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The Launch Pad
October 2003

Telemarketing’s Rocky Future
As a consumer and as a small business owner, I am so happy that this day is here. The U.S. Do-Not-Call list is supposed to be effective October 1, 2003, and even with some pending court challenges, the essence of it goes into effect today. I think that this day should become a national holiday - to celebrate freedom from telemarketers and preservation of our right to privacy, and there are 50 million other people out there who would probably agree with me. No more interruptions of dinner. No more calls pitching unwanted business services when I’m waiting for an important call back from a client. Hallelujah, free at last.

I guess it’s pretty obvious what my position is on this issue. I think the Do Not Call list is a good thing. What does it mean for companies in terms of marketing? I believe it will have a big impact in many different areas. It will force companies to be more creative with their marketing campaigns. Marketing resources will have to be redirected into other areas, which may be more expensive (or perhaps cost less). More attention will have to be paid to customer relationship management. Companies will have to be careful about telephone contact with customers, to make sure it’s not perceived as telemarketing. Customers will demand more rights to privacy, extending it from the B2C world into the B2B world. In terms of marketing, all companies must rethink their telephone communications…from the entrepreneur to the Fortune 100.

Not the End, But You Can See It From Here
Telemarketing efforts won’t suddenly disappear. After all, the 50 million people in the U.S. who have registered their phone numbers so far represent less than 20% of the total population. That leaves a lot of phone numbers still on the list to call. However, the bigger issue is the trend. Everyone, including the government, was amazed at how many people signed up for this list over a relatively short period of time. People have had it in terms of their privacy being abused, which reflects a change in philosophy that should be a big neon flashing red flag to those who do telemarketing; the message is: respect our privacy and our time! Translation: use another channel to get the message out about your product or service. This channel is being turned off. Companies who don’t recognize this will eventually alienate more customers than they gain by continuing these practices. They may continue to dial for dollars, but at some point it will no longer be effective. My guess is that will happen within three years. In the meantime, companies need to rethink their policies on telemarketing.

Guilt by Association
The real issue for those of us in the marketing profession is to figure out how to distinguish ourselves from “unscrupulous telemarketers”. In other words, does a telephone call made by a marketing person equal a telemarketer? True telemarketing is a large group of people engaged in making phone calls from massive lists of phone numbers, which may be purchased or generated by the company. These lists are compiled demographically, and may or may not be pre-screened. Not all companies use this approach, but may have their marketing and sales people contacting qualified leads by phone. These qualified leads may come from a trade show, from a private database, from market research, or from the Internet. Does that constitute telemarketing? Companies must revisit this issue and perhaps modify their marketing and sales processes, in the interest of respecting their potential customers’ privacy.

From Adversity comes Opportunity
Telemarketing’s time may be nearly over, but that doesn’t spell the end of marketing in general. This crisis might create a whole new way of finding new customers. Rather than random calling to vast lists of names on a mass scale, more market research can be done instead to target customers on a more personalized, individual level using the right channel for that person. It represents a return to thorough market research, and customized marketing campaigns. New channels for reaching potential customers will have to be developed, but the good news is that today we have more ways to communicate information than ever before. In other words, it represents an opportunity to return to sound marketing practices again.

Changing Channels
For all of you telemarketers out there, please don’t turn around and become spammers! Noooooooo. I predict that very soon there will be similar restrictions on email communication, if a method of enforcement can be devised. Let’s not even go there. So, what other communication channels are available? Advertising. Websites. Articles in trade journals. Events. Conferences. Public Relations. Networking with customers. Referrals. Rather than making an impersonal, unwanted phone call, it means developing a customer relationship first before making a sales pitch. It’s a time to be creative and to return to the basics: studying your customers, learning their behaviors, getting them information to make a decision, letting them make their own buying decisions, and providing the highest levels of customer support after the sale.

What do you think will happen with telemarketing?
Here’s your chance to weigh in on this issue. Send me an email with your views on the future of telemarketing and ideas on what companies can do to address this issue. I’ll post responses in the next edition of The Launch Pad. Send your responses to: ckitcho@launchdoctor.com

The Quick and Quirky Example will return next month.
Happy October!

Catherine Kitcho
The Launch Doctor