Cold calling is so yesterday

From May 2007, Australian householders have the power to ban cold calls to their homes. 

The Do Not Call Register will mean that not only will it be a waste of time to contact people on the Register, it will be against the law.

The Do Not Call Register has serious implications for call centre managers.  They may face civil penalties and the courts can impose fines ranging from $1,100 to $1.1 million for each breach of this law.

Call centres in the UK reveal their outbound calls have been steadily declining and are now down to 29.1% from 32.9% in 2005.  The UK version of the Do Not Call Register has had a huge impact.  According to ContactBabel, “UK Contact Centres in 2007: The State of the Industry,” more than half of UK households are opting out of receiving calls.

For the first time on record, the number of outbound calls for the year declined.  The tide has turned.

Managers will need to rethink their strategies for achieving their targets.  New forms of communication will be required, enticing the consumer to become an inbound caller.

Outbound calls will still have a role to perform, but only after consent has been gained.  Follow up service calls can build on an established relationship and keep the product or brand top of mind.

Managers need to make the most of every inbound call.  Have a script ready to not only service the customer but gather as much information as possible.  Agents need to record email addresses, mobile phone numbers, web site URLs and any information they can gather from relevant open ended questions.

Such database building is where the future lies.  Companies need to create the hook that generates customer interest and contact.  Once contact is made the database grows and helps build the foundation for an ongoing relationship.

Companies that are considering off-shoring to escape the Do Not Call Register should think again.  Research in the UK shows 7.3% of customers are likely to actually change supplier if they are contacted by a company represented by an off-shore call centre.  Such a shift of customer loyalty would add up quickly and negate the offshoring savings.

It seems that during 2006, several high profile UK companies actually moved their call centre operations back to the UK.  Banks, insurance firms and large telecommunications companies have decided even a shift of 1% is too costly to risk.

The principal analyst at the research firm ContactBabel, Steve Morrell says, "Cold calling is increasingly seen as old-fashioned, expensive and potentially damaging to a company's reputation. Legislation at a national and European level has reduced the number of unwanted sales calls that UK consumers receive."

Despite all the upheaval, the UK call centre industry grew by 6% last year.  Australian managers should take note.  Call centre growth is still possible despite the Do Not Call Register and lure of offshore savings.  The home grown product will have to adapt but maintain a focus on superior customer service and value.