Today's question: With the FTC's do-not-call list in place for several years now, how available are telemarketing lists and how have they changed?
Our current panel features Jim Hall of All That Marketing; Matt Kaiser of Veradata; John Klein, a list consultant; Linda Santaite of DSA Direct; and Don Yaffe of Belardi/Ostroy. (Would you like to be considered to be a member of our roundtable? Contact Larry Riggs at larry.riggs@penton.com.)
Jim Hall, vice president, All That Marketing:
The universe of callable names has decreased in two ways. First, when the do-not-call list was implemented there were list owners that completely removed their list from the telemarketing arena. They did not want to have to worry about complying with the DNC laws. The second way it has decreased the universe is by the fact that the government is not doing a good job of keeping that file clean. This means that it has grown to an enormous size, probably much larger than needed. I will say from what I have seen there is still a market for telemarketers. The names they find to call do often respond well. An aggressive stance from the broker on negotiating net name arrangements with the list managers helps with the ability of telemarketers to continue using available lists.
Matt Kaiser, executive vice president, Veradata:
Do-not-call legislation has certainly affected the universe of available prospects to telemarketers. Though these lists are still readily available, we have seen a shift in the marketing mix from solely telemarketing to a greater reliance on e-mail and postal lists. It's more a function of social perception than legislative restrictions. Many companies who have permissible use are opting out of telemarketing as a primary means of solicitation because the practice has such a negative stigma. Telemarketing is (and I think will remain) more of a follow up communication method, rather than a sales channel.
John Klein, president, Klein Direct:
Since the DNC rules do not affect calls to businesses, or calls for charities, political organizations or telephone survey people, lists with phone numbers are still widely available for both consumer and business-to-business markets. The large consumer compiled files all have a large percentage of phone number available. Further, lists without phone numbers can always have the missing phone numbers appended.
The big issue, however, is that—except for the exemptions mentioned above—the proposed list of phone numbers must be matched against the National Do Not Call database and the phone numbers for DNC subscribers must be scrubbed or removed from the calling list.
Since roughly 80% of the US population has registered with the DNC, the quantities of phone numbers actually available for outbound calling are typically only one-fifth of any consumer list.
Linda Santaite, sales executive DSA Direct:
Telemarketing lists are still very available. In fact, I do a lot of business in the call center space. Initially the DNC list put a huge damper on names available to call on and names able to be sold. I think it has been in effect long enough now that my clients and list owners both know what to expect in terms of nets. The availability of Internet files with healthier quantities has allowed me to move enough names out of the gate where my clients can still net enough so both them and my list owners are satisfied. Cleansing and scrubbing techniques are vital to all Internet files as they ensure a higher contact rate. Personally I have seen a disconnect rate as low as 5% on my files.
Don Yaffe, senior account executive, Belardi/Ostroy:
The major difference is there are many fewer phone records available for companies to use. There are also important rules that have occurred. Unless your company has some type of existing relationship or someone asks for information you are not permitted to make unsolicited calls. Only individuals who didn't sign up for the DNC list are available for telemarketing and a special form must be filled out. The penalty can be as much as $11,000 if a company or individual doesn't follow the rules set up by the FTC. However these rules do not apply to fundraising or political organizations. The telemarketing rules that are in effect on the consumer side do not apply for business-to-business telemarketing.
