What is Telemarketing?
•Telemarketing is marketing conducted over the telephone. Most telemarketing calls are "cold calls," meaning the recipient of the call has not requested that the telemarketer contact them. Telemarketing is one of the most controversial types of marketing.
•Telemarketing is a method of direct marketing; where a salesperson uses the telephone to satisfy prospective customers and persuade them to buy a products or services
Categories of Telemarketing
The two major categories of telemarketing are:
•Business-to-business (B2B)
•Business-to-consumer.(B2C)
The following are the sub categories of telemarketing
1. Lead Generation – Involves gathering of information about the prospective customers.
2. Sales – Persuade others to buy a product or service
3. Outbound - This is a proactive marketing in which prospective and preexisting customers are contacted directly.
4. Inbound –This is a reactive reception of incoming orders and requests for information.
Telemarketing may be done from a company office or from call center or even from home. It can be done either manually or automatically. In manual method, the salesperson makes use of information like phone numbers of prospective customers, and persuades them to buy by highlighting the features of the product.
The other method is use of pre recorded sales pitches which are programmed to be played over Telephone. This is known as automated telemarketing. Robot calling is a form of voice broadcasting which is used for political or social awareness programs.
Mostly telemarketing involves two basic operations, determining the needs of the customer and second is persuading them to buy the product if they are interested in such services or products. The prospective customers are identified by past purchase record, request for a service or information, credit limit, and various forms (application or survey). Names may also purchased from other partner companies (e.g., a computer seller may lend his customer details to warranty service providers) or by referring telephone directory or public list and the list is analyzed.
Advantages of Telemarketing
It has effects at a large scale. You have all available information from a customer in one click, which reduces the sales cost greatly. You no longer need to send your staff on visits. It is also easier for sales representatives to inform the customers of new products and services.
It is collaborative. The seller establishes conversations with the customers rather than just looking at number or profiles.
It is flexible. Different from other media in Direct Marketing, a Telemarketing campaign can has the potential to modify the communication on the basis of the answer we receive. Additionally, you can constantly update your client data base, in short time and without having to leave your office. It is a way to be always in contact with your customer
It is measurable. At each step of the Telemarketing campaign, the results can be compared with the ones previously established, and a company is able to develop, analyze the benefits, point out the mistakes and take corrective actions to modify planning for the next steps.
It is fast moving. Phone calls are short, actions are implemented promptly, the responses of the customer also come rapidly, moreover the sales and its results are in real time.
Disadvantages aspects of Telemarketing
1.One of them is the lack of visual contact; therefore you cannot use the gestures or facial expressions. Some customers can feel uncomfortable when products are pushed to them over the phone
2.A telephone conversation can be easily forgotten once you have hung up the handset. It is therefore necessary to confirm in writing, even through a simple letter, phone conversation
3.In order to obtain the desired results, a company needs to position the product in the market prior to the Telemarketing campaign. Otherwise, the customer will not know the product or service.
Key Concepts & Steps in Telemarketing Campaigns
Before You Begin
If you can immediately gain new prospects and customers, don’t hesitate to launch a telemarketing campaign right now. You may also decide to pursue telemarketing after developing your annual marketing plan.
Set your goals
You can use telemarketing in many ways; brainstorm the campaigns that will work best for your company. For example, you may need to generate leads for your sales team or use telemarketing to support other marketing campaigns.
Forecast and budget; Determine whether to Build in-house or Outsource
•Estimate your call volume, then think about hours of operation, fluctuations in call volume, and the skill set you’ll need in your reps.
•Your call volume also drives your headcount, software, phone system and the office space you’ll need.
•These requirements will help you decide whether to use a vendor or hire and manage a team in-house. If you look at vendors, the requirements will make your discussions easier and faster.
•Budget for everything including headcount, software licenses, bonuses and management.
Develop Good Scripts
Reps will need to capture attention, build value, and close; a good script will help them do it consistently.
•Make your scripts conversational, simple, and focused on the end goal.
•It helps to make and listen to calls as you’re developing and refining your script. What looks good on paper may not work on the phone.
•Get feedback from your team as well.
Train and Coach your Team
Regular coaching and quality assurance is crucial.
•Engage your reps, role-play and guide them through calls.
•Listen to calls regularly, evaluate your reps and coach them to improve their performance.
Make It Fun!
Telemarketing is a tough job and turnover is a big issue.
•Make things fun with contests, events, and other incentives.
•Make their space comfortable and interesting – tiny cubes, old chairs and windowless rooms don’t put a smile in anyone’s voice.
