ON-HOLD MESSAGING USER SATISFACTION RESEARCH

May, 2012 Arabella Pollack, Greystoke Insights What we will talk about…

1. Research Methodology 2. Key Findings 3. Detailed Findings  Client Satisfaction  Reasons for Purchasing On-Hold Messaging  Impact of On-Hold Messaging  Opportunities 4. Recommendations 5. And Finally….

2 1. Research Methodology

Jan 28, 2011 3 Research Methodology

th  Online survey open from March 26th to April15 , 2012

 Survey sent out to 60 members of On-Hold Messaging and Audio Messaging Association (Europe), who were asked to distribute the survey to their own clients

 Incentives:

 iPad 3 and two iPod Touches to randomly selected respondents.

 iPad 3 to the member company who had the iPad-winning respondent.

 Survey responses were aggregated and analyzed anonymously by Greystoke Insights

 Responses from 1,555 clients of 27 members

 Note: this survey cannot be taken to be fully representative of all on-hold messaging users

4 Learning more about your specific business

 Individual reports can be prepared with data from your specific customer responses

 Please contact me for further details

[email protected] 2. Key Findings

Jan 28, 2011 6 Key Findings

 OHM users have an extremely high level of satisfaction

 Generated by service, product quality, professional image

 OHM provides clear benefits vs. phone alternatives

 Opportunity to add real $ to business

 Areas for improvement:

 Ease of updating messaging and additional support

 Additional options – music, more varied voices, copywriting, Spanish language, etc.

 More support on using for greatest effectiveness, business guidance

3. Detailed Findings

Jan 28, 2011 8 3a Client Satisfaction

Jan 28, 2011 9 Satisfaction with On-Hold Messaging is extremely high - 85% of respondents would recommend it to others

Likelihood to Recommend On-Hold Messaging

Very likely 60%

85% Somewhat likely 25%

Neither likely nor unlikely 7%

Somewhat unlikely 3%

Very unlikely 5%

0% 10% 20% 30% 40% 50% 60% 70%

Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=1,474

10 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Users resoundingly believe in the value that on-hold messaging adds

It’s a useful marketing tool that adds value 85%

It’s nice to have, but it’s not that important 12%

It’s a necessary evil 3%

Qn 13: From a pure marketing perspective, which of these statements best describes how you feel about the role of your On Hold messaging program in your overall marketing mix? N=1,380 11 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 All of which leads to a high rate of client retention

More than 5 years 42 49% 5 years 7 4 years 10 3 years 10 Half of all respondents have been using On-Hold 2 years 11 Messaging for 5 or more 1 years 8 years 6 months 4 Less than 6 months 4 Don't know 4 % 0 10 20 30 40 50

Qn 1: How long have you been using On-Hold messaging at your business? N=1,554

12 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 OHM’s effectiveness in growing business is regarded as close to other marketing tools

Perceived Effectiveness of On-Hold Messaging vs. Other Tools in Growing Business A lot more effective 5 than OHM

Somewhat more Internet (3.6) Note the close effective than OHM 4 spread between TV (3.5) the perceived Direct Mail (3.4) effectiveness of Equally effective 3 Print Advertising (3.4) the different to OHM Radio Advertising (3.3) tools Out of Home Advertising (3.2) Somewhat less 2 effective than OHM On Hold Messaging (3.0) Yellow Pages (3.0)

A lot less effective 1 than OHM Qn 15: How would you rate the effectiveness of your On Hold messaging in growing your business, compared to other forms of marketing you use? Please select a number from 1 to 5 for each row, where 1 is the lowest score and 5 is the highest. N=1,362 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 On-Hold Messaging delivers perceived value to both those on hold and the company using it

Perceived Effectiveness of On-Hold Messaging

Providing Value to Time On Hold Increasing Decreasing Building Image & Sales Hang-Ups Professionalism

Lowest Medium Highest Effectiveness Effectiveness Effectiveness

Qn 16: In your opinion, what effect, if any, has your On Hold messaging had in the following areas? Please select a number for each row between 1 and 5, where 1 is the lowest score and 5 is the highest. N=1,471 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Respondents also recognize that On-Hold Messaging has to be just one part of the marketing mix

“I feel it is a useful tool but only if it ties in with the other marketing your company is already doing.”

