The 800-number — for 40 years a part of daily American life — is doomed. Like what happened to pay phones. And milkmen.
This would be very bad news for phone companies, which rake in $12 billion a year from toll-free numbers.
The 800-number’s destiny first occurred to me a couple of months ago as I stood outside a neighborhood hardware store looking at Weber gas grills. On each grill was a sticker that said if you have any questions, call this 800-number.
Clever, right? Just about anyone who is out looking at Weber grills is probably carrying a cellphone. And a Weber call center person no doubt can explain the grill better than a part-time hardware store clerk.
Except there’s something odd about this equation. Just about everyone who has a cellphone has a flat rate package for local and long-distance calls. In other words, as I stood there with my phone, there really would’ve been no difference whether I called a toll-free 800-number or a “toll” 847 area code number at Weber’s headquarters in Palatine, Ill. Both calls would’ve cost me essentially nothing.
But if I call Weber’s 800-number, the call costs Weber at least a few cents a minute. Those calls add up to millions of dollars a year for a company like Weber.
Huh, I thought. Why would a company spend all that money it didn’t have to spend?
At some point, this will reach a tipping point. Companies will decide they no longer need an 800-number to allow the vast majority of consumers to reach them. When you add it all up, the toll-free-number industry is just going to collapse.
Photo by asolario.
Scott on November 10th, 2006 at 9:45 am
I first noticed this in the latest Walt Disney World commercials. They used to put an 800 number on the screen, now it’s a 407 (Orlando) number.
hipoteca on November 12th, 2006 at 6:44 pm
I guess 1-800-MATTRESS should shut down their 170 million dollar per year business.
I guess 1-800-flowers should shut down. You point on the article addresses just the topline impression of the power of toll-free numbers. Geoffrey Gonzalez
Tim Grahl on November 15th, 2006 at 10:30 am
Another thing that will have to fade is people’s perception of 1-800 numbers. Because of the past 25+ years 1-800 numbers are more convenient than area numbers. Yes they cost me the same on my cell phone (which is the only phone I have) however the public perception of 1-800 vs. area number is still there.
We all know that customers don’t buy based on logic and I believe the same is here. If companies start dropping 1-800 numbers and asking people to call area numbers it is not going to be viewed well even though it costs the customer exactly the same.
This will happen eventually, but it’s going to be a long, long time.
dave on February 10th, 2008 at 5:45 pm
Studies show that many more clients,potential clients and Past clients will respond when an 800 Number is given. The toll free 800,888,877 and 866 vanity numbers are used due to the fact that people are 14 times more likely to remember a vanity number. ie: 1-800 New Home or 1-800-835-3290. If you count how many times you see vanity numbers used on tv in just one afternoon I’m sure you will understand the true value. Companies spend millions of dollars to run ads each day. Consider the difference in ROI when potential clients remember your number/Website 14 time more often than if you don’t use a Vanity number. Seems like a no brainer!