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Revealing the Profits Behind the Call Center

15 Jun, 2003 By: J.J. Morrison imageSource

Revealing the Profits Behind the Call Center

Everyone likes to think that they
make a great contribution to their company's sales and profits. And, hopefully,
every employee is profitable to some degree or another. Yet, few companies
really have a good understanding of which department or group of employees has
the potential to be the most profitable. By defining "profitable" in
terms of consistency of sales delivery, potential to the overall company and the
ratio of daily net profit to department personnel expense, you may be
overlooking a department that has the potential to produce $3,000.00 per day in
sales with a net profit of $1,000 per day. That's $20,000 per month profit-after
expenses! That's $20,000 sales profit coming in consistently month after month.

Enough of the mystery; what
department is so profitable? It's the telemarketing department or more
appropriately, the Telephone Action Center (TAC) which, if properly implemented,
can be a consistent source of income generation. While you may have implemented
a telemarketing program before, the development of a TAC expands on the
traditional approach with commitment and dedicated training to grow business and
allow TAC employees to become the most profitable people on the payroll. There
are a number of ingredients that go into building a successful TAC, but once you
get it right, you will be a believer forever.

Six Secrets for TAC Success

# 1 The TAC needs to be a comprehensive telemarketing program. The first thing
you should have noticed is the word "program." It's not a halfhearted
attempt; it takes commitment.

#2 The TAC must be easy to install
and must create immediate sales production. The goal is to become profitable in
the first week. (The main reason that dealerships give up the telemarketing
approach is that they cannot make it profitable.)

# 3 The TAC must be a user friendly
system with the ability to train NEW people to be productive in one week. People
without special sales skills but an eagerness to learn are easy to find, less
expensive, and appreciate a job that pays well. And, if you need to replace a
person or want to expand the department, one week of training is all that's
needed to bring new hires up to speed.

# 4 The TAC must provide business
expansion opportunities. There are telemarketing systems that allow three people
to handle 10,000 active accounts and there are hundreds of high profit repeat
sales products than can be sold to thousands of accounts all over a specific
area. By allowing for the possibility of expansion, the Telephone Action Center
will be ready to increase your selling territory and product lines when you are.

# 5 The TAC must be designed to not
only increase sales, but to streamline the entire sales process. Many
telemarketing sales calls go something like this, "Hi, this is Susie. Do
you need anything today? No? Ok, I'll call you next month." No sale was
made and time was wasted. A properly trained telemarketing salesperson will
establish a yearly product volume; dropping from a one year shipment to one
third shipments, then to quarterly shipments, and to monthly shipments if
needed. What that means is that the maximum amount that can be shipped to each
customer is going out the door. That, in turn, means higher sales, less frequent
calling of the customer, and a 50 to 75 percent reduction in paperwork (selling,
shipping, billing, filing, posting, and collecting). It's all in the training,
goal setting and objectives.

# 6 The TAC must address all phases
of the selling process: sell, ship, bill, and collect. You don't want to have to
"turn off" your TAC due to lack of inventory, credit lines, cash flow,
or just simply the inability to get all of the orders out the door. The
importance of implementing a complete turn-key package cannot be understated.

#7 Your TAC should also utilize
telephone power to cover five areas essential to good business:

Advertising-The most effective advertising your company can have is
"word-of-mouth." Telephone sales representatives speak directly to
prospective customers and get immediate feedback.

> Sales Leads-Trained telephone personnel search out competitive placements
and look for any information that determines if an account is a prospective
buyer. When a TAC is making 2,000 contacts per month (24,000 per year), they
will stumble across more prospects than an entire sales staff finds by
door-to-door cold calling. The telephone personnel find and pre-qualify
prospects, allowing the salespeople to spend 50 percent more time selling, which
dramatically increases sales.

> Public Relations-TAC personnel should be trained to handle complaints,
billing, and shipping errors. They are trained to have the right answers and to
keep the customer happy. Small customer problems can account for a 40 percent
loss in your customer base. TAC personnel can stop such losses and show your
customers that you care about them. o Account Information Updates-While TAC
personnel are handling public relations, they are also gathering information
that keeps customer addresses and information current. This prevents incorrect
shipping and pricing, thus preventing loss of profit in these areas.

> Sales-Trained in ethical sales presentations, TAC personnel sell
maintenance contracts and consumable products at the rate of $3,000-$10,000 per
person per day.

Simply stated, there is no faster,
less expensive or better way to contact and handle any account base. The
versatility of the benefits accomplished with a TAC is unequaled. By making the
commitment to implement the best program and executing it correctly, there will
never be any doubt as to which department is the most profitable for your

- - -

Morrison, CEO of Servco Management, Inc., has over 32 years of experience in the
document distribution industry. He has personally developed a system of over 40
interlocking programs to enhance every facet of a dealership's operation and
profitability. Servco Management has successfully installed a TAC Program in
over 200 dealerships throughout the U.S. For information, contact JJ at
800-517-7900 or servco@servcomanagement.com

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