Call us today 877.868.6686
Release Date: 11/02/2009
Source: allbusiness
Author: Peter Suciu
No one likes junk mail, spam or telemarketing calls, but all of these are big money makers, and the trick has been to convince consumers to opt-in to services. One such company that is forging ahead is Vontoo Corporation, the first permission-based, on-demand voice messaging system designed for business, entertainment marketing, as well as for colleges, universities and not-for-profits. Bob Compton, the company’s founder and CEO, tells how this can get organizations and small business through the rough economic patch and increase sales.
AllBusiness.com: It is safe to say that no one really liked getting those automated calls, but a big part of it was that so many of these sounded like they could be scams, even if they were not, notably the offers to reduce credit card interest rates and offers of extended warranties for automobiles? To be more specific with my question, how do you gain or regain consumer trust, even in a permission-based business model?
Bob Compton: Since Vontoo is entirely permission-based, we serve the customers who do want to receive information via voice message. We cater specifically to professional and collegiate sports teams, college admissions, bursar, and development offices and retail and rent-to-own companies. What we have found is that people want to receive these calls for different reasons, depending upon the industry.
In professional and collegiate sports, fans enjoy receiving calls from their favorite players or coaches, getting them excited for upcoming games and making them aware of deadlines for purchasing tickets.
In college admissions, bursar and development offices, call recipients generally appreciate the reminders that are sent by phone – for instance, a reminder that the deadline for course registration is approaching. Whereas students might otherwise forget about this deadline, a reminder sent directly to their phones is more likely to catch their attention that a direct mail piece or e-mail.
Consumers trust voice messages coming from these organizations because they only receive these alerts if they have opted-in. Additionally, the consumers who do opt-in are generally very loyal supporters of these businesses or organizations and thus have an inherent trust that messages received from these organizations are legitimate.
AllBusiness.com: Can you explain Vontoo a bit for the readers? How do you get consumers interested in signing up for a permission-based marketing program given that the scammers and fly-by-night businesses have tainted the market?
Bob Compton: As I mentioned before, the consumers who sign up to receive calls from our customers are generally very local, and therefore there is an inherent trust. We sell our service to our customers (who send the messages to their fan bases, student bodies, customers, etc.) by demonstrating how effective these messages can be. By allowing businesses and organizations to contact a group of people instantly, expressing enthusiasm and connecting personally with them, Vontoo provides a very valuable service. When customers do sign up to receive alerts by voice message, they are assured that their phone numbers will never be shared with a third party and that they may opt-out of receiving messages at any time they wish.
AllBusiness.com: Given that the “robocallers” have essentially been kicked to the curb, so to speak, there is likely going to be greater competition in this space from those companies. Do you see this as added competition to Vontoo, and do you think that some of those companies that relied on the robocallers can survive or at least adapt?
Bob Compton: Vontoo sees the FTC’s Telemarketing Sales Rule Amendments as a very positive thing – distinguishing our services from that of the “robo-callers” of the past. Now that robo-callers may no longer send spam messages, we hope that consumers’ overall view of voice marketing will become more positive (and not associated with the robo-callers).
Now that robo-callers are extinct, businesses and organizations that employed the services of robo-callers in the past have two choices: they may either give up voice marketing entirely or use a legal, opt-in service like that which Vontoo provides. We certainly hope that these organizations will choose to employ Vontoo’s services to reach their customers in a permission-based manner. We believe that the death of robo-callers will improve the quality and integrity of the marketing industry overall, and we’re excited to be one of the few companies that provides permission-based voice marketing services.
AllBusiness.com: How can this type of service used by a small business, a university or a not-for-profit reduce marketing costs? Could you share an example?
Bob Compton: Voice marketing is – by far – more cost effective than, for instance, direct mail. Whereas a customer can send a voice message for a mere 15 cents, each piece of direct mail typically costs at least $1 (when considering costs of design, printing, postage). Additionally (and this especially applies to universities marketing to prospective students), direct mail is simply thrown away a huge percentage of the time, whereas in today’s world, people consider their cell phones very a personal intimate means of communication and are thus more likely to pay attention to messages received on them.
A specific example is of Ivy Tech Community College – the nation’s largest state-wide community college with single accreditation. Ivy Tech switched to Vontoo (from another voice marketing service) for use in recruiting prospective students. As a result, the college set an enrollment record (it was 13% above its targeted enrollment growth for that semester) and saved $15,000 per year on marketing costs.
AllBusiness.com: Mobile is really changing the way people use their phones, and this year has seen a shift where more people have ditched the landline completely. So does that present new challenges or new opportunities for services that Vontoo offers? One issue I would see is that now it is very possible for someone to relocate from New York To Los Angeles but still walk around with a 212 area code on their phone, so does this present any challenges?
Bob Compton: The phenomenon of people using their cell phones instead of land line phones doesn’t really affect Vontoo’s effectiveness, because our service is entirely permission-based. So if consumers want to receive voice messages, they must provide their phone numbers—we’re not collecting or purchasing numbers from lists. Vontoo actually benefits from users’ sole use of their mobile phones (and replacement of land line phones) because this allows our customers to reach those who have opted-in to receive messages instantly. Consumers almost always have their cell phones with them, so if a message is especially urgent, it is more likely to be heard by the recipient in a timely manner.
AllBusiness.com: How do SMS and interactive video marketing play into this, especially given that many mobile users pay for text messaging and/or data plans?
Bob Compton: Vontoo provides both SMS and interactive video options to be used along with our voice marketing services. Vontoo Text2Voice and Vontoo V2 (Voice Video) allow our customers to reach their audiences through several different channels, which is especially helpful given the widespread use of SMS text messaging today. Vontoo V2 allows its customers to convey enthusiasm and excitement (which is especially beneficial for sports teams’ marketing efforts).
Now that so many mobile users have text messaging and data plans, it obviously enhances our ability to reach consumers directly and instantly while they’re on the go. For instance, a sports team’s marketing department might promote a text-to-opt-in via their stadium Jumbotron. Once users send a text message to the number provided, they will instantly receive a confirmation voice message (likely recorded by a star player on the team) thanking them for opting in and providing some additional information. By enabling businesses and organizations to reach their consumers through multiple channels (and multiple times), Vontoo helps them improve their ability to impact consumers’ decisions and improve loyalty.
Thank you to Bob Compton for taking the time for this interview.
Printable version PDF 38KB
