19/11/2010 by Stephen Law.

2011 could prove to be highly profitable for many businesses, but you need to be thinking about your 2011 sales right now.  Let me explain the importance of the December/January period for your telemarketing…

If you have a complex offering to an intelligent buyer, then you must build a relationship with these people.  Decisions at high level are rarely made on the spot, so you must start the telemarketing process in advance of their purchasing cycles.

Telemarketing to win in 2011 - Here are the 3 key timings in QTR1 for 2011:

• ·         January/February 2011 – Many large companies will be writing their business plan just before Christmas 2010.  Due to economic uncertainty, many companies will be waiting for this business plan and be ready to start purchasing in January/February.  So make sure you have the best telemarketing in place either for late December 2010 or January 2011 at the latest.

• ·         March 2011 – Some organisations must spend their budget before the Chancellor of the Exchequer announces the Government budget in April.  Be sure to build a relationship with these potential clients using telemarketing before they make their final decisions.

• ·         April 2011 – (Yes I know this is the start of QTR2) Make sure you are ready for the big sales in April 2011 when many organisations are allocated their budget.  Don’t leave this to the last minute, as many buyers will be meeting sellers between Christmas 2010 and March 2011 so that they have time to meet all the best sellers.  So line up the best telemarketing people as soon as possible for this big buying period.

Telemarketing Christmas 2010 and January 2011
The best telemarketing over the Christmas and New Year period must take the following in to account:

• ·         If you are communicating with senior decision makers – don’t forget that whilst their staff may be taking holidays, they are probably still working. 

• ·         The main period to stop looking for new business is circa 20^th December 2010 to the 3^rd January 2011.  If your budgets are tight, then extend this to start from 13^th December until the 10^th January 2011.

• ·         If you take a break in telemarketing for new business, DO NOT STOP THE RELATIONSHIP BUILDING PROCESS.  One of my clients assumed that taking a holiday around the summer period from telemarketing meant stopping all telemarketing.  The poor chap missed 2 potential sales by not continuing with the relationship building process.

• ·         Remember that it can take months and months of hard work on telemarketing relationship building – so maintain flow by asking your telemarketing person to revert to snail/mail, Christmas cards and emails during this period if necessary so that you don’t waste your investment.  If you don’t do this – your competitors may steal the show in your absence.

The Psychology of Telemarketing over Christmas/New Year
In short, this is one of the most crucial periods in the calendar for building potential sales.  By all means, don’t try phoning a new prospect on Christmas Day, but don’t forget to stay in touch. 

Remember that Sales is all about psychology.  With the bitterly cold wind and the floods in Cornwall, many people are feeling emotionally drained right now.  As we approach Christmas, people’s spirits begin to pick-up.  Use that warm-glowing feeling of potential buyers to build a good relationship as we approach Christmas.

Contrary to popular opinion, the period just after New Year’s Day can be very important for telemarketing.  Millions of people across the UK will be making New Year’s Resolutions.  For a short period, this is a psychological moment of change when buyers will be receptive to new ideas and will often be in the right mood to arrange a sales appointment.

If you need help with the best telemarketing for this period – I’m here to help with your projects – Stephen Law, Freelance Telemarketing Consultant 0870 042 1263 stephen@sl-freelance.co.uk .

Posted in Telemarketing Consultant, Freelance Telemarketing, Telemarketing | 1 Comment »

11/11/2010 by Stephen Law.

Whilst my main function is to generate sales leads, many clients think of me as their part-time Business Development Manager.  My clients range from business savvy entrepreneurs with a company worth £x million - to Newbie’s who have never run a business before in their life.  These “Let’s start with the Basics” topics are aimed at the Newbie’s who need some help with the basics.  So let’s start with ROI…

What is ROI?
ROI is an acronym that means “Return on Investment”.  Put simply – if you want to be successful in business, then you need to be making more money than you spend.  As a basic example, if all your outgoings for Admin, Finance, Legal, Marketing and Operations add up to £200k per annum, then your business must generate more than £200k per annum just to cover costs.

