The Fallacy of Pay for Performance Appointment Setting

by Brian Grinonneau

If a deal seems too good to be true, you can bet it is.

When searching for a sales appointment setting firm, some clients are tempted by the pay for performance model. It is intriguing. Have the appointment setting/ telemarketing firm only receive pay if appointments are made. It seems risk free. It is not.

Most pay for performance models are hatched in offshore call centers. The problem, aside from a language barrier, is these performance based companies push too hard, don’t disqualify poor prospects, use sub-par callers, waste a lot of your time and leave an indelible ugly mark on your company image.

A pay for performance telemarketing company oft-times is poorly equipped to put your best business foot forward. It makes haphazard calls from a noisy room with no real structure in place. The only goal is to get lots of appointments with no regard for quality or planning. The caller who is working on your account today may not be tomorrow and on day three it is someone different again perhaps with no knowledge of the intricacies of your project.

To achieve success when outsourcing your sales appointment setting strategy, you have to select a firm that has a solid management team with a strong sales background. This team will be responsible for putting you in front of the accounts you want most, but also in helping you better understand your market. Leading call centers will know the best prospects on whom to call, why they buy and how to set and appointment with them. The right appointment setting company should be an important, natural extension of your sales department focused on your ROI.

The best way to find the right telemarketing firm is to perform due diligence by asking the following questions:

May I see the bios of your management team?
What is included in your service?
How are your calling agents compensated?
Will I have a caller or two assigned exclusively to my project?
How do you monitor progress on my project?
How do you report results and market trends to me?
How often will you communicate with me and by what form?
May I speak with and confer with the callers assigned to me?

Marketing is an ongoing testing process and a telemarketing center is an important part of it. A call center's ability to be proactive, change direction when needed, and carefully track the strategy will give you a clearer view of your successes.

When you next consider a telemarketing company know that your best results will come from a company that has solid management, meaningful reporting and educated, well-paid callers. Don’t be tempted by the seemingly low priced offerings of pay for performance plans. They will cost you more than you could ever imagine.

Why Should I Meet With You?

If you want a prospect to meet with you, there better be a good reason--a compelling can hardly live without knowing more reason.

Today’s business world flies at break-neck pace making time the most precious commodity and if a prospective customer is giving up some, he has to get something of greater or equal value in return.

What do you have to give? What is your value proposition? If you don’t know, it’s time to define it.

A prospect will spend time with you if he perceives you have something that will in some way(s), make his life better. You won’t get in the door satisfying a want or need. He can find that satisfaction anywhere. You aren’t the only shop on the block. You do have something that is unique that may entice your prospect to meet though. Figuring it out is the cornerstone of your approach.

Here is a typical approach used by more sales reps than you’d care to imagine:

Good Morning, This is John with XYZ Widget Company and we help our clients streamline production by using our innovative products.

What does that mean exactly? Nothing! Like the blind squirrel finding the acorn, an occasional appointment can be had with this below average attempt, but it sure won’t fill a sales pipeline.

To really attract attention, give examples of what your product does for named clients and how they feel using it. Be specific. Talk about cutting expense, adding more dollars to the bottom line and customer experience. For instance:

Good Morning, This is John with XYZ Widget Company and we have a process that has helped ABC, DEF and GHI companies increase sales by more than 30%. They also cut labor expense by 20% and the managers, like you, received nice cash bonuses and were able to stay home weekends.

Be specific. If you want a prospect to spend valuable time with you, give him a reason—a real reason to do so.

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Telemarketing Will Ignite Direct Mail Campaigns

Funny isn’t it? Two marketing forms, direct mail and telemarketing, that fell out of favor with ad gurus years ago, is back on top. Everything old is new again. And while the debate rages on between brand builders and direct marketers, the DM practitioners seem to cut a much wider swath through the commercial clutter.

Now, telemarketing appointment setting firms are joining forces with their direct mail brethren and the result is enough to make you take notice.

