I don’t need custom music on hold & messages, we play the radio on hold isn’t that good enough? As the song states video killed a radio star, but radio may be killing your business. And here are the top 4 reasons why.
1. First of all, chances are you're caller is already a little frustrated for having to wait on hold in the first place, and you compile that frustration by playing music that may be to your callers disliking. Let’s face it, is the image of heavy metal music or rap music the image you want to give to your callers about your brand?
2. The old static on hold routine. Playing the radio on hold means callers are always susceptible to hearing static, crackling or music that is too loud . Not only is this hard on the ears, but hearing static radio while on hold doesn't do anything for your customer's mood or your company's image. Again you may take an already negative situation and make it even worse.
3. Advertising a competitor to your caller. Nothing can be more devastating to your marketing on hold plan than to let a competitor's radio ad be heard by your customers while they're waiting for service. This is because your customer, likely already bored, is just looking for an excuse to hang up and find someone else better able to help them with their problems. By playing a radio station not only are you advertising other businesses (in which you aren’t getting paid to advertise their business to your callers) but even worse, your callers can likely hear an advertisement for your competitor. Why would you want to give your customer an excuse to hang up and call your competitor whose ad they just heard?
4. It’s illegal. That’s right, playing the radio on hold or music on hold without paying the proper performance license to do so is illegal and can result in very costly fines. What? Playing the radio on hold is illegal? You betcha. It's true that radio broadcast stations are licensed to perform the music they carry on their airwaves, but your phone system is technically creating a RE-broadcast. Radio phone on hold music is considered an unlicensed, separate performance under the copyright law. The spirit of the law is that responsibility falls to the end-user, so your re-use of a radio station is therefore subject to fees. Not only that, but there are currently three organizations policing the music industry and you may be required to subscribe to all of them. These include ASCPA, BMI and SEASAC.
In cases where a radio station is being "re-broadcast" on the music on hold system, fees and fines can be applied. These laws apply to all establishments, not only retailers.
Case in point:
How would you like to be informed that you have been sued for $400,000 for playing music in your store? The Michigan Retailers Association reports that Larry Leigh, owner of Leigh’s and Mettie’s women’s clothing stores in Grand Rapids, Michigan, found out the hard way about penalties for unlicensed music use. Several years ago, he received a letter from licensing organization ASCAP stating that he was violating copyright regulations by playing tapes and CDs in his stores. Unfortunately, Leigh got some bad advice from the business that installed his store stereo system, having assured him he didn’t need to worry. Two years later, he was sued by ASCAP for $400,000. His attorney informed him that his chances of winning the suit were not good, he settled out of court for a $5,000 fine.
So the best alternative to playing a radio on hold to keep callers entertained, and eliminate the risk or exposure of being subjected to paying fines or fees is by using professional Music On Hold & Messages. With this type of marketing tool, your phone system can play more than just music, but you can also provide a custom marketing message to callers, and let them learn more about your company as well as project a positive brand image. Additionally, studies prove that callers will wait on hold twice as long with music on hold & messages thanwith just music alone.