Telemarketing. Active Selling on the Phone
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1 Telemarketing Active Selling on the Phone Communication and conversation; listening and question techniques; sales strategies for telemarketers; arguing, dealing with objections, and closing the deal. TRAINPLAN seminar maker
2 This script is part of the TRAINPLAN training software, which is to be used solely with a valid license / key by the license holder only. A valid license includes the reproduction and distribution of this participant s script, however, only to the license holder s seminar and training participants. The license holder is required to include the text following on this page on each copy of the script, undeleted, unaltered, unedited, and in its entirety. All rights reserved, including the photomechanical reproduction and the storage on electronic media. No part of this work or its included components may be reproduced, multiplied, or used in any other form (print, photocopy, microfiche) for private or commercial purposes without the explicit written consent or a valid license of the publisher. The utmost care has been taken in compiling this work. However, mistakes cannot be excluded completely. Therefore, the publisher cannot be held legally responsible or liable for any mistakes and the consequences resulting from them. We welcome suggestions and remarks at redaktion@trainplan.de. Hardware and / or software names included in this work are trademarks or registered trademarks and should be treated as such. TRAINPLAN Education Media and Publishing Products TRAINPLAN is a registered trademark of SCHMITT Business Consulting Limited TRAINPLAN seminar maker Telemarketing Page 2
3 Table of contents Introduction...6 The position of Telemarketing (TM) within the larger context of marketing...6 Tasks and application areas of the phone in sales and marketing...7 Advantages and disadvantages of telemarketing...8 The suitability of TM in practice...9 The legal situation of telemarketing...10 Basics of communication...11 Basics of communication and their significance...11 Language as a means of communication...12 Content and relationship levels in communication...14 Exercise sheet 1: Basics of communication...15 Basic conversational skills...16 Exercise sheet 1: The call...16 Methods of conversation control...17 Linguistic tools...17 Suicide expressions and emotive words...20 Emotive phrasings...21 Exercise sheet 2: Suicide words...22 Suicide words are unnecessary fillers and subjunctives which water down statements. They unsettle your interlocutor Exercise sheet 3: Alternative phrasings...23 Exercise sheet 4: Correct phrasings...24 Active listening...27 Control and feedback...27 Balancing a conversation...28 Exercise sheet 1: Active listening...30 Exercise sheet 2: Active listening...31 Question techniques...32 Open questions...33 Closed questions...33 Either-or questions...34 Reinforced either-or questions...34 Don t talk ask!...37 Exercise sheet: Questions instead of statements...37 The course of interest...38 Exercise sheet 1: Who asks, leads...39 Exercise sheet 2: Who asks, leads...40 Strategies for selling on the phone...41 Learn from successes and failures!...41 Motivational strategies...42 Who asks, leads...42 Celebrate progresses...42 Stay cool...42 Create a favorable starting position...42 Focus your attention on potential customers...42 Exercise: Wrong phrasings correct phrasings...44 The eight cardinal sins of Blade Razor...45 Successfully addressing new customers on the phone...47 Written goals...48 Preparation form for telephone conversations...49 Telephone notes...50 Form: Telephone memo...52 Telephone rules...53 The most frequent telephone mistakes...53 The most important telephone rules...54 TRAINPLAN seminar maker Telemarketing Page 3
4 Passive Telemarketing...55 Customer-oriented passive TM...55 Structure of a passive TM conversation in order to acquire customers...55 Active Telemarketing...56 Customer-oriented active TM...56 (Ideal) structure of an active TM conversation:...56 Structuring active TM conversations with existing customers...57 Fundamentals of structuring telephone guidelines (telephone scripts)...58 Opening the conversation...59 Needs analysis...59 Offer and benefit argumentation...59 Dealing with objections...59 Concluding the conversation...59 Telephone script...60 Structure for active TM to acquire new customers...60 Sample: TM conversation guide...61 Exercise sheet: Conversation guideline...64 Negotiation techniques...65 Exercise sheet: Needs argumentation in two steps...66 Feature advantage benefit transformation...67 Exercise sheet: Needs argumentation in three steps...68 Exercise sheet: Needs argumentation in four steps...69 Exercise (3 examples / 10 minutes)...69 Exercise sheet: Adoption of arguments...70 Exercise sheet 1: Selling