Why do companies use automated phone systems?
Posted: Fri May 28, 2010 3:11 pm
Big and local businesses, including government all employ the use of automated phone systems. Few, if any, customers report preferring a machine to a human, yet companies continue to use phone systems.
Reducing Costs
The top reason for businesses to employ automated phone systems are to cut costs. A Nov. 6, 2005, "Seattle Times" article stated that a company spends 50 cent to $1 a minute when a representative answers your call vs. 5 cents per minute when an automated phone system does. A similar article in the May 2, 2005, "Christian Science Monitor" claimed the cost of an in-house receptionist cost $4.25 per transaction, $1.80 for an overseas receptionist, and 65 cents to be handled by a computer.
Reduced Margins
Consumers comparison shopping online to find the lowest price, or visiting retail shops to see a product, then purchasing it online have forced companies to cut costs in order to remain competitive and still turn a profit.
Appearance
Combining a toll free phone number with an automated phone system and virtual assistants allows small and Internet-based businesses to appear as though they are a Fortune 500 company and to operate internationally.
The good side
Reverse 911 systems use automated phone systems to send out recorded messages to large amounts of residents and offices in a specific geographic area. This system was used in October 2007 to warn residents in the San Diego, California, region of a deadly outbreak of wildfires, urging residents to evacuate.
Intervention
The Federal Communications Commission proposed new regulations, in January 2010, to restrict the use of automated phone systems to wireless numbers and to allow residential numbers to "opt out" of similar calls. Telephone companies, airlines, banks, insurance companies, debt collectors, politicians and tax-exempt organizations seeking donations would all be affected.
Reducing Costs
The top reason for businesses to employ automated phone systems are to cut costs. A Nov. 6, 2005, "Seattle Times" article stated that a company spends 50 cent to $1 a minute when a representative answers your call vs. 5 cents per minute when an automated phone system does. A similar article in the May 2, 2005, "Christian Science Monitor" claimed the cost of an in-house receptionist cost $4.25 per transaction, $1.80 for an overseas receptionist, and 65 cents to be handled by a computer.
Reduced Margins
Consumers comparison shopping online to find the lowest price, or visiting retail shops to see a product, then purchasing it online have forced companies to cut costs in order to remain competitive and still turn a profit.
Appearance
Combining a toll free phone number with an automated phone system and virtual assistants allows small and Internet-based businesses to appear as though they are a Fortune 500 company and to operate internationally.
The good side
Reverse 911 systems use automated phone systems to send out recorded messages to large amounts of residents and offices in a specific geographic area. This system was used in October 2007 to warn residents in the San Diego, California, region of a deadly outbreak of wildfires, urging residents to evacuate.
Intervention
The Federal Communications Commission proposed new regulations, in January 2010, to restrict the use of automated phone systems to wireless numbers and to allow residential numbers to "opt out" of similar calls. Telephone companies, airlines, banks, insurance companies, debt collectors, politicians and tax-exempt organizations seeking donations would all be affected.