What Is A Predictive Dialer?
A cloud predictive dialer is an automated dialer that uses several parameters to place an automated outbound calls. It calls different numbers (as provided by you) until it detects a connection and then passes it to a live agent.
Predictive dialer software automatically screen out numbers that go straight to the voicemail, are busy, don’t answer, and so on, thereby saving hours of your agents’ time each month.
The primary difference between a power dialer and a predictive dialer is that a power dialer calls a list of numbers sequentially. In contrast, a predictive dialer uses a set of parameters to determine when an agent will be available to take the call and dials the number accordingly.
Another key distinguishing factor is that a predictive dialer solutions calls multiple numbers at once. As soon as a customer picks up the phone, he will be connected to an agent, while the rest of them will be passed to other available agents (if they pick the call). The primary goal here is to ensure maximum agent utilization and improve efficiency.
Benefits Of Hosted Predictive Dialer
Studies show that predictive calling can increase your agent’s productivity by as much as 300%.
An agent manually dialing numbers can make around 35 phone calls per hour (considering some customers don’t pick up the call). By using algorithms and automation, a cloud based predictive dialer can make 110 phone calls per hour.
This ensures agents spend more time talking to customers and less time calling them. In fact, when you use a call center predictive dialer in your call centers, your agents will spend at least 45 minutes per working hour having a conversation.
Reduces Operational Costs
Now that you have automated the dialing process while ensuring high agent productivity, this will make things cost-effective. This means you can do more with less workforce. Besides, you won’t need an operator (sales reps) to manually maintain call logs or call routing to agents, thereby further reducing your operational costs. And, since you are predictive calling as many numbers as possible, you will see an increase in conversion rate (provided the numbers in your calling list are qualified leads).
When it comes to calling customers, your contact center must follow several Federal Trade Commission rules. These rules and standards help protect people from annoying callers and scams. Though they don’t prevent legitimate businesses from calling customers, there are certain situations when you shouldn’t call them (e.g., when they have set up, do not disturb).
Unfortunately, with the growing lists of prospects, it gets difficult for employees to keep up with the numbers they cannot call. A predictive dialer software, however, can exclude numbers that you shouldn’t be calling.
Improves Customer Experience
An outbound predictive dialer will automatically route the connected outbound calls to the right agent, eliminating the need for customers to wait while ensuring higher agent productivity. Furthermore, it can provide your agents with detailed information, such as the prospects’ names, past interactions, interests, and more. You can use these insights to offer a personalized experience.
Features Of The Best Predictive Dialer
The pacing ratio defines the number of people the predictive dialer software will call for each agent. For example, if you set the pacing ratio to 1:3, the predictive dialer software will call three people simultaneously. You can increase or decrease the pacing ratio as and when required.
Cloud based predictive dialer allow you to connect to add a third person in an ongoing call. To start a call conferencing, you will have to first initiate a regular call to the first number. Once it is answered, you can dial another number.
As your business grows and your team expands, you will need a scalable system. With an efficient predictive dialing system, you can make thousands of calls simultaneously.
Call Recording and Monitoring
Call recording is an essential feature for every outbound call center. You can use it to improve your agents’ performance and train new employees. Managers can access the recorded message whenever needed.
Call monitoring, on the other hand, allows you to track every activity related to ongoing calls. You can even listen to the calls in real-time without the customer knowing about it. Furthermore, you can leverage call whispering to guide the agent on how to handle the ongoing call (the customer won’t be able to hear you, though).
How Does A Predictive Dialing System Work?
A best predictive dialer uses a variety of parameters to determine when to call a number. It also uses machine learning algorithms to analyze answered calls, unanswered calls, number of active agents, dial success rate, call metrics and then uses the data to adjust the call dialing rate.
The metrics that a powerful predictive dialer uses to place the calls include:
- Number of available agents
- Average call duration
- Average time for a person to pick the call (ring time)
- Average number of people who pick the call
- Average time to connect the call
- Average time to complete after-call tasks (if enabled)
Let’s take an example to better understand how predictive dialers work:
- Number of available agents: 10
- Average call duration: 2 minutes
- Average time for a person to pick the call (ring time): 30 seconds
- Average number of people who pick the call: 20% (20 out of 100)
- Average time to connect the call: 5 seconds
This means the predictive dialer will call 50 customers at once (considering only 10 will answer calls). Once all the agents are occupied, it will use other parameters, i.e., call duration, ring time, and time to connect the calls to dial other numbers.
