Predictive Dialers – Everything You Need to Know

What do call centers, marketers, doctors, lawyers, and school districts have in common? They all have situations where they need to make outbound calls to contact lots of people. If a business needs to contact lots of different people by phone, there's a good chance that a predictive dialer (or other automated dialer) will help. Unfortunately, many of us have a bad impression of predictive dialers thanks to spam callers and robodialers that pester us with unwanted calls. This article discusses everything you need to know about predictive dialers including how to use them ethically. Used properly, predictive dialers can help businesses contact more people efficiently.

TL;DR on Predictive Dialers

• Predictive Dialers automate the dialing process and filter out calls to ensure that agents are connected only to live customers, leading to improved outbound call center efficiency.

• Organizations must adhere to legal requirements and compliance regulations when implementing predictive dialers. Complying with these regulations reduce risk while still enhancing agent productivity, improving contact rights and increasing customer satisfaction.

• Businesses can select the right software solution for their needs while optimizing their system by identifying target audiences & compiling call lists for maximum efficiency & productivity.

Understanding Predictive Dialers

Predictive dialers are automated calling systems that use sophisticated algorithms to predict when agents will be available and dial numbers on their behalf. Most dialers have an ability to set a dialing rate which dials more outbound calls than there are available agents (based on a prediction that some calls won't be answered and that some agents will become available). These automatic dialers are an important tool for many industries where lots of contacts need to be made (e.g., such as sales, customer service, market research, health care, education, and the banking industry). They enable businesses to maximize agent productivity and customer satisfaction by automating the dialing process and connecting agents to live customers more efficiently. The result of proper use can be a significant increase in outbound call volumes and contact rates, ultimately leading to higher conversions.

Learn more about the history of the predictive dialer.

By implementing predictive dialer software, call centers and other businesses can experience a range of benefits, such as reduced agent idle time and increased talk time. This, in turn, can lead to increased sales, improved customer satisfaction, and better overall call center performance. With the best predictive dialer software, your business can prioritize leads, efficiently handle unanswered calls, and make more informed decisions about when to reach out to customers.

How Predictive Dialers Work

Predictive dialers work by simultaneously dialing multiple phone numbers and using their smart algorithms to determine when a live agent will be available to handle a call. When a customer answers the phone, the system automatically connects the call to an available agent. This process eliminates the need for manual dialing and significantly reduces the time agents spend waiting for calls to be answered, resulting in enhanced dialing rates, improved outbound call center efficiency, and better agent productivity.

In addition to automating the dialing process, predictive dialers also have the ability to detect answering machines, busy signals, and unanswered calls. By filtering out these types of calls, the system ensures that agents are connected only to live customers, further maximizing their efficiency and talk time. The end result is a dramatic increase in contact rates, leading to higher sales and customer satisfaction.

Key Features of Predictive Dialers

Some of the primary features of predictive dialers that contribute to their effectiveness include call preview, skills-based routing, and dynamic scripting. Call preview, also known as preview dialing, enables agents to review customer information before initiating a call, giving them the necessary context to tailor their approach and improve the chances of a successful outcome.

Skills-based routing ensures that each inbound call is allocated to the agent most qualified to handle the interaction, resulting in improved customer satisfaction and higher conversion rates. Dynamic scripting is another powerful feature of predictive dialers that can help enhance close rates.

By providing agents with customized scripts based on the specific customer profile and interaction history, dynamic scripting enables agents to deliver a more personalized and effective sales pitch, ultimately leading to better results. Together, these key features make predictive dialers a valuable tool for businesses looking to improve their outbound calling efficiency and overall performance.

Types of Dialers: Predictive vs. Progressive vs. Power vs. Auto

There are several types of dialers available, each catering to different needs and requirements. These include predictive, progressive, power, and auto dialers. As discussed earlier, predictive dialers are designed to maximize agent productivity by automatically dialing multiple numbers and connecting agents to live customers. They are particularly effective in high volume outbound campaigns, with some studies showing an increase in agent productivity of up to 300%.

Progressive dialers, on the other hand, are best suited for high-value sales where agents need more control over the call process. With progressive dialers, agents manually dial numbers and can review customer information before making a call, ensuring a more personalized approach.

