Telemarketing

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MARK2038

Data Base Marketing Strategies II

Week 6

Instructor: Santo Ligotti

Email: sligotti@gbrownc.on.ca

Housekeeping

Assignment #1 is due today

Self Study Assignments 1 and 2 are due today

Assignment #2 was handed in on May 30 th

Assignment #3 completed in class last week

Group Projects Handed out today

Assignment #4 handed out this week as well

(1 week ahead of schedule)

This week

Telemarketing

Inbound applications

Outbound applications

Customer Service

Mobile Messaging/Text Messaging

Text Messaging In Class Exercise

Video Messaging

Telemarketing

Telemarketing : the use of telephones to communicate with customers in a systematic and targeted manner, to generate a measurable response.

Telemarketing

What is it?

Selling or service conducted by phone via call centre

» Inbound – generated from customer communications (e.g. calls generated from an infomercial, catalogue, print ad, direct mail)

» Outbound – Telemarketing programs designed to generate sales, service

What are the advantages of telemarketing?

Advantages of Telemarketing

Humanizes the interaction: builds bond with customers

Improves response rates when used in conjunction with other channels (e.g. DM, e-mail)

Immediate feedback

Flexibility - can modify interaction based on feedback

Cost efficiency - complete a sale for less cost than face-toface selling

Guilt – keeps some customers on the phone

What are the disadvantages of telemarketing?

Disadvantages of Telemarketing

Negative perceptions associated with telemarketing

 unwelcome, intrusive

 too many calls: 50% of people simply hang up

Consistency of data capture

Can ignore with call display

Limited Reach (Usually only 55% of customers are reached)

High cost: LD telephone charges, call centre, rep salaries etc.

4 Basic Elements of an Outbound

Program

List or target audience

Offer being communicated

Telephone sales representative: attributes & training

Verbal communication skills

Ability to read a script with enthusiasm

Willingness to overcome objections

Quality of script/message communicated

Which element is the most important? Why?

Scripts

Scripts provide:

Structure

Consistent messages

Complete messages

A means for effective campaign measurement

Typical Outbound Script

Elements of a typical script may include:

Introduction

Qualify/probe

Paraphrase features and benefits

Trial close

Handling objections

The close

Reassurance

Up-sell and cross-sell

2 Types of Telemarketing

Inbound Telemarketing : a capability enabling companies to receive calls from customers (inbound) to:

Purchase products/services

Get more information about a product/service

Order literature

Locate a dealer

Respond to survey research

2 Types of Telemarketing

Outbound Telemarketing : a capability enabling a company to call customers

(outbound) to:

Qualify leads and prospects

Customer service

Conduct survey research

Update customer database records

Collections

Inbound vs. Outbound

Strategy

Availability

Markets

INBOUND

Reactive

24 x 7

B2B + B2C

OUTBOUND

Proactive

Day/evening only

Direct sales organization

Example: The Processing System within a Telemarketing Center (1 of

2)

Telephone responses

Radio

Television

Magazines

Newspapers

Direct mail

Telemarketing specialist

Mail responses

© 2001 McGraw-Hill Ryerson Ltd.

Example: The Processing System within a Telemarketing Center (2 of

2)

Fulfillment

Telemarketing specialist

Teleselling Computer

Database

© 2001 McGraw-Hill Ryerson Ltd.

Outside sales force

NordicTrack vs. DuPont

Canada

How might telemarketing activities be different in these two companies?

Outbound Campaign Planning

Set objectives

Design campaign

Develop customer service procedures

Compile list

Write script

Train staff

Pre-test

Analyze results, modify as required

Launch

Analyze results

Staged Campaigns (1)

NO

PURCHASE

Direct Mail:

Send offer

Respond?

MORE INFO

Telemarketing:

Follow-up offer

Sale?

NO

Sale

Staged Campaigns (2)

NO

Telemarketing:

Initiate contact

Direct Mail:

Send offer

Respond?

YES

Telemarketing:

Follow-up

Sale?

YES

NO

Sale

Do's and Don'ts

Do's

Plan

TEST, TEST, TEST involve ALL the appropriate departments train service reps develop report templates in advance

Dont's

 expect immediate paybacks

 take shortcuts

'wing it' without a script forget to TEST

What is Customer Service?

