Enhancing the legitimacy of CRM/contact center is job one.

History

This publication was launched in June of 1982 in a pioneering effort to help build what is now the multibillion-dollar CRM/contact center industry. The name of the publication at that time was Telemarketing[R] magazine. Shortly after launching, we were honored to receive the registered trademark for Telemarketing[R].

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Therefore, as the leading and the first pioneering publication of the industry for the last 24 years, we have observed this great industry of ours emerge from almost nonexistence to what is now a multibillion-dollar business. Telemarketing[R] magazine's tagline, which I personally chose, was "The magazine of electronic marketing and communications." At that time, it was my personal vision that the marketing discipline would be carried out electronically. Telemarketing[R] magazine was the very first pioneering step in that direction.

After considerable start-up problems, which were largely attributed to a lack of available success stories (because the industry really did not exist at that time), we finally managed (with blood, sweat and tears) to get the magazine going until, brick by brick, the foundation for this industry was laid in 1982 and beyond.

Overnight Success

Because we marketed the industry with passion and perseverance with all of our might, it turned out to be practically an overnight success. After all, using the telephone one could reach 25 to 30 prospects, as opposed to door-to-door, which in best case scenario, one could reach two or three prospects per day. If I recall properly, cost per visit back then was about $180, as opposed to the cost of a phone call at approximately $1.00 to $1.50 per account. Smart companies followed the first commandment of telemarketing principles: the more calls you make, the more sales you generate, provided that you select your target audience appropriately. In other words, the concept of telemarketing became an instant success because of powerful marketing, huge cost savings and the unparalleled reach to qualified buyers.

Our Success Attracted Fraud

As with all other industries, anytime a successful concept or idea comes along, the criminals don't waste time figuring out a method by which they can commit fraud. Abuses such as fraud also existed in mail order as well as online and other forms of electronic marketing. The commitment of fraud, unfortunately, attracted major negative newspaper articles, which sometimes projected a horrible image on an otherwise great industry--the world's leading job creation and job protection business. Nevertheless, and in spite of the many advantages of telemarketing, the criminals used many creative ways to pick the pockets of the elderly and others to a point where the industry's image was being tarnished minute by minute.

Consumer Complaints Continued

Fraudulent calls, as well as continuous unprofessional calls to consumers, in particular, created a massive amount of complaints. These complaints found their way to legislatures and the Federal Trade Commission, which subsequently led to several legislative activities putting complete restrictions on the industry because of the actions of a few criminals. Unfortunately, this situation got to the point where the FTC, FCC and others were all for throwing out the baby with the bathwater.

Thirty Percent Growth Was A Reality In The 1990s

During the 1990s, when our industry was prospering the most, our annual assessment of industry growth at the teleservices level indicated that Corporate America's outsourcing was growing at the rate of 30 percent per year. This phenomenal growth rate attracted many in the financial community.

Telemarketing/Teleservices Became The Darling Of Wall Street

In the mid-90s, the phenomenal growth of our industry attracted the Wall Street community, and several industry-leading companies such as SITEL, West Corporation, APAC and others were the first to take their companies public. Believe it or not, the growth rate of the teleservices industry, at that time, rivaled the growth rate of dot com companies, with a major difference. The difference was that few of the dot com companies made a profit, while all teleservices companies were growing even faster and they were all profitable.

Then Came Offshoring 

As you have read in my previous editorials such as this, we have covered this matter extensively. Let me make it clear that our paramount responsibility is to anticipate trends and problems in any aspect of our industry, and to bring these issues to the attention of our industry leaders and the readers of this publication in order to prevent costly mistakes and loss of business. Having said that, it has always been our position that there is a need for less demanding jobs (i.e., directory assistance and back-office work) to be outsourced offshore as long as the TSRs speak proper English, have no cultural problems, are not rude and don't over-promise and under-deliver, and not become involved in fraud and deception. Many of these types of problems are continuing with many offshore outsourced services, and there is a significant backlash currently going on, which could be reversing the offshore outsourced services back to the U.S. This extremely possible prediction is exclusively based on volumes of problems, which have been documented on offshore disappointments and significant issues. At the forthcoming SpeechWorld[TM] conference, to be held on May 24-26 at the Westin Park Central Hotel in Dallas, Texas, and which is to be co-located with the Global Call Center Outsourcing Summit[TM] and the IP Contact Center Summit[TM], there will be an intensive session titled, "What Is Behind The Current Failures And Disappointments In Offshore Outsourcing?" I urge all of you who are interested in this subject matter to contact Dave Rodriguez at 203-852-6800 ext. 146 or e-mail him at [e-mail] for more information.

