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Direct Marketing for Public Radio, Part 3: Telemarketing

By B. R. Forbes



Originally published in the Development Exchange journal i.e. development, February 1989.



The two previous installments of this series on Direct Marketing included an overview of direct marketing, market research, and use of computers; and direct mail. In this installment, the many uses of and approaches to telemarketing are explored. The Development Exchange warmly thanks Joe Krushinsky of WITF- FM/TV in Harrisburg, PA, for providing the bulk of information on out-bound telemarketing. The Exchange also greatly appreciates the contributions of Sheri Kroska, KSJR-FM, Collegeville, MN and Dolores Donohue, WBEZ, Chicago who share their valuable telemarketing experiences.



Telemarketing: Many Styles and Colors

Every public radio station engages in some sort of telemarketing, which is simply the use of a telephone in acquiring information or selling goods or services to a distinct specialized audience through a measurable method. Every call to a prospective underwriter and every call from a listener is a form of telemarketing. The station's goal should be to improve the instances of telephone contact that already occur and to organize a more concerted effort to maintain, increase and upgrade community support through telemarketing efforts.

The two major types of telemarketing are "in-bound" and "out-bound" In-bound telemarketing can take two forms: solicited and unsolicited calls. Out-bound telemarketing programs can take many forms: in-house operations which are totally run by staff: in-house operations which are developed and maintained by an outside consultant; and projects which are handed over to u professional telemarketing company which recruits, trains and oversees full-time callers.

In-Bound Telemarketing

"Thank you for calling."

Every call from a listener is an opportunity to develop a stronger relationship, to gain additional information, and to bring that listener closer to becoming a member. Whether a person calls to complain about a program change or to request a program guide, the telephone contact should he easy to make, satisfying to the caller, and productive for the station.

Kathy Watt, supervisor of customer service for WGBH, Boston, reports that her station reviewed all contacts with TV and radio "customers" and decided that the station had to become more personal and accessible. WGBH now places a high priority on improving all communication with their audience and the public: The new Customer Service" department is the result.

"Would you like one of our free..."

Many stations actively encourage listeners to call for music requests, ticket give-aways, program-related information and free program guides. Encouraging this kind of direct feedback on the air is an excellent way to identify listeners who are good candidates for marketing surveys and for membership, solicited with direct mail or out-bound telemarketing. According to Subscriber Services Manager Russ Olevsky, KLON in Long Beach acquires the names of about 1,500 potential members per year by offering free program guides, bumper stickers and concert tickets. KUSC, Los Angeles, offers tickets once or twice a day - but only to current members. Associate Director of Development Brian Levitz reports that about 5% of subscribers take advantage of the approximately 3,600 pair of tickets offered each year.

"May I take your pledge...?"

The most wide-spread use of in-bound telemarketing is during on-air fundraising campaigns. Most stations use volunteers to take pledge information - but not all volunteers are well trained to deal with these calls effectively. KWGS Development Coordinator Kim Sherwood trains her volunteers to relax, match the speaking tempo of callers, and to develop rapport. Volunteers answer the phone by giving their own names and then ask, "How may we involve you in KWGS today? What level of support are you considering?" Volunteers also upgrade callers in a friendly way be telling them of the benefits of a higher level by saying, "By the way, did you know that for just $15 more you can receive...?" Kim credits this telemarketing training with increasing KWGS's average pledge from $41 last year to $57 this year --a 39% jump.

"At the tone, please leave a message..."

One of the major difficulties in encouraging in-bound telemarketing is handling the in-coming calls -- especially during early morning drive time and week-ends. To handle these in-coming calls some stations use local or toll- free answering services while others rely on answering machines. In January 1989, KQED in San Francisco signed on for a new service: an interactive "voice mail" answering service. Callers can choose options on an audio "menu" which is activated by punching numbers on a touch-tone phone. They can also leave their names and addresses in a voice mail "box" retrievable through staff members' own telephones. Although KQED has used this system only once during a pledge drive, Membership Director Carol Porter is very satisfied. Carol notes, "People are used to talking to machines - and it's a very friendly machine." KQED plans to use the service to handle over- flow calls during pledge drives and to take calls during their up-coming year-round spot announcement campaign.

