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Last Updated: 18. December 2019

How Telemarketing is an Effective Way to Generate Leads

Telemarketing and lead generation companies provide services for businesses that want to attract more customers for their products or services and subsequently increase sales

The use of telemarketing services can benefit your business and increase the productivity of your company. Especially B2B lead generation, which is a particular business model, is incorporated in many companies.

Lead generation services will contribute to a positive ROI. Also, you will be able to collect a lot of important information, such as the prospects’ needs and preferences. This will help you to understand what the prospect wants and tailor the value of your product.

Telemarketing in the UK, and therefore also lead generation, have expanded over the years and have grown in popularity. Companies no longer try to bombard customers with as many ads as possible, but instead they try to increase their visibility so the customer finds and approaches them. 

Telemarketing is an effective service to generate leads for several reasons, namely:

    1. It’s a proactive approach. Telemarketing helps develop successful leads as companies broaden their techniques.
    2. It’s reliable. Telemarketing is considered the traditional method of marketing, and is also a reliable way to reach customers that would otherwise not be contacted.
    3. It can boost sales. Customers will be in contact with a telemarketer who knows exactly what the reservations of the customers are and they will know exactly how to answer their concerns.
    4. It’s a more personal approach. With telemarketing it can be easier to follow up with customers and also to approach them with a more personal service.

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How Does Lead Generation Work?

Lead generation services can be defined as a process that involves gathering names and gaining insights about potential customers, with the purpose of nurturing them throughout their decision making process to eventually convince them and generate orders. 

The essence of lead generation is building trust with potential customers and continuously informing them about your products and offers along the way.

Lead generation in marketing is the beginning of a consumer’s interest or inquiry into a company’s products or services. During the lead generation process, the lead first gets targeted, then opts in and gets an offer on products or services. Finally, the lead becomes a customer.

Lead Generation Process

Telemarketing is the method used to build these strong customer relationships that would result in lead generation. Telemarketing can be divided into two categories: B2B and B2C.

B2B lead generation stands for ‘business to business’ lead generation and signifies telemarketing directed towards companies, while B2C means ‘business to customer’, where telemarketing is only directed towards end-consumers.

Lead generation can be classified as a subcategory of telemarketing. The method of generating leads is considered a part of the purchase funnel that can increase order volumes and therefore improve sales figures. Lead generation companies help you gain your customer’s attention and raise their interest in the services or products of your business.

There are two types of marketing channels that can be used for effective lead generation: inbound and outbound lead generation.

Inbound lead generation utilises content and campaigns to  attract the target audience. This is typically done through online channels, and can involve blog posts, ebooks, video content, and more. 

With inbound lead generation it may take companies more time to get actual results but it is a cost effective strategy. Inbound lead generation through content marketing may be less expensive than outbound marketing, but it generates three times the leads.

Outbound lead generation, on the other hand, involves reaching your audience directly through email, direct mail, and telemarketing. With outbound lead generation companies can reach a wider group of potential targets. 

How Much Does Telemarketing Cost?

When you choose a telemarketing agency for the purpose of generating leads, you also want to find the best price with the best strategy that fits your business needs. The main goal is to maximise your ROI. 

Prices differ by company and have various charging structures. They most likely include:

  • Price per lead/appointment
  • Price per hour, day, week or month
  • Price per campaign

You should consider your company’s needs and your objectives before choosing a campaign structure. Once you have set clear goals, such as the expected number of calls or a certain number of leads generated, you can decide which structure fits you best.

The pricing per lead structure is a method of charging that motivates the telemarketing company to live up to their best performance. The prices depend on your industry and nature of calls and will vary depending on the difficulty of generating leads for a particular product. For every lead or appointment the telemarketing company generates a fixed amount of money.

The pricing per hour/day structure allows you to plan your budget effectively as rates are fixed. This option is mainly preferred for those companies that have no market niche to aim for or no specific customer. This structure mainly includes the cost of wages of the staff that make the calls.

The pricing per campaign structure charges new customers per campaign. The telemarketing company ensures it will get paid and companies they are generating leads for will stick to the course of the campaign regardless of the results. Campaigns have a fixed length and it may prove to be a cheap method of pricing. Prices are tailored depending on the business goals and strategy.

Telemarketing Pricing Structures
Charging StructurePrice
Pricing per lead/appointment £19 - £149 per lead
Pricing per hour £9 - £29 per hour
Pricing per campaign Customised depending on the goals and strategy
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How You Can Minimise Telemarketing Costs

Lead generation and telemarketing are important for a business’ profit. However, they can be very expensive. Low budget companies will try to minimise the charges while still wanting to achieve their campaign goals. 

