Marketing Alternatives
To The New Do Not Call Legislation
What’s the ROI on your campaign? Which offer was more effective? Which target segment delivered higher results? As of September 30th, 2008, marketers will now have to ask themselves which alternative media strategies should they implement to replace or supplement outbound telemarketing calls to reach their target audience while respecting the new laws and regulations. In fact, the Canadian Radio-Television Commission (CRTC) is launching an expanded National Do Not Call List mandate beginning September 30th, aimed at protecting the privacy of consumers from certain types of unwanted marketing solicitations and the new legislation poses a number of significant responsibilities as well as business challenges to marketers. The good news is that alternatives exist and they deliver results.
What should you expect?
More than 60 million U.S. consumers (38.2% of households) registered when similar Do Not Call (DNC) legislation was introduced in 2003. The legislation substantially reduced the prospecting ability of companies relying on telemarketing and many were caught unprepared. Enforcement was and remains strict, with violators paying stiff penalties for non-conformance.
“The Demographics of the Do-Not-Call List,” a study conducted by the IEEE Computer Society, reveals the following demographic characteristics of those registering in the U.S. since the DNC enactment:
- The higher the average household income and education level, the higher the sign-up rate
- Young households have low participation while senior citizens register at a high rate
- Two- and four-person households had high sign-up rates; larger households had lower rates
- Internet access is not a good predictor of sign-up frequencies
In summary, there is no reason to expect that Canadian patterns will not follow U.S. patterns, with the reduction of higher income households posing a particularly challenging obstacle to telemarketing efforts. The result could be a contraction of telemarketing opportunity to reach your preferred targeted market with potential lost sales totaling in the billions of dollars. The U.S. experienced a shift of approximately 35% of telemarketing spending to direct marketing, and many Canadian industry authorities anticipate a similar shift.
What should you do?
There are a variety of marketing channels that companies can leverage to reach buyers that may be as effective as telemarketing, if not more so. Marketers often experience a five-fold increase or more in response and conversion rates from personalized promotions. When personalized print, email, web and telemarketing are combined in carefully orchestrated multichannel campaigns, the results are even greater.
The new National Do Not Call List could also further drive adoption of the trend for marketers to focus on expanding relationships with existing customers—always the best source of incremental business—rather than focusing solely on new relationships. Using customer data more effectively by personalizing communications, targeting messages and coordinating communication channels helps drive consumer interest in your message.
What are some survival strategies?
Here are actions that will help you thrive in this rapidly changing marketplace:
- Invest in customer data. Learn which customers and prospects will be most receptive to your offers and concentrate your resources on that group.
- Build “opt-in” lists. With consumers rebelling against unwanted solicitations, organizations that can develop their own opt-in lists, or use qualified industry opt-in resources, will gain an advantage over those that don’t.
- Personalize communications. Relevance is everything, with research consistently indicating that recipients prefer personalized communications by a significant margin. You’ll see the difference in response rates as well.
- Leverage multiple channels. Design and execute new marketing campaigns that integrate a full range of marketing channels—personalized direct mail, permission-based email and Internet technologies can harmonize to dramatically increase marketing ROI.
- Find the right partners. Personalized, multichannel campaigns can be a challenge for organizations that do not currently have the technology or process infrastructure. Seek service providers that can help you transition to new and more effective solutions.
Proven Marketing Solutions
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1. Database marketing
The age of relevance and the advent of mandates such as the Do Not Call List actually underscore the fact that consumers do not mind advertising. They simply hate irrelevant disruption. But it takes effective segmentation and targeting to reach the right person… with the right offer… at the right time… through the right medium… using the right communication. Transcontinental Database Marketing offers a full range of services designed to help you understand your consumers and develop strategies to acquire profitable new customers and grow business from existing clients. Through database analytics and segmentation analysis, they are experts at helping consumer marketers increase purchasing frequency and spend levels by improving cross-sales and other purchasing behaviours. They also perform thorough measurement tracking and analysis helping you turn information into profits and get solutions to your questions, such as:
- How can I increase my response rates?
- Why can’t I get accurate and timely reporting?
- What can I do to lower my customer acquisition costs?
- Who are my best customers?
- Where can I find my best prospects?
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2. Creative direct mail solutions
Combining the power of personalized digital printing with multichannel offering, direct mail is proving more than ever as one as the best tactic to get a response from consumer - driving to web, to call back, to buy or to stores. Transcontinental Yorkville-O’Keefe, Transcontinental Direct Montréal and Transcontinental PLM Group offer comprehensive, integrated solutions that deliver personal, targeted and results-driven print communications including:
- Creative, innovative and impactful self-mailers with many unique features
- 1:1 marketing with 4-colour digital printing for personalizing colour images and content to each recipient
- Large volume, addressed retention or acquisition mailings
- Web-to-print solutions
Get inspired with Transcontinental Idea Book Online, which shows examples of outstanding brand building direct mail pieces along with supporting facts and figures from the campaigns.
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3. Permission-based email marketing
Permission-based email marketing offers an excellent vehicle for telemarketers looking to make tactical transitions that engage customers and prospects. One of the main advantages of web-based marketing campaigns is that it allows you to centrally monitor communications and customer responses in real-time. Your marketing staff can easily determine the effectiveness of campaigns and optimize them in real-time based on formatting or messaging that proves effective. They can also track expenditures on marketing more easily with the sales generated from specific campaigns, providing ROI data. ThinData offers a sophisticated, secure email deployment system that can create and send rich, targeted emails to your customers. As Canada’s leading permission-based marketing company, they can also help you establish and manage measurable e-relationships and campaigns. Their services include email strategy, email creative and proprietary, industry-leading email marketing software—ThinData EMS™.