“It's a good tool once you've had the client contact. However the most important marketing area is getting people to contact you first. Without the initial contact they will never hear the on hold messaging.”

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Bottom 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=9 15 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Some of the benefits from using On-Hold Messaging – in the customers’ own words…

“Reduces [callers’] stress and anxiety”

“More professional than just music- we are in sales after all”

“It is very important so the customers know that they are still on hold and haven’t been forgotten about”

“It is the first contact the caller has with the organization”

“Not having an on hold message is the equivalent of not having a company website!”

Open –end responses from Qn 13: From a pure marketing perspective, which of these statements best describes how you feel about the role of your On Hold messaging program in your overall marketing mix?. 16 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Users focus on professionalism and service as reasons to recommend On-Hold Messaging

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Top 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=481 17 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 They acknowledge the quality of both the product and the service:

“The simplicity of the On Hold software & their excellent customer service to clients”

“Very happy with the customer service and the quality of the product”

“Support is outstanding. The recorded messages are high quality.”

“Easy to use and install ”

“Great service and great people to work with ”

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Top 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=481 18 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Other reasons for recommending OHM focus on value to the business and to callers:

“I do think it is a way to get certain messages out there about sales or special events, not to mention other services that you offer that people may not be aware of.”

“It's a natural part of the sales cycle, helps us give a non- pressure sales pitch as it entertains customers on hold.”

“It is irritating to sit on hold and hear nothing. Music is fine as a distraction, but to learn info on the company you are calling is important”

“It is an excellent way to promote products while customers are on hold. We have actually had customers asked to be placed back on hold to finish listening to the message.”

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Top 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=481 19 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 However, bad service can quickly turn a customer off

“Your after-sales service was the worst we've encountered. Your people were rude, ignorant and unprofessional to say the least!!!!”

“Our service has not been working properly for months. We have experienced on-going issues and continue to get no real solutions.”

“The only time we have dealt with on-hold other than initial set- up was a little rough. We had to have our "little black box" replaced to update and then following the Christmas season our on-hold message went back to the original message. It took more than 15 days to get this issue resolved.”

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Bottom 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=9 20 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 3b Reasons for Purchasing OHM

Jan 28, 2011 21 Customers chose to purchase OHM for both general image-building and specific marketing reasons

Reasons for Purchasing On Hold Messaging

To build image and professionalism 74%

To promote the sale of 72% products/services

To avoid silence on hold 58%

To provide callers with entertainment or 56% useful information while waiting

To prevent callers from hanging up 31%

Other 3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Qn 10: Why did your company purchase On Hold messaging? Please select all that apply. N=1,080

22 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 This is reflected in the ways they use it today

Ways in Which On Hold Messaging is Used Providing information on your 88% products/services Giving callers the right impression of 70% your business

Advertising specials 24%

Entertaining callers 23%

Promoting date-specific events 21%

Other 2%

0% 20% 40% 60% 80% 100%

Qn 14: In which of the following ways, if any, do you use your On Hold messaging system? Please select all that apply.. N=1,379

23 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Other reasons for purchase include concerns around using music alone for on-hold customers

“so the caller doesn't have to listen to bad music!” “poor radio reception in area” “CD player was inconsistent in sound quality” “we were playing the radio and that's illegal”

Although sometimes music has its role… “We use only music, as messages in either Afrikaans to English speakers or vice versa give offence”

Qn 10: Why did your company purchase On Hold messaging? Please select all that apply. N=1,080 24 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 3c Impact of OHM

Jan 28, 2011 25 While OHM is used by businesses with sales at all levels, most respondents sell big-ticket items/services ($500+)

Avge. Individual Sale

Over $2,500 22% 47%

$501-$2,500 25%

$201-$500 16%

$51-$200 12%

$50 or less 6%

Not Sure 20% % 0% 5% 10% 15% 20% 25% 30%

Qn 4: How much is your business’ average individual sale? N=1,137

26 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Call volume is high – half of all respondents manage more than 75 calls daily, and 1 in 6 gets more than 200

Avge. Daily Calls

More than 200 16% Half of all respondents get 151 – 200 8% 49% more than 75 101 - 150 12% calls a day

