If there is one marketing initiative that often generates negative emotions, it is the widespread use of outbound telemarketing. Consider this common response from an executive to a secretary or other gatekeeper upon receiving a telemarketer’s call, “Put it into voicemail,” –  a guaranteed death sentence awaiting only the delete prompt to carry out the execution.

With telemarketing’s questionable image in the business-to-consumer environment, is there still a place in the business-to-business (B2B) world for telemarketing as a viable outreach initiative? The answer is yes, but only when it is done with foresight, sound planning, professionalism and an understanding of business relationships.

All About People
One of the most important factors in the success or failure of an outbound B2B campaign is business relationships. The rate of success is estimated by the American Teleservices Association (ATA) at an average of 2 to 3 percent depending upon the product or service, seller and the skill of the caller. An ATA spokesperson reports success rates in higher-end (and more expensive) campaigns as high as 25 percent. In nearly all cases, a deciding factor is the quality of human interaction.

Personality traits and skill sets play major roles. For the former, the caller should have enthusiasm, interest in the person on other end, empathy, the ability to listen attentively and respond quickly, and a thick skin to handle rejection. For the latter, skill sets should include effective vocal delivery, organization, ability to negotiate, and stress and time management.

Why Telemarket?
Use of the phone for lead generation, new account development, appointment setting, information gathering, support for the sales force and customer relationship building can be cost-effective and productive, especially for small businesses. “It saves time and money as compared to personal selling, but offers many of the same benefits in terms of direct contact with customers,” according to the Encyclopedia of Small Business, which estimates the cost of closing sales through telemarketing to be “less than one-fifth” the cost of salesperson-to-prospect meetings.

Yet, despite its value and sophistication as a cost-effective business tool, telemarketing technology is not enough. What it cannot replace is the dynamic of human interaction. John Naisbitt’s Megatrends: Ten New Directions Transforming Our Lives introduced us to “high tech/high touch” – the increasing demand to include human relationships with the technology. Executives want to deal with a real human being who understands their needs. A telemarketing campaign that does not take this dynamic into account is likely to fail.

Laying the Groundwork
It’s important for a business that is planning to launch a B2B telemarketing campaign to start the process by recognizing the value of the company’s image in its people-to-people business relationships. “The most important things to remember are the ethics and standards of the company,” says Joan Mullen, vice president of special projects and industry relations at ORC ProTel, a nationwide contact center. Mullen points out that those guiding principles should always apply whether the company’s campaign is being run in-house or through a call center.

To develop new relationships or enhance current ones, consider these key steps:

1. Define goals. What is the purpose of the outreach initiative? Is it to generate leads, sales or simply improve customer relationships? Once the purpose has been clearly identified, it is important to write a specific program description to keep the campaign focused.
2. List development. In Mullen’s view, this is critical. “You don’t take a page out of a directory to qualify leads,” she warns. Profile existing customers and prospects, and then consider contacting companies that specialize in developing business lists. Alexander Hiam, author of Marketing for Dummies, writes that “lists … give your callers at least a 15 percent success rate, more than 10 times the average for typical bottom feeder consumer telemarketing operations.”
3. Develop script and call guidelines. These include identifying the company, the reason for calling and permission to continue. Some may question the permission request, but remember that the goal is to initiate or supplement a business relationship, not deter it. If the person on the receiving end is on a deadline or has just experienced a personal tragedy, they are less likely to be open for a conversation. In this case, the telemarketer shows professional courtesy by asking when a better time to call back is. The accompanying script needs to be flexible, include questions to determine the prospect or customer’s needs and interests, a way of handling objections and determining next steps.
4. Record keeping, database management and measurement. The only way to evaluate success is through outcome measurement. Analysis of results includes a number of factors such as extensive records of calls, reviews of responses, and ongoing evaluations of the current and potential customer profile as a result.
   

Is Outsourcing Viable
Some companies lack the internal resources and require extensive outbound telemarketing programs, but outsourcing can be expensive. ORC ProTel’s Mullen says a small- to medium-sized business can expect to pay from $30 to $50 an hour per person for use of a call center. Costs may be higher depending upon the services requested.

Another concern when considering outsourcing is maintaining integrity and customer relationships. Will those be impeded by calls from an outsourced service? The answer depends on how well the center’s employees are trained to handle your calls and how close the working partnership with the vendor is. Both parties will need to work together to assess realistic outcomes, training, the impact of employee turnover at the center and the way the client’s message is spoken and delivered.

Companies may choose to run an in-house campaign for reasons such as costs, ability to more closely monitor outreaches to prospects and, especially, to maintain the personal touch with current customers. However, this re­quires staff training, list generation, record keeping and outcome measurement and analysis.

Red Flags
There are several caveats that apply to any outbound B2B campaign whether the call originates from the company or a call center, and these caveats can impact current or future business interactions. One is improper execution, especially when the recipient, perhaps a customer, concludes that the call was unnecessary or an imposition. It is the response no sales representative wants to hear and illustrates the necessity of accurate profiles.

Another caveat is inflexibility once the campaign begins. Marketers need to be alert to potential weak areas in program design and correcting them to achieve campaign results. Flexibility includes the ability to reassess goals when call statistics are analyzed. In this regard, it is important for project overseers to be involved, supportive and effective in building teams.

In the end, goal-oriented human interaction is at the heart of successful B2B outbound telemarketing. It may well be the application of the psychology behind the relationship that determines whether the campaign has been cost-effective and successful.

Gerri Knilans is president of Trade Press Services, a developer and provider of editorial coverage and other forms of corporate communications for business-to-business clients and publication editors. For more information, call 805-496-8850 or visit tradepressservices.com.