How to Optimize Your Self-Service IVR System

Nov 11, 2024

Today’s consumers value speed, convenience, and control—especially when it comes to customer service. Nearly 80% of customers prefer to solve their issues without needing to get in touch with a live agent. As a result, businesses are increasingly turning to interactive voice response (IVR) systems.

A well-optimized interactive voice response system allows customers to resolve issues quickly without speaking to an agent. On the other hand, a poorly designed IVR can frustrate users, damaging your brand’s reputation.

In this guide, we’ll show you how to optimize your IVR self-service system and make it easy for your customers to get what they need.

What is IVR self-service, and how does it work?

An interactive voice response system is an automated phone system that uses speech recognition and artificial intelligence (AI) to understand a caller’s request and direct them to the right place.

IVR self-service uses a pre-recorded menu to guide callers through their options. Some IVRs use natural language processing (NLP) to understand what callers say verbally. Here's an example of what callers might hear when they make an IVR call:

"Welcome to Happy Pets Veterinary Clinic! For appointments, say 'appointments' or press 1. For prescription refills, say 'refills' or press 2. For general inquiries, say 'general' or press 3. To speak to an agent, say 'agent' or press 0."

If a customer says the prompt, the IVR system uses NLP to understand what they need. It might use a rules-based approach, where it recognizes specific words/phrases it's been programmed to understand. Or, it might use a more advanced machine learning algorithm that can analyze the sentiment of the caller’s voice, keywords they use, and even their intent.

If the caller uses the keypad, the IVR employs dual-tone multifrequency (DTMF) to recognize the numbers pressed.

Once the IVR self-service system understands the caller’s response, it sends them to the right place. This path is customizable and can be as simple or complex as needed. For instance, a pre-recorded message could answer the caller’s question, or the IVR may connect the caller to a live human agent for help.

An IVR self-service system can::

Solve problems quickly without needing to wait for an agent.
Connect callers to the right agent swiftly.
Schedule a callback if no one is available to talk right away.
Use call forwarding to send calls to multiple numbers so agents don't miss calls.
Easily transfer calls to another agent, a group of agents, a voicemail box, or another menu.
Gather or update customer information, like a change of address.
Offer other support options, like directing callers to your website or sending them a helpful text message.

This system leads to quicker solutions, faster support, and happier customers. Plus, it frees up your team to focus on trickier issues.

However, to get the most out of your IVR self-service system, keep in mind a few important details.

Best practices for optimizing IVR for self-service

You can turn your IVR self-service system from a basic answering service into a more advanced, customer-focused solution with the right strategies and tools. Here are a few tips to help you improve your interactive voice response system.

Keep the IVR menu simple and intuitive

A good IVR self-service system should be easy to use and understand. Avoid long, complicated menus that confuse callers. Try to keep your main menu to five options or less. People tend to get frustrated and hang up if they have to listen to a long list of options. However, it’s equally important to ensure all relevant needs are covered. Callers should always have a clear path to reach their desired option or speak to a support representative if needed.

Here's an example of a clear and concise IVR menu:

"Welcome to Acme Software Solutions. For technical support, press 1. For billing inquiries, press 2. To speak with a sales representative, press 3. To reach the partnership department, press 4. To speak to an operator, press 0."

The options are clear and relevant to what a business caller might need, and it's easy to reach a human if they need more help.

Pro tip: Use data from your phone system to see what issues your customers are calling about most, and tailor the menu to those needs.

Analyze your customer journey

Before moving forward with updates to your IVR self-service system, take time to understand the customer journey. Look for points where customers commonly face issues, as these often reveal why they’re reaching out for help.

Once you have a clear picture of these trouble spots, you can focus on specific areas within your IVR self-service system, including:

Reviewing call patterns to identify tasks that could be automated
Spotting where customers frequently switch to an agent
Recognizing points where callers often get frustrated or disconnect

As you go through your current setup, consider questions like:

Are there too many steps in the menu?
Do the options cover the typical reasons for customer calls?
Is the wording in the prompts straightforward?
Are language preferences adequately supported?
Can callers easily go back if they choose an incorrect option?

