2006 Telemarketing Report
Part of telemarketing’s success is that it’s very hard to just hang up on somebody.
2006 Telemarketing Report
Wednesday, September 27, 2006
By Kristina Joukhadar
Part of telemarketing's success is that it’s very hard to just hang up on somebody.
For the past several years—at least since the advent of the National Do Not Call List (DNC)—circulators have said that b-to-b titles make more use of telemarketing than consumer magazines. After all, b-to-bs are protected by the FCC's definition of a previously existing business relationship and are legally allowed to call their present and previous customers, going back 18 months, right?
But this assessment is incomplete. Consumer magazines are also permitted to call consumers with whom they had a previous relationship over the past 18 months, even if the names are currently on the DNC list. This is not specific to b-to-b.
The biggest difference CM has found this year between consumer and b-to-b use of telemarketing seems to rest more in companies' willingness to speak with the press about their use of this source. Apparently everyone knows that b-to-b publishers make thorough use of the telephones in their qualifications and renewals; but in consumer magazines, since many of the telemarketing programs represent a competitive advantage for the publisher, it's harder to get people to talk.
Telemarketing vs. Email in B-to-B
On the b-to-b side, the use of telemarketing is generally focused on the end of the renewal cycle, at the point when less expensive sources—like email—have been exhausted. "Telemarketing is typically our most expensive source," says Eric Rutter, VP controlled circulation, Reed Business Information, "but it works. Response rates can be as high as 60 to 70 percent, depending on a number of variables."
Rutter clarifies that most b-to-b circulators start their efforts with email, in order to retain as many subscribers as possible for the lowest possible cost. As the audit cycle progresses, other sources, such as cover wraps, faxes and, in some cases, direct mail are used. After those efforts are complete, circulators begin their telemarketing efforts.
"The effectiveness of telemarketing can in part be attributed to the human element," says Rutter. "While email can easily end up in the delete file, it's difficult to hang up on someone." Consequently, telemarketing pulls a very high response rate relative to the other sources.
On the other hand, says Rutter, the human element also creates problems during telemarketing, as the misinterpretations and other nuances of conversation can adversely affect quality. Recognizing this issue, Reed has made significant investments to ensure that call quality is up to company standards. Remarks Rutter, "with BPA's new call recording requirement on the horizon, call quality is of major importance."
Use of Telemarketing for Consumer Titles
"Since the implementation of the DNC list, it's been difficult to acquire new subs," says Debbie Dawson, VP publisher services, DialAmerica Marketing, Inc. She says the business has been dramatically changing for telemarketing agents—the callable universe of names has dwindled in size, resulting in fewer orders and lower list performance. "The folks on the DNC list are the customers with some of the highest conversion rates and the best pay-up," she says. "And whereas previously you could go back two to three years for dead expires, now you can only go back 18 months." The other problem is that not all the states define an existing business relationship the same way. For example, you can't call New Jersey expires.
Dawson says that one of their most successful new business programs—which involves charitable contributions—is currently under discussion with the FTC. But in the meantime, she says they are making up the difference with their renewal business and the dead expire promotions.
Despite the difficulties facing the industry, the renewal programs and rates haven't really been affected, she says.
Telemarketing Technology Today
Along with Web-enablement of applications in general, and the real-time reporting they provide, come some interesting teleservices. The two presented here are by no means exhaustive, but they do appear to be cutting edge.
"Say it. Send it. Track it," is the motto of software company Vontoo. Justine magazine is using Vontoo's online system to send voice messages to its audience of teenage girls who opt into the service. Messages include the voice of the personality appearing on issue's cover as it hits the newsstand or a "teaser" for an upcoming story.
The Vontoo Web interface makes it possible for clients to set up their own schedules, segmented lists with different messages, and other customized options.
Automated teleservices company SoundBite specializes in sending prerecorded messages to consumers with whom the client has a pre-existing business relationship. This includes customer relationships going back up to 18 months, as well as a prospective customer definition, which allows telephone contact with a potential customer for three months after they make initial contact with the company.
The system provides personalized prerecorded messages to targeted customer demographics, which can range from a simple message, an alert reminder, notification, or a more complex interaction—for example a message that drives the customer to a voice response system for a survey, transaction, new credit card information or expiration date, or into a customer call center to speak with a live agent.
The Web interface contains a management system where scripts, procedures and time zone management can be specified, updated and tracked.