Chapter 3
Factors That Influence the
success of Telemarketing
There are many factors that can influence Telemarketing's success or failure. The main important factors are preparation, staff training, information system, and management.

In any labor-intensive organization, the employees can make or break the bottom line. This is especially true of Telemarketing. The key component in a successful Telemarketing operation is management's ability to run the department. Even if the strategic concept is on target, and the prospect list is highly qualified, Telemarketing is doomed to failure without a richly sophisticated and experienced management to guide the Telemarketing effort. To capitalize on the sales potential that Telemarketing offers, a company must have a professional Telemarketing staff with a comprehensive grasp of the complexities of this type of management.

3.1 Preparation

Preparation for the Telemarketing campaign will take telemarketers from the planning stage right up to the first day of the actual campaign. During this time, telemarketers will have to establish their evaluation/control criteria and write their script. There are several points for preparation, such as:

  1. Space
  2. Equipment( telephone and others
  3. Materials
  4. Setting up the facility( Confirmation of arrangement for facilities and preparation of facilities.
  5. Recruitment of staff and hiring of callers.

3.2 Staff and Callers Training

A good staff and callers training is very important; it can let a company do successful Telemarketing directly. Training is an on-going process.

Not everyone is cut out to be a telephone communicator. Direct-sales people are often ill at ease in a Telemarketing environment: they often miss the face-to-face eye contact, and the body language of the prospect. On the other side of the scale, people with prior acting experience seem to do quite well.

Most experts agree that there are five traits necessary in order to be successful as a telephone communicator.

  1. Good communication skills( voice quality is clear and pleasant; articulate.
  2. Persistent and able to bounce back from rejection.
  3. Good organizational skills.
  4. Ability to project a telephone personality( enthusiasm, friendliness.
  5. Flexibility: can adapt to different types of clients and new situations.

The first trait: "good communication skills" is a must. And the best way to evaluate these skills is with an initial telephone interview. Through the telephone interview the professional trainer screens out unlikely candidates.

3.3 Information System

If database marketing was nonexistent at this time, someone would have to invent it. For without database marketing, direct marketing, of which Telemarketing is an integral part, would be a shambles. Without a database a telemarketer cannot have segmentation. Without segmentation a telemarketer cannot have targeting. So, database marketing is a given for success.

The information system is important, it may include customers lists, customers data, selling record, trace record, other relevant data. To establish a complete information system is very necessary to telemarketers. I will discuss it in chapter four in detail.

3.4 Management of Organization

If the Telemarketing manager is high up in the organization, then there is leverage for placing Telemarketing into a high priority position, with the resources and support needed to achieve its objectives. Further, if the program is successful, with heavy resources committed and representing a key element in the corporate strategy, then there is every possibility that the head of the operation will be high up on the organizational ladder.

Both the Telemarketing organization plan and the person to head it are critical decision areas. The person selected must have both the experience and the capability to manage the operation technically as well as the credibility and support of top management. The plan is equally important to chances of success. If cost-benefit analyses, careful preparation, presentation of similar success histories and some pre-selling is not done, the chances of management even approving a trial program are considerably lessened.

In small organizations the plan be even more critical than in larger ones. The approval is not the issue; success or failure of the enterprise could hang in the balance. A marketing plan based on Telemarketing, and gaining the commitment of limited key resources had better be prepared.

Becoming sold on telemarketing and rushing into it without preparation and with expectations that it will cure all is a danger which may be averted with proper staffing and management.

The subject of Telemarketing expertise is important as it relates to where in the organization it resides. The telemarketers themselves can certainly use experience in selling on the telephone, but the expertise and experience must be possessed by the person directly responsible for Telemarketing operations. The best situation is to bring in an experienced manager who has run the type of operation being set up. Second best is to convert an on-board manager, but appropriate training and a strong desire to succeed must accompany the latter choice.

The character and nature of Telemarketing management is critical to the success of a Telemarketing operation in its relationships with other internal organization units and top management. The managers not only must perform their normal management duties but must justify the existence of his operation continually in the face of the newness and poor reputation of Telemarketing as a marketing discipline. The manager can follow set patterns only to the extent that they continue to produce results. Results are the lifeblood of Telemarketing, and the managers must produce them by whatever means they can. The Telemarketing manager's job is a demanding one, and not meant for the average person. For those willing and able to meet the challenge the rewards are there, and no manager will be more deserving.

To sum up, a good management in Telemarketing organization is essential. A complete management will result in successful Telemarketing.

3.5 The 80/20 Rule

"Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule. It's very amazing, we see scores of marketers ignoring it when it comes to allocating advertising and sales dollars, spending the same on all accounts( regardless of potential.

The Telemarketing approach to lead generation and customer activation takes full cognizance of the immutable law( all prospects and customers are not created equal.

Remembering that approximately 80 percent of sales comes from 20 percent of customers. Telemarketers must spend their resources where they have the most return.

Identify the key customers and develop them to the fullest. Next, spend part of efforts in calling on prospects to develop them as customers.

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