A Guide to Predictive Dialers: What you need to know

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Even with today’s multi-channel approach to sales, cold calling is still central to bringing in new clients and customers. But this process shouldn’t look the same as it did decades ago. 

Predictive dialers revolutionize outbound calling by automating the dialing process and predicting agent availability.  

By leveraging predictive dialers, your sales reps can eliminate the inefficiencies and unnecessary manual tasks that bog down their productivity. Agents instantly connect to live calls, allowing them to focus on what they do best: engage with customers and close deals.

Automated dialer software for outbound calling comes in many forms. Besides predictive dialers, there are also auto dialers and power dialers. This article explores the nuances and benefits of predictive dialers, making a quick comparison with other solutions to help you pinpoint the best option for your call center operations. 

What is a Predictive Dialer?

A predictive dialer is an automated business calling system that uses algorithms to predict call center agent availability and dial multiple numbers simultaneously. It routes only answered calls to agents, so they spend more time engaging with customers and less time waiting for calls to connect.

Think of a predictive dialer as a smart assistant for making phone calls. Imagine telling your phone, "Hey, I'll be done with this call in three minutes. Please dial another number for me in two and a half minutes." 

That way, you can jump seamlessly into the next call.

How does a predictive dialer work?

Predictive dialers use advanced algorithms to optimize call scheduling. These algorithms analyze historical call data to estimate the duration of calls and the likelihood of calls being answered. 

Based on these predictions, the dialer manages the timing of outgoing calls to ensure that call center agents have a minimal wait time.

As soon as it predicts an agent is about to become available, the predictive dialer automatically dials another number. If the dialer's algorithm calculates that multiple calls are needed to secure a connection (considering factors like time of day and historical answer rates), it can dial several numbers at once.

Predictive dialers can also detect when an agent becomes available and immediately route calls to them to ensure continuous engagement. This technology both boosts operational efficiency by increasing the number of calls handled per hour and improves call center productivity by minimizing idle time.

Who should use a predictive dialer

Predictive dialers are ideal for teams that handle a high volume of phone calls and need to improve call center agent performance. Predictive dialers work well for:

• Sales teams: Help increase call volume and close more deals

• Telemarketing firms: Essential for large-scale campaigns to reach a broad audience efficiently

• Debt collection agencies: Increase contacts per hour, enhancing debt recovery rates

• Customer support centers: Reduce wait times and balance the distribution of incoming and outgoing calls

Discover Aircall’s Power Dialer and see your team’s time savings add up. 

Predictive Dialer vs. Auto Dialer: What to know

An auto dialer is another type of calling system that supports various  use cases including sales, customer service, telemarketing, market research, and debt collection. When comparing a call center predictive dialer vs auto dialer, both make it possible to dial as many numbers as possible within a short timeframe. 

What is an auto dialer?

An auto dialer makes calls from a predefined list while sales or customer support agents finish up a call. From there, the auto dialer connects answered calls to the live operators or plays a recorded message. 

If a person answers the call, an auto dialer can put the person on a brief hold until a live agent comes on the line.

Auto dialers need four things to work: a computer to run the software, a person to answer the phone, a voice modem, and an active telephone line. The voice modem enables the computer to play an audio recording over a telephone line. 

With VoIP technology, auto dialers can also work with PBX business phone systems that use SIP trunking.

Some auto dialers have built-in voice detection software, meaning they can tell whether a human picked up the call or whether the call went to voicemail.

Should you use a predictive dialer or auto dialer?

Whether you use a predictive dialer or an auto dialer depends on your business needs and the nature of your outbound calling operations. 

A predictive dialer is typically ideal for high-volume call centers where it’s critical to maximize agent productivity. Predictive dialers can boost the number of calls made per hour by lowering agent downtime between calls and filtering out unproductive calls. 

However, they require more sophisticated technology and may not be cost-effective for smaller operations.

On the other hand, an auto dialer is often suitable for smaller operations or campaigns with lower call volumes. Auto dialers automate the dialing process, reducing the time agents spend manually punching in numbers. 

While they may not offer the same level of efficiency as predictive dialers, they still cut down on manual tasks and enhance calling operations. 

VoIP-based (cloud-based) auto dialers are hugely popular. This is because they integrate with your CRM, giving sales and customer support reps real-time data to personalize conversations.

Good to know: Look for a system that complies with anti-spam laws. The Telephone Consumer Protection Act (TCPA) has specific rules about telemarketing, mobile phone communications, abandonment rates, and call recording. Your reps must be aware of federal and state laws regarding predictive dialing and auto dialing, and use compliant software.

Pros and cons of predictive dialers and auto dialers

Choosing the right VoIP Phone System

All VoIP phone systems offer a variety of voice calling features, and most of them include some type of dialer. Aircall, for example, offers a VoIP-based power dialer that balances automation and agent availability. 

Unlike predictive dialers that ring multiple numbers at the same time, or auto dialers that immediately connect answered calls to agents, a power dialer automatically dials the next number on a list when an agent becomes available. 

This approach helps to maintain a steady flow of calls without overwhelming agents, as the system adapts the calling pace based on agent availability. 

Here are five tips on how to choose the right VoIP phone system to meet your needs for a calling system:

1. Consider the size of your customer base. With a preview dialer, reps can view the next call in line and decide whether to skip it. By contrast, a progressive dialer automatically dials the next call on the list. Smaller companies may prefer a power dialer like Aircall's, while larger companies may benefit more from a predictive dialer.

