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Telemarketing. Should You Outsource or Build It In-House. Telemarketing. Should You Outsource or Build In-House

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Telemarketing

Should You Outsource or Build It In-House

Gordon Armstrong

Sr. Director, Business Development Turnstyles Ticketing

Mary Jane Avans

Vice President, Business Development SD & A Teleservices, Inc.

Shawn Robertson Ticket Sales Director Center Theatre Group

Telemarketing Should You Outsource

(2)

Turnstyles Ticketing Gordon Armstrong

Sr. Director of Sales and Business Development 634 Frelinghuysen Ave Newark, NJ 07114 garmstrong@turnstylesusa.com www.turnstylesusa.com (855) 849-4879 x 3353 Outsourcing Customer Service/Sales

(3)

Tickets

Tickets are the life blood of your event

For the ticket holder, they mean more than just entry to the show – they are the promise of an experience, building anticipation, and are keepsakes holding those memories for a lifetime

Ticket holders are your guests, customers, friends, ambassadors, and live/digital ad agencies

They share the entire lifespan of their experience with you and your event – with the whole world

Outsourcing Customer Service/Sales

(4)

It is Always Important to Enhance your patron’s buying experience, as there are many alternatives for them to spend their disposable income.

As an industry we are seeing most people are buying through the web but what

happens when they pick up the phone? The trend seems to be that 1 out of every 10 calls makes a purchase, what about the other 9 calls?

• Are they speaking with a live operator

• Are they able to get their questions answered

• Are the being provided with a high level of customer service

Outsourcing Customer Service/Sales

(5)

Outsourcing a call center can be a critical component of your patron’s

overall experience.

It can offer flexibility by extending your hours of operations

Provide overflow assistance during on-sales and special events

Increase your ratio of calls answered and those that are dropped

Free up your box office staff so they are able to complete their daily

tasks

Mostly importantly providing your patrons with a high level of customer

service

Outsourcing Customer Service/Sales

(6)

Benefits of Outsourcing

Can be a cost effective resource without the added expenses of:

 Additional phones lines and computers

 Workspace

 Staffing needs

 Management and training

Additional Benefits include

 No cost dedicated Toll Free phone connection(s)

 Up selling capability by highly trained sales agents

 Real time sales capabilities

 Customer service for calls regarding specific event information

 All calls answered as the facility

Outsourcing Customer Service/Sales

(7)

Seamless Operation

Calls are routed to the call center seamlessly, thus giving the impression and feel of speaking directly with one of your box office representatives.

Operators receive calls, are prompted as to the origination of the call, and answer it as a representative of that venue, team, facility or organization.

Training of offsite operators

Client provides the call center with complete event, venue and local area information. This information is summarized by a project Management Team and formatted for distribution to the operator via an Online Event Operator Guide.

Outsourcing Customer Service/Sales

(8)

P E A K M U S E U M C L I E N T

Monthly In-house Costs

Operating Costs 8am – 8pm

10 agents

2 Supervisors

1 Manager

Total costs = $40,000 per month

Plus infrastructure and phones

costs

C U S T O M E R C A L L C E N T E R

Monthly Outsource Costs

45,000 minutes = $24,000

per month

Total savings to venue

$16,000 per month

(9)

OUTSOURCING

OUTBOUND CALLS

Mary Jane Avans

Vice President, Business Development

mjavans@sdatel.com

www.sdats.com

(10)

OUTSOURCING

OUTBOUND CALLS

(11)

Onsite Campaign Management

Your Organization Provides:

Phone Room Set Up

Internet Connection

Phone Lines – Phones

Dedicated Line For Manager Voice Mail

Manager Area (Office)

Leads to Call

Access To Necessities

Outsourcing Outbound Calls

(12)

Onsite Campaign Management

Vendor Provides:

Campaign Manager

Oversight For Manager

Team Of Local Callers

Human Resources Support

Payroll, Taxes, Insurance

Computerized Lead Management System

Reports – Daily, Weekly, Cumulative

Campaign Support Materials

Outsourcing Outbound Calls

(13)

Vendor Provides:

Physical Space

Overhead Costs

Trained Crew

Computerization

Additional Services

Organization Provides:

Leads

Training Materials

Method To Receive

Orders

Updated Seating &

Relevant Info

Outsourcing Outbound

Calls

(14)

Keys to Success

Experienced & Talented Team

Campaign Design & Planning

Communication Of Product

Training

Clean Data

Capacity To Address Challenges

Customized Solutions

Accurate Reporting & Analysis

Partnership

Outsourcing Outbound Calls

(15)

C A M P A I G N B Y T H E N U M B E R S

30,000 leads (households)

35 weeks

150 calling hours per week

35 weeks X 150 calling hours

3 contacts per hour

10% participation

5,270 calling hours*

15,750 contacts*

1,575 orders

Outsourcing

Outbound Calls

Costs

*Definition of a contact: a yes or no. In a week, we might contact 450 people, based on the types of leads called. Calling hours are per caller – 4 callers calling 4 hours = 16 calling hours.

