Telemarketing

What Is Telemarketing? Concept, Top Examples, And Importance

Sales & Marketing 7 Mins Read
published on: 04 November 2022 last updated on: 15 July 2023

So, what is Telemarketing? In 1970, the term Telemarketing was first introduced. It was used for toll-free services and long-distance services. Telemarketing is the direct marketing of services and products over fax, internet, and telephone to potential customers. I guess that is the telemarketing definition.

The marketing can be done with either automated telephone calls or telemarketers. The automated calls are called robocalls. Telemarketing is also referred to as inside sales and telesales. 

How Does Telemarketing Work?

How Does Telemarketing Work

The process or practice can be done by vetting, contacting, or approaching potential customers. Remember, this process does not include any email marketing. Most of the time, telemarketing takes place from an office, a call center, and, these days, from home also.

The process takes the first call to grow interested and awareness about products or services. And then, it consists of a follow-up call. Most of the time, the follow-up call is to pursue the sale. To complete a sale to potential customers, a large database is needed. The databases consist of potential and interested customers and relevant information. 

The marketing strategy is used for profit and nonprofit charities, surveying donations, political groups and candidates, marketing research, and other types of organizations. 

Subcategories of Telemarketing

Mostly there are four types of activities. These are as follows.

Subcategories of Telemarketing

1. Outbound

Outbound Telemarketing

These types of calls are called cold calls. Companies use this process to reach existing and prospective customers via outbound calls.

2. Inbound

Inbound Telemarketing

The purpose of the inbound calls is to take inquiries about services and products. Companies use this strategy through sales efforts and advertising. These calls are also called warm calls. In this case, customers are aware of the company and show interest.

3. Lead Generation

Lead Generation

There are calls to make a database of potential customers and their profiles. This database consists of demographic data, interests, profiles, and many more things that are relevant to sales.

4. Sales

Sales

Trained salespersons are excellent at teleselling. They just need a few details about customers, and their aim is to close the sale over the phone. Most companies adopt the telemarketing practice more, selling more products, and it costs less amount than other marketing strategies. 

Telemarketing can be used for other activities as well, such as appointment setting, surveying, database maintenance, telesales, call to action, and for many more things. Most US companies hire telemarketers from lower-cost jurisdictions such as the Philippines, Mexico, India, and many more. 

Telemarketing: Regulation and Criticism

Telemarketing Regulation and Criticism

Most of the time, people do not like unwanted calls. Also, people use this strategy to fraud and scam many people. People who are aware of these facts avoid any unknown calls from different companies. So, most people are against this marketing method. Also, many governments have implemented laws on how telemarketing can be done. So, at this time, there are more backlashes than benefits of this strategy.

DNC Registries

DNC Registries

DNC means Do Not Call registries. It allows residents to have a choice if they want to have telemarketing calls or not. Both United States and Canadian people have the option to choose. The Federal Trade Commission, or FTC, manages, controls, and enforces the registry. The registry is also governed by state law enforcement officials and Federal Communications Commissions.

If a registered DNC customer receives a call from a telemarketer, then they can file a complaint. And the authority will take action against the telemarketing organization. But, a registered customer can receive a call from charities, telephone surveyors, and political organizations. 

These calls can not be stopped and are not complainable. In addition, if a customer has a relationship with an existing company, then you can not stop a call from the company. Therefore, I think you have the answer to how to stop telemarketing calls.

Telemarketing Rules in the US

There are some rules and regulations that have been taken by the FTC. These are as follows.

Telemarketing Rules
  • The FTC has banned most robocalling.
  • Telemarketers are allowed to disclose specific information about services and products.
  • A company can not give misrepresentations.
  • There are fixed limits when it comes to telecalling.
  • If a customer has asked not to call, the company can not call that person again.
  • There are fixed payment solutions for selling services and goods.

Telemarketing: Examples

Telemarketing Examples

Let me give you an example for better understanding. Suppose you have received a call from a telemarketer who is asking you about your home theater. And you are free, so you start answering the questions. After two to three questions, they will find out that your home theater is not good enough, so they will place their company’s product and tell you how it is better than your existing home theater.