A daily newspaper in the Midwest published a special section recently showcasing businesses in the community. These special sections are a fine way of pumping up a sagging bottom line in the newspaper business not to mention building reader interest. A multi-channel ad campaign was launched and a telesales firm was hired to schedule qualified sales appointments for the paper’s ad reps.

Before the first phase of the sales appointment setting calls, the newspaper sales department sent direct mail pieces to a select number of prospects. Calls were placed and the telemarketing firm hit a home run. Those prospects that received the direct mail piece knew about the special section and were receptive to scheduling an appointment with an account executive. It was the closest thing to sales heaven some of these veterans had seen.

The second and third phases of the calling campaign had no direct mail component and the appointments were tougher to schedule. The awareness factor was missing. More education was needed.

When the numbers were tallied and crunched, appointments were set at a better than 2 to 1 margin with those prospects who got a direct mail ad first.

Telemarketing and direct mail work well independently, but when you put them together you’ll really stoke your sales fire.

Sales Appointment Setting: What You Should Expect

A sales appointment setting, telemarketing or telesales firm can bring you more business than you ever thought possible. The best campaigns include a great list of prospects to call, a trained, professional calling staff and strict procedures for following up on leads.

Appointment setters will:

· Make twice as many calls as your average sales rep
· Set an average of (1) qualified appointment per hour
· Disqualify those that will waste your time and effort
· Double the productivity of your sales staff
· Help build a prospect data base
· Provide valuable feedback about your position in the marketplace
· Bring you a strong ROI
· Obtain referrals
· Reduce sales management headaches
· Help you make more money

Appointment setters will not:

· Close the deal--They set the stage and let your pros shine
· Force sales reps to attend scheduled appointments
· Improve a salesperson's presentation skills
· Turn a poor prospect list into a good one
· Provide vast product or service detail--They spark interest

Your success depends on getting in front of the prospect that has the interest and authority to make a buying decision and for that reason you have to learn more about how a professional sales appointment setting firm can help. Those who do make more money quicker than they ever thought possible

Sales Appointment Setting: It's Ugly Out There

Sales appointment setting is an ugly process. Picking up a phone and convincing someone you don’t know to spend time with you sends cold chills down your spine no matter the thickness of your skin. Is it really any wonder cold calling ranks number one with a bullet on the most hated list for salespeople?

Fear and loathing of prospecting and cold calling has killed a bright future for many a shining salesperson. A lack of prospecting leads to a lack of appointments and a lack of new sales. There is only so much you can do with referrals and the accounts divvied up when Joe in the corner office retired.

Weak sales managers, and there are a lot of them, stand over their minions forcing them to do what they hate, call and call more. The basic premise is right that more calls will ultimately lead to more sales, but the methodology is all wrong. It isn’t just quantity; it is quality that counts. Garbage in, garbage out.

Strong sales managers know account execs have to talk to prospects with a problem to solve—those who will invite you to meet them and help make their pain go away. They also know one of the best ways to get in front of these prospects is to use the services of a professional sales appointment setting firm. It makes sense on a whole lot of levels. These pros will dial the phone three times more often than your in-house reps, have more conversations and schedule dozens of high-quality appointments, fast. They use the right lists, use the right words and make your top sales reps twice as productive.

Those who don’t consider outsourcing appointment setting are leaving money on the table. They think that given time, sales reps will learn to make cold calls and set appointments with the accounts you want most. That same line of antiquated thinking would suggest you should always be working on your weaknesses.
Wrong! Work on your strength and find professionals to take care of the shortcomings.

Sales appointment setting firms will bring you a trackable, meaningful ROI. They bring waves of new revenue, build morale, reduce management oversight and let sales reps do what they do best, present, negotiate and close deals.

Outsource cold calling and appointment setting to those that do it best—the ones that don’t think the process is ugly or painful but rather enjoy setting the table for your sales team.