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Increase Prospect Engagement And Reduce Your Cost Per Lead – The New Face Of Telemarketing

By Gene Gerwin · Comments (0)
Saturday, May 29th, 2010

Managers of business-to-business telemarketing services are finding it harder than ever to realize positive ROIs.

While those with business-to-consumer offerings have had recourse to outsourcing to far-shore providers for cost savings, B2B marketers have had mixed results- at best- with that strategy. For most companies with complex B2B offerings, it is not even a viable option.

Unless you have a very high allowable cost per lead acquisition, the days of cold-calling large prospect lists profitably are gone.

A Changing Landscape For B2B Telemarketing

Nowadays, buyers of high-end business products and services turn to Internet search engines, websites, and blogs to begin their research. They amass product information, thought-leader opinions, peer recommendations, technical specifications, prices and more- all online… without ever speaking to anyone.

A call from a hired telemarketing service is an unwelcome intrusion in to their process. Reaching them by phone does not give you the right to leap frog ahead of the pack. If you try to circumvent their buying modality, you will find yourself stonewalled.

B2B Telemarketing Integrated With Internet Marketing

If your prospect has not already placed you on her short list by the time you call her, a good telemarketing service will at least get your horse into the race. Whether you make it to the finish line now depends on how quickly, and persuasively you can drive home your unique value proposition and campaign offers in a communication process driven by your prospect.

This means you need to have:

  • built and maintained your social media presence, showing you’re actively engaging with your market niche
  • have at your disposal a variety of autoresponders for your prospects that match where they are in the buying cycle
  • have prepared optimized landing pages with compelling offers to keep your prospects engaged
  • have good content available for your more analytical prospects that need to feel assured your company is competent
  • …and more…

Tying all this together requires you have telemarketing project managers that are in the loop with your Internet marketing programs so that everyone stays on message. Tracking conversions also becomes a more complex subject as telemarketing will drive online conversions and vice versa.

Despite these challenges and those who would proclaim the demise of cold calling, this is an exciting time for B2B telemarketing- provided you leverage and integrate Internet marketing.

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Categories : Uncategorized

What is Better? More Leads or Better Leads?

By Gene Gerwin · Comments (1)
Tuesday, April 27th, 2010

Today, MarketingSherpa published the results of the following business-to-business survey:

What are the greatest challenges that B2B marketers are facing? From generating high-quality leads and a high volume of leads to generating public relations buzz, see which challenges topped the list.

Here are the results:

business-to-business-challenges

This tug-of-war between “more leads” and “better leads” is a familiar story. It’s reflective of the long-standing face-off between marketing and sales departments.

Marketers typically focus on the cost per lead. This means opening the funnel as wide as possible to get as many leads as they can from their marketing efforts.

The wider the funnel, the more “tire kickers” end up in the mix.

As a result, the sales people have to constantly shift gears from high-end consultative selling to entry-level telemarketing to pre-qualify prospects.

This is psychologically challenging.

Wanting to focus on nurturing existing leads and begin new conversations with “ready” prospects that already “get it,” sales people will eventually ignore the majority of new leads that come in from marketing.

If your company regularly participates in trade shows or industry events for lead gathering, just do an audit of your last batch of leads and you’ll find that up to 80% of them were never contacted.

The end results:

  • Strife between sales and marketing
  • Ignored and lost leads
  • Wasted marketing dollars
  • Loss of reputation due to lack of follow-up communications with prospects

What are the possible solutions?

Step One: Narrow The Funnel

The most obvious solution.

But, consider this:

  • Your cost per lead can double, quadruple, or more because you’re still spending the same amount of marketing money
  • You lose the sales opportunities that don’t opt-in to your more stringent qualification process
  • There’s no guarantee that the early-stage buyers you filtered out will return to you later

Showing your CEO graphs of rising costs per lead and dropping lead counts will place you in an uncomfortable position as a marketer. If the sales department has a bad quarter, the finger will be pointed at you for generating less leads.

