Running a business means making lots of choices every single day. One big choice is how to talk to customers.
- Should your team wait for potential customers to call you?
- Or should your team call potential customers first?
Both ways can work really well, but they work differently. For instance, if a bank runs social media ads and a random person sees that and picks up the phone and dials the bank asking for a loan.
This approach is referred to as inbound telemarketing. On the other hand, if banks assign an agent to call a potential customer who might not be aware of the loan offer, this process is referred to as outbound telemarketing.
Lots of business owners get confused about which way works better. Some people think making calls to customers costs too much money. Other people think waiting for calls means missing out on sales. The truth is that both types of telemarketing have good points and not-so-good points.
What Is Inbound Telemarketing?
Inbound telemarketing happens when customers call your business first, responding to ads, promotions, or marketing campaigns. Your team answers the phone and helps them. These customers already want to know about your products or services.
- They might have questions.
- They might want to buy something right away
- They might need help with something they already bought
For example, someone sees your ad on TV. They want to know more, so they call the number on the screen. Your team picks up the phone and answers their questions. That is inbound telemarketing at work.
Here are some common reasons why people call businesses:
Asking Questions About Products/Services
Customers call to learn more before they buy. They want to know if your product or service will work for them. They might ask about price, demos, free trial, sizes, colors, or how something works. Your team gives them all the details they need.
Making Orders
Some customers prefer talking to a real person when they buy a product or service. They call to place their order over the phone. Your team takes down what they want and makes sure everything is right.
Getting Help With Problems
When something goes wrong, customers call for help.
- Maybe their order didn’t arrive
- Maybe your SaaS is blocking user access
- Maybe something broke
- Perhaps they can’t figure out how to use it
Your team fixes the problem and makes them happy again.
Tracking Their Orders
Customers call to find out where their package is. They want to know when it will arrive. Your team looks up their order and gives them updates.
The best thing about inbound calls is that people already want to talk to you. They took time to dial your number. They’re interested in what you offer. This makes your job a whole lot easier. You don’t have to convince them to listen. They’re already listening.
What Is Outbound Telemarketing?
Outbound telemarketing is when your team calls customers first. These customers aren’t expecting your call. They might not even know about your business yet. Your team reaches out to tell them about what you sell.
Think of it like knocking on doors to meet new neighbors. You go to them instead of waiting for them to come to you. Some potential customers will be happy to chat. Others might be busy and not want to talk right then. That’s just how outbound telemarketing services work.
Here is what outbound telemarketing teams do:
Calling new people: Your agents can call potential customers who have never even heard of your company. Your agents start by telling you who your company is and what services it provides or products you sell. They aim to transform visitors into customers.
Following up with old customers: Here and there, people make one purchase and forget about you. Your team is giving them a call to say hello. So they remind customers about your business and promote any new products or special deals.
Doing surveys: Your team may call people and ask questions. These surveys let you find out what customers like and don’t like. You are the ones who answered these questions, and that helps make your business better.
Setting up meetings: The phone call is not necessarily a matter of selling immediately for some businesses. Your caller may invite potential customers to a meeting or a demo. This is a good strategy when products are more complicated to explain.
Checking in: Your team may take time to call your customers after they make a purchase, and check whether everything is good. They inquired whether the client was satisfied. They learn what is broken. This keeps customers coming back.
Outbound telemarketing takes more work than inbound. Your team has to start every conversation from scratch. They have to grab attention quickly and handle people saying no thanks. But when it works, you reach way more people than you ever could just by waiting for the phone to ring.
Inbound vs Outbound Telemarketing: Key Differences
Now, let’s look at how these two types of telemarketing are different from each other. Understanding these differences helps you pick the right one for your business.
Communication Direction
Inbound means customers call you, and outbound means you call customers. It’s like the difference between answering your doorbell and going door to door.
| Inbound Communication | Outbound Communication |
| Customers call you first, like answering a doorbell | Your team calls customers, like going door to door |
| Contact number shared on website, ads, and social media | The prospect list is prepared in advance |
| You wait for prospects to call | Calls are made proactively |
| The team must answer when the phone rings | Team decides who to call and when |
Lead Intent
Lead intent means how interested someone is in buying from you. This is really different between inbound and outbound calls.
Inbound callers have high intent, such as:
- They called you on purpose
- They want something
- Maybe they are ready to buy today
- Maybe they need more information first
Either way, they are interested enough to pick up the phone and dial your number. That’s a big deal.
Outbound telemarketing is different. The prospects you call might not be thinking about your product at all, so you are interrupting their day. Some of them will be interested once they hear what you have to say, but many others will not care or won’t have time to talk. You have to work smarter to get their attention.
Think of it like fishing. Inbound is like fish jumping into your boat, and outbound is like casting your line over and over, hoping fish will bite.
Conversion Potential
Conversion means turning someone into a paying customer. Let’s discuss how easy it is to make sales with each type of telemarketing. Inbound calls convert better most of the time. Since people already want to talk to you, it is easier to help them buy.
Your team just needs to answer questions, solve problems, and make the process smooth. Many inbound calls end with a sale. Outbound calls are harder to convert. Most people you call won’t buy anything.
They might:
- They might not need what you are selling
- They might not have money right now
- They might just not be interested
Your team has to call lots and lots of prospects to find the ones who will say yes. Maybe only one person out of every twenty or thirty calls will buy something.
Even though outbound converts less often, it can still bring in plenty of sales. Why? Because your team can make way more outbound calls than inbound calls, you will receive. If you only get ten inbound calls a day but make a hundred outbound calls, you might still get more total sales from outbound.
