The robocall is ranked as one of the most annoying abuses of technology. Ever. Robocalling began gaining traction after the deregulation of the telecommunications industry in the 1980s. The most rudimentary versions use an auto-dialer to run through thousands or even millions of phone numbers, playing a standard recording as someone picks up the phone. However, today’s more advanced robocalling technology uses voice-response software that’s so good, it’s difficult to tell if it’s a computer or a human. (It even laughs at your jokes!) The more sophisticated systems run with a human “operator” guiding the software in real time through a phone call with the software learning from this process. Like any technology, its virtue is in its application, and right now robocalling falls into three categories—the good, the bad and the ugly.
Small business robocalling: the good, the bad and the ugly
The Good
Robocalling can be a useful tool for certain types of operations. Pharmacies use it to notify customers that a prescription is ready. Service-based businesses use it to confirm appointment dates and times. Other companies use it to deliver preauthorized audio information like weather updates, flight times or driving conditions to customers who want this information. These types of calls really don’t require a human being, and they’re acceptable for robocalling.
The Bad
Many small businesses see robocalling as an efficient way to identify potential customers. In theory, this is true. Having a computer call 10,000 people, which will automatically connect you to the 50 that are truly interested in your product, beats having to make 10,000 calls. The reality, though, is that most robocalling technology—especially those sold to small businesses—are mediocre. The recordings are of poor quality; there’s limited engagement between the software and the human; and people are conditioned to hang up as soon as they realize it’s not a person. Using this technology likely does more harm than good, or at best generates a small return.
The Ugly
Over the past several years, the FTC has seen a rampant increase in “last-dollar scams” perpetrated through robocalling. Victims are usually people facing financial hardship, which makes them desperate. Robocallers greet them with a message about negotiating credit card balances, lowering interest rates or repairing their credit. Those who agree to “learn more” are transferred to an agent who takes their credit card information under the pretense of evaluating helpful programs. In reality, before the call is done, hundreds of dollars in unauthorized charges will be made to the victim’s credit card.
