What exactly about tele-marketing makes "business sense"?

Discussion in 'Archived Threads 2001-2004' started by Dome Vongvises, Feb 8, 2003.

  1. Dome Vongvises

    Dome Vongvises Lead Actor

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    Why do credit card and phone companies keep insisting on using tele-marketing?

    I may live in my own little microcosm, but if there was a consensus, everbody hates tele-marketing. We hang up on these people, play mean tricks like play high-pitched signals into the earpiece, or just shout their ears off.

    IMHO, companies are wasting money hiring people for this practice and wasting our time in doing so. I mean seriously, do companies use some sort of weird f**cked up statistical analysis to justify tele-marketing?

    Company Jerk #1: "Wow, due to our expansion into tele-marketing, we've upped sales of Product X by 100%!!!"

    [​IMG]

    Sorry I had to ask. This is one of several questions that bug me everyday.
     
  2. ThomasC

    ThomasC Lead Actor

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    No idea. Here are a few lines from Seinfeld on the subject:

    Telemarketer: Hi. Would you be interested in switching over to TMI Long Distance service?
    Jerry: Oh, gee, I can't talk right now. Why don't you give me your home number and I'll call you later.
    Telemarketer: Uh, sorry, we're not allowed to do that.
    Jerry: Oh, I guess you don't want people calling you at home.
    Telemarketer: No.
    Jerry: Well, now you know how I feel.

    [​IMG]
     
  3. Kevin P

    Kevin P Screenwriter

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    I'm guessing there are enough gullible induhviduals out there who actually fall for the telemarketers. Just like spam, as long as someone falls for the (choose body part here) enlargement technique, people will continue to spam it.
     
  4. Jesse Skeen

    Jesse Skeen Producer

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    I got called about 5 times in 2 weeks by MCI trying to get me to switch to their long-distance service. Each time they called was early in the morning when I was still asleep, so a couple times I said that because they woke me up, I would never do business with MCI. They still called after that, so last time I just said "Fuck you" and hung up- they haven't called again since [​IMG]
     
  5. Jefferson

    Jefferson Supporting Actor

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    I totally agree with you.

    Hell, my deceased mother still gets phone calls from
    telemarketers.

    How about when you answer, and you can hear an operator on the other end, who doesn't realize you are connected, and is talking to his/her coworker....chitchatting away.

    These calls only anger me toward the company invloved,

    I have gotten calls offering me a service that I know good and well is not even available in my area....stupid.

    Or, when AT and T wanted me to switch back....
    I already HAD.

    Idiots.
     
  6. MickeS

    MickeS Producer

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    I've been wondering the same thing. I have never bought anything from a telemarketer, and I don't know anyone who has. I mean, there must be a thousand unsuccesful calls for every successful one. It makes zero business sense to me, except for the telemarketing companies of course. I'm sure they're able to concoct some weird statistics proving that they're 3.76% more effective than some other form of marketing, and 6.43% cheaper, or something like that...

    I especially hate one we've gotten lately, that's actually just a recording... it starts like this "Hi, I'm Mr Johnson from the loan company..." that's all I've heard, I hang up after that. I mean, who the hell would even bother listening to a RECORDING and become interested in a product?

    I'm not too bothered by them anymore though, I say "Hello?" and if there's not answer within 2 seconds I know it's a telemarketer and I just hang up. If it's someone who really wants to reach me they'll call again.

    /Mike
     
  7. Kyle McKnight

    Kyle McKnight Cinematographer

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    I hate them. I'm a full supporter of the "do-not-call" and "do-not-email" lists.

    My high-school Government teacher told me one thing she did to someone calling trying to sell magazines. She talked to the person for slightly over an hour, eventually agreeing to five magazine subscriptions. Before she gave her credit card information, when the person asked if she had any more questions, she asked "Are they available in brail, because I'm blind?". She said the person was speechless, until he finally said "no, sorry" and hung up the phone.
     
  8. Marshall W. Carter

    Marshall W. Carter Stunt Coordinator

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    Actually, the conversation with your teacher was probably the most productive thing that telemarketer did all day. Once upon a time I actually had the job (for 5 months, worst PoC job I've ever had, and let's just say I've had some piss-poor ones) through a major credit card, and let's just say that for ever one successful "sale" (in this case, credit card balance transfer), you'd make roughly 200 calls. There were some other telemarketers who would get better numbers than that, but nearly across the board, the ones who did would do so by stretching the truth of the scripts and misleading the customers (eventually that practice and its acceptance by management is why I quit, not actually getting cussed out 10 times a day). Of course, only the very gullibe truly fall for this kind of thing, but there are more that would fall under that category than even I would like to think. And as for the "do not call" lists, let's just say that if you don't phrase it in a particular way (they would never actually tell the telemarketers what way this was, probably due to the fact that the more conscientious ones would tell the customers), the companies are under no legal obligation to actually take you off the lists permanently. What they'll do is remove it from circulation for 90 days, at which time your name and number is reinserted into the campaigns. And these are the people you trust your finances with in many cases...

