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Telemarketing Update

Reprinted from News-To-Use, Vol.6, No.2.
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In "Ringing Up Sales," featured in the Spring edition of News-to-Use, we focused on ways to make the telemarketing aspect of your marketing communications effort more effective. Now, according to Time magazine, if you haven't incorporated telemarketing- inbound and/or outbound- as part of your total marketing campaign, you may be missing a highly cost-efficient tool.

"The (telemarketing) industry has flourished because companies find telemarketing a highly efficient way to deliver their spiels," Time says. "With the price of postage rising faster than telephone rates, marketers can reach out and harangue people for less than a third of the cost of direct mail. "While a segment of the people complain about telemarketing, it's still super-effective," explains Robert Blattberg, marketing professor at Northwestern's business school. "You don't need a huge response rate to make these things work. You only need a 1% to 2% success rate for telemarketing to be effective." "Calls to consumers, constant as they seem, are only a small part of the industry," the magazine continues. "Pitches to other businesses generate more than 80% of the revenues of telemarketing, and account for 90% of its jobs. Companies routinely sell one another computers, aircraft and other products by phone because it is far cheaper than maintaining large sales forces. Telemarketers can reach business clients for about $10 a completed call in contrast to the $800 it might cost to have a salesman knock on the door."

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