Executive summary

Background and objectives

The mandate of the Canadian Radio-television and Telecommunications Commission (CRTC) includes the responsibility to protect Canadians from unsolicited communications, including telemarketing. The protection of consumers against specific types of unwanted calls is governed by the Unsolicited Telecommunications Rules (UTRs), including the National Do Not Call List (DNCL) Rules. While the CRTC has some qualitative and quantitative data that speaks to the effectiveness of the DNCL, it identified the need for data specific to Canadian businesses for whom the UTRs apply.

Thus, a survey of Canadian businesses was conducted to obtain a clear picture of the scope of telemarketing activity in Canada, their awareness of the UTRs, their compliance activities, barriers they may face in achieving compliance, and additional tools they may need to improve compliance.

Survey methodology

A telephone survey was conducted with a representative sample of 1,202 Canadian businesses, drawn from published lists, between February 23 and March 15, 2016. The sample was stratified by region and business size (number of employees). The margin of error for a sample of 1,202 is +/- 2.8 percentage points, in 19 out of 20 samples. The margin of error is greater for results pertaining to subgroups of this population (such as telemarketers).

A more detailed descrip­tion of the methodology is presented at the back of the report, along with a copy of the questionnaire (see Appendix).

Cost of the research

The cost of this research was $46,258.80 (GST included).

Overview of findings

Incidence and profile of telemarketers

• The survey results reveal that 12 percent of Canadian businesses use telemarketing. Another one percent say they plan to start telemarketing in the coming year.
• The incidence of telemarketing ranges from a low of seven percent in B.C. to a high of 14 percent in both Quebec and Ontario. It is also higher among medium and large organizations (100 employees or more) than among small firms (less than 100 employees).
• Almost all telemarketers (97%) are telemarketing on behalf of their own business; some also do telemarketing on behalf of clients (24%). The very large majority (96%) are direct telemarketers, meaning they make their own calls entirely or together with a third party. Because most telemarketers are doing their own calling, the location where the calls are initiated from typically mirrors the province/region in which the business is located.
• Just under half of telemarketers (46%) are calling potential consumer clients. The other half (52%) are making exempt calls to consumer clients with whom they have an existing relationship or to business clients.
• The majority of telemarketers (66%) have been telemarketing for ten or more years. On average, 28 percent of a telemarketer’s employees are engaged in telemarketing, also this is higher among smaller firms.
• The revenue generated by telemarketing varies considerably, but close to half (45%) say they generate less than $100,000 annually using this marketing approach.
• The findings suggest that telemarketing activity is likely to grow. Three in ten telemarketers expect their activity to increase, compared to six in ten who say it will remain the same and one in ten who expect it to decline. Plans to increase telemarketing activity are driven by the belief (or evidence) that it is an effective marketing tool for their organization. Similarly, non-telemarketers typically say they choose not to use telemarketing because they don’t see the value in it for their business.

Telemarketing rules

• Among telemarketers, there is moderate familiarity with the DNCL, with at least seven in ten who are at least somewhat familiar. However, familiarity with the Automatic Dialling and Announcing Device (ADAD) rules (25%) and other telemarketing rules (34%) is substantially lower. A minority of those familiar with the DNCL could identify the Government of Canada (24%) or the CRTC (20%) as the organization responsible.
• The results indicate that six percent of all telemarketers are registered with the DNCL and two percent subscribe to it. There are two main reasons given for not registering: a lack of awareness that it is required, or the perception that they are exempt. Among those not yet registered, there is very low intention to do so in the coming year (13% say they are very likely to, which is the most accurate estimate of true intention).

Information needs

• Most telemarketers are likely to do an Internet search to find information about complying with telemarketing rules. Very few know to go directly to the CRTC or DNCL websites.
• The main suggestions for tools or resources about compliance that would be helpful to telemarketers are those that give them the information they need (e.g. information bulletins, more awareness/information generally) and are addressed directly to them (e.g., mail/letters, emails).

Non-telemarketers

• Non-telemarketers are relatively similar to telemarketers in terms of their familiarity with the UTRs, the information sources they would use for information about compliance, and what tools/resources would be most helpful to them. The main difference is that familiarity with the DNCL, ADAD and other telemarketing rules is lower among non-telemarketers, and they are less likely to associate the DNCL with the CRTC specifically.

Political neutrality statement and contact information

I hereby certify as a Senior Officer of Environics Research Group that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not contain any reference to electoral voting intentions, political party preferences, standings with the electorate, or ratings of the performance of a political party or its leader.

Sarah Roberton
Senior Research Associate, Public Affairs
Environics Research Group
sarah.roberton@environics.ca
(613) 230-5089

Supplier name: Environics Research Group
POR Registration Number: POR 039-15
PWGSC contract number: 82082-160275/001/CY
Contract award date: 2016-02-09
For more information, contact the CRTC at communications@crtc.gc.ca