For years, the phenomenon by which companies unexpectedly approach prospective clients has been an important form of business communication. It allows them to get a foot in the door and carry out invaluable market research.
It’s a common perception that telemarketing is unwanted and pressuring, but used effectively, it’s apowerful tool for bringing on board new clients.
The technique is widely used in the insurance, telecoms and banking industries, but how can businesses ensure they’re not using it irresponsibly?
Regulator OFCOM tells us the majority of the problem lies with abandoned and silent calls.
An abandoned call is one that ends when you pick up the receiver and, instead of a person, you’ll hear an information message.
With a silent call, there will just be silence as automatic machines have made several calls at once and more than one person picked up the receiver.
In September 2010, the government increased the fine available to OFCOM to tackle silent and abandoned calls from £50,000 to £2 million.
A West Midlands-based insurance company recently found this out the hard way - being fined £75,000 for exceeding the limit that businesses are allowed to make to consumers.
But does the internet and increased regulation really spell the end for the cold call?
In my opinion, no.
Telemarketing is an important part of the marketing mix for many companies. It’s cost effective, often with immediate results in an increasingly competitive market.
Who would have thought “junk mail” would have survived in this internet era? But still, every day leaflets drop through our door inviting us to learn of new businesses and services.
It seems there can be no substitute for simple, direct contact.
However, cold calling is just one element of a complete sales mix. It needs to be combined with advertising, PR and an online presence and strategy to ensure you open up to all would-be customers.
Surveys say that consumers are more inclined to listen to the message if the caller is personable, positive and not pushy.
Perhaps it is the 'cold' calling that is the problem - not the calling.