Power for Hosted Dialers and Predictive 2.0 – Premise-based Dialers a Dying Breed
7 January 2011 — Ken Krogue
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Found a link today to a pretty interesting research report from Frost and Sullivan detailing the decline of premise-based (hardware) dialer technologies in the year 2009.
The space suffered negative revenue growth (down 5.6%), and the summary indicated the reasons, none of which will come as a surprise to anyone who’s been following the hosted software/SaaS dialer space:
“Other methods and media are supplementing the use of agent-assisted outbound calling to comply with the laws and reduce campaign cost . . . Point solutions for outbound customer contact while still valuable are increasingly being viewed as not as efficient or effective for multi-function and unified outbound customer contact campaigns. Trends indicate that market demand is rapidly shifting away from point solutions.”
In other words, premise-based dialer technologies are
too inflexible
require a heavy up front cost investment, and as the 2009 economy showed us, the ongoing benefit and ROI of the investment is far from a sure thing
don’t integrate well into other systems
and last but not least, don’t link to other data applications to gain additional insight into existing business, call, and sales trends.
Hosted dialer solutions, on the other hand, mitigate or eliminate all of the above, particularly the sunk costs […]
What to Look For in a Sales Dialer – One (Very Smart) Man’s Response
5 November 2010 — Steve Watts
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Inside sales entrepreneur Ken Krogue recently responded to a comment on his blog, asking what the key principles, or key concepts should be when looking for a dialer system to improve sales performance and productivity.
His response was short, but insightful, so with his permission I’m re-posting it here.
Question: Other than cost, what features are important while using a hosted dialer?
Ken’s Answer:
That’s an interesting question. On the surface the basic concept is the same for all of them–make more calls and make better use of agent time.
The differences really depend on . . . .
As a vendor that specializes in dialer technology and software for sales teams, we get asked this question a lot—”Why won’t you sell / why are you biased against predictive dialers?”
The honest answer is that we don’t want to be part of the telemarketing crowd that calls you at dinner time and makes you say, “No, I don’t want that!” seven times before they finally hang up.
We want to work with professional inside sales people who happen to sell remotely, not telemarketers. It’s a specific choice we made.
Our biggest source of clients is those who come to us looking for a predictive dialer to call their business to consumer (B2C) leads. The first question we ask them is, “How much are you paying for your leads and can you afford to burn many of them?”
They always say “I pay a lot. And no, of course not – I don’t want to burn them… what do you mean?”
Then we point them to the FCC web pages with legislation against predictive dialers and the high annoyance they have caused over the years that have resulted in laws being passed. We show them that Predictive Dialers annoy and burn as many as 3% of their leads EVERY TIME THEY ARE CALLED. If you multiply that by the 7 to 12 times it takes to call a lead before you make contact, they are probably annoying about 1/3 to 1/2 of their list over time . . . .
Section 2: Choosing the Right Dialer – Negotiating the Best Deal
25 March 2008 — Ken Krogue
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Once you have chosen the right dialer, there are still a lot of steps to make sure you negotiate the best deal for your organization. This white paper helps.
Choosing the right dialer technology for B2B and complex B2C call centers is a mix of capability, premise vs hosted, long distance vs VoIP, and CRM integration.