So, ignore this option altogether?

No.

The tendency is to go overboard in the screening process. I’ve seen opt-in forms with 20 or more questions about the prospect’s industry, buying stage, budget, decision making authority, technical requirements, and etceteras.

This is just insane.

A good rule of thumb is to limit yourself to just 2 to 5 pre-qualification questions.

A more thoughtful approach requires some 80/20 analysis.

  • What qualification requirements will suppress 80% of prospects that never become customers?
  • What qualification requirements will suppress 80% of prospects that become unprofitable customers?

Avoid any questions that could end up filtering out your hyper-response customers that are responsible for 80% of your company’s profits.

Step Two: Place Fresh Prospects In To  An Automated Email-Marketing Process

Since your emails will go out to prospects in different stages of the buying process, try to provide a variety of engagement options.

You can use which options they select as an indicator as to what stage of the buying cycle they’re in.

If your email server system is sophisticated enough, you can place your prospects in different marketing campaigns based on the tracked behaviors.

Step Three: Use Telemarketing

OK, what else did you expect a business-to-business professional to say?

Depending the volume of leads you generate, having telemarketers call all of them for futher screening and/or appointment setting may not be a cost-effective option.

However, if you have a lead-scoring system in place that tracks prospect behavior after they’ve opted in (or maybe even before), then you can limit telemarketing to those that reach a threshold you set.

For instance, you could assign points for the following actions:

  • repeat visits to your website
  • completing a form or survey
  • downloading a white paper
  • viewing a webinar
  • …and more

Bonus Step: Tell The Sales Department To Suck It Up

OK, maybe not in so many words.

No process is perfect. However, you’re doing everything you can to deliver qualified leads to the sales department.

As long as the sales department understands the new, enhanced value of the leads they’re getting, they’ll do a better job of following up.

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Categories : Uncategorized

How Much Does A B2B Telemarketing Lead Cost These Days?

By Gene Gerwin · Comments (3)
Monday, February 22nd, 2010

A poll on LinkedIn asking just that question got 500+ responses. Here are the results (note, the amounts are in British Pounds):

business to business telemarketing lead costs

While revelatory in itself, segmentation always yields additional insight. Here we see the cost per business-to-business telemarketing lead broken down by company size:

B2B telemarketing lead costs

What I find noteworthy in this second graph is that the smallest businesses are more likely to pay the highest prices for their leads. My suspicion is that this is caused by economies of scale issues.

Telemarketing campaigns require substantive administrative overhead- even for the smallest of projects. The percentage of administrative overhead contributing to the cost per lead increases the smaller the project is. Given that small companies, in most cases, can only afford small projects, it makes sense that they end up paying the most.

Comments (3)
Categories : Telemarketing Management, Telemarketing Outsourcing, Telemarketing Planning, Uncategorized

Getting 2010 Started With A Bang

By Gene Gerwin · Comments (0)
Tuesday, January 5th, 2010

Normally, the last three weeks of Christmas vacation and new year’s celebrations would have been a good time to relax. Not so this year. Everyone’s scrambling to stay ahead of the game. Take time to smell the roses and get run over by a train, I say.

I used the time to complete new professional certification courses, revamp my corporate website, move my mail server to a new dedicated server, introduce a slew of new services, and move this blog and re-purpose this website.

In a few days, I start a master-level, three-month certification program on conversion optimization led by Bryan Eisenberg, author of “Waiting For Your Cat To Bark.”

Why all this change, you might ask?

Well, I think everyone in the business-to-business telemarketing industry has seen it become more and more challenging over the last few years to generate positive ROIs. The reason, in my opinion, is that business prospects these days expect the conversation to take place over multiple channels; and, all of  these channels had better be persuasive before they’re willing to move to the next step with you.

So, my point is that a telemarketing call alone is no longer enough. Your campaign needs to incorporate well-planned email marketing and dedicated landing pages to succeed.