(16)

Set-Up or Administrative Fee - $2,500 - $6,000

Other Misc. Fees

Straight Hourly Fee - $30 - $40 Per Hour

Hourly + Commission

Commission Only

Outsourcing

Outbound Calls

Costs

5,270 Hours

$15 Per Hour

$79,050

1,575 Orders

20% Commission

$94,500

(17)

Opened in 1967

Founding Artistic Director, Gordon Davidson Michael Ritchie, Artistic Director

Music Center of Los Angeles County

Ahmanson Theatre 2103 seats

Mark Taper Forum – 736 seats

Culver City

Kirk Douglas Theatre – 317 seats (opened in 2005)

(18)

TICKET SALES DEPARTMENTS

Audience Services Phone Room (22)

Account Sales/Group Sales (2)

Box Office (9)

Priority Services/Telemarketing (26)

Subscription Services (6)

ANNUAL SALES/PERFORMANCE INFO

$35 – 40 million in annual sales

450+ performances

50,000 subscribers total

Over 750,000 tickets sold

(19)

Looking at Your Organization and Beyond

1. Do you have buy-in from the organization?

Do all departments understand the value?

Who are the decision makers who will support the decision and operation? 2. What are your resources to support the department?

Startup costs; staff size, infrastructure, time, location, technology, energy, etc 3. What does success look like?

Establish benchmark sales goals; expense to revenue that you need to operate and justify 4. Do you have a strong Manager already in the organization? Can you recruit on your own?

(In my opinion, it all starts and could end here.)

(20)

What Makes a Strong Sales Manager?

You aren’t selling widgets; selling an experience that takes place

at your venue

Must be passionate about your product and organization

Be able to motivate and be an advocate for staff

Provide proper compensation to keep manager motivated

Maturity; Experience; not letting it get to you is an art

(21)

Kerry Korf,

CTG’s Director of

Priority Services

(22)

How do we measure success?

It’s 20/20!

•At least 20% of all subscriptions sold are through Priority Services (minimum 10,000 of 50,000 subs sold) **All Time High in 2011-12: 11,874**

New Subscriptions Renewal Subscriptions

Ahmanson – 2500 Ahmanson – 3000

Mark Taper – 1500 Mark Taper – 2500

Kirk Douglas – 500 Kirk Douglas - 500

•Cost to revenue is under 20% (5 times more revenue than expense for department) Last 3 year Average: 18%

Sales $5,030,000.00 Expenses $943,000.00

(23)

How does sales team know if they are achieving success?

Minimum required sales per calendar month is 25 full subscriptions. (Callers have averaged selling 40 full subscriptions per calendar month.)

Failure to do this will result in "probation" and the following month will be paid Hourly or Commission, whichever is higher. As soon as 25 subs sales is reached in the next month caller reverts back to the Hourly plus Commission pay. If caller fails to sell 25 subscriptions in the next month it will be cause for termination. (In 27 years only 4 callers have ever been terminated for quota)

New employees are given a one-month grace period before the minimum sales requirement kicks into place.

MTF NEW SALES AHMANSON NEW SALES KDT

$0.00 - $300 7% $0.00 - $500 5% All New Sales 15% $301 - $600 8% $501 - $1,000 6% Renewals 10% $601 - $900 9% $1,001- $1,500 7%

$901 - $1,200 10% $1,501- $2,000 8% $1,201 + 11% $2,000 + 9%

Renewals 4% (2nd year+) Renewals 3% (2nd year +)

(24)

Resources/Buy-In

1.Location – Don’t share a space if you can; can location grow with the

department (think success);

2.Computers – let your IT team do some heavy lifting; consult with them to

identify needs vs. wish list (how many you need, software); establish cost

limits

3.Telephones – Does your existing system meet the requirements; maybe

this is an opportunity to look at new systems for the organization;

integration with computers; 3 RFPs from reliable vendors (Cysco, Avaya, etc)

who provide ongoing support

4.Furniture/work station design – IKEA is lovely, but maybe something more

durable; where do you have existing vendor relationships; inquire about

quantity/corporate/non-profit discounts

(25)

Make a Decision

Do your homework and you can make the right decision for your organization

There is no right or wrong answer…sometimes the answer is both

Center Theatre Group

1. in house Priority Services team

2. in house Audience Services team…

with outsourced overflow Call Center

(26)

Shawn Robertson

Ticket Sales Director

srobertson@CenterTheatreGroup.org

www.CenterTheatreGroup.org

(27)

References

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