Out-Bound Telemarketing: Uses

Reach out and touch...everyone

The use of telephone solicitation, or a combination of both direct mail and telephone, can be a very cost-effective way to improve just about every segment of a membership marketing program. The number of specialized applications for telemarketing in a given membership marketing program is limited only by a station's capacity to segment its lists, identify membership trends, and target "soft spots" in giving patterns. Here are some examples.

Renewals

Placement of a telephone solicitation as the final "hit" in the renewal series is a natural way to experiment with telemarketing without disrupting the current membership marketing program. Renewal calls are the mot cost-effective form of telemarketing. When used strategically with targeted segments of the member file, these calls can increase both renewal rate and the average amount at which members renew. For example, place a telemarketing call early in the renewal series for installment givers; structure the call to inform the member that the anniversary of his/her last gift is approaching; and shape the "ask" as a choice between renewal options, rather than between renewal and non-renewal. "You can continue with monthly installments of ten dollars, or charge the entire year's membership on VISA or MasterCard. Which would you prefer?"

Telemarketing can also enhance first year renewal. Place the call before the end of the renewal series while the membership is still current. Use the personal contact to thank the member for the important support referring to the way in which the member became a member ("during our pledge drive last October" or "in response to a letter from our Membership Director," etc.)

Lapsed Members/Subscribers

Lapsed members can be recovered in significant numbers using the telephone. Even members lapsed five or more years have proven productive telemarketing prospects. For many lapsed members, the phone call provides the first personal contact with the station since they first called in their pledge years earlier. It may be the first chance they feel they have to tell someone what they think about their public radio station. This opportunity to have a dialogue and vent old frustrations (such as "I didn't receive my mug back in 1987") may be enough to gel the member back on board.

Unfulfilled Pledges

Even the normally high fulfillment among public radio pledgers can be improved using the telephone. Polite telephone follow-up to unpaid on-air pledgers, over-due installment givers, and unpaid telemarketing pledgers can enhance cash flow and provide useful information ("I haven't gotten the guide" may mean an incorrect address; "I wanted semi-annual billing" may indicate a data entry error; "My wife should never have made that pledge" may mean just about anything!)

Additional Gifts

Special appeals to members during their membership year provide a chance for personal contact and superior additional gift response and average. Rather than attempting to call the entire membership for an additional gift, call members in their seventh month of membership to make a contribution to a member challenge fund. Joint licensee stations can call television members in their fourth month requesting a separate radio membership and get dramatic results.

Member/Subscriber Acquisition

Acquisition calls arc the toughest and the least developed area of membership telemarketing. If carefully administered, a telemarketing acquisition program can operate at break-even or better, while yielding 7«10 times more response per 1,000 names than direct mail appeals. Acquisition campaigns are extremely time and labor intensive as well as taxing on the spirit of even the best telemarketers. However, as in direct mail. the list is the key. Listeners who have responded to on-air offers (such as free program guides or tickets) and names exchanged with other similar organizations provide the best results.

Current Member Cultivation

The telephone is also an excellent way to cultivate current members/subscribers and to generate useful marketing information. For example, thanking donors on the telephone (as well as by mail) and asking if the station can assist them in any way is a good way to build a personal relationship with donors. Telephone surveys are not only flattering to the donors but also gather useful personal information about each individual and can help the station shape its services to suit the needs of its contributors.

Out-Bound Telemarketing: Types

Several models and colors to choose from...

Before any telemarketing project is undertaken, some fundamental decisions must be made on the kind of telemarketing operations right for a given station.

Complete Telemarketing Services

A totally out-of-house telemarketing service is probably the best choice if the station has no in-house facilities, can't spare additional staff time, has little experience in telemarketing, and wishes to conduct only a short term project. The station must supply the names, addresses and phone numbers (if possible) and work with the service to develop the approach and to assist with the training of the company's professional telemarketers. Of course, this is the most expensive approach and the professional telemarketers may not be able to answer all questions about the station in spite of intensive training.

