Telemarketing Tools

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NAA Marketing Conference 2003
Telemarketing Issues, Tools, Targeting
Techniques
2
What Well Cover Today

• An Update on Federal Telemarketing Rules
• John Murray
• Telemarketing Tools Techniques
• Rosie Cassidy
• Targeting DNC Lists
• Len Fernandez

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NAA Marketing Conference 2003
Telemarketing Outlook
An Update on Federal Telemarketing Rules
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What Well Cover Today

• FTC / FCC Whats Occurred in the Last Year
• Whats Behind the Change
• Details on The Changes
• A Timeline for 2003
• Whats On the Horizon

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NAA Update Federal Telemarketing Rules
Who is Impacted When by Whom?
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FTC Telemarketing Sales Rule

• The revised rule applies to
• Interstate telemarketing calls
• Newspapers circulating in more than one state
• Newspapers that use an out of state telemarketing
  firm to call into their market.

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So you are an intrastate operation?
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FCC Telemarketing Sales Rule

• A Change would affect Intrastate Telemarketing
• Currently The FCC requires a newspaper to
  maintain an internal do not call list
• Considering a national do not call list for
  in-state telemarketing calls.
• NAA has filed comments encouraging the FCC to
  reject a national do not call database and
  enforce the current company-specific do not
  call rules.

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FTC Telemarketing Sales Rule

• When
• The effective date of the FTC rule changes is 60
  days after the final rule has been published
• Congress soon will provide the FTC with the
  necessary authorization and funding
• The registry may become fully operational by
  August 2003.

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FTC Telemarketing Sales Rule

• National Do Not Call Registry Proposed Time
  Line
• Four months following Congressional approval of
  funding and authorization (earliest - May 2003)
• Consumers will be able to place their phone
  numbers on the national registry.

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FTC Telemarketing Sales Rule

• National Do Not Call Registry Proposed Time
  Line
• Three months later (earliest- August 2003)
  Newspaper telemarketers required to search the
  national registry every three months and delete
  consumers who have registered.

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FTC Telemarketing Sales Rule

• National Do Not Call Registry Proposed Time
  Line
• The FTC will charge up to 12 per area code.
• Phone numbers will stay on the list for five
  years.
• Periodic purges of all numbers disconnected or
  reassigned.

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FTC Telemarketing Sales Rule

• National Do Not Call Registry Proposed Time
  Line
• One month later (earliest September 2003) FTC
  will fine companies?up to 11,000 per
  violation?for calling phone numbers on the
  national registry.

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FTC Telemarketing Sales Rule

• National Do Not Call Registry Proposed Time
  Line
• The effective date of the FTC rule changes is 60
  days after the final rule has been published
• Congress soon will provide the FTC with the
  necessary authorization and funding
• The registry fully operational by August 2003.

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FTC Telemarketing Sales Rule
Existing Business Relationship The
newspaper or contractor may contact a customer
within 18 months of their last purchase, payment
or delivery of product even if the person placed
their phone number on the do not call
registry.
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FTC Telemarketing Sales Rule

• State Do Not Call Lists
• The FTC rule does not preempt state do not call
  lists.
• The FTC is attempting to harmonize the national
  registry with state lists,
• Twelve states out of 27 have exempted newspapers
  specifically from obligations to comply with
  state do not call rules.

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FTC Telemarketing Sales Rule

• Abandoned Calls
• Prohibits abandoned calls but provides a safe
  harbor that allows the use of predictive
  dialers.
• A call is abandoned if a consumer answers the
  call and the telemarketer fails to connect within
  two seconds of the consumers completed greeting.
  

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FTC Telemarketing Sales Rule

• Abandoned Calls
• A safe harbor is provided if a company
• Utilizes technology to ensure no more than 3 of
  the calls answered by consumers are abandoned
• Allows call to ring for at least 15 seconds or
  four complete rings before disconnecting

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FTC Telemarketing Sales Rule

• Abandoned Calls
• A safe harbor is provided if a company
• Connects the call with a sales representative
  within two seconds of a consumers completed
  greeting
• Plays a recorded message if a sales
  representative is not available
• Maintains records showing compliance with the
  requirements for abandonment rate, ring time and
  recorded message.

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FTC Telemarketing Sales Rule

• Caller ID
• Requires telemarketers to transmit their
  telephone numbers and names to consumers ID
  services.
• Provision will go into effect one year after the
  effective date of the rule.

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FTC Telemarketing Sales Rule

• Express Verifiable Authorization
• The FTC retained the ability of newspapers to
  obtain express verifiable authorization for
  payment via written confirmation
• Imposed conditions on the use of the written
  confirmation method.
• The written confirmation must be clearly and
  conspicuously labeled on the outside of the
  envelope
• It must be sent via First Class mail in an
  envelope clearly labeled as a confirmation

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FTC Telemarketing Sales Rule

• Negative Option Features
• A newspaper must disclose
• The fact that the customers account will be
  charged unless the customer takes an affirmative
  action to avoid charges
• The date the charges will be submitted for
  payment
• The specific steps the customer must take to
  avoid those charges.

