Consumers have always hated getting calls in the middle of dinner. Now some Northwestern marketing experts say it’s not good for business either.
Since the National Do Not Call Registry took effect last week, many businesses have begun to look for more effective marketing techniques.
Although the do-not-call list initially raised the ire of telemarketers, some say the restrictions will ultimately be good for business.
“From a marketing point of view and a public relations point of view, I think it’s good for the industry,” said Prof. Clarke Caywood of the Integrated Marketing Communications program. “It’s a business that has created a rash on the rest of the industry.”
More than 52 million numbers already have been registered on the list. Caywood said the overwhelming demand shows how irritated people have become with telemarketing.
“If we could get that many people to respond that quickly for voting, we would have a real democracy,” Caywood said. “The public has spoken.”
Caywood said telemarketing once was a useful tool, but its effect was dulled once telemarketing calls reached a critical mass.
“Telemarketers have committed the ultimate sin: They overused it,” Caywood said. “If they had been more moderate in the use of this channel, this channel might still be open.”
On Oct. 7 the 10th U.S. Circuit Court of Appeals ruled that the do-not-call list could be implemented while its legality is under appeal. Telemarketers cannot call numbers on the list, but exceptions exist for political organizations, charities, telephone surveys and companies that have existing business relationships with the consumers.
The American Teleservices Association issued a statement over the summer claiming the list would eliminate 2 million jobs in the United States. They have appealed the latest decision but asked their members to abide by the list while it is under appeal.
Caywood says telemarketing businesses will have to adjust to a reduced demand for their services.
“They’re going to have to find other customers for these services,” Caywood said. “They’ll have to learn to do more customer-service calls or start making calls for politicians.”
Caywood says the future is in “permission marketing,” where customers agree to receive information from a company. This technique is often used on the Internet when consumers sign up for e-mail newsletters.
Many area businesses already have begun to move away from telemarketing. Patty Wetli, communications manager for the Chicago Tribune, said the Tribune has been reducing its reliance on telemarketing over the last several years.
“It has already become less of a tool for a couple of reasons,” she said. “We’d noticed consumer resistance. And we’re moving to more profitable channels such as direct mail.”
Wetli said the Tribune also markets itself at events such as the Taste of Chicago and won’t be harmed by the list.
“This is something we’ve already been set up for,” she said.
Pioneer Press Newspapers, which publishes the Evanston Review, has taken a similar path. John Zur, telemarketing director at Pioneer Press, said the company will have no problem complying with the list. But Zur did raise concerns about the fairness of the law.
“It’s interesting that politicians excluded themselves,” he said. “That doesn’t seem to be a level playing field.”
James Speta, a professor at the Northwestern Law School, said the exceptions may make the law unconstitutional.
“I think there’s a substantial First Amendment argument,” he said. “It creates a legal structure that restricts speech based on content.”
Speta said there would be no question of constitutionality if not for the exceptions.
“You’re bothered at home either way,” he said. “You’re interrupted during dinner no matter who’s calling.”
Do-not-call list basics
* To register a number or file a complaint call 888-382-1222.
* Telemarketers from the U.S. and overseas are prohibited from calling numbers on the list.
* Political organizations, charities, telephone surveyors and companies with which you have an existing business relationship are exempt.
* Numbers are registered on the list immediately, but telemarketers are allowed up to three months to remove the number from their call list.
* Violators can be fined $11,000 per incident for calling a number on the list.
* For more information visit www.donotcall.gov.