Telemarketing Process

What does it really take to make telemarketing work? How many suspects do you need on a list? What type of hit ratio should I expect? How many sales will we make? How much does it this process cost? Why can't my producers do the telemarketing, after all we are paying them a commission? These are just some of the questions asked by agents prior to starting a telemarketing campaign. Telemarketing should not be looked at as a one-time event. It has to be viewed as part of an on-going marketing process in your organization designed to help you build the best possible prospect database. This database, like a fine wine, will improve over time if managed properly. There are four components critical to the success of telemarketing.

1. Management's philosophical and financial commitment.

Top management must understand the concept of long-term database management. There has to be a clear understanding of the process, time frames, needs and expected results. Telemarketing cannot be viewed as a last ditch effort to bolster sales for a particular market. It's not a quick fix. However, with proper planning and effective execution it is an effective on-going, long-term solution. Cost is another consideration. Occasionally, a misconception exists that you can simply hire a telemarketer for $8.00 per hour furnish them with a script and you'll be off and running. It's important to look at the entire cost, including but not limited to: labor, telephone, rent, furniture, computers, software, management time, training and, most importantly, employee turnover.

2. Developing your list.

Developing a list is probably the single most important step in this process, as list weighs in at 90 on a scale of 100. Where you actually purchase the list is secondary to determining what you want on the list. There are important steps to take when trying to determine who your target audience is:
A. Evaluate your book of business. Look for high-commission, low-transaction accounts. Look for success trends with particular carriers. Find out what your producers like to write and what they do well. B. Interview your carriers. Once you get the master list of the latest SIC codes the company has issued from the home office, your homework begins. Find out what the carrier really writes on a local level. Ask for specific exposure and class exclusions. Ask for the names of some accounts they write in a particular class. Be sure they are competitive. Know who your competition is, both on the agency and company level, and how you stack up to them.

1. Determine the size of your market. You can do this by submitting the SIC codes, size criteria, and geography to the list vendor for a count or, using an in-house system like I-Market's CD ROM based program. There are also Internet based programs like the one called Zap Data on programbusiness.com. Use employee size as a criterion whenever possible. It's usually more accurate than gross sales. If you are marketing in a large county, part of which is not desirable, use three digit zip codes as geographic criteria. Order your list and purge from it accounts that you already write and names that you don't want to write. Now your list is ready to go. Keep in mind that having taken all of these preliminary steps you are still going to average 15% non-usable names. Imagine what it would be if you didn't take all of these precautions. It will cost you 12 hours in telemarketing for every 100 names that are non-viable.

3. Automated contact management system.

The best place to store your new list is your computer. The software you choose is also an important part of the process. In order to track results and improve the quality of your database you will need to select a contact management, or customer relationship management (CRM) software program. There are many of these programs available. Check with your agency management vendor, or look at some generic programs, such as ACT (Interact Commerce Corporation) and Goldmine (Goldminesw.com), or Sales Logix ( also Interact Commerce Corporation) for CRM.. This is a long-term process. Without a good software program designed for this purpose it will be difficult to manage your database or the process.

4. Quality administration.

Someone has to be responsible for maintaining your database. Who that person is and how the job is structured will depend a great deal on the size of the database and the frequency of changes. The objective is to make sure that no opportunities slip through the cracks, at the same time maintaining the integrity of the database as well as a clear history of activity. If a producer leaves, the new producer will have an advantage if the prospect database is kept current and a good history of previous contacts and notes exists. Ideally you want to set up on a network so that all producers, sales support, and customer service personnel are accessing the same information regarding your customers and prospects. This way building and maintaining Telemarketing doesn't usually fail, it's the process that usually breaks down. Remember, this is a long-term process and, that database information, when kept current, will improve your results over time.

National Marketing Services, 23172 Plaza Pointe Drive, Suite 205, Laguna Hills, CA 92653. Tel: 800-736-9741; Fax: 800-588-4958.