Breaking even - i.e. you spend £200k and you make £200k is ok – but if you have made no profit then you might question why you’re working 10 hours a day 6-7 days a week, instead of working for someone else.  So ROI is about making more than you spend – e.g. you spend £200k per annum but you bring in £400k = (£400k-£200k) = £200k pre-tax profit.

Marketing ROI
Now let’s look at what a good Business Development Manager would advise you regarding ROI in the context of Marketing.  Whilst it is not possible to state exactly how much you should spend on Marketing, most text books will state that approximately 20% of your annual spend will be spent on Marketing.  Continuing with the £200k spend scenario, that means 20% of your annual spend = £200k x 20% = £40k per annum on Marketing.  To ensure that you attain an ROI for your £40k spend, let’s examine this….

If you spend £40k per annum on all your marketing and you bring in £40k worth of business – then your marketing effort has reached breakeven point – i.e. £40k - £40k = 0.  So at this point the marketing effort has paid for itself but made no profit.  Moreover, if your total expenditure per annum is £200k then you are now facing problems.  Therefore, whilst your marketing has reached breakeven point, your business is still in trouble.  If your total spend is £200k per annum, then your marketing spend of £40k per annum must generate at least £200k worth of sales to breakeven. 

OK so what would a Business Development Manager advise you to do: - if your marketing spend is £40k per annum and your total spend (including marketing) is £200k then you might be happy if your marketing brings in £400k worth of sales: - £400k - £200k = a pre-tax profit of £200k.  In other words, to gain this ROI the Return on Investment for your marketing must be 10 times your spend on the marketing – 10 x £40k = £400k.

Marketing Budget – Without a marketing budget you don’t have a chance
I’ve been a business development manager for about 25 years.  I’ve helped countless business owners to turn around companies who were struggling and many more who needed to expand.  Yet it never ceases to amaze me how many budding entrepreneurs forget to include a marketing budget in their plan.  Many business owners assume “My product or service is so amazing that everyone will want it” – but they forget that if no one knows about it – no one will buy it.

There is a classic misconception among many people who have never been trained in sales and marketing – that all sales and marketing people work on commission.  Whatever you do, DO NOT FALL IN TO THIS TRAP!  I can categorically state that I have never in my entire life seen one single new-start company that has succeeded by using a commission-only sales team.  A commission only structure suits an established brand, not a new-start venture.  20 years ago, I worked for United Artists on commission only because everyone knew their brand and I made a lot of money.   DO NOT FOLLOW A BUSINESS MODEL THAT DOES NOT SUIT A NEW START BUSINESS.  If in doubt, talk to highly experienced business development manager.

A new-start business is a high-risk venture and demands investment in marketing.  A new business has no track record and it is an accepted norm by investors that they anticipate 3x more expenditure than is planned, because the business will make many mistakes at the start.  That’s why investors ask for 50% of your business at this point, because it is very risky.

Making Profit from your Marketing Efforts
Once again, let me stress that you must make more money than you spend.  I received a call from a gentleman yesterday who asked me “Which form of direct marketing would work best for me?”  This chap thought he might find a commission-based sales person to help him.  My first questions were:- a) “How much is the sale value?”
b) “How much profit per sale?”
c) “How much commission per sale?”
The answer made me fall off my chair – “Oh, the sale value is £45 but I only make £25 per sale so I would pay someone about £15 per sale”.  My father (a vicar) always taught me “Treat others as you would have them treat you”.  I was somewhat stunned and replied to the gentleman “So would you get out of bed every morning and work like stink to make £15 per sale?”  His reply was incredible – “Oh no, but I tried everyone on the People per Hour website, but they couldn’t speak proper English – so I came to you”.

The upshot of this conversation was that this chap had no budget whatsoever.  As he put the phone down he said “Oh I thought you were really good at what you do and could help”.  Like a sad 5 year old who had just been told by his Mum that he could only have the toy Ferrari for Christmas and not the real thing, he went away in a major sulk.

