Outsource vs In house: What does it really cost to hire a telemarketer?

“Why would I pay that much when I can just hire someone for £10 per hour?” is a sentence I’ve heard many times. But beware of the on cost!

It’s a question that many of us ask ourselves on a regular basis, across a variety of business services; ‘Should we outsource, or hire in house?’

Well, with years of experience in the B2B telemarketing industry, we’ve helped companies to answer this question – when it comes to hiring telemarketers – it’s simple maths.

And the numbers show that it’s far more expensive to hire in house than most people realise…

Below is a typical cost breakdown model for an in-house telemarketing role, based on the industry average wage of a telemarketer.

Often people don’t realise just how much it actually costs to run an internal operation and how it quickly ends up costing the business circa £20 p/hr (or much more in many cases).

And, at the same time it can often be more problematic, far less consistent and certainly more time consuming for you.

Cost Breakdown

According to Total jobs (2017), the average salary for a telemarketer in the UK is £22,492 (Approx. £10.81 per hour).

So, using this as a starting point, we look at what this would really mean to your business to find what the effective ‘per actual, delivered hour’ cost really is.

In-house cost breakdown

Cost to hire a telemarketer

So although you might describe this as ‘loose maths’, you can see, based on a fairly ‘normal’ situation, the cost of each actual calling hour that is delivered is far more that you expect it to be.

So now let’s consider the additional on-costs:

Additional costs when hiring a telemarketer

When you break it down and work out each of the above costs, you begin to see just how much it really costs to hire.

Let’s take a look out why outsourcing might be the better option…

The 6 upsides of the outsourced model

Beyond cost, there are several other factors to consider in whether you should outsource or hire in-house. Here are some of the key considerations that you may want to think about:

Lost hours

With an outsourced model, we can catch up lost hours or cover them with a second trained person so they’re not lost in the first place. With internal employees, sickness isn’t always covered so it often means lost time, missed opportunities and lost productivity.

Transparency

We provide live automated reporting, full statistics and call recordings through our bespoke CRM system. You need to ask the question, is there an ability to automate this and have this transparency internally?

If not, do you have the time to create these detailed reports and does your telemarketing team have the time to maintain them?

Proven results

Hiring new employees is a gamble; you have no guarantee that you’ll get people who can perform and if they don’t you have to replace them.

With an outsourced model, we already have highly experienced, trained staff who have proven their capabilities.

People leave

Telemarketing staff move more often than most so even if you do find good performers, it may not be long before they want a pay rise and promotion to another role, or until they leave.

At which point, you incur the time and aforementioned costs of replacing them all over again.

One point of contact

With an outsourced supplier, you have one point of contact and the staff management is looked after for you, giving you time to focus on other things, rather than managing multiple employees.

No add-on costs, no lost hours through sickness, no staff leaving and no hiring.

We hope that this blog gives you a good insight in to the cost of in-house vs outsourcing your next telemarketer.

If you have any questions, feel free to call us on 0345 241 3038 or get in touch.

Questions to ask an outsourced telemarketing supplier

It’s great to see our clients reaping the benefits of telemarketing to increase sales revenue and generate quality leads. But, we know how important it is to ensure we are completely transparent with them to develop a great client – supplier relationship.

If you’re considering working with an outsourced supplier for your telemarketing campaigns, it’s important to get it right. You want to trust them and most importantly, know that you will achieve a solid return on investment.

Before you make your final decision, we cover questions that you can ask your potential supplier to make the most out of your telemarketing campaigns.

1. Do you understand our key goals for the campaign?

Both you as the client and the supplier need to be clear on where you see the campaign going. There’s no point in running a campaign if you don’t have set goals that are clear to everyone.

2. What sort of results should we expect from the campaign?

If you aren’t sure what your goals should be, ask your potential supplier what they would suggest. They are experts in their field, and can therefore guide you on what you can expect. This should include expected call numbers, contact rates and expected conversion rates.

3. How long should we run the campaign for?

There is no definitive answer for this, but again it’s a great question to ask. Companies can compare other campaigns of a similar nature, or they may have an initial setup phase which then develops further over a longer or set time period.

In fact, we discuss this in one of our latest blogs.

4. Which clients have you worked with who are similar to us?

If the supplier has worked with other clients in your industry, you can glean ideas and research on what may or may not work for your company. This can also work for their previous clients of a similar size to yours. Remember, you can always ask to speak to their clients to get a reference too.

5. Who will be my first point of contact?

A great supplier will provide you with a first point of contact. This could be in the form of a dedicated account manager. Should something go wrong, or if you need to change parts of the campaign, it’s reassuring to have someone you know is on the end of the phone to help.

6. Who will make the calls and where are they based?

It’s a reality of our industry that there are many different models. Outsourcing calls to agents who work from home or from overseas can keep costs down but ask yourself, is this how you want your brand to be reflected? Furthermore, ask whether you’ll have access to the callers. Will you meet them and have a relationship with them directly?

7. How will I be updated on how the campaign is going?

No one likes being left in the dark by outsourced suppliers. You need to know that you will have regular updates on your campaign including those all-important statistics such as call hours, conversion rates, lead generated and more.