benefits...71 Exercise sheet 2: Selling benefits...72 Dealing with objections...73 Appropriately dealing with customer objections...73 Dealing with dissent dialectic possibilities for dealing with dissent...75 Phrases for dealing with objections...78 Exercise sheet 1: Dealing with objections...79 Exercise sheet 2: Dealing with objections...80 Exercise sheet 3: Accept objections in a positive manner!...81 Exercise sheet 4: Accept objections in a positive manner!...82 Concluding the sale...83 The done deal our success!...83 The conclusion...83 Purchase signals...84 Buying signals easily recognizable to the professional!...84 Exercise sheet 1: Appropriately dealing with purchase signals...85 Exercise sheet 2: Appropriately responding to purchase signals...86 Closing techniques...87 Concluding the deal...87 Conclusion techniques and reaction triggers...89 Exercise sheet 1: Conclusion techniques...92 Exercise sheet 2: You conclude the deal...93 Exercise sheet 3: You conclude the deal...94 Observation sheets for TM conversations...95 Observation sheet: Speech behavior Page Observation sheet: Speech behavior Page Checkliste: Avoid disturbances!...97 Checklist: Telephoning at the right time!...98 Checklist: Mind your manners!...99 Checkliste: Pay attention to your manner of speaking! Checkliste: Avoid misunderstandings! Checkliste: Prepare thoroughly! Checkliste: Asking and answering correctly! Checklist: Dealing with objections! Checklist: Defend your price! Checklist: Reach a successful conclusion! Checklist: Clear up claims! Checklist: Overcome the receptionist! TRAINPLAN seminar maker Telemarketing Page 4
5 Checklist: Evaluate your phone calls! Checklist: Exploit all contact possibilities! Checklist: Save costs! Day clearing Appendix: Spelling alphabets TRAINPLAN seminar maker Telemarketing Page 5
6 INTRODUCTION The position of Telemarketing (TM) within the larger context of marketing Marketing means that companies orient their product and service offers toward the requirements and needs of their customers. Telemarketing is a marketing tool to influence existing and potential customers in accordance with the goals of the enterprise. Telephone conversations (dialogues) with current and prospective customers should be conducted in partnership. Definition Telemarketing = Customer-oriented thinking TM equation + Targeted influencing + Cooperative communication If the goals of the company are reputable and constructive, marketing as well as telemarketing are of a positive nature. Unfortunately, the idea of telemarketing evokes a number of negative connotations among large sections of the general public, so that the task of active outbound calling is avoided by employees if possible even though it is true that it is the fastest and cheapest way to obtain or pass on direct information, or offer and sell products. It is important for telemarketing to always be conducted in a respectable and reputable manner, and to place customer orientation first. Every call must be remembered positively by the customer! Telemarketing is not predominantly about what you do, but how you do it. TRAINPLAN seminar maker Telemarketing Page 6
7 Tasks and application areas of the phone in sales and marketing Selling existing products 71 % Following up on advertising, mailings, offers etc. 48 % Tasks and application areas of TM Scheduling appointments 45 % Acquiring new customers 41 % Processing claims 41 % Activation of inactive customers 39 % Introducing new products 35 % Increasing and complementing written customer orders 35 % Selling seasonal products, surplus, and special offers 34 % Continuously monitoring demands and inventories of existing customers 33 % Pitching for re-orders and additional orders 33 % Processing low-volume customers 25 % Debt collection and dunning procedures for open invoices 21 % Information about new products, product improvements etc. 20 % Needs analyses of potential customers 19 % Scheduling product presentations 18 % Inviting customers and prospectives to fairs and exhibitions 13 % Market research surveys among customers 4 % In addition to selling on the phone, TM encompasses a number of salesproliferating activities. The advantages are: Advantages of TM TM is cost-efficient and economic. TM is effective. TM creates synergy effects. When combined with other marketing activities, TM multiplies results. An example concerning the invitation of customers to fairs: a response rate of 3 % via direct mail, with TM support 12 %. TRAINPLAN seminar maker Telemarketing Page 7
