‘Cold-call’ marketing doesn’t work, finds UK survey

Indians are not the only ones who wonder why persist in using the pesky 'cold-calling' technique, which refers to calling people at random to sell products, particularly in service related industries like banking or mobile telephony, when most 'victims' don't buy the product and often hang up rudely.

Now, a study in the UK has come up with similar questions. A consumer survey by Citizens Advice showed that more than nine out of 10 consumers mistrust those who use the strategy.

The poll by the consumer advisory service found that 92 per cent of people do not trust sales representatives who cold-call. Asking marketers to hang up on such calls, Citizens Advice described the findings as ''indicative of marketing that is nothing more than a nuisance''.

The advisory service particularly called for financial services firms like claims management companies and debt resolution services to be banned from cold-calling to protect people from unscrupulous operators.

Research last year found that the most common unexpected sales calls, texts and emails made to households in Britain were related to personal injury and accident insurance, energy suppliers and double glazing firms.

The companies concerned are of course different in India, where energy supply is non-competitive and double-glazing almost a joke in a tropical country. But authorities like the Reserve Bank of India should heed the warning on cold calls for financial services.

Companies selling debt relief services, offers for extended warranties on products and firms selling ways to unlock pensions were other regular offenders, according to Citizens Advice.

It found that 67 per cent of British adults, equivalent to more than 30 million people, had received an unwanted telephone call, text, email or letter about making claims for mis-sold Payment Protection Insurance.

Citizens Advice chief executive Gillian Guy said, ''It is time companies hang up marketing plans that bombard people with unwanted phone calls, text messages and automated voicemails. Nine in 10 people don't trust companies that cold-call, which is indicative of marketing that is nothing more than a nuisance.

''I'd like to see financial service companies banned from cold-calling. Citizens Advice is helping people who have been left seriously out of pocket after signing up to a service over the phone, only to find it doesn't deliver what was promised.

''A ban on these firms would help people know a call out of the blue is one not to be trusted.''

Citizens Advice surveyed 1,210 people between August and September who had received help from its consumer service.