With all three services delivered by a single provider (CCI), you gain convenience and confidence that your prospects are moved along the conversion process consistently and effectively.

To learn more about how I can help you get started with an integrated marketing campaign, use the contact form on this website. I’d be happy to answer any questions you have.

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Categories : Uncategorized

Deconstructing Marketing Metrics

By Gene Gerwin · Comments (0)
Sunday, November 29th, 2009

I am struck by the many parallels between Internet marketing and telemarketing. For one, they both generate a lot of historical data allowing for “forensic” investigation.

Here are some web site statistics and their equivalents in telemarketing:

Internet Statistics vs. Telemarketing Statistics
For web traffic history, all kinds of additional demographic and behavioral information is tracked, stored, and available for analysis. For instance: referring websites, country, type of computer used, time on page, visitor paths, and much more- making possible what web analytics experts refer to as “deep diving.”

In the world of telemarketing, when you combine demographically selected prospect lists with tracking the above basic metrics, you can accomplish nearly the same thing.

Why the deep dive? Well, as you probably have heard, “there’s lies, damn lies, and then there’s statistics.” Top-level, aggregate ratios and moving averages rarely tell you the whole story or give you actionable insights.

Consider the following scenarios:

Web:

PPC Return on Investment

For the last six months, your online sales and ROI have remained steady. You promote your wares through a variety of online channels including Pay-Per Click advertising (PPC).

Being the sort that feels out of sorts when there’s seemingly nothing to worry about, you audit your PPC spend. After some Excel gymnastics, you discover that 80% of your sales are coming from brand keywords, whereas your remaining keywords consume most of your PPC budget.

Your brand keywords are subsidizing the campaign. In fact, some of your non-brand keywords are huge losers. You kill the non-performing ads and realize an almost immediate boost in your ROI.

Telemarketing:

Deceptive telemarketing statistics

You make a change to the telemarketing script and your rejection rate goes up while your conversion rate goes down. You think something is wrong with your new script.

You investigate further and find that the higher rejection rate is coming from a very specific demographic for which your product or service is not suited. Previously, your agents weren’t able to ferret these out early enough using the old script. Furthermore, the drop in conversions is linked to a group of new agents added to the project that still need to find their sea legs.

So, what at first blush looked like a negative, turned out to be a positive as your telemarketing agents now use their time more efficiently. Had you not investigated further than the aggregate statistic, you might have reverted to your old, less effective script.

So, when it comes to statistics, “drill Baby, drill!”

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Categories : Telemarketing Management, Uncategorized

Skype and Work-At-Home Telemarketing

By Gene Gerwin · Comments (0)
Wednesday, August 19th, 2009

Many of my work-at-home telemarketing agents use Skype because of it’s integration with browsers (“click to dial”), affordability ($3/mo), useful add-ons (call recording, screen sharing, and more), and its instant messaging service.

However, they are now finding Skype doesn’t tolerate their entrepreneurial activities as much as they used to. I don’t know if these are new policies, but Skype users on the “unlimited” plan are limited to 50 different numbers dialed per day. Violating this term will result in the user’s account being switched to per-minute billing, or possible account suspension.

Here’s the response one of my agents just got from Skype about being switched to per-minute billing:

We monitor the use of subscriptions to ensure our fair use policy is followed. Also, if we detect any unusual calling patterns or activity, we may temporarily suspend a subscription. Once the 6 hours per day are reached or 50 different numbers dialed per day are exceeded, Skype will charge normal rates and a connection fee for any additional minutes used until 00.00am GMT of the following day.

A productive TSR (telesales rep) will average 15 to 25 calls an hour. This restriction (50 different numbers/day), effectively limits the agent to around 2 hours of calling a day… not a viable situation.

I used to maintain a page with links to VOIP services and software tools. I’ll look to add that page back to my website soon.

In the meantime, a possible alternative for work-at-home agents might be Magic Jack which does not appear to have home-business-unfriendly restrictions.