76 - 100 13%

51 – 75 16% 26 - 50 21% Less than 25 10% Don’t know 3% % 0% 5% 10% 15% 20% 25%

Qn 5: How many calls does your location receive on a typical day? Your best guess is fine. (If your business has more than one location, please answer this question for an "average" location in your business.) N=1,505 27 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 The average number of calls put on hold is somewhat over 50%

% of Calls Put On Hold/Transferred

100% 13% Average % of 90% 6% calls put on hold 80% 12% is 57% 70% 9%

60% 8% 57% 50% 18% 40% 11% 30% 13% 20% 8% 10% 4% % 0% 5% 10% 15% 20%

Qn 6: Out of every 10 calls you receive, how many would you estimate are placed on hold or transferred at some point during the call? N=1,511 28 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Two-thirds of callers are on hold for between 15 seconds and a minute – long enough to hear message, without becoming frustrated by time on hold

Length of Time on Hold

15 seconds or less 17%

Between 16 and 30 seconds 38% 67% Between 31 and 60 seconds 29%

Between 1 and 2 minutes 15%

More than 2 minutes 2% % 0% 5% 10% 15% 20% 25% 30% 35% 40%

Qn 7: How long would you estimate your callers are typically on hold, either when they first call or when they are being transferred? N=1,509 29 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Typical On-Hold Client

 100 calls a day….

 57% on hold …

 Typical hold time of 30 seconds…

Translates to half an hour a day, every day, of messaging to on-hold customers … or equivalent of 3+ weeks a year talking directly to your customers

30 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 For at least a quarter of respondents, On-Hold Messaging generated real sales value

Mean # of YES sales If average 24% 178 sale is $500 $89,000 a year

Sales UNSURE ? 54%

NO

22%

Qn 20 To the best of your knowledge, has your On Hold messaging been directly responsible for any sales? N=1,474; Qn 21: In the last year, how many sales do you estimate have been a direct result of a caller learning more about your business while on hold or waiting to be transferred? N= 221

31 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 But it’s not just about making sales:

“While MOH does not directly affect my sales, at this time, I do appreciate the positive affect it has on customers placed on hold.”

32 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 3d Opportunities

Jan 28, 2011 33 One–third of users are updating their messages annually or less frequently

Frequency of Updating Message 40% 36% 35% 30% 30% 25% 20% 15% 15% 12%

10% 6% 5% 0% Once a year 2 - 3 times a 4 - 5 times a 6 or more Not sure or less year year times a year frequently

Qn 8: How many times a year, if at all, do you typically update your On Hold messaging? 34 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 There are possible benefits from increasing frequency of message updates

While it is hard to separate cause and effect,

 Respondents who update their message 6+ times a year are statistically more likely to:

 Have 200+ calls daily

 Use OHM in a broader variety of ways

 They perceive a bigger impact from their use of OHM

 Describe OHM as a useful marketing tool that adds value

 Believe that OHM has been directly responsible for sales

Qn 8: How many times a year, if at all, do you typically update your On Hold messaging? Also Qn. 5, Qn. 13, Qn. 14, Qn. 20

35 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 A common reason for not updating is that some users struggle with process & would appreciate more help

“We need more input and help from your side to update and change the messages”

“We have a hard time changing info each month”

“I think it is a pain to update...... that process never works, you always have to send a new card”

Qn 24: Why? [would you recommend/not recommend on-hold messaging to other companies] Bottom 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=9 36 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 There is also interest from some customers in getting more support to maximize their benefit from OHM

“I don’t feel I use it as well as I could and would need more help from you to do that”

“Challenging to gauge how much value it really adds or ROI. Do you guys have any tools for measuring this?”

Open –end responses from Qn 13: From a pure marketing perspective, which of these statements best describes how you feel about the role of your On Hold messaging program in your overall marketing mix?. 37 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 4. Recommendations (based on Research findings)

Jan 28, 2011 38 Recommendations for working with current customers

 Continue focusing on providing first-rate service to your customers

 See yourself as a business partner, rather than just a vendor  Share best practices on using OHM  Partner with customers & OHMA to collect data on usage and effectiveness

 Think about how you can add extra value to your customers Some suggestions from the research include:  Regular reminders about updating message  Suggested scripts  Spanish or other language options

39 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Recommendations for attracting new customers

 Think about how to harness satisfied customers to spread the word

 Referral incentives?

