If we look at the latest trends in marketing strategy, we may see a gradual evolution from traditional marketing.
Technology plays a vital role in this development because of the introduction of advanced marketing tools, social media, and smartphones.
In this article we will discuss what is outbound and inbound telemarketing. And why is it a key to your business success.
Telemarketing is the queen of sweet beginnings.
Telemarketing started with the initiative of women who want to sell cookies. After discovering that they can make money by calling friends, colleagues, and people in their community, they decided to try different spiels and strategies to convince other potential buyers to buy their products.
Eventually, they triumphed, and telemarketing was born.
In 1957 the first call center firm, DialAmerica, began its operation with only two calling stations: one inbound and one outbound station. This setup becomes the framework of telemarketing we know today.
It was until the 1970s where Telemarketing saw a rise in popularity and demand. Entrepreneurs begin to see its surprising ability to bring in sales and spread awareness.
Around the 1980s telemarketing continued to grow to become what it is today. It is also the year wherein the method of reaching customers becomes sophisticated because of the different technological advancements conceived that year, such as computers and phones.
However, telemarketing experienced a mild setback two decades later. It is because of an alarming increase in the numbers of telemarketers calling at inappropriate times and calling personal numbers with no authorization from the owner.
So in 2003, the National Do Not Call Registry was launched by the Federal Trade Commission to give customers the option to include their numbers in the list to prevent unwanted phone calls. Those who are part of the DNC database are free from receiving sales calls except charities, nonprofit organizations, political entities, or survey companies that are not selling anything to consumers.
Nowadays, telemarketers use different kinds of strategies to build an honest relationship with their buyers. These include creating value-adding scripts and identifying pain points.
Based on a report by IBIS World, the US Market Size of the Telemarketing & Call Centers industry sits at $24.2 Billion as of October 2020. And it will remain steady throughout 2021. For the next five years, though, the Telemarketing & Call Centers industry will grow. Although slower than expected due to the coronavirus pandemic.
Based on its rich history, telemarketing is a marketing strategy used by businesses to introduce products or services to customers over the telephone, internet, or fax.
At first, the goal of telemarketing is sales. But nowadays, it does not necessarily mean selling a product anymore. There is a more specific service for proactive selling, which is known as telesales.
Currently, the primary goal of telemarketing is to make a healthy and beneficial connection with your customer.
Businesses are not the only institutions that hire a telemarketing team. Nonprofit organizations and universities use telemarketing to raise funds and gather participants for an event. Meanwhile, political parties also utilize telemarketing during the campaign period to persuade voters to vote for their candidates.
There are two types of telemarketing: Outbound and Inbound.
Businesses use both types of telemarketing to fast-track their growth. It is a proven strategy in collecting revenue. It is also the best way to interact with customers.
Outbound telemarketing requires you to reach out to customers you have never been in touch with before. The purpose of the conception of this strategy is to raise awareness about the product and services you are offering.
Outbound telemarketing is one of the most effective traditional marketing strategies used by businesses from the 1980s to the mid-1990s. Unfortunately, success often invites the opportunity for abuse. Unethical telemarketers abused the tactic that it forces the Federal Trade Commission, Federal Communications Commission, and Watchdog organizations to strengthen regulations to protect customers.
The rise of digital technology affected the growth of outbound marketing as well. But this type of telemarketing gains more value through time as it introduces a new approach in tackling customer needs.
These approaches are the two types of outbound telemarketing:
Cold calling is making contact with potential customers to convert a sale.
The recipient of the call may have briefly interacted with the company. A sales representative that will conduct a cold call will establish initial contact with the lead. The agent will introduce the business, follow up on prior interaction or pitch the products or services to the potential customer.
Cold calling is a very effective tool for attracting customers. The main thing is to have a skilled operator who can intrigue prospective clients effectively.
Warm calling is reaching out to customers who show interest in the product or services you are selling.
Like cold calling, warm calling is an effective outbound sale strategy. But the effectiveness of it depends on how warm the lead is. You can warm up leads through a variety of methods, such as sending email sequences.
Warm calls are desirable, effective, and efficient because prospective clients are more familiar with the company they are engaging in. They will likely have more interest in the services offered.
The information age and the internet played a dramatic role in the evolution of marketing. Since brand information is easily accessible to the public thanks to technology, consumers are more disinterested in outbound marketing techniques.
Hence, inbound customer service introduces inbound telemarketing. This type of telemarketing takes the opposite approach of outbound marketing.
Instead of forcing information and advertising onto the customers, inbound marketing filters information to what the customer might want to hear, instead.
So inbound telemarketing is a reactive type of telemarketing. This simply means that customers will initiate to call a business, rather than the opposite. Their function is to take orders rather than proactively sell the product or service to the consumer.
Inbound telemarketing happens when information about your product intrigues a potential customer.
Hence, this type of strategy combines traditional marketing (print, broadcast, direct mail, phone, and outdoor advertising like billboards) with an inbound call center. So in inbound telemarketing, customers are most likely to call for queries about a business product as they already have an initial interest in your products or services.
To put it simply, an outbound marketer hunts for customers; while an inbound marketer attracts them.
The challenge with this type of marketing is it requires you to have a strong inbound marketing strategy.
In a paper by National Mining University, they define inbound marketing as a type of marketing, which involves creating free and useful content for users. The main task of this type of marketing is to get potential buyer loyalty and earn customer’s trust.
These are the following methods that you can do to strengthen the inbound marketing of your business:
It is no secret that communication is an essential part of every successful organization. It plays a vital role in creating harmony between your customer and your business.
Communication in business refers to:
To improve communication within your business or with your customers, you must break down persistent barriers. These include improper communication channels, varying cultural norms, and perceptual differences.
Once the barriers have been dealt with, businesses can ensure that the proper infrastructure and systems are in place,
That is why both types of marketing are essential in your business success. It encourages transparent communication and connection with consumers.
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