What Is Telemarketing: Pros and Cons For Your Business

Posted 2 years ago by Max Komonov

Virtually everyone has heard the听term telemarketing, but have you ever wondered what it听means? There is听a听bit more to听it听than most people think, and听it听has evolved over the听years.

So, what is听telemarketing really?

It鈥檚 a听marketing strategy that involves contacting customers or听potential customers over the听phone to听talk to听them about products or听services. It听may also be听called 联迟别濒别-蝉补濒别蝉聪 or听聯inside sales.聰

Telemarketing calls can come from various types of听businesses. These days, digital marketing strategies are the听most common form of听marketing. However, there are a听few industries where telemarketing is听still quite prevalent, such as听insurance, credit cards, and听public service areas. Any of听those calls you receive from political campaigns or听companies urging you to听change your cable service fall under the听heading of听telemarketing.

Some companies may think there is听no听value in听telemarketing, but it听can be听beneficial for听smaller businesses.

Let鈥檚 break down the听ins and听outs of听telemarketing.

What is听a听Telemarketer?

So, what is听a听telemarketer? The answer may be听obvious, as听a听telemarketer is听someone who engages in听telemarketing.

But let鈥檚 take a听look at听what a听telemarketer does as听part of听their daily job. Before the听digital age, telemarketers were limited to听phone calls and听fax messaging.

Nowadays, the听practice can also include video conferences and听online calling, which will most often be听used for听current customers.

What is听a听Telemarketing Call?

The most common form of听telemarketing is听cold calling, which is听where potential customers are contacted for听the听first time. Hence the听word 聯cold,聰 as听the听customer has no听idea what is听being marketed to听them, so听it听is听a听cold lead.

However, this is听not the听only application for听telemarketing, as听it听may also be听used for听the听following reasons.

Follow-ups
Attendance confirmation for听events
Lead generation
Surveying
Customer satisfaction evaluation

Telemarketing calls can be听placed from a听variety of听locations. They may come from call centers hired to听perform telemarketing services for听a听company, the听company鈥檚 office, or听from remote telemarketers.

Unethical Practices of听Telemarketing

Telemarketing likely has a听negative connotation in听many people鈥檚 minds.

Many people generally find it听annoying and听risky to听be听randomly contacted by听strangers. This is听especially true when many companies use impersonal robo-calling services to听contact potential customers. This is听essentially a听pre-recorded message that is听blasted out to听thousands of听people in听one campaign.

Overall, robocalling is听not illegal, but it听is听frowned upon and听considered unethical. After all, the听whole point of听a听phone call is听the听personal contact, but robocalling eliminates that factor entirely.

Unfortunately, the听telemarketing space is听also full of听 designed to听swindle unsuspecting people. These scams often target less tech-savvy demographics, such as听the听elderly. Scammers will use various techniques to听con people, such as听posing as听loved ones, pretending to听be听a听professional from a听reputable organization, and听much more.

Ultimately, the听basic answer to听what a听telemarketing scheme is听is听any听telemarketing designed to听con people out of听money or听steal information. Although, this is听a听very basic summary of听the听problematic issue.

Effective Telemarketing Strategies

Even with the听negative connotations around telemarketing, it听can be听an听effective strategy for听some companies, especially small businesses. It听is听a听good way to听connect with the听early customer base and听build relationships, which can potentially foster conversions.

When telemarketers are trained and听do听their job respectfully, it听can produce a听decent ROI.

The Skill of听Telemarketing

Realistically, telemarketing is听not for听the听faint of听heart. Those working in听this field or听doing it听for听their own business should know that they will be听hung up听on听or听scolded by听some people. As听mentioned, many people are not fans of听being called out of听nowhere to听be听sold something.

Telemarketing can consist of听dialing many phone numbers throughout the听day, and听if听each rejection is听weighing on听the听caller, it听won鈥檛 take long before they are out of听enthusiasm. However, those who don鈥檛 take this to听heart and听can bounce back to听make the听next call can find success.

It听also helps to听have some sales experience or听training.

The Pros and听Cons of听Telemarketing

The reality is听that telemarketing has its upsides and听downsides. Firstly let鈥檚 look at听some of听the听benefits of听this strategy.

Advantages of听telemarketing

Personal communication: The largest boon of听telemarketing is听that it听allows for听personal communication between the听seller and听potential customer. This can help to听build a听rapport for听future relations.
Low cost: Compared to听many other marketing channels, telemarketing can be听a听low-cost method.
Sort customer data: Telemarketing can be听a听good way to听sort through the听customer database. It听helps to听determine who is听actually a听potential customer and听remove those who are no听longer interested.
Extensive reach: Telemarketing offers a听relatively easy way to听contact many customers in听a听short amount of听time. This can help to听generate leads, qualify customers, and听potentially make sales.

Disadvantages of听telemarketing:

Intrusive and听frowned upon: Many people do听not like being contacted with information and听a听pitch they have not asked for. They feel it听is听intrusive and听could leave a听bad taste in听their mouth.
聯Do Not Call聰 list: There are numbers on听 that cannot be听contacted with telemarketing services.
Training: It听will take some time to听ensure telemarketing agents are trained properly and听convey a听good company image.
Low early conversion: Early on, it听is听difficult to听achieve a听decent conversion rate for听telemarketing. This is听because it听takes time to听build up听a听customer database, which leaves cold calling as听the听primary option.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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