8 INTRODUCTION Advantages and disadvantages of telemarketing Sales forces as well as TM have strengths and weaknesses. Since both are used as distributive channels, their employment has to be planned and coordinated carefully. Sales forces and TM have to be used according to their advantages in order to complement each other. Advantages and disadvantages Comparison: Sales force and telemarketing Sales force Phone sales New customer contacts O +++ Scheduling appointments O ++ Initial orders from new customers O + Increase of turnovers of existing customers + ++ Increase of turnovers through promotional offers Customer care low-volume customers O +++ Customer care high-volume customers +++ O O: Success unchanged concerning the sales target +: Success increased concerning the sales target An additional comparison shows that TM is superior to the sales force with regard to active selling time the time which is actually available for customer talks: How much time you have for selling: Telemarketing Sales force Administration, order processing 30 % Administration, order processing 20 % Travel time 30 % Waiting time 5 % Breaks 10 % Breaks 10 % Service 15 % Active selling time 60 % Active selling time 20 % Even though the costs per contact are only about 10 percent of sales force costs, more customer contacts can be established via TM. Consequently, TM is better suited than personal visits especially for the following activities: Acquiring new customers and scheduling appointments: This will free the sales force of time-consuming first contacts which only serve to identify prospective customers. Customer care for low- to mid-volume customers: This will provide the sales force with more time for important and difficult customers. TRAINPLAN seminar maker Telemarketing Page 8
9 INTRODUCTION The suitability of TM in practice The following questions will provide you with some help concerning your decision of TM is suitable for your enterprise and your products: When is TM suitable? Is there a lot of routine work involved in the sales force activities? Are there stages of the sales process where a dialogue on the phone can replace a personal conversation? Is your customer structure primarily made up of low-volume customers? Are there many inactives? Is there an above-average quota of one-off customers, cancellations, claims, payment reminders? Can product advantages convincingly be illustrated on the phone? Are direct mail, coupon advertisements, and prize draws possible for the acquisition of new customers? Can defined target groups of potential customers be represented with their addresses? Are (prospective) customers willing to accept TM? There are differences from product to product, business to business, and company to company. However, if you can answer most questions with yes, you should at least consider employing TM. The following table will let you test if your product is suitable for TM: Factors Appropriate Inappropriate Product costs Low High Explanations required for the product Low High Product usage Standard Exception (special solution) Target group Big Small Target group composition Homogeneous Heterogeneous Target group profile Less demanding High level Purchase behavior Spontaneous Strategic, deliberate Purchase consequences Negligible Long-term Contact possibilities Direct Indirect TRAINPLAN seminar maker Telemarketing Page 9
10 INTRODUCTION The legal situation of telemarketing Advertising Act Against Unfair Practices Civil code Beware of cold calls! Legal basis: Act Against Unfair Practices / Soliciting Act Against Unfair Practices prohibits: Cold calling Particularly of private individuals Act Against Unfair Practices allows: Calling companies or private individuals who are business contacts What is allowed? What is not allowed? Call-backs due to answer coupons Calling companies if the call concerns the actual business activities of the person being called (questionable) Direct selling on the phone Subject to the right of withdrawal within a week TRAINPLAN seminar maker Telemarketing Page 10
11 BASICS OF COMMUNICATION Basics of communication and their significance Communication between individuals is going to have great significance in the future. The knowledge of factors relevant for communication as well as their effect on humans is an essential prerogative. Research has shown that acoustic, visual, and kinesthetic (palpable) signals are memorized by the human brain in the following order: Factors of communication 80% 70% 60% 50% 40% 30% 20% 10% 0% reading hearing seeing reading + hearing+ seeing explaining trying out Communication on the phone exclusively consists of language. Therefore, it is a very restricted form of communication. Communication on the phone TRAINPLAN seminar maker Telemarketing Page 11
Ändern unter <Ansicht> <Master> <Folienmaster> Telemarketing. Telemarketing - Folie 1. TRAINPLAN seminar maker
Telemarketing Telemarketing - Folie 1 Seminar overview Introduction Basics of communication Basic conversational skills Active listening Question techniques Telephone rules Passive Telemarketing Active
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