Power dialers are ideal for managing high-quality contact databases, as they facilitate rapid dialing through a list of contacts, allowing agents to focus on speaking with customers rather than searching for phone numbers. Lastly, auto dialers are effective for dialing large volumes of phone numbers quickly and connecting them to agents, making them suitable for businesses with low-quality data or limited agent resources. Read more about different types of call center dialers.

Predictive Dialer Benefits

Predictive dialers offer a range of advantages that can significantly improve the efficiency and effectiveness of outbound call centers. Some of the key benefits include enhanced productivity, as agents spend less time manually dialing numbers and waiting for calls to be answered. By automatically dialing multiple numbers and connecting agents to live customers, predictive dialers can help businesses achieve higher contact rates and ultimately boost sales.

Another important benefit of predictive dialers is their ability to enhance customer satisfaction. By proactively reaching out to customers at suitable times and providing them with the necessary information, businesses can create a positive customer experience and foster long-lasting relationships. Moreover, predictive dialers can help businesses identify unproductive and productive local numbers, allowing agents to focus on more valuable tasks and further optimize their performance.

Progressive Dialer Benefits

Progressive dialers offer distinct advantages, particularly for businesses focused on high-value sales or requiring a more personalized approach. With progressive dialers, agents can manually dial numbers and review customer information prior to initiating a call, ensuring they are well-prepared for the interaction. This level of control and customization can lead to improved customer engagement and higher conversion rates.

One of the key benefits of progressive dialers is their ability to boost agent productivity. By connecting agents to new calls promptly and minimizing call abandonment, progressive dialers can help businesses achieve better results in their outbound campaigns. Furthermore, the preview dialing mode available in progressive dialers allows agents to initiate calls manually, providing them with greater flexibility and control over the call process.

Power Dialer Benefits

Power dialers offer unique advantages for businesses with high-quality contact databases. These systems facilitate rapid dialing through a list of contacts, allowing agents to focus on speaking with customers rather than searching for phone numbers. By automating the dialing process and providing agents with the necessary information, power dialers can help businesses optimize their outbound calling efficiency and improve overall performance.

One of the key benefits of power dialers is their ability to significantly enhance agent efficiency. In fact, agents can expect to be over 60% more efficient when utilizing a power dialer instead of traditional methods of searching in the database and manual dialing numbers. This increase in efficiency can translate into higher contact rates, better customer satisfaction, and improved sales results for businesses.

AutoDialer Benefits

Auto dialers offer a range of advantages for businesses looking to quickly dial large volumes of phone numbers and connect them to agents. These systems automatically dial phone numbers from a list and connect answered calls to available agents, significantly reducing the time spent on manual dialing and waiting for calls to be answered. This can lead to increased agent productivity, decreased idle time, and improved overall call center efficiency.

Another key advantage of auto dialers is their ability to provide businesses with visibility into call center operations and agent activities through customizable reports and dashboards. This information can be used to identify areas for improvement, optimize agent performance, and ultimately enhance the customer experience.

In addition, auto dialer software is available in a range of price points, from basic software to more advanced professional solutions, making them suitable for businesses of all sizes and budgets. Learn more about the difference between a predictive dialer and auto dialer.

Legal Considerations and Compliance

When implementing predictive dialers, it is crucial to adhere to legal requirements and compliance regulations, such as the Telephone Consumer Protection Act (TCPA). Organizations are restricted from using any form of auto dialers to place uninvited calls, such as telemarketing and robocalls, to cell phone numbers without the customer's prior written consent. This regulation is enforced by the TCPA. Failing to comply with these regulations can result in costly fines and penalties, making it essential for businesses to ensure their predictive dialers are TCPA compliant.

In addition to the TCPA, businesses should also be aware of other relevant laws and regulations, such as the National Do Not Call Registry, which provides individuals with the opportunity to register their phone numbers to limit the amount of telemarketing and solicitation calls received. By adhering to these regulations and implementing best practices, businesses can minimize the risk of legal repercussions and protect their reputation.