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Categories : Uncategorized

"It's not what you say, but how you say it."

By Gene Gerwin · Comments (0)
Wednesday, June 10th, 2009

In the copywriting world there’s a saying that a good researcher will beat a good copywriter any day. No matter how skillfully presented, copy focused on the wrong message loses to bad copy centered on the right message.

Developing an effective telemarketing script depends largely on getting the message right. If you get the message right, prospects will forgive stumbles or awkward phrasing.

This runs counter to the common school of thought in the telemarketing business that considers how something is said more important than what is said. This is just plain silly to me.

I suspect that this line of reasoning is promulgated by telemarketing managers looking to scapegoat their agents for failing projects. The agents, in turn, blame the poor quality of the list. It’s a tragi-comedy of blame shifting.

If you find yourself trying to source out the reason why your project isn’t doing as well as it could be, it’s time to take a hard look at your telemarketing script.

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Categories : Uncategorized

Running With The Winner

By Gene Gerwin · Comments (1)
Friday, April 17th, 2009

Having just acquired a software tool for advanced split testing of marketing messages, I was pretty excited when a new client came on board that seemed unsure which of their selling points was going to get the most traction.

The software allows for quick, multivariate analysis of a dozen factors or more- making for as many as 4 million variations! It tracks time-in-script, conversion rates for up to three outcomes, and much more.

Well, after having tweaked all the bells and whistles, we started our calls. On the project was one of my more experienced agents with over 20 years of B2B telemarketing experience.

The first thing he did was to short-circuit my split-testing plans by zeroing in on what he felt was the best message. Getting positive response after positive response, he just ran with it.

At first I was annoyed; but, then it occurred to me that the whole point of split testing is to find a message that gets attention and brings about action. All that had happened here was that my agent found the winner right off the bat- saving us time and obviating the need for split testing altogether.

The message here is to not allow yourself to be trapped by plans and theory- or fancy tools. Thinking out of the box takes different forms and if your best laid plans are laid to waste- for the better- then rejoice and take advantage of the situation.

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Categories : Telemarketing Management, Uncategorized, Voice Coaching, Work At Home

Economic Collapse Revisited

By Gene Gerwin · Comments (0)
Monday, February 23rd, 2009

For those of us that that were heavily involved in the high-tech boom of the 90′s, the current economic crisis is insult added to injury. But, with every cloud you can find a silver lining. One of the reasons technology companies have managed to weather the storm so well (so far… everything has a breaking point) is that they (those that survived the dot.bomb) learned business survival strategies such as:

  1. Invest in marketing initiatives with fast and measurable ROIs
  2. Test market (“vaporware”)
  3. Tighten lead management practices
  4. Leverage new technologies (“sales 2.0″)
  5. Instead of counting on a steady flood of new customers, deepen relationships with existing ones
  6. Get paid in advance as much as possible!
  7. Reduce unnecessary expenses
  8. Incorporate accountability and transparency throughout the organization
  9. Treat your employees as partners and customers
  10. …and many more…

My point is that, as the economy founders, we should look to those industries that are surviving or even doing well for leadership. We need to find the 20% of industries that could account for 80% of the American recovery. I propose that the tech, and perhaps bio-tech industries will play a major role in re-defining our economic future.

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Categories : Uncategorized

Checking in…

By Gene Gerwin · Comments (0)
Tuesday, January 27th, 2009

I’ve been busy these past few weeks working on a new business venture with a close associate in the golf industry. You can see our website here.

I also created a new auto-responder that you can see here if you’re interested in marketing strategy.

I’ve also made about 500 prospecting calls over the last couple of weeks and sent out a few broadcast emails with offers and promotions. What I found is that there is a lot of skepticism out there. It’s always been that way, to some degree, but people seem to be more cynical now than ever; try handing out a $5 bill to passing strangers on a busy sidewalk, and you’ll see what I’m talking about.

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Categories : Uncategorized
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