1. Direct Marketing
BPO as a channel

2. What is a BPO?
 Any third party unit which comprises of executives who have access
to a computer, CRM software, telephone and are well trained on a
product
 Cost effective as the organization is not required to make huge
investments in physical infrastructure & manpower
 Marketer can leverage a BPO to achieve
well defined Marketing Objectives

3. Types of BPO’s
 Outbound Center
Company contacts the customer to fulfill
the marketing objectives
 Inbound Center
Customer contacts the company through
a toll-free number for assistance /
information or to make a purchase

4. Financials
There is cost associated with running an outsourced set-up.
The contract could be as follows:
 Pay-out per workstation
 Pay-out per customer contact
 Pay-out per lead
 Pay-out per sales
SLAs to be set-up with the vendor to guarantee a certain degree of quality and
conversion rates with provision for both REWARDS and PENALTIES
ROI needs to take into account the expected returns as against the cost.

5. Marketing Objectives
 Lead Generation
 Sales Transactions
 Customer Retention
 Up-selling & Cross-selling
 Supplementing other marketing initiatives

6. Lead Generation
 Contact a specific database so that leads can be generated
 Sales team visits the customer to close the sale
 Key Challenge – Quality of initial database decides the quality of
Leads which in turn impacts the conversion rates for the Sales Team.
This model is followed extensively by sectors like –
Insurance, Financial Investments, Credit Cards, etc.

7. Sales Transaction
 Customer contacts a specific number to make purchases or reservations or
bookings
 This model is used extensively by airlines, hotels, multiplexes
 Key Challenge – Adoption depends to a great extent on customers
readiness to use credit cards for over the phone transactions which may not
be high in the Indian context
CRM system plays a key-role in terms of profiling the
customer and prompting the call center agent to make
a customized offer to the customer

8. Customer Retention
 Marketers need to be careful to retain existing customers while chasing for
new ones
 The retention associate analyses past usage and accordingly makes an
attractive offering to retain the customer
 Key Challenge - CRM software plays a key role in understanding the past
interactions and ascertaining the customer value so that the best retention
offer is made
Most service industries like Telecom & Banking have a
specialized churn management desk.

9. Up selling & Cross Selling
 Objective - to increase usage or to sell a different product to an existing
customer base
 CRM software prompts the agent to make a specific offering taking into
account previous usage pattern
 Alternatively the company could go for an outbound campaign specifically to
cross sell or up sell to their segmented base
 Key Challenge – Segmenting of customers in CRM and ensuring that the
offering is attractive to the respective segments
This model is followed by banks when a customer
contacts its help-line, the agent makes a pitch to the
customer

10. Complementing other
Marketing Efforts
 Direct Marketing through a BPO can also complement other
marketing efforts
 Company may contact a specific set of customers to whom direct
mailers are sent to remind them of the exclusive offer
Example:
TATA Indica Vista campaign announces a
toll-free number where customers can dial and
schedule a Test Drive

11. Marketing Research
 Tool to measure “Quality” or “Customer Satisfaction”
 Sample database who have experienced the service are contacted
 Asked to rate the service across various parameters which are
“Critical to Quality”
 The scores in turn are used as a benchmark to enhance customer
satisfaction & build customer loyalty
This model is used by service industries like
Airlines & Hotel.

12. CASE STUDY
An outsourcing solutions company
based in Bangalore, India

13. Telemarketing
Services
 Helps in building leads, customer databases and also in finding new
customers
 Companies benefit from
 Significantly lower costs,
 Proven process quality
 Access to a trained, computer-literate,
college-educated workforce with good
presentation and communication skills

14. Telemarketing
Services
 Telemarketing lead management
 Lead Generation Services
 Decision Maker Contacts
 Appointment Setting Services
 Debt Collection Services
 Database Selling Services
 Market Intelligence Services
 Product Promotion
 Research Surveys and Polling
 Customer Satisfaction
 Telephone and Web Based
Business Development
 Up Sell/Cross Sell Campaigns
 Direct Mail Follow-up Services
 Seminar Population

15. Lead Generation
Methods
 Postings in forums, blogs and social networking sites
 Allow worldwide marketing
 Generation of quality leads due to the heavy traffic flow
 Highly targeted leads
 Direct marketing e-mails
 Cost-effective way
 Includes efficient audience identification, competent list selection, attractive offers
and a simple lead-to-sale-action
 Newsletters
 Customers interested in your products/services sign up for your newsletter
 Prompts your prospective customer to buy your products
 Offline lead generation
 Through telemarketing, referral programs, postal campaigns, PR and advertising,
meetings, surveys, seminars and conferences

16. Case Study
Lead Generation Services for a E-Logistics Company
The business challenge
 The prime goal for the client was to generate a large number of sales leads
 Collating information related to business from Salesforce.com website and generating
leads
 Acquiring raw lead lists filled with a number of potential customers from variable
formats, unstructured data, inaccurate information and ineffective leads
 let the sales team concentrate on the sales process rather than updating the lead-
data on the Salesforce.com

17. Case Study
The solution
 Designed a process which generated leads based on the type of industry,
geographical location, annual turnover and the core-products of the company.
 The leads were updated periodically in Salesforce.com
 The raw lead lists were customized to have a universal structured format which
could be directly imported to Salesforce.com
This process ensured that all the Regional sales teams had enough leads in the
buffer to reach the conversion ratio targets.

18. Case Study
The results
 Higher efficiency and conversion ratios in the sales process
 Enhanced management capabilities of the sales pipeline
 Significant cost-savings due to a great cutback in the operational costs

19. Case Study
Direct Marketing Secrets of
DELL COMPUTERS
“ Building Great Customer Experiences”

20. ‘’ Direct marketers, are in an environment, which changes so quickly
and only way to survive is keeping track with customers’
preferences and trying every possible method to build strong, long-
term relationship with customers in order to increase customer
satisfaction, customer loyalty and customer profitability in cost
effective way’’
PHILOSOPHY
• The Company was founded in 1984 by Michael Dell
• Concept : Selling personal computer systems directly to customers
• Efficiently provide the most effective computing solutions to meet those needs
Background

21. Business Strategy
• Being able to contact with the customer directly so that can understand
better the customer needs.
• Reducing the cost to reach the customer by eliminating middlemen
• Using saved money on customer service to increase customer satisfaction
and customer loyalty.
• Building computers based on customer’s needs.
• Engaging with customer on each touch point as productive & efficient
as possible. Capturing as much information as possible.
Direct business model.

22. • Dell reduces its costs by using direct marketing methods.
- Can give build better customer relationships
• Dell has to keep contacting customers to determine any
change on customer’s purchasing behavior and preferences.
• Dell has to keep an eye on rivals such as HP and IBM against
any competitive move.
Conclusions
Indian Scenario
Dell plans to up its focus on India
October 24, 2008
Currently operational BPO’s - Bangalore, Hyderabad, Gurgaon and Mohali