How often have we heard about jokes on calls for credit cards or insurance schemes who would even call on festivals like Holi or Diwali? So what are they actually doing through these calls?
The Indian telecom industry is the second largest in the world with 1.2 billion subscribers and increasing at an exponential rate every year. One of the commercialized activity that had gained from this rise in industry was the advertising. How did this take place? It happens through a direct method of marketing called telemarketing.
Telemarketing is defined as the method of direct marketing via telecommunication services including internet, calls, SMS etc. This method of marketing involves soliciting or promoting schemes or products to engage potential customers for commercial transactions. Telemarketing messages are to increase customer network in relations with goods, business, opportunity or services. Apart from advertisement telemarketing finds it uses in market research, recruitment or appointments, re-engagement or follow up etc.
The medium of such transmission can be SMS; calls i.e Unsolicited commercial calls (UCC) or via emails i.e Unsolicited commercial emails (UCE).
The two types of telemarketing categorized are Outbound telemarketing ,when a business directly contacts customers and prospective customers by calling them and Inbound telemarketing, when a business receives calls from customers and potential customers to place or orders or get more information. The business usually generates interest by using other marketing channels, such as advertising, to encourage calls.
The telemarketing industry has evolved from telephones to automated calls and robocalls which are handled by machines rather than a person on the other end of call.
What was the reason for such a rise in telemarketing methods by advertisers? The answer lies in the ability of the interactive method which can gauge reactions of the customers. The telemarketing industry has helped in understanding the feelings and interests towards a product or service in an easy and a swift manner. It has also proved beneficial in reaching to remote population and attain a established network by coming in direct contact with customer by overcoming any technical difficulties.
A Telemarketer is a person or any legal entity which engages in the activity of telemarketing. A person or an entity needs to get registered under the Telecom Regulatory Authority of India and Department of Telecommunications, Ministry of Communications. The Telemarketer can obtain the Telecom Resources from a Licensed Telecom Service Providers only. The rules and guidelines followed by the telemarketer are set by TRAI for UCC and IT Act for UCE. The guidelines are listed under Telecom Commercial Communications Customer Preference Regulations with few changes made in 2018. These guidelines emphasize on the intention and context of the call, consent for recording, no explicit content being presented etc.
However changes made to these regulations were due to the shortcomings of this industry which were negative perception and the rise of fraudulent cases over voice fishing and mails. The menace of fraudulent calls and messages was red-flagged by other sectoral regulators, like SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India), who have sought TRAI’s assistance in controlling these activities. The unsolicited nature of these calls and the frequency of these calls were the biggest causes of these generally to be considered popularly as ‘SPAM Calls’ Some of the changes that were highlighted in the order:
a) The adoption of blockchain method using Distributed Ledger Technology to ensure compliance in accordance with regulatory gauidelines.
b) Introduction of co-regulation in which Telecom Service Providers or Access Providers arrange the framework, which is legally backed by regulation.
c) It enabled compliance in terms of technological innovations through different solutions.
d) It emphasized on enhanced controls and new options for all entities to perform their functions and to carry on their business efficiently.
While telecom industry has been a boon to many business in reaching out to customers the matter of privacy of a customer has what drawn the negative perception towards the industry.
References
1. https://www.nibusinessinfo.co.uk/content/what-telemarketing
2. https://trai.gov.in/sites/default/files/RegulationUcc19072018_0.pdf
3.https://blog.ipleaders.in/laws-related-telemarketing-india/#:~:text=In%20respect%20of%20unsolicited%20commercial,a%20registered%20telemarketer%5B2%5D.
-SNEHA NAYAK