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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? - by rlabston
From the list of prospects you generate Robert what percentage do you think will be ready to buy? What percentage will need more information? - 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. - 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. - by AZBroker
How targeted is your prospect list and how compelling is your offer? - 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. - 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?

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? - by AZBroker
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? - by Thomas
Five hundred bucks? Does that include airfare?
Good question. I suspect the answer is going to be "no".

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? - by Liberty
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. - by rlabston
Good question. I suspect the answer is going to be "no".
No airfare involved, but bus fare is included.


Will unknown airfare or passport concerns put a damper on the impulse sale?
The passport issue is a concern. That is one of the reasons that a good lead time before the planned vacation is important. - by rlabston
No airfare involved, but bus fare is included.
If I didn't want to sit on the bus with my significant other for the 8 hour ride could I get a rebate for the $125 bus tickets?

The passport issue is a concern. That is one of the reasons that a good lead time before the planned vacation is important.
What impact do you believe this will have on conversion rates? - by Liberty
If I didn't want to sit on the bus with my significant other for the 8 hour ride could I get a rebate for the $125 bus tickets?
We could certainly have another lower-priced package that does not include the transportaion.

What impact do you believe this will have on conversion rates?
I don't think people who are prone to make impulse buys are so concerned about technical issues. But I have no experience to base my belief on. I would welcome any input from someone who has had exerience that would reflect on this point. - by rlabston
Its difficult to comment without knowing the offer process, e.g. How soon after the contest would you call.? Is the contest offerred separately or with the sales proposition. It would seem like a pretty powerful offer if you give a 30% off and also a chance to win the trip free.

One cannot assume that people who sign up for a contest to win a ski holiday and keen on buying the package. often the correlation is weak.

If you can get to a "hotlist"...ie. people who often go on a ski holiday annually at the cost approximating your offer, you could expect a 20% response rate or more with a strong offer.

The difficulty is in honing the contest list down into the hotlist. This may require a 2-3 steps process. Really quite hard to project reponse if you are just calling the contest list on a yes-no basis. - by alexhar
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