Challenges of Telemarketing

Challenges of telemarketing will be introduced by first listing the points concerning the com- pany (seller) or marketer and then followed by matters with customers (other company, buyer).

Before clarifying different challenges of telemarketing we have to consider the fact that tele- marketing can be performed also outside the company. Outsourcing could be cheaper and the work force used more professional, as they are especially trained for telemarketing. Last, these reasons lead to the fact that outsourcing is becoming more popular in business-to- business direct marketing. However, for EcoTelematics Group, it has been cheaper to con- duct their own telemarketing calls. Getting the first impression of the possible client (other business, buyer) and having the possibility to tell more about their product and service has been the aggravation for not outsourcing telemarketing. For this reason, the research of this thesis will concentrate on examining telemarketing as an internal activity in the company. This could include value and importance in the future also to EcoTelematics Group.

Companies like the advantage of contacting customers individually. However in Finland, for example, there are regulations that limit the possibility to call whoever whenever. Asiakkuus- markkinointiliitto (The Finnish Direct Marketing Association) appoint the possibility for cus- tomers to limit the direct marketing via their phones and mails. These lists are called the Rob- inson lists and their purpose is to ”refrain from sending addressed direct mail or making pro- motional phone calls to consumers, who have disclosed their will not to receive either of the mentioned forms of advertising / sales”. (The Finnish Direct Marketing Association 2009.)

This sets limits for the companies as they have to respect the customer’s wishes. Even though companies think they are contacting other companies and not individuals, they still have to make sure whether or not the person him- or herself has banned direct marketing. In other words, individuals within companies have the right to abstain from e-mail marketing or tele- marketing. (Data Protection in Finland 2010). However, it is challenging because not every- one is aware of this possibility and thinks that this law does not affect on companies.

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What seems to be the greatest advantage of telemarketing can also end up being a challenge. Especially in inbound telemarketing companies can have troubles in making their telemarket- ing successful due to financial issues. Hiring enough people in order to have a trouble-free and efficient customer service or sales department can be very expensive. Companies who want to gain customer loyalty should definitely invest in inbound telemarketing because cus- tomers can find it very intrusive if they have to wait service for too long. (Brassington and Pettitt 2003, 763.) Furthermore, it is obvious that the employees have to know the products and services sold in order to close the deal.

Like mentioned before, finding the right people for telemarketing can also be a challenge for companies. Firms need a combined customer service worker and a salesperson. After hiring, motivating your telemarketers can cause problems. Usually they are expected to make 20 to 30 phone calls per hour and they are still paid less than face-to-face salesmen. This is why, companies tend to provide different bonus systems and commission based salary. Role of the internet has also grown to be a challenge for telemarketing. Customers can not relate to the offered products online without any visual help. Many companies have realized this and now offer a telemarketing service through their web page. For example, via “Call me up”-button. This is called permission marketing and it is not only a challenge but can lead to company’s competitive advantage. (Cron & Decarlo 2010, 166-167.)

Brassington and Pettitt (2003) also highlight the importance of targeting outbound telemarket- ing calls. A telemarketer should spend time for carefully selecting his target customer groups like in e-mail marketing. This will lower down the irritation factors for customers who are not interested in products and stop bothering the customers who have added their names to the Robinson list, mentioned earlier. How to achieve this accurate list of only interested custom- ers is a true challenge for telemarketing. (Brassington and Pettitt 2003, 764.)

However, not everybody can be interested of every product or service. This is why a telemar- keter must be prepared also for negative answers. According to Vuorio (2008, 25) these rejec- tions can be extra sharp and harsh over the phone, because lacking of face-to-face contact. Tapp (2005, 314-315) also reminds that many people refuse to answer calls that they know are from telemarketers. Companies have learned from this and nowadays many use regular phone numbers instead of 1-800 types of selling numbers.

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For customer perspective there are obvious reasons for negative attitudes. In general telemar- keting is seen as a disturbing form of direct marketing. The phone has a habit of ringing when you are busy and do not have time and effort to concentrate. Usually the telemarketer talks without stopping and you are annoyed by not achieving a dialogue. When you try to signal that you are not interested, the telemarketer usually just gets more exited. And when you tell them not to call again, you can be sure that you are disturbed again within the next couple of months.

This following figure will summarize the previous chapters, introducing the main points of both advantages and challenges of telemarketing.

Figure 6. Summary of advantages and challenges of telemarketing (Created by the author, 2010).