The predictive dialer will then automatically dial other numbers after 85 seconds (120-30-5) to ensure the agent gets occupied as soon as the first call ends.
If you enable after-call tasks, the predictive dialer will use it to dial numbers. So, let’s suppose you set two minutes (120 seconds) for after-call work. The top predictive dialer software will call the numbers after 205 seconds (120 + 85).
Note: Timing is the most important thing in a predictive dialer. The more accurate data you enter, the better it will perform.
Pros of Predictive Dialer Software
- Uses machine learning to anticipate an agent’s availability and pairs it with the calls accordingly, thereby reducing the idle time.
- Improves productivity by connecting agents with calls as soon as they get available.
- Excludes blocked phone numbers automatically, thereby ensuring compliance of not calling on numbers that have set do not disturb.
Cons of Predictive Dialer Software
- Since a predictive dialer uses machine learning, it takes a lot of time to get perfect.
- An agent won’t always be available as per the dialer’s prediction, making prospects wait for the agent to connect.
- Potential customers might get frustrated if an agent is not available when they receive the call. Agent availability is must.
- It can’t leave voicemails, so the system might make several attempts to connect the call.
- Predictive dialers are complicated. Managers might need to learn how to use it to get the best possible results.
Which is The Right Time to Get a Cloud Predictive Dialer Software for Your Business?
As mentioned earlier, there is a perfect time to invest in a predictive dialer such that it can be utilized to its full potential. Wondering when to invest in one? Here are some tips that will help you decide:
1. When your business is ready to go cold calling, backed up by an efficient sales plan
Having a sales plan that works and leads to a high conversion rate is what good companies are made of. A good sales plan consists of finding prospective customers and connecting with them. When you have successfully established a connection, that is when you pitch to them and close the deal.
The most difficult process in this sales plan is connecting with prospects. Statistics state that for every 20 cold calls that a salesman makes, one lead is generated. Tough odds, right? This is the hard truth. This is what it takes. The more people you talk to, the more leads you generate.
If your business has formulated such a sales plan and is ready to connect with people across the map, then it might be the right time to invest in a predictive dialer. With this type of a sales plan, you will have two primary targets – to talk to as many prospects as you possibly can and to patiently connect with them and give them quality time. Getting the best dialer software can simplify both these steps for you.
Some may still be confused as to how a dialer can simplify this process. Let me explain a little in depth. A predictive dialer cuts back down time between calls and allows a sales rep to maximise their work time. They can then reach out to more people, make connections with more people and ultimately close deals with more people.
However, a predictive dialer is mostly used for bulk calls. Businesses that are just starting with their sales campaign and have a limited number of sales people on their team do not really have much use for a dialer.
A predictive dialer is not used to help businesses start, but to help them grow.
2. Do not opt for it if you are selling high priced products or services
As useful as they might be, predictive dialers are not meant for high value items. Before you start to doubt my words, let me tell you why.
Most customers do not think twice before buying a useful product for a low price range. However, if you are selling a high end product which pulls out a large amount of money from your customers’ wallet, you need to be more careful with your marketing strategy.
Selling high value items means that you are targeting an elite clientele and not every Tom,Dick and Harry that you come across. Cold calling is not the way to go for these clients. If they are going to pay a huge price for your product, they expect top quality customer service in return. To close the deal with such prospects, you need to spend a fair amount of time studying them and provide them with personalised care and attention. You need to build their trust, slow and steady.
As a company, it would be more beneficial for you to handle your leads slowly and carefully. It will not only give you a higher rate of conversion but also more satisfied customers. You need to make sure that before a prospect buys your product, they know everything about what you have to offer. Any confusion or misunderstanding that arises later will be detrimental to your business.