There are often legal requirements that must be satisfied, as well. For example, the state of Virginia requires all professional soliciting companies to: (1) file authorization from two officers of the organization at least ten days before solicitation; (2) register with the Director of Consumer Affairs; (3) be bonded in the amount of $20,000; (4) and all telemarketers must disclose their names, employers, the fact that they are paid solicitors, and the minimum percentage of the contribution that will be received by the organization.

Telemarketing Consultants for In-House Operations

Many telemarketing companies provide consulting services to stations who wish to use their own staffer volunteers. Consultants assist stations with developing telemarketing programs; recruiting, training and supervising staff; assessing results; and recommending on-going activities. The station will have to allocate phone lines, facilities and staff time to develop and run the program. In this situation, a station can acquire the telemarketing experience and skill needed while still maintaining direct control over the program.

Complete In-House Telemarketing Program

Through an in-house telemarketing program, stations can decrease long term costs, control the project more closely, allow more flexibility, and train telemarketers according to station needs. Stations such as WGBH, WITF in Harrisburg and Minnesota Public Radio have taken the step of hiring experienced telemarketing managers to develop and maintain a full program within the station. Of course, the volume of activity must justify year-round telemarketing in fully-dedicated facilities.

Volunteer Versus Professional Telemarketers

When considering whether to hire professional telemarketers or use volunteers, consider the advantages and disadvantages to each. Volunteers are less expensive, more committed to the station, and are usually more familiar with programming than their professional counterparts may be. Paid staff, however, are more receptive to training and supervision and are much more likely to adhere to an exact schedule than volunteers. In order to get professional telemarketers who know the station well, many stations advertise the positions on their own air or in the program guide rather than in the local newspaper.

Planning and Implementing Out-Bound Telemarketing

Develop Comprehensive Marketing Plan

The first step in planning a solid telemarketing project is developing a comprehensive marketing plan which clearly defines the objectives and strategies of the program. Decide on the target audience(s): lapsed members, renewing members, current members, potential members, major donors, etc. Then examine the different options in developing a telemarketing program taking into consideration the resources of the station and goals of the marketing plan. Develop a project plan based on one option: outside telemarketing service, consultant, in-house project, volunteers or paid telemarketers.

Prepare for Project Internally

Top managers and station staff must "buy-in" to the project in order to total station support. Copies of the marketing plan along with a discussion of the various options will help all staff to understand the objectives and strategies of the project. The list of the target audience must be updated and telephone numbers acquired.

Recruit and Train Telemarketers

Both volunteer and paid telemarketers must be screened carefully and fully trained to handle many different situations on the telephone. Remember that these callers are representing the station to hundreds of current and potential clients. If an outside company is handling the project, be sure to devote two to three days to participating in the training and over-seeing of the first one to two days of calls.

Develop General Call Outline

The best telemarketing projects rely not on scripts but on trained professional telemarketers who can covertly control each contact. However, if highly skilled telemarketers are not a part of the program, develop a call outline with general "talking points." Avoid scripts -- many non-professional callers rely too heavily on reading the words in front of them rather than listening and responding to the expressed and unexpressed needs of the prospects. (See sample "Call" from WITF following this article.)

Provide all Necessary Information

Provide the telemarketers with as much information about the Station as possible. They should be able to answer most questions encountered. They should also feel comfortable in admitting that they don't know all the answers - but they should follow up the next evening with the information requested.

Supervise and Motivate Telemarketers

Monitor calls to make sure the telemarketers are fulfilling expectations. Some callers may not work out. Others may become "super callers" who may be assigned challenging calls, such as major donors. Telemarketers, whether volunteer or paid, need lots of motivation and positive feed-back. Some stations ring a gong for every pledge of 1100 or more, others offer prizes for the highest totals for the evening and provide pay bonuses for fulfillment goals.

Follow-through on Processing and Requests

All pledge and charge confirmations must be mailed immediately to increase fulfillment. Special requests for information should be handled quickly and satisfactorily. The warm rapport established by good telemarketers can be easily destroyed by poor follow-up.