2. Identify the features you need. Automatic dialers come with features like opt-out management, CRM integration, dashboard reporting, speech recognition, IVR capability, and more. Aircall offers these functionalities, seamlessly integrates with popular CRMs like Hubspot and Salesforce, provides detailed analytics for performance tracking, and enhances customer interaction with advanced IVR systems.

3. Consider the size of your team. If your team is small, you might prioritize quality over quantity of calls. Aircall provides various dialer options that can be tailored to team size, ensuring that even smaller teams can use features traditionally reserved for larger call centers.

4. Sign up for a free trial. It’s difficult to envision how software can work for your business before testing the waters. The best sales dialers are intuitive and easy to use, with the vendors offering free trials so you can see for yourself. Jump right in with Aircall’s free 7-day trial to see how the software can help your team.

5. Choose a vendor that has a reputation for strong customer support. You’ll want assurance that the company will be there for you when you need them. In addition to Help Center access, Aircall offers email and phone support, as well as dedicated account managers for greater peace of mind. 

Optimizing Outbound Calls for Your Business

Outbound calls are a necessary part of growth for most businesses, but two challenges tend to arise when optimizing them. 

First, features like a predictive dialer or auto dialer should increase the number of qualified leads, increase conversion rates, and help you reach your business goals. It’s important to track data to ensure that these things are happening.

Second, outbound calling can be pretty mundane and repetitive, which negatively impacts agents’ motivation and enthusiasm. Without a positive work culture, it’s difficult for these employees to perform well.

An outbound predictive dialer and auto dialer solves both problems. Here are some ways you can use this software to optimize outbound calls—in turn boosting sales and revenue and keeping a positive culture on your team.

1. Set clear goals, metrics, and KPIs

Spend some time evaluating your goals and set your metrics and KPIs to match them. Then, set up workflows that lead to progress. The right VoIP phone system will allow you to track things like:

• Average call handling time

• Conversion rate

• First call close or first call resolution

• Average wait times

• Average time to return a call

Pro tip: Don’t just use your KPIs for tracking call center productivity. You should frequently share successes with your reps to keep them motivated.

2. Personalize scripts

Scripts are a useful tool that can work for or against your company. The solution to ensuring your reps don’t rely on scripts too heavily or come off as overly scripted: train your sales reps on how to pull up data from your CRM and use it to personalize calls.

3. Scale your team

Evaluate data from your VoIP phone system’s dashboard (average call length, number of phone calls made, etc.) to help you determine the right number of agents needed to help you reach your goals.

4. Track and analyze call data

Call data tells you which reps are performing well and which aren’t. By reviewing data on your sales reps, you have an objective way of measuring their performance. 

5. Set reasonable, attainable quotas for sales reps

Set sales quotas that are challenging, but not unattainable. Your metrics and KPIs will assist you in this. Be sure to reward high-performers and provide support to the reps that need it. 

6. Record customer interactions and review them

Call recordings offer opportunities to learn whether sales and customer service reps are spending too much or too little time on calls. Recordings also give you a way to assess the quality of interactions and help you train your outbound call reps.

7. Use multiple channels for outreach

Customers who perceive phone calls as spam will just hang up. However, incorporating SMS, email, and chat feels more like engagement and relationship-building than a cold sales call. So be sure to use an omnichannel approach to customer and prospect outreach. 

Why Aircall’s Power Dialer Outshines Standard Predictive Dialers

Aircall’s power dialer is a powerhouse virtual phone system  for call centers. Its advanced features, CRM integrations, and detailed analytics mean that your sales team always has the proper tools, time, and context to wow prospects and drive revenue. 

With the relevant insights from your software at your fingertips, it’s easier to uncover opportunities to improve your call center operations and help your agents be more productive and successful. 

Discover Aircall’s cloud-based integrated phone system and see your team’s time savings add up. Get started now

Frequently Asked Questions About Predictive Dialers

Are predictive dialers legal?

Predictive dialers are legal but must comply with local regulations like the TCPA in the U.S., which includes restrictions on unsolicited calls. Always ensure compliance with the specific rules in your area. 

For this reason, it’s important to not use a free predictive dialer, but rather a reputable one that you know follows regulations. 

When should you use a predictive dialer?

Use a predictive dialer when you need to maximize call efficiency in high-volume environments, such as telemarketing, sales, and customer support. It helps manage large call volumes effectively, reducing idle time for agents.

What’s the difference between a predictive dialer and a progressive dialer?

A predictive dialing system automatically dials numbers based on algorithmic predictions of agent availability, while a progressive dialer dials sequentially from a list at a set pace. Predictive dialers are more aggressive and suitable for larger operations.

How much does a predictive dialer cost?

The cost of a predictive dialer can vary widely based on features, provider, and scale of deployment. Prices might range from a monthly fee per user (typically starting around $50) to comprehensive packages that require custom quotes.

What is the best predictive dialer software?

The best predictive dialer software depends on your specific needs. Look for predictive dialing software that offers robust integration capabilities, reliable support, and scalability. 

Popular predictive dialing software options include Aircall, which is praised for its user-friendly interface and convenient integration with CRM systems.

Published on May 14, 2021.