I will have the pleasure of chairing this session, at which we will have respected industry leaders and academics as panelists. I sincerely urge all of you to join us for what promises to be an outstanding and eye-opening session.

What Contact Centers And CRM Have Done For America

For all of the reasons indicated above, our industry has not received the respect and legitimacy it has earned. In fact, I feel strongly that our great industry has always been a victim of double standards. In these editorials, I have often stated that if a criminal picks up a scalpel (a surgical knife) and uses it to stab someone, the next day's headline would read, "Criminal Stabs Victim With A Scalpel." However, if the same criminal picked up the telephone and committed fraud, the next day's headline would read, "Telemarketer Commits Fraud!!!" This horrendous double standard has indeed given us a distorted image. While many newspapers have historically used the telephone to sell subscriptions and advertising, their editorial departments were bad-mouthing the industry for the last two decades. The other reason for the above is that trash journalism sells, while honest journalism does not! Speaking as a journalist, I am ashamed at this unorthodox and irrational behavior on the part of my colleagues.

I therefore feel compelled to briefly state what our great industry has done for America and, in particular, what the teleservices companies have done for America and the world. Here are some facts:

* The call center/CRM industry has created and protected six million jobs in America (prior to offshoring).

* Our industry has sold billions of dollars of products and services, and has produced millions of dollars in taxes while building and creating jobs in many countries.

* Our industry raised funds for many churches, schools, libraries and many other charitable organizations, colleges and universities.

* Telemarketing is being used by several Red Cross organizations to generate blood to be used by our troops in Iraq and elsewhere.

* Indeed, many teleservice agencies DONATED their vital services to generate funds for global disasters and aid programs such as the Tsunami, Live Aid, etc.

* Yes, they placed millions of calls for victims of these disasters FREE OF CHARGE.

* I ask, what other industry or enterprise has done 10 percent as much for the well-being of mankind as teleservices agencies and the call center industry have done?

* Of course, we, the insiders, know how helpful and instrumental our industry has been to our country and to the victims of global disasters.

* But because of the actions of several criminals committing fraud and making intrusive calls, etc., the industry has gotten an unfair and negative reputation.

Taylor Institute Brings Enhanced Legitimacy To Our Noble Industry

Gary Taylor, the Chairman of InfoCision, has donated millions of dollars of his own money to build the Taylor Institute, a four-year degree program in the College of Business Administration at the University of Akron, to enhance the professionalism and the legitimacy of our great industry.

We applaud Gary's noble and unprecedented act of enhanced recognition for the industry that delivered so much personal satisfaction to him and his outstanding employees. Under Gary's leadership, InfoCision has earned 12 consecutive MVP Quality Awards, our industry's highest award for quality teleservices, bestowed by Customer Inter@ction Solutions[R], the industry's preeminent magazine since 1982!

Gary Taylor Also Cares About His Country And His Employees!

As the only teleservices company to earn 12 consecutive MVP Quality Awards, InfoCision has kept 100 percent of its call centers in the U.S. Today, InfoCision employs 3,000+ people and plans to keep ALL jobs in the U.S.

I have had the unique pleasure of knowing Gary, his wife Karen and his fine staff for over 15 years. I am proud to be a part of an industry that has contributed so much to humankind and one that has truly outstanding leaders who exemplify the highest degree of integrity and one in particular who has brought so much respect, legitimacy and dedication to our very proud industry. Gary was inducted into the Contact Center Hall of Fame in May 2004 by Customer Inter@ction Solutions[R], a well-deserved high honor! On behalf of the entire industry and the staff of Customer Inter@ction Solutions[R], we extend a heartfelt "Thank You" to Gary and his dedicated staff at InfoCision. At this critical moment in our industry, the Taylor Institute is precisely what we need.

For more information about InfoCision, visit www.infocision.com. For more information about the Taylor Institute of Direct Marketing, call 330-972-7650 or e-mail [e-mail].

As always, I welcome your comments. Please e-mail me at [e-mail].

Sincerely yours,

Nadji Tehrani 

Executive Group Publisher, Editor-in-Chief

By: Nadji Tehrani, Executive Group Publisher, Technology Marketing Corporation