±±¾©Èü³µpk10

For automotive brands, such as Nissan, Audi, Land Rover and Fiat, the telephone is also a highly effective communication channel. Contact and fulfilment centre Ion Group specialises in the automotive sector and carries out outbound communication programmes that range from prospecting through to loyalty and retention. "You need a dialogue, not a monologue, to build a relationship and the phone is the only channel that offers a real mechanism for understanding what the customer needs," says Graham Ede, managing director of Ion Group.

These examples of how two very different sectors are harnessing the full potential of telemarketing are a timely reminder of just how effective this channel can be. It is a fact that could be easily forgotten given the tide of negative publicity that has been heaped upon the industry this year.

Of course, there is no shying away from the fact that Telephone Preference Service (TPS) registrations are stacking up thick and fast; that BT's promotion of its privacy service has contributed to the negative light in which many people view telemarketing; that silent calls are a genuine menace which need tackling fast; and that the offshore trend is still having an impact on the sector.

But looking ahead to 2006, there is plenty to be positive about and evidence that some of the issues plaguing the industry are being tackled. One definite trend is the receding threat of offshore contact centres. In October it was reported that high-street bank Abbey was shutting down its call centre in India and bringing 1,000 jobs back to the UK after complaints from customers.

Some believe that this move could be the first of many such reversals back to the UK. "Companies are now beginning to realise the implications of off-shoring," comments Natalie Calvert, managing director of customer management consultancy Calcom Group. "Phone success is not about cost savings it's about the customer experience. Abbey is a prime example of consumers wielding their power and showing their preferences."

Interestingly, NatWest is making customer service key to its current advertising strategy, proudly declaring on its posters and web site that it has no offshore call centres and no anonymous banking staff. Customer service is coming to the fore and with that the recognition that offshore contact centres can be detrimental to the brand experience.

However, Calvert adds that offshore has its place for some processes.

"In the longer term, cheaper offshore facilities will be a bridge to the web, focusing on lower-level customer service operations, such as transactions and balance checks, until we fully migrate to the internet," she says.

But just as offshore falls off the radar as the industry's main vexation, something else replaces it - silent calls. Research conducted by Brookmead Consulting on behalf of the DMA earlier this year revealed that 53 per cent of the population was caused unacceptable inconvenience or anxiety by silent calls. It is already well known that silent calls are a key driver of TPS registration. Eliminate the problem of silent calls and there is a good chance that TPS registrations, which currently top 10 million, will begin to slow down.

The good news is that some progress is being made. Ofcom has recently announced a new series of measures to take action against silent calls following its investigation into seven companies accused of generating an unacceptably high number of silent calls (see box, page 51).

This, explains Robert Dirskovski, head of interactive media at the DMA, provides some much-needed clarity around the area of silent calls. "Previously there was no guidance," he says. "For a long time we have wanted the regulator to demonstrate that it does have teeth. This will send out a clear message to the industry that it has to get this right or Ofcom will come down on it."

The DMA is not alone in wanting Ofcom to act. At one of the keynote sessions at Call Centre Expo this September an expert panel, including David Stuart from Ofcom and MP John Hemming, debated if silent calls really do sound the death knell for outbound telemarketing. During the debate, Hemming - who had already challenged Ofcom to ban silent calls during Prime Minister's Questions in June - repeated that it was time for Ofcom to issue a stern warning to the industry.

Add to that the announcement by Alan Johnson, secretary of state for trade and industry, at the party conference this year, that "we will increase ten-fold the fines on companies that plague consumers and terrify vulnerable pensioners with silent calls" and it is clear that pressure is mounting on the industry. Indeed, Ofcom has only recently asked the government to increase the maximum penalty it can impose from £5,000 to £50,000 for breach of the rules.

Tougher fines and a more forceful regulator certainly seem to be in the pipeline, and this can only be a good thing. In the meantime, the DMA is championing the introduction of an automated recorded message, which would reassure the recipient of a silent call by giving the details of the caller. The DMA is looking to incorporate this into its code of practice, although Dirskovski stresses that this should not be a green light for everyone to simply replace the silent call with a recorded message.

Contact centre solution provider Amcat is one company to have got behind the initiative. In Canada and the US, a non-commercial recorded message - or informational message, as Amcat calls it - is already a legal requirement for telemarketing campaigns. "The adoption of an informational message, alongside a responsible drop rate, virtually wipes out the silent call," says Dudley Larus, vice president for marketing at Amcat. He adds that the Amcat technology already carries the functionality to carry an informational message, making it simple for users to implement.

For its part Amcat is embarking on a "Smart Call" training programme for users of its technology, which will focus on educating this audience on how take advantage of tools such as informational messaging and CLI (caller line identity).

