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If you are reading this, the likelihood is you may well be considering using B2B telemarketing to support your business needs and hit your targets.
And so, you may be wondering, “How much would it cost & how does it work?”
We’ve put together eight key factors for you to consider when scoping the final cost of your B2B telemarketing campaign.
How Does It Work?
B2B telemarketing is extremely effective when done right. There are many aspects to take into account when you are considering telemarketing to reach your annual targets, such as training in-house or outsourcing, budget & costing, your total addressable market size, available resources, and much more.
In order to find a strategy that works best at a budget you’re happy with, the best practice would be to conduct a pilot campaign, for an average period of three months, to discern how receptive the market is to your product. This will help set realistic delivery expectations to ensure higher chances of your business targets being met within an expected timeframe and cost.
The total cost for B2B Telemarketing can vary based on a range of factors, including but not limited to:
1. Sales Cycle
The length of your sales cycle will likely impact how quickly you will see a return on investment. For example, if your sales cycle is 1-2 weeks and your telemarketing partner is able to generate enough opportunities within the pilot period (3-month average) then you will start to see a ROI very quickly. If the length of your sales cycle is significantly longer, you may not see the ROI straight away, however, what you will see is a creation and development of a sustained and ongoing pipeline, which ultimately will be the clear path through to your end goal of closed business deals.
2. Size Of Total Addressable Market
Also known as Total Available Market, TAM refers to the total potential market & revenue opportunities available to a specific product. The bigger the TAM, the larger the audience to reach out to, the higher level of leads to capture, and the more intelligence to be gathered. You can calculate your TAM by multiplying the Average Revenue per User by the total potential customers in the market.
3. Leads Target / Conversion Ratios
The total amount of leads required to determine the campaign as a success will contribute to the final cost. This further depends on time-sensitive projects such as product upgrades, takeovers & product launch announcements, as well as factors such as time of the year (busier or drier periods), whether there’s an event on and you need to reach out to a certain number of companies by then.
4. Data Temperature
How warm is your existing data? Your data temperature will dictate the rate of progression and final cost. If you have fresh, updated data sets, your total cost will likely be unaffected. However, if your data is outdated, there may be added cost to procure updated data - or even a whole new set of data if required. Use our data health-check guide to ensure you have a healthy, productive and efficient database.
5. Number of Regions to Support
If your telemarketing campaign is to be spread across multiple regions, you will require multilingual support & resources, which may come at an added cost, depending on your agreement with your telemarketing partner. This can include the cost of acquiring new, multilingual data, maintenance, hiring multilingual telemarketing agents, and more.
6. In-house vs Outsourcing
Whether you decide to outsource your telemarketing needs or hire in-house staff will make a big difference to your total cost. Although hiring in-house may help reduce overall costs in some cases, it comes with its own set of expenses and risks and can take significantly longer to kick-start your campaign effectively. Outsourcing is considerably more helpful as you can be assured your campaign is being run by industry experts who have obtained the necessary, helpful data & insights over the course of their time spent in the industry.
7. Number Of Sales People To Support
The number of salespeople your business has and the extent to which each of them requires marketing support can impact the total cost, as this will determine the volume of new business opportunities required each quarter. The right telemarketing partner will be able to provide a flexible and scalable support program to meet your individual lead-generation requirements
8. Labour Rate
Another factor to account for is the number and caliber of people that will be on the campaign and their individual labour rates. The number of people on the campaign as well as their skills, prior work experience, and language capabilities can make a difference to the total cost.
Once you have determined your factor parameters, you’ll have a much clearer indication of your estimated total cost and the kind of results you can expect. Your telemarketing partner will therefore be able to provide you with a more realistic roadmap of what you can expect from the campaign.
If you would like to learn more about calculating your ROI, strategizing, defining your proposition, and tracking to maximize your potential for achieving your business targets, grab your free copy of our eBook below.
Telemarketing in the Digital Age - A Guide