Staying TCPA Compliant

Ensuring TCPA compliance when using predictive dialers involves several key measures. First, businesses must obtain prior express written consent from customers before calling them. This can be achieved through opt-in forms, signed agreements, or other methods that explicitly grant permission for the business to contact the customer using an automated dialing system.

Second, businesses should implement call queueing, call routing, and call prioritization to minimize the interval between dialing and connecting the call to live agents. This will help ensure that the system is operating in compliance with TCPA regulations, as well as improving overall call center efficiency and customer satisfaction.

Manually initiated calls, where a live agent initiates the call instead of an automated system, can also contribute to TCPA compliance. Read more in our article about TCPA compliance and predictive dialers.

Avoiding Common Pitfalls

There are several common pitfalls businesses should be aware of when using predictive dialers. One potential drawback is the focus on quantity over quality, which can lead to a higher rate of abandoned calls and a negative impact on customer experience. To avoid these issues, businesses should implement strategies to balance call volume with quality, ensuring that agents are able to engage with customers effectively and deliver a positive experience.

Another potential pitfall is neglecting to comply with legal requirements and regulations, such as the TCPA, which can result in costly fines and penalties. By staying up-to-date on the latest regulations and implementing best practices for predictive dialer usage, businesses can minimize the risk of legal repercussions and protect their reputation.

Implementing Predictive Dialers in Your Business

Selecting the right predictive dialer software and setting it up for maximum efficiency is crucial for businesses looking to benefit from this powerful tool. When choosing predictive dialer software, businesses should consider factors such as cost, features, customer support, and ease of use. Additionally, it is important to ensure that the software is TCPA compliant and has the features necessary to optimize outbound calling efficiency and overall call center performance.

Once the appropriate software has been selected, businesses should focus on optimizing their predictive dialer for maximum efficiency. This involves configuring the dialing rules, call routing, and other features to ensure that the system is operating at peak performance. By carefully selecting and optimizing predictive dialer software, businesses can maximize the benefits of this powerful tool and achieve significant improvements in productivity, customer satisfaction, and sales.

Selecting the Right Predictive Dialer Software

Trying to pick the best predictive dialer for your business? There's no single right choice. You need to start by evaluating your specific use case for the dialer.

• Do you need a full contact center solution? (with inbound, IVR, etc.?)

  • If yes, you should evaluate your other call center feature needs so you can pick the right CCaaS or on premise call center software.

  • If no, you may consider a stand-alone predictive dialer.

• What is the source of leads you will be calling?

  • If a list (from csv or excel), consider a predictive dialer with lead loading features.

  • If from a CRM, consider a CRM dialer (there are a number of Salesforce dialers and dialers for other CRMs)

  • If a database (such MySQL, etc.), evaluate dialers with integrations to your specific database, or consider using Zapier or other low-code integration options.

• Is your need for a dialer a short term one?

  • If yes, consider a hosted predictive dialer that doesn't require a long-term contract. (there are a number of excellent hosted dialers that even have free trials).

  • If no, you still may want to consider hosted predictive dialers (they are an excellent option and reduce your technical management headaches and costs). Make sure to negotiate a contract term that fits your business needs (watch out for high setup costs and automatic renewal terms).

• What is your TCPA risk profile?

  • If you will be calling cell phones, does the dialer have a manual mode of operation?

  • How sophisticated is the list management? Does it allow application (and enforcement) of local calling rules?

  • Does the predictive dialer have good DNC integration? (does it allow you to compare numbers to DNC lists before dialing? Is it easy to add a number to an internal DNC list?

You should also make sure that any dialer you choose has the features you need to manage the operation of the predictive dialer closely. Look for features like answering machine detection, call pacing, other dialer modes of operation, etc. Also, how is the reporting? You need to make sure that when you operate the dialer that you are not abandoning calls (e.g., where a call is made, but then the dialer hangs up before an agent can be connected with a customer). High abandonment rates are a no-no for a dialer, and often you do not know your abandonment rate without clear reporting.

Setting Up and Optimizing Your Predictive Dialer

Consider breaking your operations down into individual predictive dialing campaigns. Each campaign could have different dialing rules and different agents. Configure each campaign's list according to those rules. For example, you may want to configure an appointment reminder campaign differently than a follow-up campaign (where you follow up with patients after an appointment). By configuring each campaign separately, you can better control operation of the dialer for each campaign.

