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By: brian 2009-02-11 11:31:07 -0500

Lead generation is fast becoming an integral part of many companies’ marketing arsenals. It is so far, one of the most effective and efficient ways to find sales prospects. Cold calling is a facet of lead generation that is most often used and it can either be done “in–house” wherein the company itself would hire their own internal cold callers or “outsourced” wherein the company would look to an outside firm to do the cold calling for them. For companies that are just starting out with their lead generation/cold calling programs, the question of whether they should go in-house or outsourced would be a bit pressing. Therefore, it is critical for any Business Development/Sales officer to evaluate both sides of each coin before making a decision:

In-House Lead Generation

Companies that go in–house are tasked with finding the cold callers and training them. This can be rather time consuming especially if the company has had no prior experience in doing cold calling. Cold calling is not a pretty thing to do and it requires the company to train their employees on how to handle rejections, have a stable mindset, and how to separate business from what is personal. Aside from training, each company must have the infrastructures to support their cold calling programs.

This would include the following:

1. Technology
2. Facilities and equipment

Technology is a vital component to make cold calling work. Companies must have the latest phones, computers, software application and lightning speed internet connection. Having all of these will greatly enhance the lead and call quality. Facilities and equipment are composed of everything else that is needed to make the agent feel comfortable and at ease in the company. This would include the workplace, the chairs that the agents sit on, their desks, the ventilation, etc.

Supervision and maintenance of these internal cold callers are also required. Companies must constantly motivate their cold callers using incentives and they also need to employ supervisors to constantly monitor the work of each agent and ensure that the goods are delivered.

Outsourced Lead Generation

There exists a lot companies that have Lead Generation as their “bread and butter”. These companies/firms tag themselves as the experts or the “master cold callers”. They’re very much plug and play per se since they have everything set – up such as the technology and the processes. The big question now is how to choose the right cold calling company. When doing the selection, keep the following in mind:

1. Ask about experience – This encompasses a wide area, from how long the company has been in business to whether the company specializes in B-to-B sales lead generation. You don't want a company that's been selling to consumers by cold-calling at dinner time to take on representing your company and its high-tech products or services to senior business executives. To have the best chance of success, be sure the prospective call center has direct experience in your specific industry.
2. Get real numbers – If you're looking for more qualified sales leads, ask how many leads a program should be expected to generate and the leads to sales ratio you can expect as well. Also ask how the vendor measures ROI.
3. Get a written proposal - The proposal is an easy way to check the company’s understanding of your needs. It should include background on the company, its qualifications, a detailed program recommendation and the related fees. Keep in mind that the quality of the proposal and its attention to detail will often serve as a reflection of the vendor’s quality and attention to detail.
4. Review their technology - Ask prospective companies what they do to make telemarketing calls more efficient. Also ask to see reports on activity and results. Are they provided on-demand? And, does the company have experience and the know-how to integrate their systems with yours?
5. Check references - Ask to see a current customer list as well as the names of some clients the company lost in the past year or two, then call both. Ask references about the quality of the company’s services and the quality of the company’s people who handle their account. Find out program results and ask if the company would hire the vendor again.

From an unbiased perspective, both are powerful tools in engaging a specific company’s lead needs. It’s case to case basis really. Companies who choose to do everything internal need to make sure that they have the processes in place and companies who choose to outsource must make sure that they select a company that will give them maximum ROI. Nonetheless everything is a risk and each company must be prepared to accept whatever the outcome is. Through highs and the lows everyone must keep an open mind.