Report Your Results
•Define the reports you’ll need — your system may not be able to provide all of the data, but you can probably find an alternate solution.
•Use reports to consistently evaluate progress and improve your campaigns.
Telemarketing Fraud
What is Telemarketing fraud?
Telemarketing fraud is fraud perpetrated over the telephone by a person who is trying to trick a victim for financial gain. While many legitimate companies do conduct business by telemarketing programs, there are others out there who exploit the anonymity that telephones offer and seek to cheat people out of money. This can be done by outright theft or by identity theft.
There are many telemarketing fraud schemes that are perpetrated on a daily basis, with the end result being the same. The person committing the telemarketing fraud promises a product or service offered at a deal thought too good to be true, in return for a secured form of payment. In some cases, this will be a guaranteed cashier's check, money order or even cash. In other cases, it may be a check or credit card.
Saturday, October 10, 2009
Database Marketing
What is Database Marketing?
•Database marketing is a systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company's databases.
•Database marketing is the analysis and use of customer databases to aid in the direct marketing of products.
The distinction between direct and database marketing stems primarily from the attention paid to the analysis of data. Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. As a consequence, database marketers also tend to be heavy users of data warehouses, because having a greater amount of data about customers increases the likelihood that a more accurate model can be built.
The "database" is usually name, address, and transaction history details from internal sales or delivery systems, or a bought-in compiled "list" from another organization, which has captured that information from its customers. Typical sources of compiled lists are charity donation forms, application forms for any free product or contest, product warranty cards, subscription forms, and credit application forms.
The communications generated by database marketing may be described as junk mail or spam, if it is unwanted by the addressee. Direct and database marketing organizations, on the other hand, argue that a targeted letter or e-mail to a customer, who wants to be contacted about offerings that may interest the customer, benefits both the customer and the marketer.
Applications of Database Marketing
In an effort to more effectively target potential customers, many enterprises use database marketing to build models of their target demographic group, track down these groups and focus their advertising budgets on them in the hope that it will result in an improved return on investment (ROI) from their advertising spend.
Sources of Data
At its most basic level, database marketing is the analysis of databases holding information about previous or potential customers. These databases usually consist of basic personal details of customers along with details of their past transactions. The information is either gathered from internal sales data or bought in from other organisations.
Business to Consumer (B2C)
Consumer information is gathered by enterprises in a number of ways, many of which consumers remain oblivious to. These methods can range from requesting that the consumer fill in and return a warranty card to running promotional contests and sweepstakes.
Ideally, enterprises prefer to gather as much information as possible about potential customers, so they will employ any available methods to milk consumers for personal data. The more information contained within a database, the more accurate the results of its analysis.
Business to Business (B2B)
B2B data is usually much more limited than consumer information, but it can also be easier to procure. Enterprises hoping to target businesses can simply get in touch personally or gather publicly available information about them. However, since B2B databases will usually only contain a few hundred or thousand pieces of information at most (compared to potentially millions of pieces in a consumer database) it is more difficult to build a targeted marketing plan.
Data Analysis
Once a consumer or business database has been compiled it can then be broken down and analysed to produce valuable marketing information. If the database is extremely limited this analysis can be performed manually, but most consumer databases will contain so much data that specialised software tools are necessary to generate useful results.
Predictive analytics software allows data analysers to construct high quality predictive models of customer behaviour. By studying the past purchases of consumers it can be possible to predict broad trends in their purchasing habits, resulting in a somewhat accurate prediction of their future purchasing (though, of course, it is impossible to make 100% accurate predictions in this area).
Using these trends it is possible to further refine the information by grouping individuals according to any other personal data held on file about them (such as income, age, gender, etc.). This grouping results in a targeted mailing list of potential customers, each of whom share a set of desired characteristics.
Marketing
Once the raw data has been analysed and a mailing list produced there is simply the matter of contacting the potential customers with targeted advertising.
Traditionally, database marketing results in the mailing of advertisements (what many people would call ‘junk mail’). The development of technology, however, has enabled enterprises to contact potential customers much more quickly than through the mail.
While a great many enterprises still use the postal service to generate leads, modern marketing methods also involve the use of e-mail and SMS messages to potential customers. As well as being less expensive than traditional mail shots, electronic messages come with the additional benefit that recipients can respond instantly, either by following a link in an email or opting-in through an SMS or asking for a callback.
