Worth its "wait" in gold: the "what" and "why" of music and message-on-hold (MMOH) systems, and how they benefit marketing.

• Author: Thibault, Jamie
• Position: Fundamentals

Visualize a potential customer--We'll call her "Janet." This woman has received a targeted mailing about an investment fund and finds that it suits her needs exactly. What happens when she follows up and calls your bank?

If we accept that 70 percent of calls to a business are put on hold or transferred, then it's likely that Janet's call will receive the same response.

If Janet hears dead air while she's on hold or in queue, there is a 70 percent probability that she will hang up within 40 seconds, and a 34 percent chance she will never call again. All of that investment in segmented direct mail is lost - and Janet now has a bad impression of your bank. She may go elsewhere.

At some banks, Janet might hear a radio station during her time on hold. While hearing some sound will reassure her that her call has at least not been dropped and will likely make the wait time seem shorter for her, this still doesn't do anything for the bank's image or marketing goals. In fact, while Janet is on hold she may hear a commercial from a competing bank. (Additional note: A bank can get into trouble for retransmitting a commercial radio station through the telephone system without first paying a licensing fee for the copyrighted music.)

In other instances, banks could give Janet some "elevator music," which helps pass the time but has few other benefits.

A better solution is to provide callers with music and message-on-hold (MMOH) recordings that mix music with short messages about the bank's offerings. This approach helps keep Janet on the line and informs her about other products and services the bank offers. In addition, affordable MMOH technology is now available to provide customized messages to Janet's particular market segment.

Don't forget that marketing people need to be involved in the selection of a MMOH system. In too many cases, banks leave decisions regarding these systems to their information technology or telecommunications people. These people are more interested in designing a system that meets the bank's technological--rather than marketing--needs.

To see the value of an MMOH system, compare this medium to other marketing media. While on hold or in queue, our client Janet can't change the channel to skip your message. She can't flip past the page, or throw out your mailer. She's a captive audience, and her response rare to your offers is likely to be higher than it would be in response to messages in other media.

Also, remember that she is the one who called your bank, so this is the best possible time to present her with new ideas. The efficiency of the bank or call center staff taking Janet's call will rise because Janet will already be an informed customer.

MMOH strategy needs to be integrated with the bank's overall marketing strategy. When it comes to presenting new products or services, these must be front-and-center in your MMOH...