CIS: The FTC recently
announced changes to the Telemarketing Sales Rule. How will these affect
your company?
Sanchez: Despite the new restrictions, it is
unlikely that Telvista will experience anything more than a minimal
impact. Presently, 95 percent of our contact center operations are
structured around inbound business. Of the remaining 5 percent of our
operations that are dedicated to outbound operations, most of these calls
are directed toward existing customers and market research.
Johnson: The recent FTC Telemarketing Sales
Rules will place additional stress on the entire telemarketing industry.
There will be the need to upgrade and enhance current systems in order to
comply. There is also a high likelihood the ruling will make telemarketing
a more expensive acquisition channel for the many companies that either
outsource or do internal outbound telemarketing. It will also impact
companies' decisions to use outbound telemarketing for customer
acquisition, in turn negatively impacting the employment of individuals in
this industry.
CIS: What changes will you have to make to comply with the
new regulations?
Johnson: Several changes will have to be made within our
technology and operations departments. We have begun working closely with
our clients and the manufacturer of our dialers to ensure a thorough
understanding and compliance with the new regulations. Our technology will
need additional programming and an enormous amount of additional storage
space to gather, report and retain the necessary data. Additional
resources are currently being identified and brought on staff to provide
the real-time monitoring and reporting required. In addition, we have
focused our operations staff on creating and implementing training and
management processes in order to enhance our agent focus, selling skills
and the optimization of each contact.
Sanchez: From an infrastructure standpoint, Telvista will need
to make few, if any, changes to remain in compliance. However, regarding
process, we will need to ensure that our "Do Not Call" lists are
updated and that our outbound operations comply with the new regulations.
CIS: What do you think will be the impact on U.S. businesses?
Sanchez: I believe this new legislation will have a substantial
impact on the way businesses market their products, particularly those
that strongly embrace the concept of telemarketing. It will also
dramatically impact the way consumers learn about and buy those products.
Johnson: I think these changes will make telemarketing a less
competitive channel for companies to acquire customers. The national do
not call list will take away consumer choice, as those who sign up for the
listing will not have the ability to take advantage of the competitive and
attractive offers that are most often presented to them via telemarketing.
CIS: What can the industry do to counter these regulations?
Johnson: The industry is currently taking several initiatives to
ensure that the parties involved in the creation of the rules are aware of
their impact on business and their employees. In addition, the American
Teleservices Association is currently working through initiatives with the
courts and the FTC, as they do not feel the rulings are in the best
interest of the companies who are in the telemarketing industry.
Sanchez: Barring complete or partial reversal of the
regulations, I think the most effective way to counter them is for the
telemarketing community to educate the public and lawmakers on the
benefits of our industry. Unfortunately, while many people do not mind
receiving telemarketing calls, those who do are much more visible and
willing to speak out. And in today's fragmented society, the groups who
are most organized typically win out in the end.
Another way to counter the new regulations is for the telemarketing
industry as a whole to effectively communicate the risks of the
restrictions. For example, if companies are unable to telemarket
effectively, it may make efforts to sell their products that much more
difficult. Telemarketing is an extremely cost-effective way for companies
to promote their products and target specific consumer segments. As a
result of legislation, there may also be products and services that
customers can no longer get or afford because the cost of marketing them
by other media is too high.
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