Telemarketing projections

We are planning a telemarketing campaign to sell a ski package to a little unknown tourist destination. I expect to provide a list of propects to call center that will perform this telemarketing effort. We do not have a sure projection of the size of the list, but we will have 1 million name and address coupons printed. We are shooting for 50% completion rate for names and addresses of prospective skiers which would give us about 1/2 million prospects.

Does anyone have any experience with telelmarketing. If so, are there any statistics for conversion rate of prospects to customers? We have been talking in terms of a 1% conversion rate to be very conservative, but I suspect a conversion rate of more than 10% is not unreasonable.

Also, does anyone have any suggestions on choosing a call center?

From the list of prospects you generate Robert what percentage do you think will be ready to buy? What percentage will need more information?

Originally Posted by AZBroker From the list of prospects you generate Robert what percentage do you think will be ready to buy? What percentage will need more information?

Good question, but . . .

In this case, the sales model does not offer follow-ups. It is a buy-no buy decision. After we have obtained the list of prospects from a vacation giveaway drawing, we will enlist a call center to call each person on the phone. The offer will be a discounted vacation and the prospect will be making an impulse buy. The vacation will be priced to fit on almost any credit card (that isn't maxed out, of course).

Incidentally, the prospect already has a link to the website and can buy a vacation package at any time. He will just not have the option to obtain the 30% discount at any other time than during the telephone sales call. Hence the incentive for the impulse buy.

Originally Posted by rlabston It is a buy-no buy decision.

If converting prospects who "need more information" into customers isn't a task of the caller then choosing a call center will be easier since skill in this area isn't a factor.

However, if you're only after prospects who are "ready to buy" your conversion rates will be low since only a small number of the population at any one time will be ready to buy a given product or service.

You can improve your chances of increased conversions by working from a highly targeted list of prospects. Target demographics could include:

• Marital Status
• Previous skiing interest
• Major credit card holder

The effectiveness of your offer will also play an important role in conversions but you no doubt already know that.

How targeted is your prospect list and how compelling is your offer?

Originally Posted by AZBroker How targeted is your prospect list and how compelling is your offer?

I believe the offer is compelling, AZ. The package is a 5 days, 4 night ski package with transportation and lodging included for under $500 after the 30% discount. That is about $125 savings on top of the already lower cost of a ski vacation in Quebec versus the cost of a ski vacation in the northeastern US. A similar ski vacation at Jay's Peak would probably be in the neighborhood of twice this price. I might also point out that the exchange rate for US dollars vs Canadian dollars is favorable (about $1.20 Can for every $1,00 US)

In terms of the prospect list, it will be generated from people who have entered a contest for a ski vacation giveaway, so presumably, most of those who enter will have an interest in skiing.

Originally Posted by rlabston I believe the offer is compelling, AZ. The package is a 5 days, 4 night ski package with transportation and lodging included for under $500 after the 30% discount.

If I was to buy that exact package from someone else what would I miss out on?

Originally Posted by rlabston In terms of the prospect list, it will be generated from people who have entered a contest for a ski vacation giveaway, so presumably, most of those who enter will have an interest in skiing.

What does a person have to do to enter the contest? Are there any qualifications that have to be met?

Originally Posted by rlabston The package is a 5 days, 4 night ski package with transportation and lodging included for under $500 after the 30% discount.

Five hundred bucks? Does that include airfare?

Originally Posted by Thomas Five hundred bucks? Does that include airfare?

Good question. I suspect the answer is going to be "no".

Originally Posted by rlabston The offer will be a discounted vacation and the prospect will be making an impulse buy.

Will unknown airfare or passport concerns put a damper on the impulse sale?

Originally Posted by Thomas Five hundred bucks? Does that include airfare?

It includes transportation. The target market city is about 8 hours by bus to our region. The nearest airport is 1.5 hours away. So traveling by air would require a bus trip anyway and we want to avoid the hassle that comes with flying these days. If I remember correctly, the bus fare is about $125 round trip by charter.