Telemarketing is touted as a fast, efficient and cost-effective sales source.
While to some the word "telemarketing" may have all sorts of negative connotations, to others the action of telemarketing is quite productive. Particularly business-to-business telemarketing, which is used to inform, update and connect with clients. As such, telemarketing is actually seen as a friend, not a foe, of many industry professionals. In fact, when it comes to propelling sales, J.R. Montalvo, executive vice president of sales and marketing, Global DocuGraphix, Lincolnshire, Ill., said telemarketing (or inside sales as the company calls it) is one of the most effective tools to do so.
"Our whole purpose of utilizing inside sales is to identify prospects and drive our selling cycle," said Montalvo. "Our telemarketers can do this by developing previously obtained leads with a phone call in-forming potential customers of the products and services we offer."
Montalvo explained that Global Docugraphix's in-house telemarketers are primarily used to probe unique niche-market opportunities that may benefit from both the traditional and solution-oriented products and services the company offers.
"Management provides our inside sales reps with niche-market contacts," added Chris McClean, vice president of marketing and program management. "We have one senior-level individual that is tasked with the responsibility of defining those unique industries we want to go after."
In all, the company employs eight telesales representatives, some of whom are paid salary, others hourly and some a gross-profit incentive based on performance. McClean noted that on occasion the company holds contests and task forces that are used to drive additional sales, which in turn provide monetary bonuses.
While probing new niche markets, the inside sales reps can complete a sale on the phone for commodity products such as forms and office supplies. However, solution-selling services, such as scanning and document management, are referred to account specialists, said Montalvo.
"Sometimes we have telesales reps collaborate with our outside salespeople in order to target a specific industry," said Montalvo. "That is typically done to support a salesperson's direct mail effort and serve as follow-up calls to customers."
TFP Data Systems, an Oxnard, California-based manufacturer, uses telemarketing to pursue sales opportunities with the same fervor as Global DocuGraphix. The reason, said Jim Magdaleno, sales manager, is be-cause this method is one of the best for cultivating new leads and repeat business.
"Accounts would stay dormant otherwise," said Magdaleno. "By not telemarketing, distributors are leaving a lot of potential sales on the table."
Currently at TFP, a single telemarketer regularly contacts the company's current customer base and reintroduces TFP's product lines to identify what TFP is selling to each distributorship and whether that client has a need for additional products and services.
"By using this representative, we are better able to build up our database and expand our sales," he said. The caller is also given any leads received from events, like trade shows, which are added into the database for follow-up calls.
While Magdaleno said that other means of sales are just as effective as telemarketing, there is an advantage to telesales. "Quicker responses are achieved via telemarketing and we can categorize those leads right away.
This gives us the ability to explore potential sales within the next 15 days," said Magdaleno.
Magdaleno explained that with direct mail, response times are slower, but the procedure becomes the same after potential customers respond by phone or e-mail.
"On the other hand, a trade show lead can go either way," he said. "Though trade shows offer face-to-face, personal interaction, customers may either finalize a sale on the spot or go home only to change their minds later."
Magdaleno added that one of the most important procedures for finding success through telesales and other means consists of database management and knowing what step to take next.
"A follow-up is always key, whether it is a call, a letter outlining the discussion or a quote," advised Magdaleno. "Always do what you promised you'd do."
Though the majority of TFP's telemarketing is used to increase the amount of distributors it works with, it is also used to assist its distributor clientele.
"Some of our distributors request telemarketing services to help launch a new product," said Magdaleno. "In many cases, this involves publishing our customer service number on their new product materials, thus routing inquiries to our offices."
Magdaleno explained that distributors are billed for inbound and outbound telesales service and added that it is well worth the investment.
Both TFP and Global DocuGraphix agree that telemarketing is a much-needed aspect of the selling process, which distributors should consider utilizing.
"We perceive the inside telesales effort to be important to our company," said Montalvo. "Processes have been established that impact our entire growth while creating awareness and consideration to those in need of our services."
Said Magdaleno, "Through telephone calls, we are providing information to our distributors on given products, following up on other products they may need, reintroducing full complements of services and updating them on compliance issues related to forms. It may be repetitious but it is helpful."
By Sharon R. Cole
- Companies:
- TFP Data Systems