Why do dialler providers tie you into long term contracts?

Traditionally, dialler providers tied customers into long term contracts. The main reason for this was due to large outlays for equipment costs. So instead of high upfront fee’s call centres could spread the cost by committing to the provider. However, as technology has progressed, hosted diallers have become the preferred option and this removes high setup costs as less equipment is needed.

What is a hosted dialler?

A hosted dialler is software which is accessed online which can manage multiple calls from a large database. The software can make large amounts of outbound calls and when connected can guide them to available agents. The term ‘hosted’ translates to accessed online rather than the more traditional method of having physical hardware.

We thought hosted diallers would be the end of long term contracts, however, these contracts still exist.

Problems with Long Term Dialler Contracts

Once you’re tied into long term contracts, potentially, you’re stuck. If you felt the customer service wasn’t up to scratch, you can’t just leave. You would likely be met with high exit fee’s which have been added to the contract. You could potentially avoid this by looking at company reviews from independent sources such as capterra.

Hidden terms in the contract may also cause prices such as call costs to rise, again there may be nothing you can do. You still need to pay for the licences. Alternatively, industry costs may drop and you could be paying a greater amount for the same solution, giving your competitors greater profit margins.

If technology moves forward in your sector, you could end up using outdated software. This could allow competitors to perform better and take advantage of industry advancements.

Pros of Long Term Dialler Contracts

Usually, the longer you commit, the lower the cost per user and the greater discounts on call costs etc. This can be great if the industry moves very little as competitors are likely to be paying more.

By sticking with one solution, you become fully trained and accustomed to it and build relationships for customer service. It also reduces the time of searching for new providers every so often.

Why you should seek a dialler provider without a long contract

By not committing long term to a hosted dialler provider you are retaining buyer power. This means if the provider has bad customer service or issues with call quality you can hand in your notice and leave. This fear keeps hosted dialler providers on their toes and putting effort into improving their solution.

Dialler providers will also keep reinvesting in new technology to make sure they stay up to date or ahead of competitors.

Some campaigns come and go and data sets can be used quickly, therefore call centres can grow or reduce as and when they need to. If you are tied into long contracts you might not be able to be as flexible with the amounts of users and therefore end up paying for licences which are not in use.

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