 Testimonials?

 Social networking?

 Use this research data to support your sales pitch

 I am available to answer questions on how to use the data appropriately

 Both of the above can be used to help educate prospects as to the benefits of OHM

 Financial opportunity

 Enhanced perception of professionalism

 Improved customer satisfaction

40 Source: Online survey to OHMA and AMA (Europe) clients, April 2012

5. And Finally…

Jan 28, 2011 41 Some final comments from On-Hold Messaging users:

“I have been very pleased with On Hold messaging. On a scale of 1-10, with 10 being best, they are a 12!”

“I love it!” “On Hold ROCKS!”

“Choosing On Hold messaging is one of the best business decisions I have ever made.”

“I wish I had it 15 years ago. NO BUYER’S REMORSE EVER!!”

Qn 25: Why? [would you recommend/not recommend on-hold messaging to other companies] Bottom 2 box respondents from Qn 23: How likely or not would you be to recommend On Hold messaging to other companies? N=9 42 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Congratulations on the individual call-outs!

 The Austin TX staff, ACE On  Nicole Yancey, On Hold Hold Marketing Services

 Ron Schott, ACE On Hold  Andy H., The Production Department  Drew, Thanks for Holding  Chester Hull, ProSound  Vincent Edwards, On Hold  Betty Green, Smart Link Solutions Marketing Services  Nikki, Sound Marketing  Tim Jackson, On Hold Marketing Services  Frank Magnani, Sound Marketing Concepts  Jerri Owen, On Hold Marketing  David Thelen, Sound Results Services  The Durban staff, Success On  Renee Rousseau, On Hold Hold Marketing Services

43 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 Appendix - Respondent Details

Jan 28, 2011 44 On-Hold Messaging is used by businesses of all sizes…

Number of Employees

Over 500 6% One Third 101-500 17% More than 75 employees 76-100 7%

51-75 7% One Third 26-50 13% 11-75 employees 11-25 15%

2-10 34% One Third

1 1% Less than 10 employees % 0% 5% 10% 15% 20% 25% 30% 35% 40%

Qn 3: How many employees does your business have? N=1,507

45 Source: Online survey to OHMA and AMA (Europe) clients, April 2012 …and representing a broad range of industries

Financial Services 22% Other B2B 18% Health & Beauty 18% 12% Travel & Entertainment 7% Auto/Transport 6% Property & Construction 5% Food Related 4% Manufacturing & Engineering 4% Other 5% % 0% 5% 10% 15% 20% 25%

Qn 2: What is your primary line of business? N=1,548 Majority of “other” responses were recoded.

46 Source: Online survey to OHMA and AMA (Europe) clients, April 2012’; Greystoke Insights analysis About Us

Jan 28, 2011 47 Greystoke Insights

Greystoke Insights leverages quantitative and qualitative research techniques to provide insight-driven solutions that help businesses achieve their goals. Key services include:

 Consumer Insights and consulting

 Workshop planning and facilitation

 General strategy and management consulting Recent project examples include:

 Quantitative research into behaviors and attitudes of Facebook visitors for leading baby products manufacturer

 Qualitative research to test concept and refine target market for new sports app

 Development and facilitation of cross-functional workshop for senior management of national casual dining chain, focusing on generating creative marketing approaches

 Development and facilitation of workshop for leading beverage company’s staff and agency partners, focusing on defining strategy for new liquor

48

Arabella Pollack

Arabella Pollack founded Greystoke Insights in 2010. Arabella has extensive experience in applying consumer understanding for effective decision-making. She has worked as a strategy consultant for The Boston Consulting Group, and has also worked for leading research companies Knowledge Networks and The NPD Group. She currently teaches the "In Search of Insights" course for Columbia University's Masters in Strategic Communications program. Before founding Greystoke Insights, Arabella was Director of Consumer Insights at Pernod Ricard USA. She managed a full spectrum of research for such as ABSOLUT vodka, impacting the business in areas ranging from innovation to communication strategy and portfolio management. Arabella holds an M.A. from Cambridge University in England, and an M.B.A. from the Darden Business School at the University of Virginia.

49 THANK YOU

[email protected] 917.653.1813 www.GreystokeInsights.com