Future of Database Marketing
The development of the Internet has offered enterprises a highly effective way to gather customer information. Internet users are now perfectly comfortable with completing electronic forms for everything from online purchasing to setting up e-mail accounts, so the amount of consumer information available has increased greatly.
At present, we are seeing the development of a new form of database advertising. Online advertisers now use surfing habits as a method of directing advertising towards Internet users. Search engines such as Google serve ads according to users' keyword searches, while vendors such as Amazon use details of previous transactions to build a list of user-targeted recommendations. We can expect this trend to continue until all online activities are tracked for marketing purposes.
•Database marketing is a systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company's databases.
•Database marketing is the analysis and use of customer databases to aid in the direct marketing of products.
The distinction between direct and database marketing stems primarily from the attention paid to the analysis of data. Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. As a consequence, database marketers also tend to be heavy users of data warehouses, because having a greater amount of data about customers increases the likelihood that a more accurate model can be built.
The "database" is usually name, address, and transaction history details from internal sales or delivery systems, or a bought-in compiled "list" from another organization, which has captured that information from its customers. Typical sources of compiled lists are charity donation forms, application forms for any free product or contest, product warranty cards, subscription forms, and credit application forms.
The communications generated by database marketing may be described as junk mail or spam, if it is unwanted by the addressee. Direct and database marketing organizations, on the other hand, argue that a targeted letter or e-mail to a customer, who wants to be contacted about offerings that may interest the customer, benefits both the customer and the marketer.
Applications of Database Marketing
In an effort to more effectively target potential customers, many enterprises use database marketing to build models of their target demographic group, track down these groups and focus their advertising budgets on them in the hope that it will result in an improved return on investment (ROI) from their advertising spend.
Sources of Data
At its most basic level, database marketing is the analysis of databases holding information about previous or potential customers. These databases usually consist of basic personal details of customers along with details of their past transactions. The information is either gathered from internal sales data or bought in from other organisations.
Business to Consumer (B2C)
Consumer information is gathered by enterprises in a number of ways, many of which consumers remain oblivious to. These methods can range from requesting that the consumer fill in and return a warranty card to running promotional contests and sweepstakes.
Ideally, enterprises prefer to gather as much information as possible about potential customers, so they will employ any available methods to milk consumers for personal data. The more information contained within a database, the more accurate the results of its analysis.
Business to Business (B2B)
B2B data is usually much more limited than consumer information, but it can also be easier to procure. Enterprises hoping to target businesses can simply get in touch personally or gather publicly available information about them. However, since B2B databases will usually only contain a few hundred or thousand pieces of information at most (compared to potentially millions of pieces in a consumer database) it is more difficult to build a targeted marketing plan.
Data Analysis
Once a consumer or business database has been compiled it can then be broken down and analysed to produce valuable marketing information. If the database is extremely limited this analysis can be performed manually, but most consumer databases will contain so much data that specialised software tools are necessary to generate useful results.
Predictive analytics software allows data analysers to construct high quality predictive models of customer behaviour. By studying the past purchases of consumers it can be possible to predict broad trends in their purchasing habits, resulting in a somewhat accurate prediction of their future purchasing (though, of course, it is impossible to make 100% accurate predictions in this area).
Using these trends it is possible to further refine the information by grouping individuals according to any other personal data held on file about them (such as income, age, gender, etc.). This grouping results in a targeted mailing list of potential customers, each of whom share a set of desired characteristics.
Marketing
Once the raw data has been analysed and a mailing list produced there is simply the matter of contacting the potential customers with targeted advertising.
Traditionally, database marketing results in the mailing of advertisements (what many people would call ‘junk mail’). The development of technology, however, has enabled enterprises to contact potential customers much more quickly than through the mail.
While a great many enterprises still use the postal service to generate leads, modern marketing methods also involve the use of e-mail and SMS messages to potential customers. As well as being less expensive than traditional mail shots, electronic messages come with the additional benefit that recipients can respond instantly, either by following a link in an email or opting-in through an SMS or asking for a callback.
Future of Database Marketing
The development of the Internet has offered enterprises a highly effective way to gather customer information. Internet users are now perfectly comfortable with completing electronic forms for everything from online purchasing to setting up e-mail accounts, so the amount of consumer information available has increased greatly.
At present, we are seeing the development of a new form of database advertising. Online advertisers now use surfing habits as a method of directing advertising towards Internet users. Search engines such as Google serve ads according to users' keyword searches, while vendors such as Amazon use details of previous transactions to build a list of user-targeted recommendations. We can expect this trend to continue until all online activities are tracked for marketing purposes.
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