Are Robotic Sales Reps The Wave of The Future?

2009 October 9

Over the past few months, I have spent more time working from my home office and whenever I hear my land line ring (versus my cell) I think just one thing, “telemarketer”, and usually ignore it. One thing that’s surprised me is the number of companies that are using pre-recorded messages for their calls instead of human beings.

This piqued my curiosity….As someone who’s managed a number of human, outbound sales teams I wondered how this approach could actually work. So, I put on my market research hat to learn more.

What are Robo Calls?

Automated outbound calling goes by a number of different names: voice broadcasting, automated IVR calls, robo calls and marketing with voice.

Most of the voice broadcasting companies offer a basic service, where their computer dials your target list of phone numbers and when someone answers, they play your recording which is either personally recorded by you – or a computer generated version.

After someone answers your broadcasted call, they have a few options: they can listen and hang-up, press a button to get a live operator or press a button to leave a message.

Because the dialing is automated, users can test different versions of messages to see what generates the best result. (Similar to how marketers can test the effectiveness of different website landing pages – often called A/B testing.)

Many companies also offer services that directly target voicemails or answering machines, without even ringing the phone- often called “back-door delivery”.

One company I found, VoiceLogic.com, calls this their VoiceMail Courier service. Per their website: “We take a personal message recorded by you and navigate complex business phone systems to deliver the message to the right contacts voicemail box. When your contact hears the message, they assume you called and left them a message.”

Another application of voice broadcasting, is tying messaging to trigger events. (I wrote about Sales Trigger Events in an earlier blog post.) For example, you could schedule a trigger phone call when an order ships, when a product is delayed or even to thank a new customer for their first order.

In addition to business applications, voicebroadcasting is a technique often used by politicians to drum up votes and to take polls. Check out some samples on “ConnectCallUsa”. The sample recordings are actually pretty good.

How much do these services cost?

There are two common cost models for voice broadcasting services. You can pay a fee per connected call or you can pay a fee per lead (ex. when a customer chooses to speak to a live operator) For example, Voicebroadcasting.com charges $3 to $10 per interested lead and CallFire.com advertises that businesses pay only 3.5 cents per call, per minute.

Marci’s Conclusion..

When I started researching this topic, I admit that I had a negative attitude about the automated call concept. I mean who wants to talk with the robot “Jane, from Verizon”. After learning more about it, I do think that there could be a place for automated calls in certain situations, only used to enhance traditional (human) sales processes. I particularly like the idea of leaving voicemails, assuming that a human, not automated recording is used.

Addendum October 12, 2009

Upon further research and feedback from readers, I uncovered that a new law was passed on September 1, 2009, which prohibits some types of B2C, robo-calls,  unless the salesperson has obtained written permission from the consumers to place the calls.  You can learn more on About.com.

However, I am not aware of any laws that prohibit the B2B calls.

What do you think? Please add your thoughts to the comments section.

Copyright October 2009, Marci Reynolds, All Rights Reserved

6 Responses leave one →
  1. 2009 October 9

    Good column. I used to be suspect of the growth of these types of services until a I did a project with a great company in Chicago called Ifbyphone. Their high growth in the last few years has been in no small part due to the rise in demand for voice broadcasting. Their platform in particular focuses on outbound IVR, which allows the call receiver to provide some information back to the system. They have had success with both the direct marketing industry – for automated lead gen – but also with service companies with installed bases they can’t keep up. With the VB services, automated calls go out to customers with expiring services contracts, or just to touch base. And we all know how much business can come from farming if we can just get to it. I see a future where these services are more tightly integrated with CRM platforms.

    Never heard of VoiceLogic. Will have to check them out.

  2. 2009 October 10

    Larry.. Thanks for your thoughtful comments. It’s interesting to read abut other vendors and the benefits of call automation.

    Best,
    Marci Reynolds

  3. 2009 October 11

    Very interesting article. Although my reaction initially is negative (since I’m turned off by recorded broadcast messages) the idea of pusing it into voice mail is worth exploring. Particularly today when traditional cold calling yields such a low return, we need to explore new ways to prospect efficiently as well as effectively.

    I’d be interested in hearing from others that have managed to “mass customize” their messaging so that it appears to be addressed just to the prospect. I’m not sure there’s even a term for it but “customized broadcasting” might be an interesting concept for us all to explore together. What do you think?

  4. 2009 October 12

    Marci-

    I am surprised that no one has mentioned that in Sept. outbound pre-recorded calls became illegal for B2C, unless the consumer has given permission. There of course are some circumstances that allow them to occur, however they were outlawed recently.

    If you would like more information, I would be happy to supply it to you.

  5. 2009 November 25

    It’s unfortunate that voice broadcasting
    has been abused and the laws have effected the B2C markets the way they did. I
    can tell you that there is still a high demand for voice broadcastng and if done
    properly you can have a long lasting business with great consistancy. There are
    still plenty of businesses out there that can benefit from this affordable direct
    marketing technology.
    I have been offering voice broadcqsting services to businesses for over 4 years,
    but offer other direct marketing, data services as well, to be more of an asset
    to my customer. We have marketing specialists that work at http://www.Bullseyebroadcast.com
    and know our customers markets better than them; it’s our job. Voice blasting
    is not the answer to all marketing campaigns.
    Feel free to ask me any questions you’d like. Would love to help in any way
    I can.
    Carl D.

  6. 2010 January 28

    Marci,

    Interesting post, as usual. I struggle to imagine how I, as a business owner would want to impact my reputation by using these tactics and tools. I believe in using tools to enhance sales productivity, but not at the expense of your firms reputation.

    I have never hung up from one of these automated calls with a positive thought in my mind. It has always been a negative strike against the organization making the call. Doesn’t matter whether it is for a sales pitch, doctor’s appointment or a politician asking for my support, it leaves me with a negative thought. Sales is tough enough as it is, do you really want to add this hurdle to your efforts?

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