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FTC Telemarketing Sales Rule

• Communications is Important.

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FTC Telemarketing Sales Rule

• Communications is Important

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FTC Telemarketing Sales Rule

• Clear Communications is Important.

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FTC Telemarketing Sales Rule

• Summary
• Stay Informed and watch for updates
• naa.org
• FTC web site
• Pick-up a handout

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Telemarketing Tools Techniques

• NAA Marketing Conference
• January 2003

Rosie Cassidy Director/Circulation Operations
Technology Gannett Co., Inc. rcassidy_at_gannett.com
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Telemarketing

• Its all about the list.
• Its all about targeting.

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Data Vendors

• Telematch
• Acxiom
• Polk
• Marketing G2
• InfoUSA
• New Neighbor Marketing

• Qwest
• Landata
• Experian
• Equifax
• Verizon

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Data Elements Westchester, NY

• Telematch
• Household value
• Age
• Work
• Education level
• Household composition

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Data Elements Des Moines, IA

• Acxiom Polk
• Age
• Income
• Presence of children
• Age, gender
• Profession
• Home ownership
• Vehicle type
• Property value

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Data Elements Rochester, NY

• Experian
• Household income
• Home ownership
• Length of residence
• Education

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Data Elements New Neighbor Marketing

• New mover data
• Polk
• DMV
• Tax Assessor

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Data Elements Qwest

• Master file
• New listings file

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Data Elements Indianapolis, IN

• Equifax VIPER
• Census information
• Address data
• Presence of children
• Lifestyle information

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Tools

• AnalytiX for Newspapers
• IQube
• Sequel
• Brio
• Microsoft Access

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The Des Moines RegisterDes Moines, IA

• AnalytiX
• Geographic/demographic targeting
• Platinum, gold, silver, copper
• Change the offer
• Premiums to higher income groups
• Targeted lists scripting

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Detroit Newspapers

• 100 targeted lists
• Platinum, gold, silver, bronze
• High growth geo/demographics
• Targeted news
• Profile best readers

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The News PressFort Myers, FL

• Marketing G2
• In-house marketing database
• External data attributes
• Proprietary research
• 35 targeted campaigns

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The News PressFort Myers, FL

• Target
• 35-49 year old
• Former subscribers
• Presence of children
• Single family homes
• Home value 75,000

• Research
• Entertainment section
• Classifieds
• Community and school news
• Tailored script
• Entertainment
• Tuesday School Life section

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The News PressFort Myers, FL

• Merge online contest entries into marketing
  database
• Calling campaign averages 1.45 sales per hour

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The Journal NewsWestchester, NY

• AnalytiX
• Geographic/demographic targeting
• 30 targeted campaigns
• 55 Plus
• Harry Potter
• Families with children
• Snowbirds

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The Courier-PostCherry Hill, NJ

• IQube
• Geographic/demographic targeting
• 30 targeted campaigns
• New movers
• Gift certificates for PIA
• 8-week offers

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FLORIDA TODAYBrevard, FL

• Brio
• Geographic/demographic targeting
• Targeted campaigns
• Penetration
• Income
• Winter residents
• High growth areas

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The Arizona RepublicPhoenix, AZ

• Analytix
• Refresh database
• Segment phone numbers
• Cold call and targeted calling campaigns
• External data sources
• Classified
• New connects
• New movers

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Courier-JournalLouisville, KY

• Multi-contact campaigns
• Direct mail
• Telemarketing
• Telemarketing operation
• Switch from sales commission to retention based
• Cost per unit down

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Honolulu AdvertiserHonolulu, HI

• Multi-contact campaigns
• ROP in paper and TMC
• Crewing
• Direct mail
• Telemarketing
• Results
• Direct mail generates 1.5-2.5 return

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Asbury Park PressAsbury Park, NJ

• Multi-contact campaigns
• Telemarketing follow up to
• Direct mail
• Targeted carrier samples
• Classified two-week free offers
• Close rates
• Range from 5 to 20

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Asbury Park PressAsbury Park, NJ

• Retention resources
• Telemarketing operation
• Regular reps
• Telemarketing specialists
• Other channels
• Carriers
• Internet promotions
• Kiosks
• Apartment programs

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Democrat ChronicleRochester, NY

• Sales success
• List
• Multiple contact levels
• Properly trained staff
• Value of newspaper

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FLORIDA TODAYBrevard, FL

• Sales success
• Scripting
• Type of offer

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The News JournalWilmington, DE

• Sales success
• Price sensitive discounted offer
• Product-oriented content
• Properly trained staff

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Honolulu AdvertiserHonolulu, HI

• Sales success
• Targeted message
• Value
• Creative
• Execution
• Perfect service