Make sure you staff properly. It is important to have a sufficient number of agents for the predictive dialing algorithm to function properly and accurately. A minimum of 5 agents is recommended for most predictive dialing software systems to run efficiently and for agents to make the most of their time.

Make sure you have clear reporting set up for each campaign. It is critical to keep a close watch on call metrics such as abandonment rates. Each campaign should be separately tracked to monitor how many calls are connected to a customer but that are abandoned before an agent can answer the call. Also, make sure to track the time that lapses between the time that a customer is connected and an agent is connected.

Cloud vs. On-Premise Predictive Dialers

There are generally two ways to implement a predictive dialer. You can deploy software and hardware “on-premise” or in the cloud. A cloud based predictive dialer is also often referred to as a hosted dialer (or cloud hosted dialer). Up until just a few years ago, most dialers were implemented on-premise. This meant that your IT team had to provision computer(s) to run the predictive dialer software and maintain those computers. Further, SIP trunks or other telephony infrastructure needed to be provisioned to allow the dialers to make calls.

Running (and maintaining) predictive dialers can be expensive and time consuming. We recommend avoiding this approach unless you currently have a good IT team capable of diagnosing and maintaining telco equipment.

Hosted predictive dialers provide a number of advantages. For example, with a hosted predictive dialer, someone else is responsible for ensuring the servers and networking equipment is maintained and operational. (Make sure to pick a provider with a decent SLA!).

Cloud predictive dialers are often less expensive to operate. Many hosted dialer providers charge per-minute or per-seat with rates that are quite low compared to just a few years ago.

Using a hosted predictive dialer also can allow your business to scale up and scale down usage of the dialer. Most businesses aren't dialing the same amount each day. With many hosted dialer providers, you only pay for what you use.

Also, most cloud based predictive dialers allow administrators, supervisors and agents to interact with the dialer via Web browsers, allowing remote workers to make calls and manage the platform. The best predictive dialer software for your needs really depends on your needs — most of the top predictive dialer software providers can get the job done (but not all have the same features).

Open Source Predictive Dialers

Open source predictive dialers offer a cost-effective alternative to commercial solutions, providing businesses with the flexibility to customize the software to meet their specific requirements. These dialers are typically available at no cost (other than the cost to install and operate), making them an attractive option for businesses looking to save money while still benefiting from the powerful features and capabilities of predictive dialers. (read more in our article about cheap or free predictive dialers).

In addition to their cost savings, open source predictive dialers can be integrated with CRM software, providing businesses with real-time access to customer data and improving overall sales performance. Furthermore, open source predictive dialers offer real-time metrics and KPIs, such as call duration, call success rate, and customer satisfaction, which can be used to optimize the outbound calling process and boost sales.

By leveraging the benefits of open source predictive dialers, businesses can achieve significant improvements in productivity, customer satisfaction, and sales results.

Tips for Maximizing Predictive Dialer Efficiency

Maximizing predictive dialer efficiency involves several key strategies, such as setting clear goals, identifying the target audience, providing training and coaching to agents, and monitoring performance metrics. By implementing these best practices, businesses can ensure that their predictive dialers are operating at peak performance and delivering the best possible results.

Furthermore, businesses should take advantage of the key features of predictive dialers, such as call preview, skills-based routing, and dynamic scripting, to further enhance their efficiency. By leveraging these powerful features and implementing best practices, businesses can make the most of their predictive dialers and achieve significant improvements in productivity, customer satisfaction, and sales results.

Summary

Predictive dialers are a powerful tool that can help businesses across various industries maximize their outbound calling efficiency and overall performance. By understanding the key features, benefits, and applications of predictive dialers, as well as implementing best practices and optimizing their systems, businesses can achieve significant improvements in productivity, customer satisfaction, and sales results.

Moreover, with numerous options available, including cloud and on-premise solutions, as well as open source predictive dialers, businesses can find the ideal solution to meet their unique needs and budget. By investing in predictive dialers and leveraging their powerful capabilities, businesses can stay ahead of the competition and thrive in the fast-paced world of 2023.

Frequently Asked Questions