Legislation
Doesn't Always Mean Loss Of Productivity
By Kathleen Kelly, TeleDirect International, Inc.
In the past few months, there has been a lot of emphasis on the downside of
the national do-not-call registry (NDNCR) and related telemarketing
regulations. Contact centers have wrung their hands over loss of
productivity. Associations within the contact center industry have predicted
significant impact as an outfall to the new requirements. Despite the
accuracy of some of these predictions, there are a number of companies that
have seen little to no loss of productivity between the pre- and
post-October 1st timeframe. Their 'bumpless transfer' can be attributed to
three factors:
' Early, coordinated planning that involved key members from all
departments;
' Implementation of a leading technology solution to meet the new
requirements, particularly abandonment rates and NDNCR list management; and
' Unswerving focus on meeting the needs of their customers.
These factors have enabled contact centers to maintain a competitive
advantage despite a challenging legislative environment.
Top Teleservices Outsourcer Planned Early For October 1, 2003
The modification of internal processes and smart application of technology
have helped one service provider gain competitive advantage. Headquartered
in the Midwest, this company has been ranked as one of the 'Top 50'
teleservices firms by Customer Inter@ction Solutions' magazine and has 400
employees in call centers in Iowa and Minnesota. It provides high-quality
outbound teleservices through its business-to-consumer and
business-to-business divisions to help companies increase revenues and is
known for its excellent service and cost-effective results.
With the advent of the FTC and FCC regulations early in 2003, the company
made the strategic business decision to move forward, regardless of whether
or not the regulations would actually take effect.
'This enabled us to keep our focus,' explained their vice president of
client services, 'and not have to watch the news every day to determine how
we were going to operate. We already knew what our future plans would be.'
Beginning in February 2003, a compliance task force was formed to plan for
the upcoming compliance issues. The task force focused on deciphering the
legal issues, as well as understanding the company's internal business
practices and how they would affect customers.
'Even though it sounds like a clich', we made the decision early on that we
wanted to be a leader in compliance,' said the vice president. 'While the
result of the NDNCR is to shrink caller lists, we believe that by being at
the forefront of compliance we will have a competitive advantage and gain
business because of it. The reality is that not every call center is going
to be able to stay compliant or to be able to change or adjust their
internal processes. By putting together the right processes with the right
ethical business practices and the right technology, we felt we could
increase our market position and increase revenues.'
Technology has played a key role in the service provider's preparation for
the regulations. Each of its call centers is equipped with contact center
automation software and linked through a local area network (LAN). Some of
the technology features they have leveraged include:
Abandonment Rate ' the system allows them to set the abandonment rate for
each individual campaign, which they have established at 2.5 percent, below
the required 3.0 percent. The system tracks the abandoned calls and also
plays a recorded message identifying the caller on whose behalf the call is
being placed. With this information, they are able to determine which calls
are abandoned, as well as when and why.
Caller I.D. ' when the caller I.D. portion of the regulations went into
effect in late January 2004, telemarketers were required to transmit their
caller I.D. information and were prohibited from blocking this information.
While standard T1 connections can transmit caller I.D., this end user's new
technology, coupled with changing to ISDN/PRI lines, allows them to send
unique caller I.D. numbers for each campaign or client.
Answering Machine Detection ' some technology solutions force their users to
disable answering machine detection to avoid unnecessarily annoying
customers who are mistakenly interpreted by the system as an answering
machine. The service provider ensured that their system could pick up
continuous voice, any subtle voice or look for something consistently in the
same tone so that 'live connects' were transferred to agents and not dropped
by mistake.
Integrated Reporting/Results Tracking ' call results are accumulated
automatically and can be summarized on command. This enables frequent
monitoring of campaign processes, allowing for short-term corrections as
needed to ensure compliance.
Digital Voice Logging ' the digital voice logging capability enables the
audio monitoring of agents who are logged into the system, as well as the
ability to play back, retrieve, organize and archive digital audio
recordings. This capability satisfied the tracking requirements of the new
FTC/FCC regulations.
Knowing that technology alone can't solve the problem, the firm has enhanced
its call center operations through a concerted educational program to
increase awareness about the regulations among employees and customers. Each
employee has undergone intense compliance training multiple times to prepare
for the changeover. The compliance task force prepared reference manuals and
also administered quizzes and tests to assess comprehension.
'The education of employees was conducted to support the technology in
place,' said the vice president, 'and we also conducted an e-mail campaign
to educate our customers. We broke the regulations down in layman terms and
explained the existing business relationship exemption and caller I.D.
components in different installments as part of an ongoing series.'
Specialized teams were also formed in order to call on existing customers on
the NDNCR list. The team was sensitized to address the responses of those
customers who weren't aware of the existing business relationship (EBR)
exemption clause of the new regulations. 'There's certainly a right way to
inform customers of that clause without inflaming them or making them
angry,' said the executive. 'We trained our agents on how to handle those
calls. Consequently, we have not received many questions or complaints.'
Increased Competitive Edge, Reduced Annoyance
By organizing a task force specifically to focus on the regulations, with
representatives from different departments, including human resources and
finance, this teleservices firm has stayed ahead of the compliance game.
