Mailing Lists Plus/LeadFlow Telemarketing Q & A

By Barry Z. Masser, President, LeadFlow, Inc.

We are in great appreciation to one of our clients, Barry Masser of LeadFlow, Inc., for his informative telemarketing insights.

Barry Z. Masser is founder and President of LeadFlow, Inc.. LeadFlow, Inc. is a telemarketing service bureau specializing in outbound business-to-business and business-to-consumer calling. Clients include Ford Motor Co., three divisions of Xerox Corporation, Hewlett Packard, Bausch & Lomb, and over 2,000 other companies, large and small.

Mr. Masser has authored 12 books on telemarketing and direct mail, including Power Selling by Telephone, The Complete Handbook of Telemarketing Scripts (both published by Prentice Hall), and Telemarketing: Strategy and Implementation (Control Data Corporation). He has lectured on marketing topics at leading universities. His articles have been published by Telemarketing Magazine and various other trade publications.

THE 29 MOST FREQUENTLY ASKED QUESTIONS ABOUT TELEMARKETING

Table of Contents

Introduction

Calling Program	Lukewarm Inquires	Outbound Call Volumes
Program Planning	Selling Complex Products	Telemarketing by Field Reps
Handling Voice Mail	Telemarketer Incentives	Programs/Research
Telemarketer Salaries	Telemarketing Scripts	Screens
Seeking Telemarketers	When to Telemarket	Callbacks
Alternate Telemarketing Sources	Inbound Sales/Outbound Telemarketers	Telemarketer as a Team Member
Two Most Important Tips	Pre-Calling	Burn-out
Lost Sales Reports	Over Qualified Telemarketers	Direct Response Companies
Independent Sales Reps	Managing Telemarketers	The Major Pitfall
In-house/Out-house	Formal Documentation	More Questions?

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1. Calling Program

Q.	I'M CONSIDERING A CALLING PROGRAM TO GENERATE LEADS FOR MY COMPANY, BUT AM SERIOUSLY CONCERNED ABOUT THE IMAGE OF TELEMARKETING. WHAT ABOUT THAT?

A.	Telemarketing image problems are largely due to consumer scams conducted by telephone. Still, in legitimate telemarketing operations (both business and consumer) about one of every 30 contacts will run into an annoyed party. We're talking about roughly the same rate of hostility as mailings or broadcast commercials evoke. The big difference is, only telemarketers get to hear occasional irate reactions. Some calling programs are obnoxious, and they cast a shadow on all of the ethical operations. But most smart customers and prospects can spot the schlock artists a mile away. Therefore, there is little chance that your program would be regarded in anything but a positive light. So your image is quite safe when you do telemarketing correctly, through an experienced and image-conscious telemarketing firm.

Q.	WE GENERATE LEADS THROUGH TRADE SHOWS, BINGO CARDS AND OTHER SOURCES. HOW SHOULD WE HANDLE THOSE RATHER LUKEWARM INQUIRIES?

A.	Companies do close literature request leads, so they definitely demand follow-up. An information package should be sent within 48-hours after receipt of the lead. Then, ideally, a telephone call is made no later than a week later. When the large numbers of fulfilments start to get you down, remember this: When surveyed, some 80 percent of those inquirers say they intend to make a purchase related to your product or service within six months from the time they first requested information. If they're serious, why shouldn't you be?

Q.	WE OPERATE AN INSURANCE AGENCY THAT HANDLES COMMERCIAL AND PERSONAL LINES. WHAT CAN WE EXPECT IN TERMS OF OUTBOUND CALL VOLUME TO EACH OF THOSE MARKETS?

A.	A gross of about 35 calls per hour is reasonable in your consumer operation. That includes two or three good contacts an hour that may run up to about eight minutes each. In a high-quality business calling program, look for an average gross of about 18 calls per hour. Why the difference? In contacting firms, you have the added complexity of getting through screens to reach the right contact.

Q.	HOW CAN YOU PEOPLE SELL A COMPLEX ELECTRONIC COMPONENT BY TELEPHONE IF YOU'RE NOT TECHNICAL EXPERTS?

A.	We don't do the selling, you do. But we do identify qualified prospects for you to follow-up on. Any knowledgeable telemarketing firm will stop well short of technical complexity. We search for interest, application, need, budget, purchase timing and so forth. But we avoid technical discussions that we are not equipped to handle. When the dialogue gets even a little arcane from a technical standpoint, we use that as a cue to introduce our client's product experts.

Q.	CAN YOU HELP US GET OUR FIELD REPS TO PROSPECT BY TELEPHONE?

A.	Probably not. First of all, the field sales personality generally does not belong to a genuine telephone person. Different folks altogether. Outside people want to be outside, and tend to become dismally unhappy when confronted with the need to do regularly scheduled phone prospecting. In addition, your outside sales reps should be kept in face-to-face closing situations. If they're on the phone, they are not closing. If they are out closing, the phone stands idle. That creates erratic revenue production. Support your costly field reps with a comparatively inexpensive dedicated telemarketing program.