Addressing these issues paves the way for a smoother IVR experience and provides insights for future improvements.

Use AI and automation

AI-powered IVR can understand natural language, so customers can talk normally instead of being limited by menus. This capability leads to accurate call routing and a more personalized customer experience.

For example, if customers call to check their account balances, they can simply ask, "What's my balance?" instead of navigating through a long menu. The AI understands and directs them right away.

AI can also handle things like scheduling appointments and even offer personalized recommendations. For example, it might say, "I see you have a follow-up appointment due next month. Would you like to schedule that now?" This saves everyone time and makes for a smoother experience.

When you combine AI with automation, even more is possible. Your IVR system can handle routine tasks like bill payments, checking account details, or booking appointments.

For example, a doctor's office could use AI to automatically collect patient information and confirm appointments. This frees up staff for other tasks and ensures patients get quick service, 24/7.

From an operational perspective, AI can also analyze call data in real-time. It can spot common questions or problems and suggest updates to your system. This means your IVR self-service system gets smarter and better at meeting customer needs, leading to happier customers and smoother interactions.

Use various IVR call-routing strategies

IVR call routing strategies quickly connect customers to the right person and ensure that no one on your team gets overloaded with calls. You can match callers with the team member who's best suited to help them.

Here are a few ways you can route calls with your IVR self-service system:

List-based routing: Agent A always answers calls first. If they're busy, the call goes to Agent B, then C, and so on.
Round-robin routing: Calls are passed around to each agent in turn. Agent A takes the first call, Agent B takes the next, and so on.
Skills-based routing: The IVR self-service system asks the caller what they need help with and sends them to the agent with the right skills.
Relationship-based routing: Important clients are prioritized and sent to their preferred agent.
Most idle routing: The call goes to the agent who has been free the longest.
Time-based routing: Calls are routed based on time zones and agent schedules.

Using a mix of these strategies, you can create an efficient interactive voice response system that quickly gets your customers the help they need.

Test and collect feedback

Make sure you regularly test your IVR self-service system and get customer feedback. Check for technical glitches and see how easy it is for people to actually use. This helps you determine what needs improvement and keeps your IVR system up-to-date and effective.

Here are a few ways to gather feedback:

Add a short survey at the end of the IVR interaction. Ask callers to rate their experience or answer targeted questions such as, “Was it easy to find what you needed?” or “How satisfied are you with the support you received?” This quick survey can provide valuable insights into customer satisfaction and pinpoint specific areas for improvement.
Include a feedback option in your IVR menu. Give callers a way to leave feedback directly through the interactive voice response system.
Monitor call recordings and transcripts. Pay attention to areas where callers seem confused or frustrated. Analyzing these interactions helps you understand where the IVR self-service system may be unclear or overly complex.
Use analytics to track IVR performance. See which menu options are most popular, how long calls last, and where people drop off. Use this data to optimize frequently used pathways, shorten call times, and reduce drop-offs, ensuring the IVR self-service system meets customer expectations.

Use audio streaming to understand customer interactions

By integrating audio streaming with AI-based tools, businesses can offer advanced voice-based services, conduct sentiment analysis of agent-customer conversations, and better interact with users.

Plivo’s real-time audio streaming can analyze emotions to identify signs of frustration, confusion, or satisfaction. Based on this, the system can change its responses or transfer the call to a live agent when needed.

Plivo also helps you create conversational AI bots that interact with users through live audio. These bots can answer common questions right away, making customer service faster and easier.

In addition, you can integrate Plivo’s audio streaming with third-party tools for real-time transcription, so you can easily get text from your conversations. And if you need to communicate across different languages, it can connect with tools for live translation, making meetings or conferences much easier to follow.

Optimize call queues

Waiting to talk to an agent can be frustrating, but there are ways to make the customer experience better.

For example, Plivo’s PreAnswer feature lets you play custom caller tunes or speak text after a call is transferred but not yet picked up. Some companies play music during this time, but more useful options exist.

Let’s say you're a software company offering a limited-time discount on your subscription plans. You could use this time to make an announcement using text-to-speech.

Or, if you're transferring a call to your support team, which often handles the same questions, you could play a recorded message with answers to common issues. If that solves the caller's problem, they might hang up satisfied, freeing up your team's time for more complex queries.

