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February 26, 2014

Telemarketing and Cold Calling: Why Companies Outsource their Lead Generation Campaigns

By Daniel Brecht, Contributing Writer


Many businesses depend on cold calling to generate leads and increase their customer base. Such an important function requires some thought from companies’ managers who need to make sure the task is accomplished as effectively as possible. Cold calling requires exceptional communication skills, persistence and determination to successfully converse with a prospective customer. Lead generation has a direct impact on obtaining new customers and increasing business revenues.


According to Ian Titchener, Director of Telemarketing Matters, a U.K. outsourced B2B telemarketing and lead generation company that has been operating since 2005 and has offices in the historic city of Cambridge, the first important decision managers need to make is whether to use company staff or a telemarketing agency for cold calling. Titchener, who has a great amount of experience in the fields of cold calling, tells why in a written report featured on Cambridge Network’s website.

He mentions some arguments in favor of outsourcing a cold calling service – i.e., employing the services of an external company specialized in lead generation: focus, capabilities and cost.

According to the article posted on Cambridge Network’s website, using one’s own resources to carry on telemarketing might not be feasible for all companies. In fact, often these duties are assigned to personnel who already has other responsibilities and that, most likely, will not put much effort in lead generation. Even when actually hiring people for cold calling, businesses might encounter problems. Soon employees are involved in other projects and their telemarketing (or telesales) efforts become minimal and definitely not effective.

Therefore, an external professional involved in cold calling services may be the best option for a company in handling a cold calling telemarketing campaign. Hiring a telemarketing agency assures that the focus is always on the task, and that there is always somebody dedicated to finding new leads for the business.

Capabilities, according to the article, are another issue. A telemarketing agency will be able to provide the services of professional sales people specialized in cold calling and lead generation. These agents, normally have already several years of experience and, therefore, might be able to provide better results than the company’s own resources that might not be as skilled (and as interested) in telemarketing. An external agency that has expertise in converting cold calls into sales will also bring experience and competence in segmentation (to better identify potential customers and target the right potential clients’ groups), data acquisition, and make the best sales pitch.

Cost is also a factor to be considered. According to the article, a telemarketing agency will cost a business about 300 pounds (approximately 500 U.S. dollars) a day for a telemarketer which is supposed to be an attractive price when compared with the cost of a sales employee. The amount becomes particularly appealing when considering the amount of leads a professional marketer will be able to provide compared to an employee who concentrates on cold calling only as extra duty.

Employing a telemarketing agency can be seen as an apt investment for the future of a company.  Obviously, every company will need to look into their particular situation and see how feasible it would be to employ the services of an external telemarketing agency. Another option is the use of telemarketing software solutions. However, companies looking for a more direct relationship with potential customers from the very beginning might still want to assign cold calling to their own employees. However, employing professionals could really have a most welcome effect on revenues and result in business opportunities to quickly increase the customer base.


Edited by Rory J. Thompson


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