Q.	MORE AND MORE COMPANIES ARE TAKING CALLS WITH VOICE MAIL. HOW DO WE DESIGN OUR TELEMARKETING PROGRAM TO COPE WITH THAT?

A.	In a research project we conducted for major voice mail equipment vendors, it turned out that a majority of voice mail "owners" in a variety of firms are often irritated by callers who fail to leave detailed information. For example, a salesperson may simply call and leave a name and phone number. Those cryptic messages are largely ignored. But if a seller calls and records a "mini-presentation" , it will get response (a returned call) in a significant number of instances. Remember, buyers who screen by voice mail still make purchases.

Q.	WHAT KIND OF INCENTIVES WORK BEST FOR TELEMARKETERS?

A.	Short-term incentives are dynamite. Try cash or gifts that can be earned in two hours instead of two weeks or two months. Display the prizes in front of the callers. One successful direct marketing operation provides worthwhile incentives every couple of days. Cash is always a winner. You can offer only so many toaster ovens. If you do use cold cash, remind your winners that the IRS has to know about the gains.

Q.	CAN WE COMBINE A TELEPHONE PROSPECTING PROGRAM WITH MARKET RESEARCH?

A.	It's usually a waste not to. Valuable information on competition, market sentiment, and various trends can easily be gathered during the course of contacting prospects. Those questions can be woven into the fabric of the call, and the responses entered directly into the computer file so easy compilation can be done.

Q.	WHAT'S THE LATEST ON HOW MUCH WE SHOULD PAY OUR TELEMARKETER?

A.	According to a recent compensation survey, here's the latest available scoop on pay: For full-time inbound telephone salespeople, the average is $19,161 a year. The average for full-time outbound callers is $18,658 in business-to-business programs. Both are without commissions. Of course location will have a strong influence on compensation plans; a midtown Manhattan caller is apt to earn more than a caller based in, say, Spokane, WA.

Q.	SHOULD A TELEMARKETER CLOSELY FOLLOW A PREPARED SCRIPT?

A.	Following a script word for word will usually sound canned. The telemarketer has to modify the language so it becomes comfortable and natural, yet retains the essential selling points. The objective is to sound conversational but create impact. Bottom line: Use a script as a guide, but talk with people. And above all, listen to them.

Q.	WHAT'S THE BEST WAY TO DEAL WITH SCREENS?

A.	Handle them with genuine respect. Intimidation and attempts to sneak past them to reach your contact inevitably fail. Giving the receptionist or secretary a condensed version of the sales story can get their support, and often gets a telemarketer on the line with the targeted contact.

Q.	WHAT'S THE LEADING ATTRIBUTE WE SHOULD SEEK IN A GOOD TELEMARKETER?

A.	There are several, but probing ability is always present in top callers. They dig until the complete story is revealed. Good probers don't need pre-set questions. They are able to sense when and how much to explore a given topic.

Q.	IS IT A GOOD IDEA FOR A TELEMARKETER TO INVITE CALL-BACKS?

A.	One problem is that call-backs invariably arrive when the telemarketer is involved in another outbound call. Another complexity is identifying who's on the line when a call-back comes in hours or days after the initial outbound call. It can work only when one inside rep is kept free to take those call-backs on a dedicated basis. Usually doesn't pay.

Q.	WHAT ARE SOME ALTERNATIVE SOURCES OF TELEMARKETERS?

A.	We know of some innovative sources. For example, at least a few telemarketing firms have arrangements with prisons so inmates can work the phone; we wonder how those operations are managed. Another service bureau used former members of the clergy who were in a halfway house transitioning back into secular life. We won't make any value judgments on various sources, but all clients who use outside telemarketing services should take care to clarify who will make their calls, and from where.

Q.	CAN MY INBOUND SALES/SERVICE TELEMARKETER SUCCESSFULLY SPEND SOME TIME EACH DAY DOING PROSPECTING?

A.	Perhaps, but experience has indicated otherwise. Some call-takers are inherently less competitive, and could react unfavorably to the rejection encountered in prospecting. By the same token, it might be an error to put a dedicated outbound telemarketer on part-time inbound calls since he or she may grow to prefer that more agreeable environment, and lose aggressiveness as a consequence.

Q.	ARE THERE PREFERRED DAYS AND TIMES OF DAY TO CALL?

A.	There are old prejudices, but they should be ignored. The only way to build a program is to test every time slot. Excellent results have been reached during lunch hour, Friday afternoons, and at other times generally considered taboo. In one consumer program, the company calls only during the day (and the market is not seniors!).

Q.	AS LONG AS MY TELEMARKETER RECEIVES COMMISSIONS ON CLOSES, IS IT NECESSARY TO GO INTO DETAIL WITH HIM ABOUT THE STATUS OF PROSPECTS?

A.	Clearly necessary. Telemarketers feel more like part of the sales-making team when they are regularly informed about the outcome of their hard-earned leads. They should know the details about closes that have occurred. For many telemarketers, a feeling of accomplishment can be nearly as important as making money.