Please, please, please – when you decide to market your product or service, never assume that all sales people will work for peanuts just because that’s what you want.  If you wouldn’t do it yourself, please don’t assume that anyone else is daft enough to do it.

Where to find a Business Development Manager
If you are a standard SME (a small business) the you really should talk to your local Business Link.  They can provide some excellent broad-brushstroke advice that could save you a fortune.  If you are seeking a business development manager to implement the work – that’s more tricky.  A good full-time Business Development Manager could cost you anywhere between £50k and £200k per annum.  If you just need a bit of help to steer you in the right direction and get in front of new clients – I can help you for a fraction of the cost (Stephen Law 0870 042 1263 stephen@sl-freelance.co.uk )

The Best Plan for the Best ROI
Set aside a marketing budget and find someone to help you.  If winning new business is not your forte – consult a business development manager to put you on the right track.

I’m always happy to talk to potential clients.  I’ve often spent an hour or two advising people at start up stage for free.  Those who follow my advice often become customers in the future.  People generally come to me for help with Telemarketing but often walk away with a better route to market.  Call me – Stephen Law, Business Development Manager & Consultative Telemarketing Expert – 0870 042 1263 or email me Stephen@sl-freelance.co.uk .

Posted in Business Development | 1 Comment »

10/11/2010 by Stephen Law.

Many companies are facing a shrinking market-place and they are turning to me as a Business Development Consultant to overcome this dilemma.  Using two recent case studies let me explain what to do and what not to do…

Case Study 1 – “I’m too proud to change” – What not to do
For the past year, I’ve received calls from a number of people who own a franchise in the market sector for outsourced “Cost Reduction”.   Each one required a business development consultant to help them solve the dilemma of a shrinking market place.  Yet I had to turn away each and every one of these prospects because they forgot the golden proverb that – “Pride comes before a fall”.

 In 2008, when the western markets collapsed, the requirement for cost reduction was at its peak.  Just about every business across the UK from giant PLCs to the smallest SME were seeking to reduce costs wherever possible.

For the wily entrepreneurs in the cost reduction market, this was an opportunity to seize the moment and grab the big wins, along with a major share of the market.  For a short while, it was a boom market – but businesses across the UK have reacted sharply and the market is now shrinking rapidly for outsourced cost reduction.

Pride is a very dangerous character-facet in business.  Whilst I could not say that everyone in the cost reduction business has too much pride, everyone who called me so far is still trying to relive the boom period of 2-3 years ago.

So why are these people going wrong and why couldn’t I help them?  The problem is that these are highly intelligent people, but their pride is preventing them from taking advice from a Business Development Consultant.  Let me give an analogy - I’m now 40-something and I’m not as fit as I was in my 20s.  The truth is that as I get older, it will take more effort on my part to gain the same level of fitness that I enjoyed in my youth.  As long as I accept this simple truth and as long as I’m prepared to put in more effort – then hiring a sports coach would no doubt yield good results.  So do the expenditure reduction boffins realise that their market is getting older and less responsive?

The problem here is that these cost-reduction franchise owners are working on a false premise.  They are grasping at straws. In a bean-counter mentality they are attempting to bring back the “glory days” based on false metrics.  They argue that if x number of people make y number of telephone calls that this will lead to z number of appointments and sales.  Of course, in a shrinking market, historical metrics are irrelevant and the answer is to “work harder and work smarter”.

It is of no use to argue with a sports coach - that he should return you to a state of your youth at the age of 45, without a lot of hard work.  A good sports coach will know the fastest way to do this – but no one should expect miracles.  A good Business Development Consultant can help you to bring your sales back up to good levels in a shrinking market – but this can only be achieved if one starts by being honest about the input required.

Case Study 2 – If you seek an expert, don’t ignore their advice – how to do it right
A number of months ago I was approached by the Directors of an engineering company.  They were setting up a new division to approach the carbon-reduction market.  They knew full well that the market was reaching maturity, so they sought out an expert to make sure that they succeeded.  They asked me to be blunt but constructive in my criticism.  They asked me to formulate a plan that involved me helping to win new business as fast as possible.