• Customer service is the ability of an organization to constantly and consistently give the customer what they want and need.

• Excellent customer service is the ability of an organization to constantly and consistently exceed the customers’ expectations.

Direct Marketing can be a key tool in improving customer service.

Achieving Excellent Customer Service

Achieving excellent customer service requires strength in 3 areas.

Customer-friendly processes

 senior management support

Employee commitment to customer service

 training recognition and reward (compensation) for exceeding customer expectations

 empowered to “do what it takes” to make customers happy

Customer dialogue

The Golden Rules of

Excellent Customer Service

Make sure you know what your customers want and expect.

Be flexible in meeting customer demands.

Treat customers like partners rather then adversaries or end-users.

Make it easy for the customer to do business with you.

Have a positive attitude toward customers.

Encourage customer feedback.

Respond to customer problems.

Develop repeat relationships.

Seek to exceed customer expectations

Mobile Phones & Text Messaging

SMS as a direct marketing medium

Potential for true 1:1 marketing

Reach young market

More relevant for “fun” products & services

Opportunity for narrow targeting with relevant messages

Permission is key

Text Messaging is becoming its own language, with many sites devoted to providing dictionary type definitions. Check out http://www.netlingo.com/emailsh.cfm

TEXT MESSAGING LINGO

What do the following mean:

BBFN

CSL

GTGB

LOOL

SBTA

TEXT MESSAGING LINGO-In class exercise

Recall the Gillette Fusion Creative Brief you did

Working in groups of 5-6, create a text messaging campaign using the provided dictionaries

Your message should be a maximum of 2 screens long, or about

30 words/phrases

You will then present to the class

Make sure you determine first, who your sub target audience is

Assume you have permission to use this medium, and have negotiated use with a provider, say ROGERS WIRELESS

You will have 45 minutes to do this exercise

This will count towards 10% of your final grade

I will use this as a bonus assignment and replace it with any lower one you may have during the rest of the course

Oh yes,,,, KEEP IT CLEAN

VIDEO MESSAGING

Video messaging is another aspect of video technology in cell phones.

Many cell phones have built in video capabilities allowing the cell phone to take a quick video capture.

The user can store these videos, upload them to their computer or send a video message to someone instead of a text message.

VIDEO MESSAGING-GREAT EXAMPLE

New Zealand Telecom wanted to encourage increased usage of its VIDEO PHONE

CAPABILITIES

The Rubbish Film Festival was unique in that it was the first online mobile film festival and over 900 competitors were attracted to the ease and accessibility of entering.

They simply had to shoot their own 20 second movies using mobile phones and then upload the films to http://www.rff.co.nz/, where the public could view and vote for films, just for fun.

A panel of experts then judged the category prize winners and best overall entry.

The competition was split into five categories: Cinematography, Sound, Screenplay/Acting,

Technical Production and Overall Impression.

Each of the category winners won a Sanyo 76cm Flat Stereo Widescreen TV and a DVD

Home Theatre system worth $1500 each while the overall winner also scored a trip for 2 to the home of movie making – Hollywood. The trip includes 5 nights accommodation, VIP passes to Universal Studios and a tour of movie star homes with a total value of $12,000.

This competition has illustrated how customers have fully embraced the new technology and taken it to the next level.

Their mobile phone is now as much a portable video camera as it is a phone. It provides the freedom to shoot really creative stuff

Creates anoter sense of community

Illustrates the issue of MEDIA FRAGMENTATION (we will talk more about this in the coming weeks)

The Big Challenge: Media

Fragmentation

Fragmentation = More TV channels, more sources of news, the Internet, more devices

Consumers and advertisers have more choices

But fragmented markets are not new! Once upon a time…

Retail: The Hudson’s Bay Outpost store

Transportation: The Canadian Pacific Railway

Automotive: Henry Ford’s Model T

Broadcast: The CBC

What did we do?

Like most fragmenting markets, we…

First, ignored it

Second, panicked!

Third, tried to control it

Fourth, learned to understand it

Finally, we began to adapt our business to the consumers’ desire for choice, and our clients’ need for effectiveness

NEXT WEEK

Digital Marketing Part 1

The use of the internet as a creative medium

How to develop a web brief

Assignment #4

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