A phone dialer is a type of telephony software that helps a single sales representative dial a large volume of leads. Because the phone dialer automatically calls through a predetermined list of contacts, the sales rep is able to stay on the phone longer and close more sales.

These dialers are also known as auto dialers or outbound dialers. These auto dialers will allow sales reps to reach thousands of prospective customers per day.

There are several types of telephone dialers, with the main kinds being ratio dialers, predictive dialers, and power dialers.

Ratio and predictive dialers both work to keep the sales reps on the phone every moment they are logged into a dialer initiative. Ratio dialers place numerous, simultaneous calls for each available sales representative. When one of these calls is answered the rest are dropped and the sales rep is transferred to that call. Predictive dialers usually call less people at a time, but start dialing leads before any sales representatives become available. This ensures that a lead will be waiting for each available sales rep, but when leads answer sales calls before any sales representatives are available, those leads are expected to wait on the line until a sales rep is routed in – they rarely do.

Dropped calls are a standard part of inside sales when using either a predictive or ratio dialer. Power dialers offer a solution to the problem of the dropped call.

A power dialer, in comparison to other dialers, focuses on quality interaction between the sales representative and their contact. This is achieved by having the power dialer place a call to only one lead at a time for each sales rep. The sales rep hears the phone rings, and can respond immediately when the call is answered. There is no "preferred drop rate" with a power dialer.

The power dialer is a technological improvement over manual dialing, increasing the number of calls made in a day by roughly 3 times. Power dialers are perfect for B2B communications, where secretaries need to be impressed by a sales rep before they connect him to their boss, and each individual sale is larger. In B2C sales, a power dialer stops the wasting of hundreds of leads a day because of the placement of too many calls.

All of these auto dialers can increase a sales representatives call per day ratio, but only a Power Dialer ensures that each call placed becomes a money making opportunity.