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Jun 27

Business Challenges in Economic Recession and Outsourcing

There are a variety of economic indicators hat suggest the US is entering a recession.  This poses challenges for businesses to maintain their existing and future revenue streams.  A business will generally review opportunities to reduce costs, including the elimination of personnel or reductions in their labor costs.  Often discretionary investments, such as advertisement and marketing promotion are also reduced as a short term savings until things “get better”.

Touching existing and potential customers is key during a period when a business is in competition with many others, all in survival mode trying to last out the recession.  (This recession period is normally a period of two quarters, assuming that the normal business cycle holds true to form.  It is more likely that this business cycle will be different in my opinion given the critical events that are taking place in the world today.  E.g., BREXIT, US presidential elections, China instability, potential military conflicts and central banks impotency and others.)

A business client base requires protection and leveraging during this recessionary period.  A business should be in constant contact to determine whether new business opportunities are available as well as to solicit potential new customer referrals.  Whether the client base is Business or Consumer, generally the same process should be used to “touch” and “mine” the client base.  The process may include a combination of  telemarketing, Email, social networking.  Likely this process will be performed by an outsourcing provider as part of the business reduction in labor costs rather than in-house.  The fastest and most direct is telemarketing since it provides an immediacy of impact and response with little filtering of the response.  As part of this telemarketing response is the opportunity to do a quick survey, drop a note of appreciation, request a referral and clean up the client list for other related followup marketing activities.

A business should have some idea as to the value of a new “sales lead”.  If not, the business should be able to respond to the general question of “How much would you pay for a new client, based on $XXXX revenue in the first year of the relationship?”   What is the conversion rate of sales leads during a reasonable period of time (e.g. 6 months)?  The math is not complicated to draw a conclusion to determine the level of investment required in telemarketing along with other marketing activities.

Nexus Teleservices would like to offer your business the means to generate new clients in an affordable, easy to understand, measurable process with limited risk.