For those that do not know what a predictive dialer is, this article is geared towards you. This is considered an outbound calling system that can automatically dial from a list of telephone numbers, similar to an autodialer. A predictive dialer automatically calls numbers until it senses and connection and then passes each call on to a live agent.
Because an automatic dialer and predictive dialer are so similar, there are a few things that can set them apart. Their ability to utilize call metrics to predict when a human will answer the phone, routing the call to a live agent. While this is happening, these devices run parallel with the availability of agents. In the instance that a call center is busy, and all the agents are currently unable to speak with a customer, the predictive dialer will either slow down or completely stop its outreach. This is something that an automated dialer cannot do. Predictive dialers also can dial multiple numbers at the same time, with their goal being to call the correct number of leads at the right time, ensuring maxim agent utilization.
Predictive dialers that are used for sales have been around for about 30 years. They were first used in the baking industry and helped debt collectors contact a long list of individuals. Just because they began as a hardware solution for many companies, they are now being used very often in mary call centers and businesses. Hosted dialers are very commonly chosen by businesses because they minimized upfront expenses
How Do Predictive Dialers Work?
Just as the name states, this device can predict when agents will be free to take another call, and then dial the next customer on its own. A predictive dialer uses algorithms to determine the exact time that an agent will be ready to move on to another customer, providing a steady stream of calls to each agent, with little to no downtime.
This eliminates the time that an agent will take to search out customers and call them. For example, manually dialing a number can take 30 seconds, and only one out of every three or four calls might get answered by a customer. Predictive dialers can calculate the average length of a call and the average number of dials it takes to make a connection and then optimizes dialing to enable agents to seamlessly move from one cell to the next.
A predictive dialer will analyze each call, and discard the negatives passing over only the genuine calls answered by real people, which in turn, will increase your reach rates drastically. Saving your employees time by not having to dial numbers by hand, means they can focus on each lead for longer.
Who Uses Predictive Dialers?
These devices are used most commonly in telemarketing, by market research teams, debt collectors, and customer service follow-ups. In addition, some lead qualification agents can use this device to maximize the amount of time spent on the phone for sales prospecting.
Because predictive dialers focus on putting employees on the phone as much as possible, they will not be effective for organizations that are selling high-value items, or those who are looking to improve customer service.
How Effective Are Predictive Dialers?
There are various records on the effectiveness of predictive dialers because when phone utilization is a primary concern, these dialers have been shown to deliver dramatic results. One study showed that predictive dialers can improve agent productivity by 200% to 300%
On the other hand, there are some concerns that many face when it comes to using predictive dialers. Because these dialers work so quickly, they can sometimes give agents more than one call at once, because they have no insight into dialing processes. These dialers can also increase call volume, which takes away sales reps from following interested customers. Along with those few reasons, there has also been backlash against predictive dialer use, including the FCC banning the use of all auto-dialers that dial numbers with no pre-established consent.
When looking at the bigger picture, the pros outweigh the cons. Just take a minute to think about this. You’re spending a minute, on average, waiting to connect with someone and then another 30 seconds to a minute selecting the next number to dial. You’re also taking short breaks between calls, and these gaps will, most likely, grow longer after every call you’ve made. That’s at least 2 minutes per call, on average.
Even with a 25% reach rate, you’re still waiting for at least 8 minutes before actually talking to someone, and if your reach rate is closer to 15%, then that time can extend to 10 minutes or more. That is a lot of sales that are being missed out on.
The great thing about these dialers is that they can cut that interval between calls to only 3 seconds, which can result in a whole range of benefits. These benefits include lower outbound calling costs, less idle time in between calls, and a greater potential for making more sales.
How Much Can You Spend On an Autodialer?
The price that you will pay depends on your needs. If you feel as though your company wants all the bells and whistles of the best predictive dialers, be prepared to shell out a few hundred dollars. Keep in mind that in addition to purchasing the device, the software must also be purchased. This type of software can provide many benefits to your call center, and works directly with the dialer you choose. When deciding which software to purchase, it will be in your best interest to ask if they charge per call, upfront, monthly, or annually.
Sometimes, a standalone predictive dialer could set you back around $5,000 for a system that accommodates large numbers. A large call center can make that shoot up a few hundred more dollars with added bonuses as well, but that’s not including installation and maintenance costs that could take up a significant portion of your budget.
Is Your Company Ready to Try a Predictive Dialer?
A predictive dialer makes selling so much more exciting and user friendly for all employees. With their simple features, you can help to eliminate all the time your employees waste listening to busy tones or voicemails entirely.
If you’re eager to see how it could improve your sales, do some research and find some predictive dialer companies that offer trials. By using a trial, you can reap the benefits for yourself, and decide to invest later down the road. Don’t just believe our word for it, let your business try it out to see if a predictive dialer is the right fit for you.