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Telemarketing Response |
The telephone as a response device has two main uses:
When the audience member (the buyer) calls in, to a publicized number with a prefix: to 800-, 888- (for free calls) or to 900-, 976- (for calls charged to the caller).
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Most 800 numbers are simply good response devices for legitimate sales. Often, they are a cost-effective way for national franchises to inform customers about "their nearby dealer."
Clever variations are possible:when the tobacco industry spent over $50 million in mid-summer 1998 to fight against regulations, their TV ads urged viewers to call a free 800 number. A computer voice prompted the name and address information (for their mailing list). Then, using the ZIP code, the call was automatically transferred to the real office of the local congressman where the real secretary answered the phone.
900 numbers have a bad reputation because many fraudulent scams exist. Because so many of these frauds involve "phone sex" services, many do not get reported to the FTC because the embarrassed caller would rather pay the fraudulent bills than reveal their situation.
Many schemes are possible: TV viewers would call a free 800 number (e.g. a matchmaker, a dating service) and give information about themselves; later, their newly made "friends" would call back, collect, at $3.99 a minute. Much later, unauthorized phone charges would begin showing up as mystery charges on their monthly phone bills.
Since recent deregulation of the telephone billing system, thus far the frauds and rascals are ahead of the law. Be careful who you call!
- When the persuader (the seller)
calls a potential buyer, using a sales pitch, usually seeking an instant
response.
Although some legitimate companies use the telephone as a sales tool, today there are so many fraudulent "boiler room" operations and borderline cases that the whole industry deserves to be suspect.
A "boiler room" operation conjures up the image of a "fly by night" company which rents a huge hall, fills it with scores of part-time employees, who are paid on commission (by the number of sales made) and instructed with a planned "sales pitch." Such scripts contain suggestions how to counter any argument or hesitation by the potential buyer. The sales pitch usually has an "urgency" plea ("Act now... Last chance... Deadline... Now or never"), and sometimes a "pity" plea ("It's for a good cause.... I'm working my way through college")
Once a person responds to such sales tactics, they are put on a "sucker list" (their euphemism is an "opportunity seeker list") and will be called again and again, and their name and number sold off to other marketers.
The greedy and the gullible of any age are the target audience, but the elderly are especially vulnerable prey. (Contract laws, fortunately, protect children, the other vulnerable audience.)
Telemarketers (and their computer-generated phone calls and recorded messages) can be partially stopped after October 2003 by putting your phone number on the list at www.donotcall.gov However, charities and some business are exempt from the rule; how well this works won't be known until after the system is in place.