Answering machine reduction is used to allow predictive dialer agents hear the customer say the first "hello", while greatly reducing the number of answering machines your agents get passed to them.
Think about this. When you are at home and receive a phone call and there is nobody there for the first few seconds, it is usually a give-away that a telemarketer is calling you. When most people notice the "dead air", they get a little frustrated and start to think of what to say to the unpersonable telemarketer on the other end. This makes your first impression a bad impression. Usually this is caused by the telemarketing company using answering machine detection.
Most predictive dialers use answering machine detection, but some predictive dialers can also offer answering machine reduction that can screen out most answering machines by using a method of pacing to allow you to hear the customer say the first word "hello". This allows the telemarketer on the other end to greet the prospect as a person, not just a number.
For example, if you are calling Mr. John Brown and you hear the first words the customer speaks, it can tell you quite a bit about the person. If a child picks up the phone, you can say something like "Is your Dad home?". Or, if a middle-aged man answers the phone, then you can assume that it is Mr. Brown and say: "Hello, Mr. Brown, how are you this evening?". If you don't hear anything, all you can pretty much say is: "Hello, may I please speak with Mr. Brown?". Most likely they will hear the silence if answering machine detection is turned on, and along with the generic greeting you will be spotted as a telemarketer and greeted back accordingly.
In our call center, we have seen as much as a 20% increase in productivity per lead, simply from hearing the first hello. Answering machine reduction is a very simple technology that will allow your predictive dialer to stay on the line with a customer until right before the answering machine picks up the phone on, usually, the 4th ring.
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