The New Do Not Call legislation From CRTC
As of September 30th, 2008, consumers will be able to register for the National Do Not Call List by calling a toll-free number or signing up over the Internet. Registrations can include home telephone, fax and cell phone numbers and remain in effect for three years. Once in place, telemarketers will have a 31-day grace period to refrain from contacting anyone who registers. Violation penalties are significant—up to $15,000 per incident.
To avoid violations, telemarketers will need to subscribe to the National Do Not Call List, pay all applicable charges and retain proof of subscription for three years. Other important points include:
- Managing and maintaining internal Do Not Call Lists
- Implementing written policies and procedures that comply with the Unsolicited Telecommunication rules applicable to telemarketing
- Providing adequate and ongoing employee training
- Monitoring and enforcing internal compliance
- Respecting established call curfews
- Refreshing calling lists at least every 31 days
- Ensuring that all telemarketing via voice casting adheres to the Do Not Call framework
- Identifying the telemarketer and displaying a local or toll-free number in the Calling Line ID where a consumer can call with questions, comments or complaints
- Providing a toll-free number where consumers can call to verify a request to be added to an organization’s internal Do Not Call list
What about the existing Do Not Call program?
The current Do Not Call program sponsored by the Canadian Marketing Association (CMA) will be phased out over a three-year period. For the first year, marketers will have to merge and purge their lists against the CRTC list and the CMA list.
Is anyone exempt?
The National Do Not Call List applies only to consumers, so those engaging purely in business-to-business calls are exempt. Other exemptions include:
- Businesses telemarketing to consumers where a past business relationship—a purchase of a product or service within the last 18 months— exists
- Registered charities
- Public opinion surveys and market research surveys, provided the call does not include a solicitation
- Political parties as well as nomination contestants, leadership contestants or candidates of a political party
- General circulation newspapers for the purpose of selling a subscription
Nonetheless, even exempt callers must maintain internal suppressions lists.
October 20 - CRTC Announces Review of Telemarketing Rules*:
The Canadian Radio-television and Telecommunications Commission (CRTC) announced that it is reviewing three requirements associated with the new Unsolicited Telecommunications Rules.
The changes being considered by the CRTC include:
- Allowing consumers to register their phone number permanently with the National DNC List.
- Harmonizing the CRTC rules governing the use of automatic dialing and announcing devices, which dial telephone numbers automatically and deliver pre-recorded messages, with legislation in some provinces that provide for different restrictions on calling hours.
- A clearer exemption from the National DNCL rules for calls made by or on behalf of electoral candidates where the individual is not a member of a registered political party.
*Source: CMA Member Bulletin – October 20, 2008 – No. 249
May 15 - All commercial calls now affected by Do Not Call:
The Canadian Radio-Television and Telecommunications Commission (CRTC) recently announced modifications to the Unsolicited Telemarketing Rules, which includes the National Do Not Call List. While the National Do Not Call List still applies only to consumer calls, exempt companies must still subscribe to and maintain an internal Do Not Call list.
How will the new Telemarketing Rules affect you?
Two requirements associated with the Unsolicited Telemarketing Rules were modified and apply to all organisations engaged in telemarketing:
- The rule governing automatic dialing announcing devices, which dial telephone numbers automatically and deliver prerecorded messages, has been repealed. This means that provincial curfews on calling hours will now be upheld over those of the CRTC, allowing you to benefit whenever the provincial legislation is less restrictive.
- Calls made by or on behalf of electoral candidates not affiliated with a registered political party are exempt from the National Do Not Call List.
How are business-to-business calls affected?
Although exempt from the Do Not Call Legislation, business-to-business calls are subject to the Unsolicited Telemarketing Rules. As such, all marketers, including those conducting prospecting calls, are affected by recent changes to the Rules:
- All companies engaged in telemarketing must apply to the CRTC for an identification number. If a third-party conducts the calls on your behalf, they must request your identification number.
- All companies must maintain an Internal Do Not Call list and ensure that they do not contact businesses or individuals at businesses that have asked to be removed from their List.
- All companies must maintain a record of their telemarketing activities, including names, phone numbers, and time of contact. They must be able to provide this information to the CRTC if requested.
- Calling restrictions apply equally to business-to-business and consumer calls. Companies may conduct calls between 9 a.m. and 9:30 p.m. on weekdays, and between10 a.m. and 6 p.m. on weekends.
- Companies that do not comply with the rules are subject to strict fines - $15,000 per call for every complaint against an organization or $1,500 per call for each complaint against an individual.
What about the new National Do Not Call List?
Registered telephone numbers, which can include home telephone, fax and cell phones, will remain on the list for five years instead of three. The CRTC has decided against making registrations permanent for now. This was due to the problem of removing disconnected or reassigned phone numbers.
The possibility of a permanent list has not been definitively ruled out. A stakeholder committee will be set up to consider potential list cleaning options, with a recommendation expected by April 2010. Of particular concern, is the fact that an effective list-cleansing process could cost millions of dollars, which may end up being the responsibility of organisations that rely on telemarketing.
Chronology of Do Not Call
DATES |
FACTS |
September 30 |
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October 1 |
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October 2 |
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October 9 |
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October 21 |
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October 28 |
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May 2009 |
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In October 2011 |
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