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Advantages & Disadvantages of Telemarketing

Telemarketing, marketing in which sales people call potential customers by phone, is the second most common direct marketing method in the United States. One of marketing strategy could very well be to use the phone to sell your products and services. Phone sales or Telemarketing is an extended and widespread method to efficiently contact your customers and close sales.

The advantages of telemarketing are that it:

• Increases your sales territory while reducing the cost of sales visits.

• Increases your efficiency because you can reach more prospects per hour, day and week by phone than you can with in-person sales calls.
• Provides an effective way to perform relationship marketing. You can use the phone to stay in touch with existing customers, introduce new products to them and make additional sales.

• Allows for interaction and personal selling. You can immediately respond to feedback from prospects while you’re engaged in the sales process. This differs from less interactive sales methods, such as direct mail.

Despite the sales value that telemarketing offers, many consumers associate it with a negative image.

Some of the disadvantages of telemarketing are:

• There is a high acquisition cost per sale for purchased prospect lists that typically contain many unqualified prospects. For example, if you purchase a list of home owners in a particular zip code, you will most likely have a low number of interested and qualified prospects. So, you will be making lots of calls that have no yield.

• Telemarketing has become a nuisance to many consumers, and has legal ramifications that must be strictly followed.

• Telemarketing has a negative image and that negative image can tarnish your business reputation.

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