'You can't take your eye off the ball,' is their philosophy, 'so we monitor
the regulations continually. Education about the regulations is critical.'
Cable Company Feels It's Better To Be Safe Than Sorry
Yet another company that has seen no dip in its productivity since October
1, thanks to careful planning, is an east coast cable company. The firm has
come a long way from its origins in the 1940s with some of the country's
first cable television systems. The company now serves nearly 11 million
customers in 27 states. A key cornerstone of the company's philosophy is
offering the highest customer service possible, featuring user convenience,
value and choice.
As the company expands its services to keep up with a changing market, it
has also been faced with increasing regulations and the need to comply with
the NDNCR and associated guidelines to prevent customer annoyance. One of
the largest operating divisions has approached the registry with a
combination of technology, preparation and training.
In preparing for the telemarketing requirements and challenges, the cable
company's checklist included such factors as compliance with abandonment
rates; playing recorded messages when necessary and having a guaranteed ring
time of no less than 15 seconds. According to its division's director of
sales, 'With the new guidelines, we had to rethink how we conducted
business, the call abandonment rate, displaying caller I.D., how often we
recycled records and how all that that affected the telemarketing to our
existing customers.'
Their early decision was to comply with the requirements, despite the
uncertainty regarding their legality and future viability. The director
served as point person for multiple company sites. He and his team
maintained a constant focus on the FTC and FCC Web sites. They read the
regulations thoroughly, involved the corporate attorneys to seek their
interpretations and recommendations, and talked to other divisions. 'The
environment was changing by the hour,' noted the executive.
He also attended the fall 2003 ATA conference to get up to speed. During the
general discussions, he noticed some attendees were looking for loopholes.
'Our approach has been different,' he said. 'We took a look at the most
restrictive of all the regulations, and that's what we're complying with.
Better safe than sorry. If someone doesn't want to be called, we want to
honor that. We feel we can still be pretty effective with our telemarketing
services and acknowledge requests that people don't want to be called.'
If targeted by the FTC, companies will have to prove they have provided
compliance training to their personnel. The cable company required every one
of its customer service telemarketers, direct sales reps and administrative
staff to sign off that they've received and read information that summarized
the guidelines. A copy of the signed acknowledgment is included in their
personnel files.
Over the last few months, the division has focused on ensuring its call
center complies with the following restrictions:
Connecting Calls Immediately To Avoid 'Dead Air.' They can detect that a
human has answered a call and immediately connect the call to an agent so
the agent can respond correctly after the first 'hello,' reducing hang ups
and customer annoyance.
Ring At Least 15 Seconds to avoid having consumers answer the phone and find
no one at the other end, the FTC/FCC requires each call to last a minimum of
15 seconds. The company employs a customizable setting on its system that
ensures no phone call will be terminated before a predefined number of
seconds.
Recycle Templates. In the past, telemarketers would often call a consumer's
home repeatedly throughout the day. The premise was that more attempts would
result in more contacts and thus an increased ability to sell their product
or service. To eliminate the annoyance that this causes, the cable company
implemented a revised recycle template within the dialer. This template
predetermines how frequently, and at what intervals, you call a consumer
back on any given campaign. The new rules were set to dial after four hours,
assuring the call center that on any given day they would not attempt to
call any phone number more than three times. As a result of the recycle
templates, the 500+ upset consumer calls that used to come into the center
each day have been reduced to less than 20.
National Do-Not-Call Registry ' Once the system database has been updated
with the appropriate national/state do-not-call list, the system
automatically propagates the numbers out to the individual clients' lists
and flags records so they will never be dialed. Each number is also checked
against all appropriate tables in real-time before dialing, an additional
level of assurance that a restricted number on the NDNCR will not be
contacted.
Increased Performance, Reduced Annoyance
The division has seen an increased contact rate with customers, and reduced
needless attempts, all while reducing customer annoyance and complying with
the regulations.
Their advice to call center managers facing similar challenges is to
'interpret the laws conservatively, opt on the side of caution, comply with
the most restrictive of the rules and resist looking for the crack in the
sidewalk or the way out.' Protect your business and the integrity of your
lists, they recommend, and honor consumers' requests that they not be
called.
Preparing for the intervention by government into their business has been a
challenge for call centers in a variety of industries. 'It's been a bear to
get our arms around,' said the director of sales, 'but with our own
research, with insight from people throughout the industry, and the aid of
intelligent automation, we have obtained the guidance and options necessary
to manage data and calling in a customer-friendly, compliant, responsive and
productive manner.'
Conclusion
These are just two examples of companies that planned for the legislative
impact early, leveraged automation to meet the new regulations and focused
on providing unparalleled, uninterrupted service to their customer base.
Going forward, their best advice to call centers for 2004 is keep these
three factors in mind and work closely with your in-house legal counsel to
ensure your practices meet the guidelines.
Kathleen Kelly is president and CEO of TeleDirect International, Inc. (www.tdirect.com),
a Scottsdale, Arizona-based provider of contact center performance
solutions.
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