Guide to Telemarketing: Its Definition, Best Practices, and More

Imagine speaking directly with clients and making meaningful connections with them. That’s what telemarketing allows you to do; it’s a game-changer that can transform your business overnight by reaching the right people at the right time. But what is the meaning of telemarketing, and how can it benefit your business?

In the right context, telemarketing is the practice of reaching out to potential customers and clients through phone calls and emails. Telemarketers gather data from information sheets, landing pages, subscription lists, and more. 

This article explores telemarketing and its definition, impact, best practices, and more.

Meaning of Telemarketing

Investopedia defines telemarketing as contacting, qualifying, and canvassing customers through phone calls, the Internet, and — the lesser-known and quite old — fax. 

Today, telemarketing is known to be a job for the bravest of souls and the strongest of wills. Most of them face harsh rejections through the phone every day only to dial another number.

In the modern world, telemarketing is dubbed as a ‘dying’ practice. Why is that? Most people don’t pick up their phones if it’s an unknown number or if they aren’t expecting a call that day. Industry experts disagree though, telemarketers still pull through a lot of revenue for a ‘weak’ sector. AI and ‘robocalls’ have taken over the practice of telemarketing but you still need a human touch in order to close a sale.

How Telemarketing Works

Say your company wants to sell a new product or service to customers who might be interested. Telemarketing is like having a personal conversation with them. You or a representative call potential customers to introduce what you have to offer, build rapport, and address their needs directly. By engaging with customers personally, you can tailor your pitch and build trust. This often leads to higher conversion rates compared to impersonal digital marketing methods.

Telemarketers usually contact people on marketing lists via telemarketing software or Voice Over Internet Protocol (VoIP). They can also use chatbots and other automated tools.

The impact of telemarketing

There is a certain charm to telemarketing: reaching out to leads to closing a deal, making a rapport for your business, and so on. Of course, there are obvious signs that it’s exhausting work. The average conversion rate is around 4.8%, but most businesses fall in the 2%-5% range. The industry certainly is grounds for patience and tact.

In the U.S. alone, the telemarketing sector is expected to reach $4.69 billion in ad spending by 2025.

Pros and Cons of Telemarketing

Advantages of telemarketing

It conveniently connects businesses with prospects.

Telemarketing allows businesses to connect quickly and directly with potential customers, bypassing digital noise and ensuring timely engagement.

It also creates immediate rapport with customers.

Telemarketing enables businesses to establish trust and rapport with customers through real-time conversations.

It’s easier to generate leads and create appointments.

Telemarketing efficiently generates leads and sets appointments by allowing immediate follow-up and personalized interactions.

Most importantly, outsourcing your telemarketing staff is proven to be cost-effective.

Outsourcing telemarketing reduces operational costs by leveraging specialized teams without in-house infrastructure and training.

Disadvantages of telemarketing

It has a negative reputation.

Telemarketing is often perceived as intrusive, which can lead to trust issues and reluctance among potential customers. This perception can harm a company’s image if not managed properly.

Hiring an in-house telemarketing team is costly.

An in-house telemarketing team can strain resources due to the need for specialized training, equipment, and ongoing operational costs.

Customer lists are expensive to purchase.

Contact lists can be costly for companies with limited budgets or access to high-quality prospects.

Legalities of telemarketing

In North America, there is a national call registry by the name of the “Do Not Call” list. Individuals can sign up and get their contact information listed so telemarketing companies won’t reach out to them. That being said, people on the DNC list aren’t immune to non-profit calls. Programs such as surveys and maintenance calls from non-profit organizations aren’t ‘considered’ by the DNC list.

On the other hand, in countries outside of North America, there are nationwide regulations about unsolicited calls. These laws in place aren’t that different from having people register to a “Do Not Call” list.

In other words, telemarketing is a perfectly legal practice. The ethics of it all, however, remains in the gray area, much like most of the outsourcing industry.

The best practices

Telemarketing is a landmine full of rejections and rude customers. But as trained agents, you are expected to lead the phone call to close a deal. There are certain things in the telemarketing (and telesales) subsector that everyone must follow. Playing it safe generally is a wise way to stay on rank, but don’t be afraid to mix it up a bit every once in a while (to a reasonable extent.)

Familiarize yourself with the rules. DNC regulations are put in place to avoid potential lawsuits from customers and clients alike. So it’s important that as a telemarketer, you’ve familiarized yourself with these local laws. Keep in mind that in some parts of the world, DNC regulations differ from one another.

Be human. If you’re having a hard time, following the prescribed call flow, make your own script. Make it a habit to give it a personal touch. Customers are more likely to engage with you this way. When they feel that you’re not just making a sale, customers are much friendlier and easier to converse with. Didn’t make the cut? Keep them warm and try again. 

Upsell for the benefits, not the profit. In the world of telemarketing, upselling isn’t optional. You at least have to try and upsell the customer before letting them go. Sure, the practice can be a bit of a nuisance, but try to upsell the person for the benefits. If they let you, list out all the benefits of the package you’re selling them. Tell them why it’s important for them to get this. 

Examples of Telemarketing

There are several examples of telemarketing.  Their very existence often overlaps with each other, the general responsibilities not much far off.

With these examples, telemarketing exists with a lasting impact on companies and their consumers. Of course, there are still significant differences between these. Yes, these exist to somewhat complement each other—especially sales and marketing. Inbound and outbound campaigns accompany each other with their approaches.

To further clarify, these subcategories do more than support their counterparts. Sales and outbound campaigns will be harder to do if they don’t have qualified leads from lead generation specialists. Inbound telemarketing would have a hard time getting leads without lead-generating landing pages too.

Lead generation

Lead generation is the act of acquiring, validating, and qualifying the information from several lead generation channels. These channels can come in any form: landing pages, email subscription lists, and more. 

Sales

Sales is the practice of reaching out to validated leads to close a deal. It is so much more forward than telemarketing. Sales can be considered as the final funnel for most of the marketing plans. In this telemarketing practice, the telemarketer will attempt to “upsell” a few extra services and goods that the customer might be interested in.

Inbound

Inbound campaigns happen when leads and prospects call to order a product or service they saw from an ad. They are generally easier as consumers are already engaged and interested in what you’re offering.

Outbound

Outbound campaigns are harder (yet more rewarding according to some) than inbound accounts. What happens is that you will be reaching out to your lead list cold. Meaning, you don’t actually know much about their preferences nor knowledge about the product. Having to close a sale is more tumultuous than inbound campaigns.

Phone Surveys

A phone survey is a telemarketing example wherein a business calls existing clients to ask them multiple questions about their experience with the brand. Unlike sales-focused telemarketing, phone surveys aim to collect data rather than sell products or services. Phone surveys allow businesses to identify customer pain points, identify ways to improve their service, and gather feedback.

Political Telemarketing

During the campaign period, politicians and political organizations running for office can use phone calls to gauge voter opinions, promote themselves and their advocacies, or solicit donations.

Technical Support

Technical support telemarketing typically involves outbound calls to offer assistance or resolve technical issues related to products or services. It can also include proactive outreach to inform customers about updates, maintenance, or troubleshooting tips.

B2B Telemarketing

As its name suggests, B2B telemarketing involves a business calling another business to qualify prospects, conduct market research, generate leads, or follow up on inquiries. B2B telemarketing requires a higher level of professionalism and industry expertise to become successful.

Product Sales

Product sales is the most traditional among telemarketing types, where sales representatives contact potential customers to promote and sell specific products or services. This method is used to increase sales, introduce new products, and build customer relationships. It requires strong persuasion and communication skills to close deals effectively.