This week, Talbots paid a $112,000 fine to the Federal Trade Commission for violating Do Not Call Registry laws on 3.4 million robo-calls made between February and July last year. Its telemarketer, SmartReply, paid a small fine as well. Their error? Customers couldn't opt out and be placed on the Do Not Call list soon enough or easily enough during the calls to comply with the law.
Talbots got off easy on the fine, as it could have paid as much as $16,000 per violation. It may not be as easy to recover from the brand damage caused by contacting customers with annoying recorded calls. In this era where retail managers can execute terrifically inexpensive, customized email campaigns, it's a mystery why Talbots' team elected to use such an impersonal and intrusive marketing method.
The company has been struggling in the downturn, recently contemplating a reverse-merger deal to raise cash needed to pay off debts. The chain is also trying to revitalize its fashions to appeal to younger shoppers. The robo-calling marketing misstep is exactly what the company doesn't need right now. Hopefully this experience has put Talbots off using telemarketing, and company managers will find more appropriate ways of staying in touch with customers.
Photo via Flickr user vlima.com