Using your own data is one way of lowering the lead generation costs. If you have your own leads, then the best thing you could do is to offer the contact list to the telemarketing agency.

Therefore, minimising telemarketing costs can be done by keeping a properly updated contact list and supplying agencies with these ready-to-use contacts. This process is called campaign management cost and contains admin and managerial fees for taking on and overseeing your campaign. The minimum fee you can expect to pay is £50 a month, and applies to all types of pricing structures.

However, companies could expect additional costs, which is called the cost of data, associated with hiring telemarketing and lead generation companies. If you are not providing the telemarketing company with a call list with your own contacts, then you should expect to pay a data acquisition fee, as it will require the agency to build a list themselves. 

The cost covers the time spent by the agency to call a large number of possible leads and identify the ones interested in your products or services. Keep in mind that this will take place before the telemarketing campaign begins and it can delay the start of the project.

Cost Saving Methods

  • Use your own data: provide the telemarketing agency with your own contact list
  • Work with local agency: go for local agencies that most likely have lower overhead costs

Advantages of Telemarketing

Working with a telemarketing and lead generation agency has a lot of benefits regarding the time and money spent, as well as the quality of leads generated. A telemarketing agency owns the necessary telephone systems to handle high volume calls - also overseas. Therefore, if your business requires these type of calls, it would be worth investing in a telemarketing agency.

A good telemarketing agency will start by collecting the right data and analysing it. Next, the marketing strategy needs to be adjusted and customised according to the targeted customers. When you reach out to the right market segment, customers are more likely to respond positively and you are more likely to generate leads.

You can boost profits by using a more personal approach, such as talking directly with a person, which will be more appreciated by customers rather than making them look for information on your website. 

Gaining market insight through feedback and input from customers is also very beneficial. Both existing and new customers can give you valuable information about previous experiences. Based on the feedback you will be able to improve your service. 

Lastly, instead of having your own telemarketing team, it is better to have a professional telemarketing and lead generation agency. They will provide you with expertise and better performance. You can expect to improve sales and get more positive results.

Why Telemarketing Is Important

  • Have a more targeted approach
  • Boost profit by providing a more personal phone call approach
  • Gain customer loyalty by making direct phone calls
  • Gain market insight with the help of both existing and new customers
  • Get a high level of expertise and professional advice from agencies

How to Choose The Right Telemarketing Agency

When it comes to choosing the most suitable telemarketing agency, every step of the process is important. Selecting the right agency will bring high quality leads that you can benefit from.

You need to make sure that the agency has a good reputation, positive recommendations, polite and professional staff, and that you will get a favourable return on investment.

First of all you should take the time to get to know the company. The more research you do, the better your choice will be. Start with their website and find information about prices and strategies they use. Look for reviews from previous customers and find out if they recommend the agency or not.

Definitely do not avoid small or new companies simply because you think they may not be able to deliver results like a big company could. In some cases, they manage to deliver a better service with a better cost than large companies. They also typically offer more flexible and tailored pricing structures 

The best way of assessing a potential telemarketing company is by direct contact. You can either call them or arrange a personal talk. In both ways you can find out their level of professionalism.

It’s also important to be sure whether the company you choose will be able to work towards your goals and achieve the best results. Understanding the market and industry that you are active in is a key factor. If your products or services are misunderstood, your acceptance and sold rates will likely be low, and ultimately result in failed campaigns and poor results

Lastly, make sure you understand what is included in your package and you know exactly what kind of costs you can expect. 

How To Choose The Right Telemarketing Agency

Find the Best Telemarketing and Lead Generation Company

There are a large number of telemarketing agencies in the UK specialising in lead generation. Therefore, aspects such as costs, strategies, and experience will vary. 

Depending on whether you need B2B or B2C telemarketing, you have many options to choose from. Telemarketing in B2B lead generation is a very beneficial approach because it’s personal, customised and you get real-time results.

Market Inspector provides professional advice and reviews about telemarketing and lead generation. You can compare prices and quality of different agencies on the market that best fit your business needs. Fill in the form and get four non-binding quotes, totally free of charge!

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Written by Sirin Çaki Content Writer Sirin is a Content Writer at Market Inspector. Her educational background lies in Business Communication and Office Management, with a focus on Media & Events. She has gained international marketing experience in France and Belgium, and has her written work published on websites like News from Wales, the Sunday Post, and Coffeebi.
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