Operational Structure
The way you set up your team is different for each type of calling. For inbound, your team needs to be ready all the time. You never know when customers will call. You might get five calls in one hour and then zero calls for the next two hours.
Your team has to handle this unpredictable flow. You also need good systems to route calls to the right people. Someone calling about a broken product needs different help than someone calling to place a new order.
For outbound, your team needs a different setup.
- They need lists of people to call
- Scripts or talking points so everyone says similar things
- Ways to track who they have called and what happened
- Know the best times to call so they don’t bother people
The whole process is more planned out and organized.
Cost Structure
Both telemarketing require investment. Let’s see in which way and how much the costs are in the table below.
| Aspect | Inbound Telemarketing | Outbound Telemarketing |
| Phone Lines | Multiple lines are needed to handle simultaneous incoming calls. For approximately 10 to 15 lines, $300 to $500 per month | Multiple lines are needed for proactive dialing. For approximately 10 to 15 auto dialers, $400 to $600 per month |
| Staffing | 10 agents * $500 to $700 per month = $5000 to $7000 per month | 10 agents * $500 to $700 per month = $5000 to $7000 per month |
| Software | Call management software (routing, CMS) $200 to $400 per month. | Auto dialer and CRM cost $300 to $500 per month. |
| Advertising/Leads | Marketing spend to generate leads. $1,000 to $2,000 per month | The cost of buying/building call lists costs $1500 to $ 3000 per month |
| Training | $500 to $1000 one time per quarter | Sales or pitch training $800 to $1500, one time per quarter |
Note: the above cost table is an average or approximate estimate. It can be varied according to specific needs, pain points, or location.
Which Telemarketing Strategy Works Best for Your Business?
The big question is which one should you use. The answer depends on your business. Both types can work great. Some businesses do better with just inbound, some do better with just outbound. Many businesses use both together. Let’s figure out what makes sense for you.
When Inbound Works Best?
Inbound telemarketing shines in certain situations. Here is when you should focus on it.
- Your brand is already known: If people already know about your business, inbound works really well.
- You sell things people actively search for: Some products and services are items people look for on their own, such as insurance, plumbing repairs, tax help, and tech support.
- Your product needs explaining: Complex products work well with inbound calls.
- You get lots of web traffic: If your website gets tons of visitors, inbound calling makes sense.
- Customer service matters a lot: When your business succeeds by making customers super happy, inbound is perfect.
When Outbound Works Best?
Outbound telemarketing makes more sense in other situations. Here’s when you should do more outbound calling.
- You are starting something new: New businesses can’t just wait for the phone to ring, so it’s better to start dialing potential customers.
- You have a specific target market: Suppose you know exactly who needs your product, outbound works great.
- You are selling to other businesses: B2B sales often need outbound calling.
- Your market is slow: Maybe you sell something people only buy every few years. Outbound calling helps you find those rare moments when someone actually needs what you sell.
- You want to grow fast: If you want more customers right now, outbound calling gets results faster.
What is the Combined Strategy Option?
Smart businesses know that using both telemarketing and telesales in a call center gives them the best of both worlds.
Your team makes outbound calls to find new customers and start relationships. Some of those people become interested. They might not buy right away, but now they know about you. Later, when they are ready, they call you. That’s when inbound takes over and closes the sale.
You can also use outbound to support inbound. When someone calls with interest but doesn’t buy, your team can follow up with outbound calls later. You are checking in, answering new questions, and gently reminding them about your business.
Another good combo is using inbound for customers and outbound for new people. Your existing customers can call whenever they need help. That’s your inbound system working. Meanwhile, your outbound team is out finding new customers to add to the mix.
How To Choose the Right Telemarketing Approach
Making the right choice takes some thinking. Here are the steps to help you decide.
- Look at your budget
- Know your customers
- Check your competition
- Think about your product
- Consider your goals
- Test and learn
- Get the right tools
Many successful businesses use both approaches together. They balance the steady results of inbound with the growth potential of outbound.
Take time to think about your business needs. Look at your budget, your customers, and your goals. Start with one approach if you need to. Track your results and adjust as you learn. With the right telemarketing strategy, you will connect with more customers and grow your business.
Final Verdict
Inbound telemarketing is great when people already know about you, and they are actively looking for whatever it is that you sell. It’s cheaper per sale, and the conversion rate is better. But you can’t control the number of calls you get.
Outbound telemarketing is good if you find yourself needing to prospect and create demand for your product. It allows you to control volume and lets you dial in different segments of the market. But it is more expensive and takes more effort per sale.
Whether you are using inbound or outbound telemarketing, you will be able to grow your business. Neither is always superior to the other. There is no right answer, only the right decision for your particular situation.
FAQs
Is Inbound or Outbound Telemarketing More Effective?
Neither is universally better. It varies depending on your business and what it is you are trying to accomplish. Inbound is typically better converting because people already want to speak with you. But outbound can generate more total sales, since you control the number of calls. Neither has been proven to work better, and many businesses discover that a combination of the two is most effective.
What is the Main Difference Between Inbound and Outbound Telemarketing?
So the main difference here is who initiates the conversation. With inbound, customers are the first to dial your business. With outbound, your team is calling customers first.
Which Telemarketing Method Has Higher Conversions?
The conversion rates are generally higher for inbound telemarketing. Makes sense, because the customer intentionally called you, right? And they are interested in purchasing.
Should Small Businesses Use Outbound Telemarketing?
Yes, small businesses can use outbound telemarketing as well. It is not just large corporations that can employ outbound telemarketing. It’s particularly effective for locating your first customers if you’re new to business.