With no pride getting in their way, they stated “we hired your services, so we would be fools to ignore your advice”.  Low and behold, within days the plan was put in to place and the first customer was found and a sale made.

This client has since gone on to review their entire direct marketing strategy including telemarketing, direct mail and email marketing.  I helped them by undertaking Consultative Telemarketing and the results have been rapid.  Listening, learning and acting took their direct mail from Zero responses to 2% in a matter of weeks.  Now we’re discussing how to move their mailers to gain up to 30% response-rates with the next plan.

The market for this company is shrinking.  Every day, more companies enter the market-place and more clients have already completed the carbon-reduction works.  Yet by fine-tuning their approach, they are still on-track to winning £millions in orders.  These chaps will go far.  They constantly innovate and they work “hard and smart”.  As a Business Development Consultant my advice has already reaped rewards and paid for itself within a few months.  As a hands-on Telemarketing Consultant, they have given me free-rein to use my skills to make sales-winning appointments.

Conclusions on The Dilemma of the Shrinking Market Place
The moral of the tale – don’t hanker for the glory days and don’t try to “direct” business development if it’s not your strong point.  If brain surgery is not your skill, would you seriously try to operate on someone’s brain?  Commerce is a serious business and if you get it wrong, your business may not survive. 

A Business Development Consultant is akin to a brain-surgeon for business.  Get your strategy and tactics right and you can win in almost any market place.  Listen to advice.  Go and mull over the advice and if it’s good – use it!  Every single national leader and captain of industry will be guided by experts.

As a freelance Business Development Consultant my costs are a fraction of hiring a full-time expert.  If you’re serious about winning in business, then why not contact me?  I can provide you with testimonials of astonishing success in Business Development – or testimonials demonstrating phenomenal growth via Consultative Telemarketing.  I look forward to hearing from you – Stephen Law 0870 042 1263 stephen@sl-freelance.co.uk .

Posted in Telemarketing Consultant, Business Development | No Comments »

05/11/2010 by Stephen Law.

If you’re new to outsourced telemarketing for Lead Generation - then you may be puzzled about the difference between a Telemarketing Consultant and a Call Centre?  I will try to explain the differences and which one will work best for your Lead Generation.

Personally, I’m a Telemarketing Consultant with 25 years experience.  I’ve built and managed small teams of telemarketing people and I’ve hired Call Centres for projects.  So I’d like to think that I know a thing or two about the industry and how to utilise these different resources.

There is a huge difference between a Telemarketing Consultant and someone you find in a Call Centre, so let’s explain from the top, starting with the Call Centres.

What is a Call Centre?
Put simply, a Call Centre can generally be thought of as a building that houses anywhere between 20 and 300 people who are manning the telephones every day.  Many Call Centres specialise in what is known as “inbound” telemarketing – think about when you buy your insurance policy over the telephone and you’ll get the idea.  Remember that “inbound” telemarketing people do not hunt for business – they simply pick up the call that comes in and answer it. 

Why the “Inbound” Call Centre has turned telemarketers in to Zombies?
“Inbound” Telemarketing is generally the lowest-skilled form of Call Centre Telemarketing and this is generally reflected in the price you pay for their wages.  Over the last decade, the quality of “inbound” Telemarketing has got lower and lower due to outsourcing to offshore Call Centres.  Companies such as Lufthansa were the early drivers in moving their operations to India.  By 2010, there has been a backlash against offshore Call Centres who have built a reputation for not understanding the British Culture; but the image of “inbound” Telemarketing has been tarnished by these cheap and poor services.

Call Centre managers have spent the last decade using technology to streamline their operations, reduce costs and improve efficiency.  Like many people, I consider that this has “dehumanised” the entire process and turned many Call Centre people in to mindless automatons.

