Cost savings is usually the main reason a business chooses to outsource telemarketing services as opposed to developing a skill bank in-house. Along with low operational costs, telemarketing companies offer multiple benefits in the deal – professional marketing support, detailed analysis for customer service improvement, and more.

The process tag of telemarketing outsourcing includes some costs that businsses should factor into its decision making process on  in-house vs. outsourced 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 outsourcing telemarketing provider is located offshore where labor costs are cheap, this cost is comparable to the payroll costs of employed personnel.

Equipment costs

A business that uses professional telemarketing services seasonally may prefer outsourcing over incurring the costs of telemarketing equipment. However, if telemarketing is a year round business 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 jobs see high turnover and the costs of recruitment can get inflated.

Training costs

Training telemarketing call center agents 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 customer relationships. Telemarketing agents need to be trained on various aspects such as conversing based on specific issues, accepting rejection with equanimity, product knowledge, using scripts and engaging customers professionally. It is the management’s job to ensure telemarketing training is:

1. updated
2. delivered on time
3. delivered frequently
4. structured with up-to-date call center 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 firms serve more than one client, the costs of trainings get distributed.

Legal costs

Outbound telemarketing services 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. Telemarketing lead generation firms are well-versed in the legalities surrounding telemarketing in their area, relieving businesses from the worry.

Cost of Office space

An in-house telemarketing service needs space to operate. Outsourcing allows businesses to use 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 cost

This is the most significant cost that telemarketing outsourcing saves a business. Nothing can hurt a business more than losing potential customers simply because the telemarketng service fell short of suppoting the customer demand. A business protects itself from this eventuality by tapping into the resources of a outsourced telemarketing company. Providers can up-scale and down-scale staff according to the business need.

All these costs add up into substantial savings for a business. 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.

Tags: Telemarketing

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