Another new initiative from UK Data IT is the provision of its Silent Call File free of charge. This is a database of consumers who have complained about silent calls to BT, Telewest and NTL and stands at more than 900,000 registrants. "We are prepared to give this list to predictive dialler users to screen calls free of charge in a bid to try and slow down TPS registrations and the number of calls being delivered," says Robert Keitch, marketing manager at UK Data IT.

But, of course, silent calls should not take all the blame for customer dissatisfaction with outbound telemarketing. Customers are equally as irked if they receive irrelevant, poorly handled calls - and with good reason. The telephone is one of the most potentially intrusive contact channels a company can use and should be handled very carefully.

"Blanket cold-calling is simply bad business. For it to work, telemarketing has to be part of an integrated mix with other media, such as direct mail, and be part of the overall customer relationship," says Calvert.

Ion Group's work with car companies is a good case in point and a good model for companies looking to get the best from their contact centre strategy in 2006 and beyond. "We deal with the whole customer journey and at every point there are different contact strategies which come into play, including the phone, mail, SMS and email," says Ede. "It is about keeping the customer as involved with the brand as possible."

In this respect, the telephone has a very important role to play. Customers receive a welcome call once they have bought a car and over the period of ownership contact is made at various points. Importantly, at the end of each call, the caller checks that the customer is happy to receive further calls. This overrides any possible TPS registration and the rapport is kept open. "We try to encourage people to keep talking. Customers opt in to the next stage of the process," adds Ede.

This targeted, permission-based approach seems to be gaining momentum.

Rachel Robinson, business development director at MM Teleperformance, says the company is receiving high levels of interest in its Model Office product. This involves taking a totally fresh look at a company's communication strategy and testing different approaches over a sustained period.

"We want to take companies back to basics and get rid of some of the baggage around the way they might have usually worked," explains Robinson.

"It is a fairly intensive process and often involves moving away from mass, outbound calling."

She adds that the MM Teleperformance has received more interest in Model Office in the past six months than any other of its services.

This shows that companies are questioning their existing practices and prepared to test new approaches.

Dirskovski endorses the need to return to basics. "We argue that it is not about the quantity of calls but the quality. You have to make the customer feel they have enjoyed the experience.

Making calls welcome is indeed the challenge the industry faces. If it can crack this, as well as the scourge of silent calls, then the increases to the TPS file this year may be a thing of the past.

CASE STUDY: VOLVO UK CARS

This Volvo campaign picked up the telemarketing award at the Direct Response Intelligence Awards and demonstrates a responsible, targeted and highly effective outbound lead-generation programme.

The aim of the activity was to drive fleet purchases by building relationships primarily with fleet managers.

Working with Volvo's agency EHS Brann, the first step for contact centre MM Teleperformance was to recruit people who had an interest in cars.

Agents underwent a six-week product training course which included use of the latest Volvo models so they could talk confidently to prospects about the brand.

The outbound campaign was part of an integrated campaign targeting fleet managers which included direct mail and email. Data ranged from cold lists to warm data, where the fleet manager had already registered an interest.

A scoring model determined what sort of contact would be appropriate based on around 50 factors, such as industry sector, propensity to purchase and current employee benefits packages.

The aim of the outbound campaign was to generate appointments for Volvo's dealers by establishing key information, such as when the company's fleet arrangement was up for renewal. The agents maintained regular contact and qualified leads were loaded onto an intranet site and allocated to a specific dealer.

"We pass so much information to the dealer that it is a very warm opportunity," says Rachel Robinson, business development director at MM Teleperformance.

"We also produce reports for Volvo's direct marketing department which detail how quickly the dealers responded to the lead and what the outcome was."

Over the course of last year, the project broke all forecasts with more than 1,660 qualified leads generated and 1,500 appointments made.

OFCOM'S NEW POLICY ON SILENT CALLS

In the past month Ofcom has amended its policy on persistent misuse of electronic networks or services to combat the problem of silent calls.

The revised policy sets out a number of requirements which include the following:

- Any abandoned calls must carry a recorded information message which identifies the source of the call and offers the person called an opportunity to decline further calls from that source.

- Calling line identification (CLI) must be presented on all outbound calls from call centres using automated calling systems. CLI allows people to dial 1471 and access the telephone number of the person or organisation calling them.

- Telephone numbers which are dialled and then abandoned should not be called again by that organisation's automated calling system for at least 72 hours, unless a dedicated operator is available to take the call.

- Abandoned call rates must be below three per cent of total calls for any 24-hour period for each campaign. This is a lower threshold than existing published industry codes which require a five per cent limit, and is intended to require operators to manage their systems more effectively.

- Records must be kept to demonstrate compliance with these requirements.