The “Outbound” Call Centre for Lead Generation
If we’re looking at true Lead Generation (as opposed to you calling the company in response to an advertisement), then we’re talking about “Outbound” Call Centres.  This is where the telemarketing staff makes cold calls to potential buyers.  The problem for “Outbound” Call Centres is that UK centres are competing in a price war with the offshore centres.

Pick up a copy of a Call Centre magazine and you’ll see that it is riddled with articles about technology and “how to stop losing your staff”.  Put simply, UK Call Centres cannot compete effectively with offshore Call Centres on price.  Quality and value are the only way that a UK Call Centre can compete with an offshore centre – but unless buyers have been forced to switch to UK telemarketing people by complaints from customers, this still pushes down the quality and the price.

So will you find a Telemarketing Consultant in a Call Centre – certainly not!  If anyone in a Call Centre has the cheek to use the title “Telemarketing Consultant” that would be akin to a hospital porter claiming that they are a “Consultant”.  Whilst many hospital porters may be budding doctors, I think you’d be very upset if you were advised on your health by someone pushing trolleys around the ward for a living.  The same is true in Telemarketing – where the distinction has been blurred between a novice and an expert by Call Centre staff being given grandiose titles – because it’s cheaper to inflate someone’s title than to pay them a higher wage.

What Makes a Telemarketing Consultant?
A Telemarketing Consultant is at the top level of Telemarketing.  Like me, many Telemarketing Consultants began their working life on the bottom rung.  The vast majority of people who try to choose Telemarketing for a living fail miserably.  Some plodders stay at the low-level “inbound” Telemarketing phase; the vast majority cannot hack the pace; but a tiny percentage move up the ladder.

The best telemarketing people soon move up to a management position.  From there, a good telemarketing person will often either move in selling advertising space or move in to Business Development.  At this point, the tiny percentage of people who remain in the industry is again whittled down to an even smaller number of potential Telemarketing Consultants.

To become a true Telemarketing Consultant, one needs something that cannot be bought – “experience”.  The top Telemarketing people will generally move in to senior roles such as Sales / Marketing or Business Development Director.  With umpteen years under their belt selling complex offerings to intelligent buyers, a true Telemarketing Consultant emerges from years of experience and success in their field.

What does a Telemarketing Consultant do that a Call Centre employee cannot do?
A Telemarketing Consultant is able to define who you should be meeting to win business.  Then with wit, charm, flair and acumen – they will put you in front of a willing buyer.  So why can’t a low-level Call Centre person do this?

 Firstly, a Call Centre comprises Directors, Managers, a technology team, and a raft of employees.  For efficiency purposes, it would be rare to find a Director or a Manager making calls.  Likewise, it would be rare to find Telemarketing people winning new business, managing the finances or providing account management.    Conversely, a Telemarketing Consultant will fulfil all these roles in one person.

So if a Call Centre person does not understand the roles of Admin / Finance / Legal / Marketing or Operations, how can they converse in a meaningful manner with a prospect that does this for a living?  This is why most Call Centres aim at the consumer market, because that’s the level at which they can communicate effectively.  Yet with offshore Call Centres, it is even debateable whether their callers can effectively communicate with Joe Public.

A Telemarketing Consultant understands business; they understand what it’s like to be a senior manager or director.  Why? – Because they’ve probably held that role in their career.

When to choose a Telemarketing Consultant or a Call Centre
If you are selling to the masses (Joe Public), then this requires a lot of telephone calls to be made.  So the Call Centre may be your ideal platform.

Also, if you are in business but you need to sell high-volumes at a low-ticket value to lots and lots of customers then the Call Centre may work for you.

Yet in many businesses, you will probably be selling low-volumes with a high-ticket value (for example a consultancy service at £10k per sale upwards).  Your offering may be complex, so this requires a highly skilled Telemarketing Consultant to find new business and engage effectively with senior buyers.

If you’re still confused – give me a call – Stephen Law, Telemarketing Consultant 0870 042 1263 or email me stephen@sl-freelance.co.uk .

Posted in Telemarketing Consultant, Lead Generation, Telemarketing | 1 Comment »