Contacting Your Customers Could Cost You Millions
Across a wide range of industries, companies are faced with increasing class-action lawsuits and federal penalties for violating the Telephone Consumer Protection Act (TCPA) when contacting consumers. Each violation of TCPA carries a civil liability of $500 and can be tripled by a Court for willful or knowing violations.
Last year alone, TCPA litigation rose by 31% from 2015 with over 4,800 lawsuits. The TCPA requires that companies must have consent from the current subscriber to call or text a consumer when using an autodialer or to transmit recorded messages. With over 35 million yearly disconnects, reassignment, and other phone number changes in the U.S. alone, the task of keeping consumer contact information up-to-date and accurate is challenging for even the most sophisticated companies.
Your company may be at risk of violating TCPA regulations by only having partial information about the phone number that you are calling or texting. As with any complex data set, one data element alone will not provide enough insight to understand the risk associated with contacting that consumer — whether its intermodal reassignment status, a recent disconnect indicator, or if a consumer only provided a phone number.
It is the relationship of this data, along with the identity of the consumer and other data elements that can paint a picture of the TCPA risk associated with dialing or texting a specific phone. You should combine the most accurate insights to not just manage the risk of TCPA violations, but to improve right-party contact rates and other key performance indicators (KPIs).
Here are 8 key insights of phone number information that you should be looking at before calling or texting a consumer:
1. Has the phone number been reassigned to another consumer?
2. Are there breaks in subscriber continuity that suggest the phone number has been reassigned?
3. Does the subscriber name still belong to that number?
4. Has the phone number been reassigned?
5. Is the phone a wireless number?
6. Has the number been consistently active?
7. Is the phone a pre-paid phone number that is frequently churned to other subscribers?
8. Is the phone a Voice-over-Internet-Protocol (VoIP) number that could resolve to a mobile phone?
One benefit of upping your TCPA compliance game is the gains you’ll see in efficiency, similar to what has been realized by other data-centric companies. It should come as no surprise that when companies try to contact a consumer at a bad phone number they are much less likely to contact that consumer. Normally, we see roughly 85% of right party contacts come from just 50% of calls. Focusing on the best phone numbers reduces cost, improves efficiency, and is good for consumers.
Neustar is a trusted expert in managing the kind of data that companies need to mitigate their TCPA risks. We provide unique consumer data intelligence that helps some of the largest organizations in the U.S. to mitigate TCPA risk and improve right-party contact efficiencies, including:
• The Top 10 U.S. financial institutions
• The Top 5 credit card issuers
• Hundreds of TCPA clients across numerous verticals (e.g. Financial, Retail, Healthcare, Utilities, Insurance Services, Collections, etc.)
To learn more about our TCPA mitigation solutions that could potentially save your company from significant fines, feel free to visit our TCPA Compliance page.