So, there will be different types of responses. I am cutting out the response that you will cut the call. If you are not interested and still don’t hang up the call, there will be a time when you find a little interest in the product. Maybe you are not interested in buying that, but at least you will listen to the features, and who knows, you may end up buying the product in the future. 

There are other outcomes, you may book the product online, or there will be a follow-up call to end the sale. In any of these cases, the telemarketer is successful in their job, from spreading awareness to selling a product. I think now you have a pretty good idea about telemarketing.

The Major Benefits Of Telemarketing

Major Benefits Of Telemarketing

As you have already understood that telemarketing is nothing but selling the products and services of your business over the phone. The process is carried out by telemarketers or by automated telephone calls. It is an easy way to promote your products and services, to boost sales, or to earn profits.

The following are the major benefits of telemarketing:

1. It Is Flexible And Extremely Cost-Effective

Flexible And Extremely Cost-Effective

Generating leads and promoting products are the main things you shall carry out with telemarketing. You can also use telemarketing to conduct surveys or research the market more, to understand the demand. This will help you to save some valuable time, as you can also inform your target audience about your products.

2. It Helps To Boost Your Sales

Helps To Boost Your Sales

According to an article on LinkedIn.com,

Telemarketing can be an excellent tool to boost sales if used correctly. By directly connecting with customers and using effective telecalling techniques, telemarketing allows you to better understand their needs.

You will need to have expert telemarketers in this case, as they can answer the customers’ questions and convince them of the purchase.

3. You Can Customize It As Per The Needs Of Your Business

You Can Customize It As Per The Needs Of Your Business

One of the biggest benefits of telemarketing is that you can customize it as per the needs and demands of your business and the type of market you are working in at the moment. This proves that all types of businesses can benefit from telemarketing. This will further help your business to get better access to your target customers.

4. You Will Have Better Business Opportunities

Better Business Opportunities

Another great thing about telemarketing is that it lets you reach customers who are not close to your business as per locational factors. As a result, you will be able to scale up your sales territory. Furthermore, you will be better informed about the sales processes of your business and can plan for the future better.

5. You Can Develop Strong Relation With Your Prospects

Develop Strong Relation With Your Prospects

Telemarketing lets you interact strongly with your customers, as you will be able to cater to their personal needs better since you are talking to them on the phone. Customers are able to give you more information when there is two-way communication.

6. You Can Adapt Marketing Strategies Better

Adapt Marketing Strategies Better

By adapting telemarketing services, you will learn what are the products and services that your prospective customers are looking for. This will help you to personalize your products and services as per the needs of the customers.

Frequently Asked Questions !! (FAQs):

You may find interest in these frequently asked questions. 

Q1. What Skills Do You Need To Be A Telemarketer?

Ans: If you are looking for a telemarketing job or want to start a firm, then you must be aware of these factors. These are as follows:

• Telephonic Communication
• Customer Service
• Active Listening
• Persuasiveness
• Product and Service Knowledge

Q2. Is Telemarketing Jobs Good?

Ans: The main work of telemarketers is to call and talk with strangers. Most of the time there is no success, or the call doesn’t go as expected. Telemarketers should have the skills to deal with any situation. So, this job is quite good if you want to make some money and have sales skills.

Q3. How Many Hours Do Telemarketers Work?

Ans: Different countries have different timings. On average, a telemarketer has to work for at least 40 hours a week. The work is stressful, and there is always a target, so telemarketers feel pressure on the job. But successful people make a lot of money.

Further Words

So, I think that’s enough. You have pretty good knowledge about telemarketing, how to block telemarketing calls, rules, and the job. 

If you still have any queries, feel free to ask in the comment section below. 

Thank You.

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tags

outbound telemarketing telemarketing concepts telemarketing examples telemarketing services types of telemarketing

Mashum Mollah is the feature writer of Search Engine Magazine and an SEO Analyst at Real Wealth Business. Over the last 3 years, He has successfully developed and implemented online marketing, SEO, and conversion campaigns for 50+ businesses of all sizes. He is the co-founder of Social Media Magazine.

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