What ROI Should You Expect From IT Telemarketing?

istock_000014311039xsmallThe normal logic to spending money on advertising and planning on getting a good ROI may not apply to IT telemarketing.  With most products or services you pay for an advertising campaign and hope to make enough sales to pay back the money for your add and have some profit left over.  Of course, we are talking about sales that are just one time transaction that don’t reoccur every month like a typical managed services agreement would. Therefore they have to go out and advertise all over again every month and hope to make enough sales to cover their marketing cost and make a profit again.  I find that many computer business owners think about IT services marketing in much the same way as a typical company.  Is this the correct way to look at ROI?

The reasons I bring this up is because I have seen many computer services providers who are expecting that when they spend money on a telemarketing campaign they should at least make back enough ROI from the initial sale to cover the cost of the entire marketing campaign.  Once again this is basic business 101, but does it really apply when you’re selling services that will reoccur every month for at least 3 to 4 years into the future?  The answers is that if you spend 4k to 5k on an high quality campaign for IT sales leads then only get a sale for $2500.00 that you would have made almost 90k over three years.  Imagine spending just 4k and getting 90k in return, granted that still over a 3 year period, that is a great return even though the first months revenue doesn’t completely cover the advertising cost.

The amazing thing is that when the rare technology provider finally understand this concept it only gets better!  The reality is that when you keep your marketing for IT going month after month that the possibility of landing that Whale of a sale just gets better and better.  This means that eventually you will land that one large account that actually pay for your entire year worth of marketing cost and still net a profit for over 3 to 4 years into the future.  Of course, we are talking about a very large network that has between 80 to 100 users.  So we ask all the computer business owners out there, that are trying to predict exactly what their return on investment is going to be on each campaign, to close their eyes with blind faith and expect to be surprised as the marketing works.

 

John Black is the Marketing Director at MSP Telemarketing and has over 10 years experience marketing for IT providers and VAR marketing to help them get more IT leads that turn into IT sales.