Interactive voice response (IVR) technology continues to be one of the best ways for companies to manage customer requests and provide great service in call centers. IVR handles twice as many customer interactions as live agents and five times as many text-based chats.
IVR systems can accelerate issue resolution, improve customer satisfaction scores, and reduce the workload of your contact center agents. It enables your team to focus more on high-priority calls and projects while doing the heavy lifting of meeting routine customer queries.
However, old-school IVRs require a lot of effort to set up and don’t always offer the advanced features your customers need. The wrong IVR can lead to frustrated customers, higher costs, and poor performance.
An IVR isn’t a silver-bullet solution for call centers: it takes the right IVR system for your business to fully benefit from this technology.
Before we explore the best modern IVR systems, let’s dive into how an IVR system works, its benefits, and some best practices to set your call center up for success.
What is interactive voice response (IVR)?
Interactive voice response (IVR) is a technology that allows callers to interact with a computer-operated phone system through voice commands or keypad inputs. When a customer calls your company and is greeted by an automated system asking them to "press 1 for sales" or "say 'support' to speak with a representative," they’re engaging with an IVR system.
IVR is much more than just a series of automated prompts. It helps businesses streamline their customer service processes, allowing them to handle high volumes of calls efficiently while offering a personalized experience. Imagine IVR as the friendly gatekeeper who quickly directs you to the right department without the fuss—saving both time and effort.
How IVR systems work: at a glance
IVR systems use pre-recorded voice prompts and menus that enable callers to navigate options using their voice or the keypad on their phone. Here’s a simple breakdown of how it works:
- The caller initiates the call: When a customer calls the service number, the IVR system kicks in, greeting them with a welcome message.
- Menu navigation: The system then presents a menu of options. The caller selects their preferred option using voice commands or keypad inputs.
- Call routing: Based on the input, the IVR system routes the call to the appropriate department or provides the required information directly.
- Feedback loop: In some cases, the system might ask for feedback or offer additional services, creating a loop of continuous engagement.
4 key features of call center IVR solutions
An IVR system is loaded with features that make it indispensable for call centers. These are the four core IVR features that you should bear in mind while evaluating different providers.
1. Call routing
IVRs automatically route calls to the appropriate department or agent based on the caller’s input.
For example, in a bank's call center, customers who call to inquire about their account balances can be directed to the “Account Services” department. If they need assistance with a loan application, the IVR can route them to a “Loans Specialist.”
This intelligent call routing ensures that customers are connected to the agent with the specific skills and knowledge to assist them, reducing call transfer rates and improving efficiency.
2. Speech recognition
This feature allows the IVR system to understand and process spoken words, making interactions more natural and user-friendly.
For instance, in a healthcare setting, patients can simply say “appointment scheduling” to be directed to a scheduling assistant or “billing inquiry” to reach the billing department.
This feature is particularly helpful for those who may find it difficult to navigate through complex keypad menus. Speech recognition can also handle regional accents and variations in speech, enhancing accessibility and convenience for a diverse customer base.
3. DTMF tones
Dual-tone multi-frequency (DTMF) tones are the sounds made when pressing keys on a phone, which the IVR uses to interpret user inputs.
This feature is useful in retail businesses where customers might call in to check their order status. By using their keypad to enter their order number, customers can quickly receive an update about their shipment status.
DTMF tones are also helpful in scenarios where speech recognition might not be effective, such as noisy environments or when dealing with sensitive information where the caller prefers not to speak aloud.
4. CRM integration
This feature allows the IVR system to seamlessly integrate with customer relationship management (CRM) systems. Agents can see relevant caller information before they even pick up the phone.
For example, when a customer calls, the IVR can pull up their account details, including their service plan, previous interactions, and any open support tickets.
This ensures that an agent is fully prepared to assist the customer, reducing the need for customers to repeat information and improving the overall customer experience.
5 benefits of IVR systems in contact centers
Here are five key benefits of an IVR system in a call center.