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Telemarketing TargetingDo-Not-Call Lists
Len Fernandez Director/Gulf Consolidated
Sales Gulf Coast Newspaper Group
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Actually Its about the List, the offer, renewals
and minimizing DNCs

• My topic will focus on
• Reducing your Do-Not-Call list and minimize
  adding to the list
• Addressing your acquisition and retention
  practices to reduce DNCs before, during and
  after acquisition
• Strategies in place now to reduce/minimize DNCs
• I will share a few shoulds that I think we
  still have time for

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Getting smarter about whom and how we call
Before Acquisition

• Rosies message
• List is key so
• invest resources
• Lots of different data sources available to you
• List vendors provide data that give you some
  insight into your consumer

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Which list is best?
Before Acquisition

• Predictive
• Past buying behavior best indicator of future
  buying behavior
• Descriptive describes characteristics about the
  consumer that can be used to get a higher sales
  closing ratio ---
• The two most effective indicators of newspaper
  readership are
• Affluence
• Education

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The Numbers Stack Up!!!
Before Acquisition
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But the hours dont stack up???
Before Acquisition

• Should we realign resources?
• Should we invest some of our sequential monies
  into better listsdarn near a no brainer

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Re-aligning resources
Before Acquisition

• It's simple spend less on sequentialand purchase
  the right data !!! Agree? ButThere is always a
  but

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If the numbers stack up why arent we building on
this
Before Acquisition

• The sequential to targeted ratio has to change

• Not enough newspapers are using their own
  databases Ex-subs Vacations Upgrades
  Stops
• Typically over 50 of the non-sub HH are ex-subs
• Another 15 to 20 of the non-sub HH are single
  copy readers

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Its the list and the offer
During Acquisition

• To get smarter about acquisition we have to get
  them to say yes and pay us!
• List 50 of the success
• Offer 30 of the success
• Timing and creative 20 of the success
• You need to get right to the point tell them
  what youre calling about terms of the offer
• The bus driver syndrome

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The list offer Increase productivity and
renewal
During Acquisition

• HAL codes Household Affluence Levels
• Platinum, Gold, Silver and Copper
• Reno experience
• The usual 50 1st time pay-up rate went to 80
• 70 of the 80 paid a step up rate1.00 more per
  week
• 70 of the 70 stepped up to full price
• 50 of the 70 renewed a second time at full
  price
• Volume contribution for every 100-acquired
• 60 units of circ growth
• 30 of the original hundred are with you at full
  price for half a year

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Confucius Said to cure the ills of society
call things by what they are
After Acquisition

• Turn existing Telsel hours to retention
  calling???? What does that mean?
• Does it mean re-acquisition?Hopefully the new
  law will leave the existing business relationship
  intactand then re-acquisition would work
• The industry defines Retention as dunning calls
  before the end of grace
• Retention is a misnomer it should be renewal
  marketing we need to build on the before/during
  and after model
• Need to motivate payment..

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It takes a whole newspaper village to build the
customer base
After Acquisition

• Billing communications
• Timing is critical how many notices
• Sequencing product improvements
• Retaining customers is the Newsrooms job
• Circulationmust deliver world class service

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Bad news
Reducing/minimizing DNCs

• On average 18 of a typical markets HH are on a
  DNC list
• Those that have a state DNC (45 of survey) have
  an additional 28 on the DNC list

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Less than 1/3 use strategies
Reducing/minimizing DNCs

• Telemarketers shifted to retention calls. And
  promote EZ-Pay and credit card billing with each
  call.
• Telemarketing operation is now two groups
  cold-call reps and specialists
• Eliminated a 1-5pm shift and reduced sales hours
  by almost 20 per week.
• Converted to a retention-based room.
• De-duping state versus in house call

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Strategies Continued
Reducing/minimizing DNCs

• De-dupe state list vs in-house

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Strategies continued
Reducing/minimizing DNCs

• Purchased phone company records and new listings
• More targeted campaigns, reduced operating hours
  and more outsourcing.
• Date stamp 100 have it and are eliminating
  records older than 10 years
• The permission model. That is they ask the
  consumer if they can call once a year
• External vendor to cleanse their list.
• Purchase newly disconnected numbers
• New movers lists to eliminate DNCs how?

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Strategies continued
Reducing/minimizing DNCs

• NAP (name-address-phone number connection)
• More than 70 of our respondents ask for Naps
• On average 31 of the DNCs have NAPs

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Shoulds
Reducing/minimizing DNCs

• Permission Marketing
• Building business relationships
• Keep your residential DNCs properly labeled
• Reduce the amount of non-data supported
  sequential calling
• Reduce the number of times a customer is
  re-acquired get them, keep them
• Training training training and some more
  training.
• Differentiate Telsel staff from other
  telemarketers

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Wrap-ups
Reducing/minimizing DNCs
Change is a heavy burden
Considering the alternative we must get it
right!!!!