort involved in assuring compliance to Do-Not-Call lists and the Telephone Consumer Protection Act. Third party telemarketing providers are well-versed in the legalities surrounding telemarketing in their area, relieving businesses from the worry.

Cost of space

An in-house telemarketing call center needs space to operate. Outsourcing allows businesses to use outbound telemarketing services without worrying about this aspect. Though space costs are part of the fees a business pays to outsourcing firms, it is spread across clients and is therefore low. The space may also be cheaper than that accessible to the business. The business gets the opportunity to expand other profit generating divisions to maximize profits.

Opportunity costs

This is the most crucial cost that telemarketing outsourcing saves a business. Nothing can hurt a business more than losing potential customers simply because the telemarketer staff fell short of demand. A business protects itself from this eventuality by tapping into the resources of a third party telemarketing provider. Providers can up-scale and down-scale staff according to the business need.

All these costs add up into substantial savings for a business. Telemarketing outsourcing is not just about the money saved. It is also about the value the provider brings to your business with its services. Analyze the costs and make an informed choice in selecting a telemarketing service.

Outbound Telemarketing services is one of the most successful marketing strategies small and mid sized businesses use to promote their solutions and qualify sales leads. Studies indicate that the success rate of outbound telemarketing is proportional to the quality of training received by staff. Many businesses choose to outsource telemarketing services as the task of hiring and training telemarketing staff is daunting. Businesses that prefer to develop in-house telemarketing should ensure staff is adequately trained on skills that make them effective.

Telemarketing services is not everybody’s calling. There are certain characteristics that telemarketers should either have naturally or imbibe through trainings to produce desired results. The management team should set goals aligned to these characteristics and measure performance of individuals accordingly.

Some skills all telemarketers should be trained on are described below.

1. Conversing professionally

Communication skills are first evaluated during the hiring interview. Candidates should be strong in grammar and speech. Trainings refine this education by teaching telemarketers how to talk professionally and appropriately in accordance to customer types. Older professional business clients may expect a serious and pertinent kind of exchange while others may be more casual.

2. Adherence to telemarketing regulations

Telemarketing rules vary at federal and state levels, and change frequently. It is the management’s responsibility to ensure telemarketing staff is aware of current rules and the importance of adhering to them. Any violation, however inadvertent, can lead to costly repercussions for your business.

3. Product expertise

Telemarketers should have working knowledge of products to answer customer’s questions with confidence. In-house staff usually has this advantage over outsourced staff. Management should ensure product trainings occur frequently so that turnover, which is high in the telemarketing industry, does not affect the quality of customer support. New entrants should be brought up to scratch before they begin interacting with customers.

4. Using a script intelligently

Telemarketing scripts are vital to success. Planning a conversation and outlining important points helps telemarketers guide conversations and stay focused. The important thing is to not let the script overcome the natural flow of conversation with the customer. The script is only a guide not a notice to be read out.

5. Leading to a sale or commitment gradually

Sales or commitment to some action cannot be expected from the customer immediately. A telemarketing call follows a gradual flow – the customer agrees to hear you out, gets engaged in conversation, you describe the offer and advantages to the customer, and lastly provide the information for the customer to act. A telemarketer who jumps to the sale straightaway is likely to get snubbed instantly.

6. Accepting rejections

Winning and losing is part of the game. Telemarketing companies will often face rejection, snubs and even rude language. However, this is not personal. Good telemarketing agents understand this and get on with the job. Trainings should prepare telemarketers for such responses so they can handle them calmly. If some telemarketers cannot handle losses, they probably need to be replaced.

7. Changing conversation styles with audience

Conversation styles in telemarketing vary with the type of audience, product or service being promoted. Business-to-business sale conversations are far more complex than customer service calls. Trainings are crucial in making the transition smooth for the telemarketers. Without adequate training, telemarketers can make serious blunders that will lose you your customer and negatively impact the confidence of the telemarketer.

When comparing in-house with outsourced telemarketing services, consider all the factors that come into the equation. Costs and services are important as are training and management. Inadequate trainings or inefficient management of in-house telemarketers will only lead to a substandard telemarketing experience that will impact your customer relationships and repute. Weigh your options carefully and make an informed choices.