- Deliver a seamless customer experience: IVR systems allow customers to quickly access the information or department they need without waiting for a human agent. This level of self-service reduces frustration by providing a smoother, faster customer journey.
- Cost efficiency: By automating routine inquiries and tasks, IVR systems reduce the need for a large customer service team. This leads to significant cost savings in terms of staffing and training, allowing businesses to allocate resources more effectively. It's like having a virtual employee who works around the clock without breaks, holidays, or overtime.
- 24/7 availability: IVR systems can operate around the clock, ensuring that customers can access support and information even outside regular business hours. This level of availability ensures no call goes unanswered.
- Efficient call routing: IVR systems can intelligently route calls based on the caller’s needs or preferences. IVRs minimize call transfers and reduce wait times, leading to more efficient call handling.
- Data collection and analysis: IVR systems can collect valuable data on caller behavior, preferences, and call patterns. Analyze this data to identify trends, optimize IVR menus, and improve overall service delivery.
5 use cases for IVR in a call center
Here are five ways to make the most of your IVR in a contact center.
1. Use it as an auto-attendant
An IVR system can act as a virtual receptionist, efficiently managing incoming calls and directing them to the appropriate departments or agents during business hours.
For instance, when a customer calls a company, the IVR can provide a menu of options—press 1 for sales, press 2 for support, etc.—allowing the caller to quickly reach the desired department without the need for a human operator.
Outside of business hours, the same IVR can seamlessly handle voicemail, ensuring no call goes unanswered and capturing messages for follow-up. This setup not only reduces the workload on live receptionists but also provides a consistent, professional touch, enhancing the customer experience by ensuring their needs are addressed promptly.
2. Facilitate call center routing
In a busy call center, managing a high volume of incoming calls efficiently is crucial. An IVR system can streamline this process by routing calls to the appropriate representatives based on user input.
For example, a telecommunications company can use IVR to guide customers through troubleshooting steps for common issues. If the issue requires further assistance, the IVR can then transfer the call to a specialist, such as a technical support agent or a billing representative.
This targeted approach ensures that customers are connected with the right agent faster, reducing wait times and improving overall satisfaction.
3. Support surveys, polling, and voting
IVR systems are not limited to inbound calls; they are also highly effective for outbound campaigns. Companies and organizations can use IVR to conduct automated surveys, collect customer satisfaction scores, or even perform political polling.
For example, a retail business might use an IVR system to call customers after a purchase and ask them to rate their shopping experience. Similarly, a political organization could use IVR to conduct a quick poll on voter preferences or opinions on key issues. The automated nature of IVR surveys ensures consistent data collection and allows organizations to gather valuable feedback quickly and efficiently.
4. Send appointment reminders
Missed appointments can be costly for businesses, especially in healthcare, beauty, and other service-based industries. IVR systems can help minimize this issue by sending out automated reminders to customers ahead of their scheduled visits.
For example, a dentist’s office might use an IVR system to call patients 48 hours before their appointment to confirm or reschedule if necessary. This not only reduces the number of no-shows but also improves customer communication and satisfaction by providing a convenient way for patients to manage their appointments without the need to speak directly with a staff member.
5. Manage lead assignment and routing
For inbound sales calls, an IVR system can play a crucial role in qualifying leads and directing them to the appropriate sales representative. When a potential customer calls, the IVR can present a series of qualifying questions—such as asking about their specific needs, budget, or preferred products.
Based on the customer’s responses, the IVR can then route the call to the most suitable sales agent who specializes in the relevant area. For example, a software company could use this approach to direct inquiries about enterprise solutions to a dedicated sales team that handles large accounts, while calls about individual licenses are routed to a different team.
This targeted routing maximizes the efficiency of the sales process and ensures that potential customers are connected with the right expertise to meet their needs.
