Home: Consumer Protection Alert: Predictive Dialing

What is Predictive Dialing?

Predictive Dialing is a system for making outbound calls, at which the system automatically dials a phone number without a representative or agent on the line. The predictive dialer works like this: The system dials the phone, listens, and when a live "hello" is detected, automatically transfers the call to an available agent. The predictive dialer places numerous calls simultaneously, checking each number for a live "hello" or for another call disposition. If the call is busy, no answer, or not working,  the predictive dialing program either discards or reschedules the call, then will automatically dial another number. The reason why they call a predictive dialer a “predictive dialer” is: because it is predictive. In other words, it anticipates when the next representative or agent will become available, and when the next "hello" will be detected. 

Predictive dialing programs can automatically adjust the calling pattern, the number of agents or representatives it is servicing, and the average call length. If the predictive dialing program detects that the calls are short, the predictive dialing program can be adjusted to dial more numbers. If fewer agents or representatives are available, a predictive dialing program can be adjusted to dial less frequently. If predictive dialing calling patterns change, the predictive dialing dialer has the ability to change with them. A predictive dialer can also be able to handle multiple projects, and multiple calling lists, seamlessly switching between them. Finally, good predictive dialing programs have the ability to be modified or adjusted as to the frequency with which the dialer "abandons" a call. An abandoned call occurs when a live person picks up the phone, and, unfortunately, when there are no available agents or representatives to take the call.  When the person hangs up the phone before the dialer switches the call to an agent or representative, the predictive dialer call is categorized as "abandoned". A high quality predictive dialer enables the telephone or network administrator to adjust the calling rate to minimize predictive dialing abandoned calls.

Who Uses Predictive Dialers?

Predictive dialing systems are generally used for business-to-consumer calling, where the individual identity of the consumer is not completely relevant to the call. Using predictive dialing, the agent, or representative has no time to preview the call before the connection. Additionally, it is assumed that abandoned calls to anonymous consumers do not harm the call centers business. However, because business customers require individual advance preparation and because abandoned calling to businesses is not acceptable, predictive dialing is generally not used to call business customers.

Furthermore, predictive dialing is most effective when the list has not been pre-selected and many of the numbers can be expected to be not working, busy or not answered. The agent or representative does not need a personal approach with the answering party and desires only to present a ‘sales pitch’ or obtain information. Predictive dialing will then eliminate much of the dead time and dramatically improve productivity. Statistically, the higher the contact rate of the list, the less need for predictive dialing and the more need for Super-Dialing. However, the lower the contact rate, the less effective Super-Dialing will be and the more impact predictive dialing will have on performance.

Membership or other types of pre-selected lists may merit either Super-Dialing or predictive dialing, depending on the nature of the business campaign. Super-Dialing affords the agent time to prepare and to support the "pitch" with information from the database. In contrast, predictive dialing will pop the record at the same time the agent is expected to begin speaking with the person, permitting no preparation and eliminating the possibility of a personal approach.

Predictive systems cannot be used when agents or representatives own their own records. The principle of predictive dialing requires that lists be "shared", so a call can be transferred to any available agent or representative.

The mathematics of predictive dialing also affects performance. Generally, using only four or five agents or representatives with predictive dialing software will not produce better contact time than Super-Dialing. The reason for this is with only four agents or representatives, the dialer's "predictions" on representative availability will be poor; resulting in many abandoned calls or long waits for connections. When at least eight agents are working, statistics demonstrate that the dialer will outperform Super-Dialing given a poor phone list.

Predictive dialing is more expensive than Super-Dialing. However, use and increased productivity gains, the more viable predictive dialing becomes.

Predictive Dialing - Silence on the Other End of the Line

Believe it or not, the Federal Communications Commission (FCC) receives many complaints about predictive dialing from consumers made by telemarketers.

FCC rules require that companies identify themselves to consumers and also that telemarketers maintain "do-not-call" lists for people who do not wish to receive telemarketing calls from a certain company. Unfortunately, with the practice of predictive dialing, and abandoned calls, often do not allow consumers to identify the company calling and, therefore, do not afford consumers the opportunity to make a "do-not-call" request under FCC rules.

Consumers who wish to avoid all telemarketing calls may want to contact their state to find out if it has a broad "do-not-call" law that prohibits all telemarketing calls to individuals registered on its state list. Currently, Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Missouri, Oregon, New York, Tennessee, Texas and Wyoming have implemented, or are in the process of implementing, "do-not-call" lists. Other states are considering similar laws. Also, the Direct Marketing Association (DMA) maintains a "do-not-call" list that is used voluntarily by its 4,500 member companies. DMA can be reached at (212) 768-7277. Their address is:

Direct Marketing Association
Telephone Preference Service
P.O. Box 9014
Farmingdale, NY 11735-9014

For more information on predictive dialing, contact your state utility commission or consumer protection agency.

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