8. How will you ensure that you have researched in to our product and industry enough?

Your brief may be detailed, but how do you know that your supplier is going to be confident enough on the phone to discuss your product? Ask them how they aim to stay knowledgeable on your product portfolio and industry. It’s crucial as a telemarketing supplier that the work carried out is adapted to your company.

From product information to conversations on the phone, an outsourced telemarketing supplier should work with you to setup and develop campaigns bespoke to your organisation.

Air Marketing Group

Our campaigns are supported by our client portal which provides live and transparent reporting. We work with clients to discuss the best approach possible for telemarketing campaigns.

Want to find out more? Contact us today by email or call today on 0345 241 3038.

Small talk is a powerful thing

At Air Marketing Group, we make thousands of telemarketing calls every week for our clients. As a company that runs B2B telemarketing campaigns throughout the UK and overseas, this means it’s crucial to be prepped and ready to give the best possible customer service.

Part of this service we offer is ability to know conversations. We don’t just mean selling, but having the knowledge and know-how to understand what works best on the phone.

This includes small talk. It’s easy when you’re not on the phone, or out with friends, but when you’re in telemarketing it takes on a whole different angle.

We like to build empathy, and a connection. This gives us better relationships with prospects, and leads to conversations that make a difference.

For us, it’s taking time to know what works when it comes to small talk. So, we’ve put together the following tips based on real conversations that we’ve had, which can help to boost the relationships being built on the phone.

1. Be confident

Confidence leads to a conversation without the umming and aahing. Don’t second guess yourself, but at the same time avoid being overly forceful.

Hesitation means you question yourself, which in turn means the prospect you’re talking to isn’t convinced. Speak with confidence, ensuring you sound clear and concise.

2. Prepare

That old age saying, fail to prepare, prepare to fail. Building relationships doesn’t happen off the cuff, so prepare for conversations that develop such rapport.

3. Take an interest

Small talk relates heavily to taking an interest in that person, their company or what they do. In the business world, it can also relate to understanding their problems on a deeper level.

Ask open questions to gain an insight in to the person you’re speaking to on the phone. If you don’t take an interest in them, they aren’t going to take an interest in you.

4. Relentless positivity

Our internal office motto. We have good calls, difficult calls, long calls and more, but whatever happens we seek to stick to the motto ‘relentless positivity’.

If you stay upbeat and positive (no matter how hard!), you’ll see it come through in call recordings and results. No one bought anything off of someone with a negative attitude.

5. Humour

There isn’t anything wrong with a little humour. We don’t mean that your call has to be all stand up jokes, but humour keeps the conversation positive.

6. Story Telling

Story telling helps to break down barriers in conversation and gives you an opportunity to give real life, tangible examples as to how you can help someone or what you do.

We know good conversation. Each and every call we make is adapted to the prospect at the other end of the phone, ensuring that we say the right things.

How can our conversations help your business to generate sales? Find out today by contacting us here or calling us on 0345 241 3038.

Trust-based sales – Why it’s all about the relationship

According to Harvard psychologist Amy Cuddy, we judge individuals on two things before anything else. Firstly, we ask – can we trust this person? And secondly, can we respect them?

Although this is based on life in general, the same theory applies to sales and more specifically, sales relationships. We, as sales professionals, are looking for both trust and respect, to build long lasting and sustainable relationships with both our prospects and customers.

Relationships in the world of sales are incredibly important. With no relationship and no trust, you won’t end up selling much at all.

What do we mean by trust-based selling?

When we talk about selling that’s trust based, we’re talking about dropping the hard-hitting sell. It’s more about understanding prospects and what they need by staying open and transparent.  It’ also about saving the sell until after you’ve found that your products or services could be a good fit for your prospect.

This type of mind set means you think differently about selling, by building trust and teaching yourself to recognise the elements of selling that enhances this to build better relationships.

What can we do to build these types of relationships?

One of the most straight forward tips we can give you, and unfortunately one that some sales professionals still forget – listen, and listen well. Don’t talk over people or tell them what they need, not only is it impolite, you won’t learn anything about them.

Furthermore, accepting that it’s not right to sell to everyone will go a long way. Make your job to uncover a need or a fit and if you can’t find one, refrain from pitching your products and services unnecessarily.

You’ll earn trust and respect giving you a better chance when the time is right and when a need does arise.

Prompt responses and regular communication also helps to build great relationships. Here at Air Marketing Group we ensure consistent contact with both our clients and prospects. By doing so, it allows us to understand their situation in greater detail, from which we can focus how our solutions fit them.

What it all really boils down to is being personable. Show interest, be sociable, ask about them and never forget honesty throughout the whole process. It seems basic, but avoiding these simple traits can be detrimental.

And again, ignoring them and what they’re saying doesn’t give you a two-way conversation and shows you aren’t in being open or transparent with the individuals you’re talking to.

Want to know how we can apply these selling tips to a sales campaign for your business? Get in touch today or call 0345 241 3038.