5 call center IVR best practices
1. Design simple and intuitive menu options
Keep IVR menus straightforward and easy to navigate. Too many choices can confuse and frustrate customers. Limit the number of options per menu to no more than five, and use clear, concise language to describe each option. This helps customers quickly find the information they need without getting lost in a maze of options.
2. Provide an option to speak with a live agent
Always offer callers the option to speak with a live agent at any point during the IVR process. Providing an easy way to reach a live agent ensures that customers don’t feel trapped in the automated system and helps maintain a positive customer experience.
3. Regularly update and optimize the IVR system
Continuously review and update the IVR system based on customer feedback, call analytics, and changing business needs. Refine menu options, update voice prompts, and remove outdated information to keep the system running smoothly.
4. Use natural language and speech recognition effectively
Implement advanced speech recognition and natural language processing (NLP) technologies to make interactions more natural and user-friendly. Instead of forcing customers to navigate through rigid menu structures, allow them to state their needs in their own words. Ensure that the speech recognition software is accurate and capable of understanding a variety of accents and dialects, reducing errors and improving customer satisfaction.
5. Monitor performance with real-time analytics
Utilize real-time analytics to gain insights into customer behavior, call patterns, and system efficiency. This data can help identify bottlenecks, frequently accessed options, or points where customers tend to drop off. Analyzing this information allows call centers to make data-driven decisions to enhance the IVR experience.
3 IVR challenges and considerations
Limited customization and flexibility with the wrong IVR solution provider
Not all IVR systems are created equal. The wrong provider can be like trying to fit a square peg into a round hole. Imagine investing in an IVR solution that can't sync up with your CRM or doesn’t support multiple languages your customers speak.
Customers feel the pain, too—they’re left without personalized support and may have to repeat themselves multiple times just to get a simple request through.
Complex and confusing menu options
When customers are bombarded with long, complicated menus or forced to navigate endless layers just to get a simple answer, they’re likely to hang up in frustration. This not only leads to a negative customer experience but can also harm your brand’s reputation.
Keep menus straightforward and intuitive. Help customers get to where they want to go without feeling like they're lost in a maze.
Poor speech recognition and understanding:
If your IVR can’t handle different accents, dialects, or background noise, customers are left repeating themselves. Irritated customers aren’t the only risk: your call center's efficiency takes a hit, too.
Investing in advanced, accurate speech recognition is crucial to ensure a smooth experience and happy customers.
Get started with the right IVR solution for your business
Plivo’s Voice API puts you in control of your IVR system, helping you deliver exceptional customer experiences while cutting down on operational costs. With coverage in over 220 countries and territories, seven global points of presence, and a rock-solid 99.99% uptime SLA, Plivo is a go-to choice for businesses looking to streamline their communication. Here’s what sets Plivo apart:
- User-friendly design: Plivo’s APIs and XML make it easy to set up and manage custom IVR flows. You can build complex, multi-step customer interactions without needing a deep technical background.
- Versatile interaction options: With support for both voice inputs and DTMF (keypad) responses, Plivo allows customers to interact with your IVR in the way that suits them best.
- Outbound IVR functionality: Plivo makes it easy to create tailored IVR menus for outbound calls — perfect for things like customer surveys, appointment reminders, or voting campaigns.
- Built for scale: Plivo’s platform is designed to handle large call volumes smoothly. Its global reach and high availability mean your IVR system can scale as your business grows, without missing a beat.
- Top-notch security: Plivo offers secure cloud communication services that comply with major industry standards, including PCI DSS, GDPR, and HIPAA. This means your customer data is handled securely, building trust and ensuring compliance.
For developers, integrating automatic speech recognition (ASR) is a breeze, ensuring your system is responsive to customers, no matter how they choose to connect.
Setting up an IVR with Plivo is a straightforward process. Simply configure a Plivo number to interface with your web application, allowing you to deliver a menu and direct calls based on customer input. For step-by-step instructions, check out Plivo’s product documentation.
Start your free trial with Plivo today.
