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.
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.
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 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 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:
- 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.
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.
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.