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DIRECT SALES
Direct sales that are made over the telephone through the use of call
centers, telephone sales agents solicit a vast number of
prospects, as many as 25-30 per hour. Cost per order
varies from market to market, but is generally low in
comparison with other direct sales channels. Products and services
found in more mature markets where acceptance and
familiarity has
been established are generally good candidates for this type
of sales channel.
Business sales departments find phone sales extremely
robust in areas where door to door sales is not an option,
regions with low population density or high in the form of apartment complex or
multiple dwelling units. Telephone sales is easily adapted for
targeting geographic areas and specific customer segments.
Phone sales is here to stay. Despite changes in the
regulatory environment, marketers will continue to rely on
telephone sales within the overall mix. Creative programs
harness the benefits of direct phoning with other methods to
create consistent, proactive customer acquisition and retention strategies.
With all market approaches that age, successful
telephone sales in today's environment is much different than
in the past, no longer is random dialing and generic product
positioning able to boost sales volume. In the days long
gone phone marketing companies would crank up their demon dialers to
increase their contact rates and order quota for the month -
sometimes literally giving their product away in
transactions that generated a lot of activity, but ended up
costly due to premature subscription drop off or
cancellation.
Today, usage of telephone marketing relies more heavily
on targeting, timely customer service follow ups,
retention and selling more to existing customers. Marketers
are beginning to shift their attention from pure acquisition
towards retention - since it is often less costly to keep a
customer rather then find a new one.
The more advanced telephone agencies are taking this approach
one step further to include lifestyle data within active
campaigns. The advantage of targeting personally compounds
the effect of phone marketing. Telesales harness
the power of information to call on a specific consumer
group with relevant product offerings, database profiling
enables telesales agents to introduce their products through
positioning statements more favorable to the prospects perceived interest.
Close ratios from this style of campaign increases averages
by as many as three times. The key is in generation and
sourcing of multi-tiered targets and this process can prove to
be costly and time consuming. Clients that have chosen to
invest have developed very effective processes. For example
companies often perform market research to sample and test
product offerings prior to an upcoming communications launch.
Information gathered in research acts as an excellent tool
in verifying market acceptance and confirming target
profiles. Initial research can be followed by a low level
mail piece. Telesales comes last with an introduction to
decision makers, qualifying for product suitability and
fulfilling new orders. Campaigns that include multiple
contacts with slightly varying messages through a variety of
media help to "lift" response rates further. More importantly
these campaigns leave a professional image apart from
the negativity associated with traditional mass approaches. Today
marketers are very aware that they have at most a three
month opportunity cycle with each contact. Every
time you make a sales presentation it must be done in a
respectful manner not to jeopardize future opportunity.