Although, I'm sure that some people prefer the door-to-door method, I know that I, personally, will never buy something from a person walking up to my door — yet I have done it over the phone. Whether this is a psychological block or human nature, I can't say — I do think that it has to do with the product of society. In the 50's and 60's, it may have been reasonable to expect someone to open the door for you and let you in to demonstrate the product. I can't imagine that this is a reasonable expectation in today's society.
Citibank, however, seems to have decided that going door to door is a valid choice. As posted in "Seth's Blog: Not what it used to be" back in November of 2005, "an assistant Vice President at Citibank. He's wandering the halls, door by door, trying to sell business checking accounts." I think that they would have had more success telemarketing, but I suppose you can be the judgement of that — have you seen many Citibank sales people at your business door lately? How about telephone calls?
I thought so!
The subject is from "Funky Uncle Marketing", a blog I recently stumbled on. He wrote an entry on May 16th about a study from Go-To-Market Strategies that I'd forgotten about.
In it, the following information is noted:
- They dialed, on average about 15-18 prospects in an hour
- They connected with a person about 20-30 percent of the time
- They converted 20 percent of the calls – Where conversion is defined as objective of the call being reached (qualification established, product demo scheduled, information requested, etc.)
What does this actually mean?
This indicates an overall success rate of between 4 and 6 percent when reaching a specific target. The study that GTM used included B2C as well as B2B environments. The Direct Marketing Associate holds a different number of 8 percent for B2B only. One note is that these are professional telemarketers and people who know how to 'talk'. A random person from the street would get significantly lower numbers.
For the purposes of this example, we'll take the middle road of 6% for B2B contacts. Assuming you are gathering leads and ten percent of your leads turn into sale on average, this means that you would be able to generate 4.8 leads (.48 sales) per day and 24 (2.4 sales) per week. Considering the average rate of success for a direct mail marketing campaign (less than 0.1% on average) and the costs involved, telemarketing is certainly a valid way to go. With improved processes, strong product, targeted calls and strong sales people, these numbers can certainly increase.
Certainly not a specific topic that has anything to do with this blog, but … a milestone marker none the less. I've been linked to by another blog for the first time (that I know of!). Its flattering. Thanks, Rick!
Rick's blog, The RainMaker Maker, appears to be similar in nature to mine in terms of advice for professionals. I spent a little while this afternoon reading it and suggest that you do as well if you have the time to spare.
Since I just wrote something about Cold Calling, I thought I'd find a few points of reference for you in addition to what I wrote. There are a large number of blogs, sites and posts out there, so I'm only going to put a handful up as I find them.
"Sometimes you just have to include an element of cold calling into your marketing program", says Stuart Ayling, Director of Marketing for a specialist marketing consulting firm in Australia.
His blog has some interesting information — even more interesting is that his post on Cold Calling happened today, the same day that I wrote mine!