Analyze call flow data for optimization

If you want to improve your IVR self-service system, keep an eye on your analytics. Some useful metrics to track include:

How long callers are waiting
The average queue length
Peak call times
First call resolution rates
How many calls go to voicemail or get transferred to an agent
Call abandonment rate

Plivo’s Call Insights feature helps you track metrics and generate reports.

Plivo’s Call Summary Dashboard gives detailed info on call quality, like how long calls take, delays, and packet loss.

Plus, with Detailed Call Logs, you can see exactly what’s happening with each call—from where it’s coming from to why it might have dropped—helping you spot and fix issues fast.

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Benefits of using an IVR self-service system

An IVR self-service system provides many benefits for customers and businesses alike. Customers appreciate the ability to help themselves, which enhances their overall brand experience. Businesses can reduce customer service wait times and optimize existing resources affordably.

Additionally, a self service IVR system helps you in the following ways.

Personalized and intuitive conversation

More than 80% of consumers are more likely to purchase from brands that offer personalized experiences. This expectation extends to the IVR self-service system as well. By connecting your interactive voice response system to customer data, you can customize customer interactions based on individual histories and preferences.

For instance, when a returning customer calls, your interactive voice response system could greet them with:

"Hi, John! Last time you called about your software subscription. Are you following up on that, or is there something else you need help with?"

When your IVR self-service system provides specific support and friendly greetings, it feels more like a conversation than a transaction. These personalized interactions not only save time for customers but also create a more engaging customer experience.

Provide 24/7 customer service

In the US, 27.7% of people expect companies to respond within one hour. This makes 24/7 self-service IVR important. When customers can access help anytime, they are more likely to reach out on their own schedule, often after regular business hours.

The IVR self-service system can lower the number of inbound calls during peak hours, as well as field requests when your customer support team is off the clock. This system also allows you to assist customers across different time zones, which is essential for international clients.

Lower operating costs

A typical customer service call with a live agent costs between $10 and $19. A self-service IVR transaction only costs about $0.03 to $0.25 per minute. By giving customers the tools to help themselves, self-service IVR reduces the overall number of support tickets. This saves money and eases the workload for your customer service team.

Gather customer insights

Interactive voice response systems can effectively manage high volumes of inbound calls while collecting data on customer inquiries.

This information can provide valuable insights that shape important business strategies, such as:

Improving customer service protocols.
Refining product line.
Addressing emerging customer demands.

Additionally, before presenting the menu options, you can upload messages to your IVR application. This keeps clients informed about the latest promotions, important changes, and other relevant news.

Improves customer satisfaction

Research shows that the IVR self-service first call resolution (FCR) rate is 74%, the highest among all contact channels. First call resolution measures the number of issues that can be resolved after one call to a customer support team. Higher FCR is better, since it indicates that customers are quickly getting the help they need.

By achieving this high rate of FCR, self-service IVR solutions not only resolve issues effectively but also contribute to higher customer satisfaction.

Customers who experience FCR through IVR self-service report a 30% higher satisfaction score than those with non-FCR interactions. Given that self-service IVR typically handles straightforward tasks—such as order confirmations, account balance inquiries, and status updates—it’s well-suited to delivering quick, accurate solutions that enhance customer satisfaction.

Upgrade your self-service IVR with Plivo

If you want a high-quality and scalable communication solution with an easy-to-use interface and strong API features, Plivo is the right IVR system for you. It’s especially useful for businesses that rely on voice and SMS services worldwide. Its reliability makes Plivo’s IVR popular among businesses of all sizes.

In addition to these advantages, Plivo offers several key benefits like:

Ease of use: Simple APIs and XML make it easy to create custom IVR flows for your business.
Fully customization: Build multi-level IVR menus tailored to your needs. Use pre-recorded audio or text-to-speech for custom greetings and prompts.
Intelligent call routing: Calls are directed to the right agent or department based on caller input, agent skills, or business hours.
Outbound IVR support: Set up custom menus for outbound calls, like voting or surveys.
Global reach: Enjoy stable connections in over 220 countries and territories.