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Beware of “Tracking Phone Numbers”.

November 23, 2010

At Third Marble Marketing, we’ve recently won-over a few new clients that had a difficult time dealing with online advertising companies that use “tracking phone numbers” to track calls for their clients.  A Tracking Phone Number is a different number than your business’s phone number, called a Voice Over IP phone number, that instantly re-directs to your business’s phone number.  Each time someone calls the tracking phone number, the call statistics are recorded so you know how many times the phone number was dialed.  They are intended to show how many calls an online advertising campaign produced.

Third Marble Marketing briefly used tracking phone calls in the past and, based on our client’s experiences with them, we now highly recommend to our clients not to use them.  If your current online advertising company is using tracking phone numbers to “prove your marketing ROI”, we recommend you use extreme caution when interpreting the results you get.

As with any industry, there are always a few companies out to make a quick buck.  Based on a few horror stories from several small business owners we’ve talked to, there are some online advertising companies that use these tracking phone numbers to “over-value” their advertising services to the unsuspecting small business owner.

Here are a few things you should look-out for:

  1. Once a customer finds your new tracking phone number, they may enter that number into their contact list instead of your real phone number and they may call it numerous times throughout the week / month / year.  This will artificially inflate the number of calls that this company is going to take credit for, thus inflating the value of their advertising.
  2. Since you do not own the tracking phone number, what happens to that phone number after you stop doing business with your online advertising company?  Will the old tracking phone number ring at your business when your loyal customers call that number?  Probably not.
  3. These companies will use numerous free strategies – ones that you can do in a few minutes – to drive traffic and inflate their numbers, and the value of their service.  If you haven’t listed your website on all the local directories, you should take the time to do so.
  4. Your online advertising company may tell you that you got 100 “sales” calls last month, not 100 “phone” calls.  Be aware that not all calls are from customers – some of them are from annoying sales people and other businesses that looked you up online too.
  5. What happens if the customer calls you multiple times?  Are they reporting each call as if it was from a different person?
  6. Many of these special tracking phone numbers can be recycled – in other words, it was someone else’s phone number before it was yours.  You may get several wrong calls for a different business, which your online advertising company will take credit for.
  7. Again, from stories told by Third Marble Marketing clients, beware that some of these companies will hi-jack your brand / company name to drive very cheap, high-converting traffic to their website.  Let’s say a customer searches for the name of your company.  Before, they would have found YOUR website, clicked to it and called YOUR phone number.  Once you start advertising with this company, THEIR website (that looks just like your website with their phone number on it) will appear higher in the search results.  It looks like your website, so the customer clicks through to their website instead of yours and calls THEIR phone number.  They take credit for a phone call that you would have gotten for free – again, inflating the value of their service.
  8. These tracking phone numbers cost money and that cost is passed onto you in their monthly service charge.  You would have gotten the same number of phone calls for less money, if you didn’t have to pay for the tracking phone number.

Basically, if you get 100 phone calls from a tracking phone number, just beware that only a fraction of them are probably incremental calls from actual new prospective customers.

We must add, however, that there are many reputable online advertising companies that can very effectively interpret the results from these phone numbers.  The above advice is simply meant to be a list of things to look for when using tracking phone numbers.

In the end, it’s all about making more money.  If you begin an online advertising program and your business increases, then you are getting good results from your advertising.  However, if your business does not improve, and your reports are showing 100 phone calls, your monthly advertising expenses just increased by $1000 and your original phone number is getting fewer calls, you may want to carefully review the performance of your online advertising company.

As a policy, Third Marble Marketing does not use tracking phone numbers.  In our opinion, the results are difficult to interpret at best and they are an added expense that we would pass along to you, that we feel will not provide any added-value to your business.

We prefer to keep online advertising easy, effective and affordable.  After all, how hard is it to ask a new customer “How did you hear about us?”

I hope this helps.

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