Published On: Sat, Aug 24th, 2019

What is Telemarketing?

Telemarketing is one of the oldest and most widely used forms of direct marketing, in which companies contact potential customers via phone, voicemail, or video calls in an attempt to generate and nurture leads. While telemarketing has a reputation of being irritating, fraudulent, and unethical, it can be highly effective when conducted in an embracing and non-intrusive manner; and has many other benefits for a business. 

photo/ Gerd Altmann

Telemarketing calls consist of prerecorded messages commonly known as “robo-calls”, as well as actual human callers. Robo-calls are generally perceived as being a nuisance, and are often used in fraudulent activities, so many governments around the world have banned them outright. However, person-to-person telemarketing is a very direct and intimate way for businesses to communicate with customers. Telemarketing can be conducted by a business’ in-house marketing team, outsourced to a specialized telemarketing company, or even done at home by individuals working for charity or political causes.

Telemarketing is most commonly performed by a business trying to sell their product or service, but it is also utilized for political campaigns or event promotion. Telemarketing calls are generally directed towards a target demographic to encourage a high return on investment, which requires research to be conducted beforehand. Regardless of its purpose, the direct nature of a telephone call allows organizations to effectively circulate information or communicate with customers. This is why telemarketing is still one of the most extensively used marketing strategies today.

Telemarketing calls are typically divided into two categories: cold calling and warm calling. “Cold calling” involves interacting with a potential customer who has had no previous relation with the company, whereas “warm calling” occurs with repeat customers or those who have previously expressed interest in a product. Since warm calls generally include personal information about the customer, such as their name and past interactions with the company, it is no surprise that warm calling has a much higher success rate than cold calling. 

Telemarketing involves a lot more than just trying to sell a product. In addition to pitching sales to potential customers, telemarketers frequently provide clients with requested information and manage incoming orders. As a result, telemarketers must be very knowledgeable about the product they’re selling, the business they represent, and they must have adequate people skills in order to converse and negotiate effectively. 

Majority of American businesses outsource their telemarketing needs to outside companies, and there are many good reasons why. Outsourcing has a generally high return on investment and allows businesses to focus their time on more pressing matters. Hiring a third party with many years’ worth of experience will ensure that a business effectively generates, and nurtures leads, and it is also much more cost-effective than going through the tedious process of buying and maintaining the proper equipment. What’s more, outsourcing telemarketing work can be done flexibly on a need-to-need basis, so companies only need to invest their resources when the need arises.

Author: Gourav Rana

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