Q.	WHAT ARE THE TWO MOST IMPORTANT TELEMARKETING TECHNIQUE TIPS YOU HAVE TO OFFER?

A.	First, work on formulating a product or service description that can be understood by an average 8-year-old. Too many presentations are disjointed and complex. Underlying theory: many more prospects will respond if they genuinely understand your message. Second, have your telemarketers record their own end of some calls. They will invariably hear themselves use cliches, buzz-words and redundant interjections. Self-diagnosis works better than management critiques.

Q.	IS IT TRUE THAT PRE-CALLING CAN HELP ME GET BETTER TELEMARKETING RESULTS?

A.	If you do business-to-business marketing, and you plan to use a new prospect list, the answer is yes. Doing a round of quick calls to a targeted list can effectively and economically verify the precise nature of a prospect's business, size of firm, name of buyer, etc. That data can often be given by a receptionist in the prospect firm, and obtained by a comparatively low-cost caller in your company since no selling has to be done in a round of pre-calling. Getting basic facts first will save your expensive telemarketer gobs of time.

Q.	HOW CAN WE DEAL EFFECTIVELY WITH TELEMARKETER "BURN-OUT"?

A.	While it's properly the task of a psychologist, here are some useful tips: Burn-out is a phenomenon that can abruptly end the career of a good telemarketer. Symptoms are irritability (more than normal), withdrawal, excessive absence, production drop-off, apathy. Possible cures are immediate time-off, modification of work tasks, more recognition and support, job growth/promotion potential. Management vigilance is a powerful preventive measure.

Q.	ONE COMPANY I KNOW OF HAS TELEMARKETERS AND FIELD REPS FILL OUT A LOST SALES REPORT. IS THAT A GOOD IDEA?

A.	If it isn't used as a basis for witch hunts, such a report can be useful. When your telemarketer finds an "A"-rated prospect that isn't subsequently closed, a Lost Sale Report can encourage a process of methodical diagnosis. When missed sales are documented, a pattern may be seen. The cause could range from insufficient telephone qualifying to slow field follow-up. Whatever the reason for a missed sale, it makes sense to avoid repeating those same old mistakes. For a sample of this form, and directions on how to use it, see my book *Power-Selling by Telephone*, or request via e-mail: leadflow@wiredweb.com).

Q.	I CAN HIRE A TELEMARKETER WHO IS OBVIOUSLY OVER-QUALIFIED. IS IT A MISTAKE TO HIRE A PERSON WHO I KNOW WILL LEAVE SOON?

A.	If you can get six months or so of above-average telemarketing performance, why not go for it? Most managers don't hire telemarketers for long careers at the job. The best people will eventually move on - whether in your organization or not. My advice: get a net over the high-achievers every time you can. One caution is, some hot-shots may not want to do it your way, even for a short time.

Q.	OUR PROBLEM WITH MOST DIRECT RESPONSE COMPANIES IS THAT THEY DON'T SEEM INTERESTED IN WHAT HAPPENS BEYOND THE GENERATION OF LEADS.

A.	Sadly true. Some direct mail and telemarketing companies don't get involved in the comparatively messy business of the total sale. Every step, from the prospecting call to post-sale service, has to be looked at by a good direct response company.

Q.	OUR COMPANY USES MULTI-LINE INDEPENDENT SALES REPS, AND WE CONTINUALLY WORRY ABOUT HOW OFTEN THEY ACTUALLY SHOW OUR PRODUCTS. CAN DIRECT MAIL OR TELEMARKETING HELP US WITH THAT?

A.	Many firms in that situation use centralized mailing or calling campaigns to stir up activity in territories where rep share-of-mind is lagging. If reps are getting qualified leads from one particular source among many, they should start to see that product line as a potentially big income producer. Few things will do more to inspire them to promote a line more vigorously as sales support from the source.

Q.	IN MANAGING TELEMARKETERS, HOW OFTEN DO YOU RECOMMEND MEETING WITH THEM?

A.	A debriefing after every calling session will generally pay rich dividends. Each get-together usually results in fine-tuning of the presentation, more potent ways to handle objections, plus a windfall of ideas on program enhancements from the telemarketer. Discuss program developments when they are fresh. Daily debriefings are also highly motivating to a telemarketer when his or her input is heeded.

Q.	IN YOUR OPINION, WHAT'S THE MAJOR PITFALL IN ANY TELEMARKETING PROGRAM?

A.	One big one is expecting the initial call to accomplish too much. As a case in point, a firm was trying to close a major service on the first call in a business-to-business program. The message sounded almost this blatant: "You need this, so gimme your deposit." That approach was frightening away even the most qualified and interested prospects. Telemarketing works best when the call is used simply explore prospect qualifications, purchase time-frame, budget and applications. Finally, proceed to set up the next sales action, which might be a mailing, a field visit or a follow-up phone call.

Q.	DO YOU THINK IT'S IMPORTANT TO FORMALLY DOCUMENT A TELEPHONE SALES PRESENTATION?

A.	A good presentation changes constantly. Still, the most current version should be available to facilitate the training of new people. A complete presentation package provides not only a dialogue guide (which should NEVER be read verbatim), but a description of program goals; objections and corresponding rebuttals; product or service information; company background, and other program data. Properly done, it's a comprehensive telemarketing operations manual, not merely a one-page pitch sheet.