As is clear from what I have said above, one needs to take their time with leads when it comes to high ticket products or services. Since you are aiming for a specific clientele and not targeting the masses, you do not really need to make mass calls. You agents do not need to be on the phone 24/7; they need to sit tight and do a lot of research. For these reasons, it is not wise to opt for a predictive dialer in case of high end products.
3. When you want to improve the productivity of your sales team
So you have landed yourself a great sales team but they are not racking up insane numbers like you expected. You know they are capable, you know they can sell, you just do not know what is holding them back! Well, I’ve got an explanation for you.
Salesmen have more on their hands than you think. They do not have the time to be on the phone the whole day, where you would ideally like them to be. They need to handle tons of paperwork, manually document sales records, waste time switching from one tool to another and so on. As a result, a lot of valuable call time is wasted.
But don’t worry! If your sales team is facing a similar problem, we have a solution for you. You must now think along the lines of getting a predictive dialer with CRM integration to help your sales team increase their productivity, and ultimately close more deals for you.
For those of you who are not aware, a CRM software integrates all your client data into a single software and automatically records or documents the highlights of a customer call, linking it to the profile of the customer. This is among the many features that the software provides, thus becoming a blessing for salesmen. It releases salesmen from their mundane jobs of creating records and documenting calls by hand, and automates the entire process for them.
When you integrate a predictive dialer with CRM, both of which are beasts in the sales industry, then you allow your sales team to seriously step up their game!
4. When you are ready to face the challenges that come along with a predictive dialer
Businesses using a predictive dialer for making sales calls experience a slight call delay between the customer answering the call and a sales rep joining the call. No big deal, you might think. However, it is a big deal because such time lags are governed by a different set of rules that may vary from region to region.
For example, in Canada, a strict “Do not disturb” policy is followed that prevents dialers from contacting numbers registered under such regulations.
Such rules increase the call abandon rate and renders a predictive dialer useless in some cases, thus increasing your cost incurred in the whole process. Hence, before opting for a predictive dialer, a company must make sure that they are familiar with all such limitations and are capable of efficiently dealing with the same.
By now, you must have got a fair idea as to when you should buy a predictive dialer. These tips or pointers will help you make a better decision which is in the best interest of your company. As much as you would love to have a dialer for your sales team, you must keep in mind that it is not suitable for all businesses.
Advantages of Predictive dialer Software
Make data-driven decisions to improve your contact centers performance and efficiency with CallHippo analytics. Leverage call transcriptions to segment your prospects list and decide follow-up actions based on the outcome of the call without listening to the entire conversation. Analyze call duration, access call recordings, and determine the costs of each call. Use the details to better qualify prioritize leads and improve your return on investment.
Sync Lead Status Directly Into Your CRM
Manually entering all your data into the CRM can be tough and time-taking. It is also prone to errors, which is why CallHippo supports integrations with most of the CRMs, including Salesforce, Zoho, HubSpot, and Microsoft Dynamics CRM. It allows you to update customers’ status (e.g., need to follow up, interested, not interested, etc.), along with call recordings for better assessment.
Encourage Call Backs
Not everyone picks the call the first time. But that doesn’t mean they are not interested in your product or services. They might be driving, in a meeting, or taking a shower when you called them. That’s where voicemails and business texting can help. Use them to encourage prospects to call you back when convenient. Besides, with CallHippo, you can get multiple phone numbers with around-the-clock reachability and use the call forwarding feature to receive calls on your smartphone even outside business hours.
Frequently Asked Question
What is the function of a predictive dialer?
A predictive dialer is an automated phone dialer system that makes calls even before agents conclude the current call or become available for the next. The predictive dialer’s purpose is to reduce agent idle time while enhancing productivity by eliminating the need for agents to spend time dialing numbers.
What is the difference between a predictive dialer and an auto dialer?
The key distinction between a predictive dialer and an auto dialer is that, where auto dialer software use simple algorithms to place calls only after the current call has been completed, predictive dialers use machine learning and place calls even while the current call is still active.
When should you use the predictive dialers?
Predictive dialer is an ideal automated phone dialer system for businesses with high call volumes. Using a predictive dialer, these organizations can greatly increase productivity by minimizing idle time and increase agents efficiency.