Thursday, January 29, 2009

A Cost-Effective Way to Grow Your Business

By C. J. Hulbert

Most businesses tighten their belts during a recession and think about how to wait out the storm. Businesses can increase sales but the important part is to increase sales at lowest cost possible. A prospecting firm can be one of the lowest and most productive ways to increase sales during a recession.

Outbound telemarketing companies only focus on the phone. There are many salespeople who are good at selling but struggle on the telephone. By using an outbound telemarketing company, you can let your salespeople focus on closing which can lower your cost per new client because there will be a higher conversation rate from prospect to lead.

A prospecting company can allow you to reduce phone time with those not interested. This frees you up to work on the more productive activities in the business which can generate more customers or prospects, leading to lower new customer costs.

You can turn your attention to meeting the people who are interested in your business. The outbound telemarketing firm would have crossed the uninterested people off your list so you can have more sales in a shorter period of time, lowering your cost of acquisition per new client.

Building a strong sales pipeline can take serious work and often can take a significant amount of time. You are able to delegate the finding of prospects out to a prospecting company and the building of the sales pipeline will lead to more sales, lowering your cost to find new clients.

Outbound telemarketing is not a favorite activity of many salespeople and they will procrastinate on doing this activity. This causes their productivity to decrease and your cost per client to go up whereas using a prospecting company can allow the telemarketing to be a fixed cost and you do not have to worry about salespeople's productivity because of telemarketing.

With the focus on new business, many customer oriented salespeople do not have time to meet with current clients. Using a prospecting company may free up your salespeople to sell more deeply into the current customer base so that you can lower cost per new client along with higher revenue per existing customer.

Any serious outbound telemarketing company will have a telephone automation system. This is a simply a piece of technology doing the dialing which can allow a prospecting company to hit five times the number of prospects your salespeople can hit.

A prospecting company can allow you to increase the number of clients you want based upon how much work they do for you. This can allow you to build this into your budget and the cost for an outbound telemarketing company is lower than a new hire, lowering your cost per acquisition of new client.

An outbound telemarketing company can be your new customer strategy so that you can reallocate your human capital within the business to what they do best. This improves the productivity of the company and lowers cost for new clients and current clients.

Businesses are either growing or contracting. There is no reason to focus on simply staying put so use a recession to your advantage. In what other time can you pitch to people with less competitors than during a recession? - 15246

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