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How to Decide Between a Power Dialer vs Predictive Dialer

By Corry Cummings
From TechRepublic

How to Decide Between a Power Dialer vs Predictive Dialer

When is the extra efficiency of a predictive dialer vs power dialer worth it? Learn about both types of auto dialers and when to use them.

When it comes to streamlining the efficiency and effectiveness of your call team, an auto dialer is one of the most impactful tools.

Power dialers and predictive dialers are two of the most common types of dialers used in call centers, but they can be used by any organization that needs to conduct outreach at scale.

Cold calling, collections, appointment setting, general customer service -- whatever the reason if your agents need to make thousands of calls a week, both of these dialers will help them get more done in less time.

We'll cover everything you need to know about power dialers and predictive dialers so you can choose a solution that automates call center workflows and empowers your agents.

What is a power dialer?

Imagine you're a customer service rep with a list of hundreds of phone numbers in front of you. One by one, you have to type each one in manually to make your next call. Not only do you spend a ton of time during your day pressing buttons -- you have to be extra cautious not to accidentally press a wrong number as you go.

A power dialer automates this process by dialing the next number on your list as soon as you complete your previous call. This eliminates a ton of busy work for agents, enabling them to focus on their cold call script, for example, instead the mechanics of dialing correctly.

If there is no answer or if the line is unresponsive, the dialer will move to the next contact until it reaches a live person or a machine on which you can leave a message.

This is a huge time saver. Now you can make a larger amount of calls in a shorter period of time. Plus, you don't have to worry about those potential misdials.

Here are a few more advantages of using a power dialer:

It is not perfect for every scenario or team, however. Power dialers are less effective in scenarios where call connection rates are low (e.g., below 30%), as the 1:1 dialing ratio means agents may spend considerable time waiting for responses.

They are also not ideal for high-volume operations, such as businesses with multiple call centers or extensive lists exceeding 1,000 contacts per agent daily, where faster dialing systems like predictive dialers are often more efficient.

One last thing to note: power dialers require a dedicated team of agents consistently available to handle calls; without this, the system stalls, reducing productivity and undermining its advantages.

What is a predictive dialer?

Like a power dialer, a predictive dialer automates and streamlines the process of working through a pre-established contact list.

But rather than running through the list consecutively and connecting callers to agents as they become available, a predictive dialer calls two or more numbers at once, relying on call algorithms and system presets to estimate which callers will actually pick up and when an agent will be available.

Predictive dialers excel at saving time by automating high-volume calling, making them ideal for:

Predictive dialers, while excellent for reaching large numbers of people quickly, have some notable drawbacks. The lack of personalization can be evident in a brief pause before a caller is connected to an agent, which may feel impersonal or frustrating. These systems also lack the ability to leave voicemails, limiting follow-up opportunities for unanswered calls.

You also have to keep compliance in mind using a predictive dialer -- if dropped calls exceed 3% of total calls, businesses may risk non-compliance with Federal Communications Commission (FCC) regulations, which can lead to penalties.

When to use a power dialer vs predictive dialer

If your business or team is small to mid-sized and your daily call list includes less than 1,000 fairly high-quality contacts, a power dialer is likely your best fit.

This technology will save your agents time while empowering them to engage in a more personalized approach. It can be a little more customer-friendly, as the call connection is immediate, so customers won't have to deal with that awkward pause before being connected.

And in the event that no one answers, agents are able to make good use of their time by leaving a voicemail that elicits possible future connection.

Even more convenient -- you achieve all of these benefits while avoiding the compliance risks associated with a predictive dialer's dropped calls.

When to use a predictive dialer vs power dialer

A predictive dialer is ideal for much larger operations, such as call centers, with sizable teams dedicated to managing customer connections.

Since the system is only predictive in its ability to estimate how many people will answer at a given time of day, its multi-number dial feature can sometimes result in multiple live answers. In these cases, the first person to pick up is connected to an agent, while the remaining call is dropped, leading to lost sales opportunities.

This isn't just a negative thing in terms of sales, though. It also has potential compliance implications

FCC regulations stipulate that callers have two seconds to identify themselves before a call is considered abandoned, and businesses are allowed only a set limit of such calls -- roughly three percent of call volume. This protects consumers from rampant misuse of telemarketing and robocall technologies.

Because of these regulations, a predictive dialer can potentially put you at risk of legal trouble if an agent is not ready at the time a call is answered.

In order to mitigate this risk, many predictive software programs offer adjustable features that help to maintain a specific threshold of abandoned calls.

Businesses can also set a pre-recorded greeting to play while callers are waiting for an agent to join. This can still be off-putting to callers -- some will hang up once they hear an automated message -- but it's better than ghost calling your customers because the predictive dialer made too many calls.

How to get predictive and power dialer software

The auto dialer market offers a variety of options tailored to different business needs, from standalone tools to integrated platforms. Understanding the landscape can help you find the right solution for your business, whether you're optimizing sales outreach or improving call center efficiency.

Typically, you must purchase predictive, power, or other types of dialer software individually, though there are some providers that bundle the different types of dialers together.

Here are the major product categories where you will find auto dialer software included or available as an add-on:

Predictive and power dialers can streamline operations and boost productivity, but success hinges on thoughtful implementation and adherence to compliance regulations, such as TCPA and GDPR. While these tools are powerful, they're not magic -- they enhance effort, but don't replace it.

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