What is the value of a good lead in your business? How much does it cost you to acquire that lead? While you might like leads to fall like raindrops, the reality is that acquiring them is much more work. When you run the numbers on lead acquisition costs, you may conclude that working with appointment setting companies like Sales Prospecting Group is a good way to keep costs in check and cost per lead low.
Internal Telemarketing Efforts Cost More Than You Think
Many companies attempt to get appointments through cold calling, which may seem like a rather low cost way to acquire leads in comparison to doing trade shows or costly advertising. As with other lead acquisition attempts, the costs involve more than picking up the phone or assigning someone else to make outgoing calls for an hour. What is really involved? Ask yourself:
- Are you making the calls? How much does your time cost?
- Are you assigning someone already on staff to call? How much are you spending in wages and benefits for this person?
- Whether you or a current staffer is making calls, what is the opportunity cost for cold calling vs. doing some other activity or job responsibility?
- If you hire one or more people to make calls for you, how much are you paying them? Maybe you consider cold calling worth minimum wage or commission only. What does it cost you in lost time and rehiring costs if the person quits a low-wage job and forces you to go through the hiring process again?
- If you have designated callers, how much office space are you using to provide a place for them to do their work?
- What are the costs of the equipment that they use?
When you add up all expenses involved in an outgoing calling operation, you might be surprised at the numbers, even before you consider the results.
Getting Poor Results Is Not Always Due To The Callers
How are those results anyway? Are the callers getting appointments? What is the quality of the appointments? Are the people really qualified potential buyers? What happens to the names of people who might be interested another time?
If a calling program yields few appointments, what was the problem? Are the callers doing a poor job? Many times, companies throw a list of names at callers without doing much research about the list to determine whether the names represent people who are even likely to be interested in what the company has to offer. When they don’t get quick results, they pronounce the calling program a failure or put the blame on the callers when the problem might lie in a poor list, unclear goals, or quitting too soon.
How Appointment Setting Companies Can Save You Money
Appointment setting companies like SPG offer an alternative to in-house telemarketing efforts.
- We carefully set up a calling program based on your industry and can offer realistic estimates of what to expect.
- We verify the quality of the list before the project starts.
- We hire well-paid callers who understand your industry and know how to communicate with prospects. The process starts out with a script, but their goal is to build a relationship, the conversation soon goes off script.
- We provide adequate space and state-of-the-art equipment for the callers to do the job, which is to develop contacts and set appointments. They do not have other duties calling their names.
We continually monitor your program and make changes as needed to get results. Like you, we want your program to get appointments, but acknowledge that there is a natural progression in working with potential clients.