VAR Marketing

Why more companies are choosing outbound telemarketing in a down economy?

As the Vice President of Sales and Marketing for an outsourced sales and marketing company, I’ve seen the slowing economy actually increase our business.  So, I asked myself why are technology companies allocating more of their budgets to activities like lead generation and appointment setting?   

Here’s what I came up with:

1.  “Cold Calling” is still the most efficient way to proactively hunt for new business especially to the SMB market.

2.  Compared to other marketing activities, return on investment can be tracked easier.

3.  Public technology companies still have a big number to hit and need to get aggressive.

4.  Deals are closing around you.  Businesses today are still spending money and investing in technology where it impacts operations.  I’ve seen several deals close just recently on 100K+ IPT opportunities.

5.  Lead nurturing activities seem to take a back seat to activities with a more potential immediate impact, such as appointment setting.

6.  Hiring, Training, and motivating an inside sales force is not most technology companies “core business.”

7.  CEOs don’t have time to read “IP Telephony for Dummies” or do a Google search.  They are busy running their business!  If you present them a solution that will improve their business, and stay ahead of the competition they will listen.

Open to any comments on types of marketing activities your focusing on or vendors are providing to you during a down economy. 

Optimizing your Outsourced Telemarketing Campaign

One of the most frequently asked questions I receive prior to a campaign engagement is "what can we do (as the client) to make this campaign successful?”

It got me thinking about past successful campaigns and some of the common factors that seemed to be present. As we all know, there are several factors that are out of our control regarding campaign success or failure such as; geography, competitors, timing, budgets, and the economic environment. Below are some critical factors based on our 8 years of experience:

Not letting past negative experiences impact your current engagement. Understanding that many of you have had bad experiences with outsourced telemarketing, you still must maintain at least positive outlook. Maintaining a positive outlook will resonate with your sales team and get them fired up about receiving leads. (something about an ROI isn't guaranteed, it's sales)

Assigning a (sales) Program Manager: I know everyone is busy and these campaigns for VARS are typically one-off in nature. However, if you have a point of contact within your organization with some credibility with the sales team it would be extremely helpful. We want feedback and typically the response on our weekly campaign calls is "I haven't heard anything from my sales teams on the leads." Oh brother, so this is generally when we start crossing our fingers.

Getting your sales team engaged in the process. If your sales team feels the outsourced vendor is working for them they will be more open to engaging with the leads. How do you easily accomplish this? Provide the outsourced vendor with a list of say 25 target accounts your sales team would like to penetrate. We've seen great success where we've gotten opened doors for the VAR vs. just sending them a random company from a pre-generated list.

Communicating regularly with the vendor. Everyone is busy, if you can schedule time 1-2 hours per week to review each lead with the vendor and provide feedback on quality and sales rep's feedback adjustments can then be made while the campaign is still active. It sounds so easy in theory but in reality it’s very difficult to provide this level of feedback.

“Bad Lead” Syndrome. If your campaign didn't meet expectations the most popular response is “I received bad leads.” Yes, you will receive some leads that probably don’t meet your expectations. However, don’t let one bad lead cause you to conclude every other lead is bad too! As vendors we do everything we can to prevent "bad leads" but you still may receive leads that aren't fully qualified opportunities. Here's a simple resolution process: Make sure up front the vendor will allow you to return leads if they don't meet the criteria or were greatly embellished by the calling agent. Have your sales team provide individual lead feedback on any "bad leads" and send them back to the vendor. Most vendors today have some type of lead quality guarantee.

Realistic Expectations. Many VARS have grown by word-of-mouth and referrals while proactively prospecting and selling has not been a focus. Leads generated from a campaign will not respond the same way a referral will. As an example, don't expect a return call if you leave a voice mail on your initial engagement. Additionally, sales cycles on net new opportunities tend to be longer than referrals. There is also an element of luck involved. Similar to going fishing, sometimes you catch some really big fish, while other times you catch a couple of dinky sun fish. If you can keep your line in the water, your odds of catching the big fish or the big deal increase.

Build your Marketing (email) Database. One of the hidden benefits of conducting an outsourced campaign is updated decision maker contact information including email. Predicated on the list data usage agreement you may be able to obtain all updated information at the end of the campaign. So the next time you have a seminar, add all these new contacts to your invite list. It’s really a no brainer!

I hope the above points help make your next campaign a success!

Close more sales with Appointment Setting vs. Lead Generation

1. It's Measurable: Either you attended the appointment or you didn’t. It’s black and white. Leads can be very gray. Everyone has a different definition of what an A Lead is, hence no one can agree on what an A lead means. Appointment setting gives you the power to track the campaign’s success immediately, Return on Investment (ROI) and fast tracks your sales team to the actual opportunity.

2. Eliminates the Phone Tag Game: How many times have you executed a lead generation campaign, but just spent time calling back into the leads and receiving voice mail? Appointments are part of the sales cycle and provide your salespeople the opportunity to close rather than prospecting.

3. Relationship Building: Most sales are completed because you formed a relationship with the client. What’s a better way to form a relationship than face-to-face? It is amazing how prospects open up when in person. You will find more opportunities than originally thought from the first conversation. People will not tell you all their problems over the phone.

4. Guaranteed Results: In many cases appointment setting is guaranteed in a “pay-for-performance” model. This model fosters a win/win type relationship with the vendor. You are no longer debating with the vendor about the validity of a particular lead that will not close until the next Chinese New Year. If the appointment cancels, you receive another appointment.

5. Opportunity Cost: If you are not outsourcing your prospecting, your sales team is spinning their wheels trying to get appointments. If you’re one of the few solution providers who have an inside team, lead generation will work. If not, your sales team still will have to set an appointment when they could be selling! Additionally, take advantage of MDF to partake in an appointment setting campaign is a no brainier. You limit your risk; focus on your core value offerings, and the upside on closing a deal is potentially huge.

6. Everyone Is Busy & Multi-Tasking: You’re busy, IT Managers are busy, and CEO’s are busy. If you do get them on the phone, you might not have their full attention. Meeting face-to-face reduces the prospect’s ability to multi-task and gives you the opportunity to probe and identify issues more easily.

7. Close More Sales Quicker: By taking advantage of appointment setting you are moving the opportunity further along the sales process and therefore increasing the chances of a potential deal in your pipeline more rapidly than a traditional lead.

Everyone has had negative experiences with outsourced lead generation, the appointment setting model is structured to directly impact your sales efforts.