    Why do companies continue to do telemarketing? I have no clue. I don't see how it can be profitable due to the very small success rate. Most telemarketers are making $10+ an hour (plus bonuses based on commission in most cases), which almost seems shamefully high in comparison to the current minimum wage ($10 an hour in South Carolina is good money for a job that you apparently do not need to be a high school graduate to attain). Unless there's some government kickback for providing employment (which I would not doubt in the least), I don't see why everyone continues to push this crap (especially since they're all still doing the same exact things by mail). I quit the telemarketing gig when I started teaching full-time, but even at a short 5 months, doing the job still feels I was like selling my soul to Satan or something. How bad does a job have to be to come in behind the used car salesman?
     
  9. Ashley Seymour

    Ashley Seymour Supporting Actor

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    Why do credit card and phone companies keep insisting on using tele-marketing?

    No offence Dome, but a few seconds of thoughtful insight would make it clear. It brings in more money that it costs.

    That doesn't mean it doesn't suck.

    My son just left a month in a telemarketing firm. He is 19, but was successful in converting a good percentage of Compuserve customers to AOL. I guess Compuserve came free with the computer and the ones who switched got free AOL for awhile. Of course we all know how much money AOL makes on all this don't we.

    He just left to work for Micron and he gets to stand up for 12 hours less his lunch break and bathroom breaks. He actually misses the phone calls.
     
  10. ThomasC

    ThomasC Lead Actor

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  11. Ashley Seymour

    Ashley Seymour Supporting Actor

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    Sorry to get off topic, but didn't AOL acquire Compuserve a few years back?

    Right and my son would to mention that. Why do tigers eat their young?

    He also called government agencies in Washington regarding renewal of technical magazines. The people he reached let him know that they could no longer read the magazines that were coming in under the old subscriptions. Everything that came in after 9/11 and the anthrax scare was being deposited into bins and left unopened. Now, it may have been those clever bureaucrats giving a telemarketer a hard time, but...
     
  12. Patrick Sun

    Patrick Sun Moderator
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    I get many calls from the Dish satellite installers, and mortgage/loan consolidators. Ugh. I seldom answer my phone now during the day and evenings, screening them with my answering machine.

    Unfortunately for me, a Spanish-centric taxi cab company shares the first 9 digits of my phone number with me (including the area code), and I get some calls around 5 a.m. in the morning from would-be taxi-cab riders of the hispanic persuasion. I should be mean and "take" their call and have them wait and wait and wait for that cab that never shows up, but I usually set them straight if I feel like answering those early calls just so I can get back to sleep.
     
  13. Jefferson

    Jefferson Supporting Actor

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    I screen calls not only to avoid telemarketers but
    for the reason you noted, Patrick Sun.
    My phone number is a digit away from a local pizza place.
    We get orders all evening long.
     
  14. Jesse Skeen

    Jesse Skeen Producer

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    I used to have a number that was similar to an airline's- one morning someone called speaking Spanish and I knew enough of the language to 'reserve' a flight for them [​IMG]
     
  15. Dome Vongvises

    Dome Vongvises Lead Actor

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    Ashley Seymour said:
     
  16. KyleS

    KyleS Screenwriter

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  17. MickeS

    MickeS Producer

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    Oh yes, they would. There's always some marketing consultant out there telling them they'll make money off of this. If they don't they'll just quit doing it, but the marketing people have already gotten their share. And how can you prove you're making money off of telemarketing? It's not like that's the only way these products are marketed (for the most part).

    I am convinced that the only winners in this are the telemarketers.
     
  18. Danny R

    Danny R Supporting Actor

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    I used to work for a telemarketing firm which canvased alumni in the hopes of getting contributions for various schools. For every dollar pledged, the school got perhaps 40% of it.

    However despite all that, the schools involved were still able to make much more money than if they just sent fliers alone. The simple fact is that most people do not bother to give to charities until they are "reminded" of such by telemarketers.

    I imagine the same holds true for simple business telemarketing... the companies are able to make much more money using that method than by other advertising means. A phone call is pretty cheap compared to postage for these companies.

    FYI: Always make certain to ask what percentage of your contribution actually goes to the charity. The Fraternal Order of Police for instance here in Georgia were using an agency that passed along only 10% of all pledges made. They are changing methods, in large part because people's awareness of the police is higher now, but even so they were making more money using that method than without.
     

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