Magnus Marketing Blog

Telemarketing in b-to-b is having a resurgence of interest whether the results are worth it or not is questionable.

A few firms are starting to post competitive rates. The lower end of the spectrum which consists of the $8 - $10/hr telemarketing crowd and specialize in "dialing for dollars" seem to run $20/hr - $40/hr. The lower the rate the more likely the call center is located in India or the Philippenes. The average range is $40 - $100/hr, some have set-up charges. Many of these firms have more educated folks, but still rely on the script and list (which lists are purchased extra).

For some businesses, especially b-to-c, these type of firms are definitely worth it or if the goal is generating awareness or taking a broad sweep for low-hanging fruit engaging a "dialing for dollars" or "phone banging firm" is worth it. I managed a few relationships over the years with outsourced firms - the results were OK. I would not give strategic assignments, enterprise solutions, or bigger product/service deals to a call center. As long as your objective is defined and expectations are set accordingly, then this can work.

The statistics say that an average outsourced firm will generate a 5% return, slightly higher than direct mail at 3%, or the 1% overall. I like what someone had written: 25% is the message, 25% is the service, 25% is the person on the phone - the rest is other things. These components define success. It is important that you work with a firm that understands your business and industry.

For technology companies and certain commodity industries, the account-based approach or research-based approach is more effective because a key success factor in building a relationship with a decision-maker is knowledge of the business. Knowledge is not demonstrated by reading a script folks, as I have discussed in earlier posts.

If you want to build a relationship and establish a long-term account, phone banging is not the right tactic. The metaphor is in dating where the guy at the bar with the slicked back hair approached every good looking female with the same old pickup line...eventually some desperado will give him the time of day and maybe some fun. If you want quality - ignore the guy, hang out at church, and be genuine in your interest and approach! The latter is true business development.