Telemarketing rings true in South Africa

Francois Oliver of Prosperian Capital, believes that it is arguably the best suited medium to reach the broadest cross section of society.

Source of communication

While mobile phone use is ubiquitous throughout South Africa's demographics, it is important to note that mobile phones are the primary source of communication for the majority of households. Through cellular technology, an even greater part of the population now has access to a wider range of products and services that were previously unavailable or difficult to obtain. Telemarketing allows companies to communicate with this potential customer base with relative ease while simultaneously assessing their credit risk and affordability profile.

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Although telemarketing is often maligned, the reality is that a good telemarketing company is a specialist in target marketing, and has to employ and train staff to the required skill level where they can utilise the rich database capabilities combined with marketing "best practises", with the simple objective being to bring the customer the right offer at the right time.

Telemarketing has many advantages for the customer; the bulk of transactions are paperless which means that they save on time and service delivery costs by not having to travel to sign any documentation, and because transactions are done via telephone there is usually a concerted emphasis on telephonic customer support and after sales service.

However telemarketing does have its critics and if the industry hopes to sway any negative perceptions, it has a responsibility to ensure the public's privacy wishes are respected and that the customer is properly informed on all on the terms and conditions of any contract they enter.

Responsibility on both sides

There is a shared responsibility between the telemarketer who must ensure the customer is fully informed and address any concerns or queries that they may have, and the customer who has to ensure that they are not making any assumptions and that they understand all the terms and conditions.

A common misconception is that a contract has to be in writing for it to be valid. Should a customer be interested in a particular service or product, the telemarketer must be explicitly clear that the call has been recorded as proof of agreement and that the verbal contract is binding. The customer has a right to receive a copy of the verbal contract for their record and this option should be strongly advised and readily available from the telemarketing company.

The Consumer Protection Act (CPA) pays specific attention to direct marketing and can provide legal recourse for the consumer in the event of a dispute. The "five day cooling off period" applies to contracts entered into via telemarketing and allows the consumer to reassess their purchase away from the distraction of what could have been a high pressure sales pitch. The consumer has the option to return the product or cancel the service within five business days for a full refund with no penalties.

Rising success

Olivier believes that all industries have a responsibility to educate their customers and their staff, and this is especially true in telemarketing which is opening up new markets at a rapid pace. The rising success of telemarketing is closely linked to the proliferation of mobile phones among the middle and low income households.

The rapid growth of the telemarketing industry is having a significant trickle-down effect of the economy. Telemarketing requires skills in customer relations and as the industry grows the economy moves away from an over-reliance on manufacturing to more of a service orientated base.

Olivier believes that telemarketing has a bright future in South Africa, but the industry needs to weed out rogue operators to affect a change in the negative perceptions that some market sectors still hold. The explosion of mobile phones in South Africa is great for telemarketing and the economy as a whole. Mobile phones can bridge the digital divide between wealth statuses and have the ability to foster economic development across all demographics," concludes Olivier.