Continue to Evaluate and Fine-tune Program

Telemarketing efforts can be improved through constant monitoring of calls, motivating of callers, analyzing of reports, and testing new approaches.

Sample Telemarketing Call

The best telemarketers do not use an actual script - they shape the flow of the interview by following the reactions and concerns of the prospect. However, a general outline is helpful to train new telemarketers and to keep others "on track." Here's one outline used by WITF- TV/FM.

INTRODUCTION Hello, is M. _________ in please?

Hello, _______, this is (name) calling from WITF Public Radio. How are you tonight? I'm here with a group or people calling about this year's special effort. Did you receive the letter recently sent by our station manager Stewart Cheifet? It was a note to let you know I'd be calling you this evening.

(Wait for response.)

YES,
NO OBJECTION
Great! What do you think of our special effort to help support some of your favorite radio programs?

(Listen and continue, depending on response) (Go to case statement)

OR: OBJECTIONS (Deal with objections by reflection/deflection)

NO LETTER No problem. It was just to let you know that I’d be calling about our extra special effort this year.

CASE STATEMENT (As Stewart Cheifet said) it has been good members like yourself that have allowed WITF to make great strides in serving the region with high quality radio programs as well as with "Appraise" magazine. But we need renewed support from all of our members in order to maintain that margin of excellence.

INTEREST PROBE Tell me, what’s your favorite radio program on WITF?

GOAL Our goal this year is to raise over $300,000 from new and increased member support, this evening we are hoping for at least $10,000 from the listeners we're speaking with tonight.

(Begin negotiation)

FIRST ASK
: $1,000
(In his letter, Stewart Cheifet explained that) There are a number of ways members are making their commitments, (He mentioned that) The Producer's Circle is a group for those who might be able to make a commitment of $l,000. Do you think you might be able to make a commitment of $1,000?

$500 ASK Of course, that sort of gift is not for everyone. We never know what our listeners can consider unless we ask, so I don't want to assume anything further. Let's talk about something more moderate, then: say a membership in the Benefactors Club. That's with a gift of $500. How would that sound to you?

$250 ASK OK, M._______, that’s understandable. I’m most interested in finding an amount that’s comfortable for you. I’d hate not to tell you about the Patron membership level. This involves a gift of a bit less, but still a leadership commitment of $250. And that’s payable in quarterly installments if that’s more convenient. Would a membership gift of $250 be possible for you?

$120 ASK Well, the most popular Leadership Group among WITF supporters is the Associates. We'd love the chance to recognize you as an Associate with your gift of $120. How does that sound to you?

IF $60 - 90
LAST YEAR
I see here from our record that you were good enough to support WITF with a contribution of ($ amount), and that was very helpful! So can we rely, at least, on your repeating the same amount as last year, a gift of ($ amount)?

(If no, go to $35 ask)

IF $25 - 59
LAST YEAR
I understand. Let me talk to you then about just $60 for the year. This would certainly help in adding support for local productions. Can we rely on you for your $60 pledge now?

$35 (LAST) ASK As you can tell, we are working very hard to include everyone in our efforts tonight. Of course, each member receives a full year's subscription to "Apprise" magazine. Can we include you with a basic membership of just $35?

FINAL REFUSAL Well, I appreciate the chance to speak with you this evening. While I have you on the phone, can I check your address so that we can keep our records updated? Are you still at (address)? Thank you again, and I hope you might consider supporting WITF another time. Good night.

YES Great! Thank you very much. We're grateful for your membership contribution of ($ amount). You can pay either by VISA or MasterCard. Which would you prefer?

(If yes, get card number and expiration date.) (If no:)

Fine, I'll send you a note in the morning confirming your ($ amount) gift commitment to WITF Radio. May I check your home address to make sure we have it right? Are you still at (address). Can we expect payment of your ($ amount) pledge within two weeks? By the way. do you work for a company that matches gifts by its employees to WITF?

CLOSE Well, again, it's been a pleasure talking with you this evening. Thank you again for your generosity. We look forward to receiving your gift. Good night.




The next installment of this series on direct marketing will present some guidelines for developing a direct marketing plan. The final installment will put all this information to work by using a case study of a public radio station.


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