Understanding What Multi-Level IVR is and How it Works

The market size of the Interactive Voice Response (IVR) industry is expected to grow to USD 11.5 billion by the end of 2037. And, the need for efficient customer service has propelled this success.

Research suggests that 89% of customers will likely make repeat purchases with companies that offer excellent customer service.  And one of the key components of this efficiency is the integration of multi-level IVR systems into customer service processes.

Plivo’s suite of products offers businesses the tools they need to optimize and elevate their IVR systems. With Plivo’s real-time audio streaming, companies can move beyond traditional IVR setups and create dynamic, conversational, and personalized customer experiences.

This article will explore multi-level IVR systems, how they work, their implementation, benefits, and how you can go a step ahead of the traditional multi-level IVR systems with Plivo’s effective customer support solutions. 

What is Multi-Level IVR?

Multi-level Interactive Voice Response (IVR), also known as Auto Attendant, is an automated phone solution that guides callers through a structured self-service menu to connect them with the appropriate destination—be it an agent, queue, information, or action.

Unlike single-level IVR, which offers a straightforward menu with limited choices, a multi-level IVR allows for layered navigation. Each selection leads to submenus, offering more specific options to help callers find what they need.

Let’s say you have an e-commerce business. Here’s an example of how a Multi-level IVR would look like for your customers:

• Level 1: Welcome message with language preference selection (e.g., English, Spanish, etc.).
• Level 2: Primary menu options like browsing product categories, tracking an order, or connecting to customer support.
• Level 3: Specific options within each category, such as viewing discounts in a category, updating shipping information, or querying about product returns.

Structure and functionality of Multi-Level IVR

Imagine a telecom company using a Multi-Level IVR to streamline customer support. Here’s how it would work: the first menu asks users to choose between billing, technical support, or new plans, while a second level under "technical support" could identify whether the issue involves internet, mobile, or TV services. 

This layered approach lets you resolve most customer queries without call transfers. 

Key functionalities of Multi-Level IVR systems:

1. Manages incoming calls with multi-layered menus:

The multi-layered menu system organizes incoming calls by offering a series of hierarchical options. This ensures that callers can navigate through tailored choices, such as selecting their issue type or department, making the call-handling process smooth and efficient.

2. Routes calls to relevant agents or departments:

The system intelligently directs the call to the most appropriate agent or department based on the caller's menu selection. This eliminates confusion and ensures that customers reach the right point of contact quickly.

3. Reduces agents' workload by addressing routine queries:

The system can independently handle frequently asked questions, such as providing business hours, order tracking, or refund policies. Automating responses to these common inquiries allows agents to focus on more complex and critical customer issues, boosting overall productivity.

Benefits of Multi-Level IVR

Integrating a multi-level IVR system automates customer interactions, reduces operational costs, and significantly enhances customer service quality. Here’s how:

1. Empowers customer self-service:

Multi-level IVR lets customers resolve basic queries, such as checking order status or getting information about a product, without needing to wait for a live agent. This creates a more seamless experience and reduces frustration for customers who want quick answers.

2. Reduces customer service costs:

By automating repetitive tasks like FAQs or payment inquiries, businesses can save on staffing costs. The system handles a significant volume of inquiries, allowing human agents to focus on more complex customer issues.

3. Optimizes call routing:

Based on the customer's input, the IVR system efficiently directs calls to the most suitable department or agent. This ensures that customers are connected to someone capable of addressing their specific needs, saving time, and enhancing resolution efficiency.

4. Offers 24/7 availability:

Multi-level IVR operates round-the-clock, enabling businesses to assist customers even outside regular working hours. This feature is particularly valuable for global businesses catering to customers across multiple time zones.

5. Improves customer satisfaction:

Studies show that 70% of customers avoid brands with long wait times. Multi-level IVR minimizes wait times and offers faster resolutions, leading to higher customer satisfaction and loyalty. Customers value the convenience of resolving issues on their terms, anytime.

Also read: Use IVR to improve customer service.

Operational mechanics of Multi-Level IVR

A Multi-level IVR system works by intelligently guiding callers through a predefined call flow. Here’s how it operates:

1. Initial interaction:

• The IVR system welcomes the caller with an automated greeting.
• It then asks the caller to make a selection based on the presented options.

2. User input options:

Callers can interact with the system by either:

• Speaking their choices aloud (voice commands).
• Pressing specific keys on their keypad (keyed inputs).

3. Scripted call flow:

• Based on the caller's input, the system proceeds through a predefined sequence of prompts.
• Each step guides the caller closer to their intended destination, such as accessing information or connecting with a department.

4. Dynamic adjustments:

The IVR system can modify the call flow in real-time depending on:

• Time of Day: Adjusting options for business hours versus after-hours service.
• Call Volume: Prioritizing responses or providing alternatives during peak times.
• Caller History: Personalizing interactions using data from previous calls.

How to implement and customize multi-level IVRs?

A poorly designed Multi-level IVR system can frustrate customers rather than help them. Common pitfalls include irrelevant menu options, lengthy navigation paths, and difficulty in connecting with live agents. 

Avoid these challenges by following a structured implementation process:

1. Analyze the current IVR flow: Review if the existing system is efficient and meets customer needs. Gather feedback from stakeholders and customers to identify issues like slow routing or missing steps.
2. Design the IVR flow: Start by mapping out the most common customer journeys and defining clear objectives for each interaction. Ensure that options are concise and self-explanatory, and limit menu levels to avoid overwhelming users. Incorporate error handling for invalid inputs and provide quick access to a live agent when necessary. 
3. Create IVR transcripts: Write IVR scripts for various scenarios like greetings, options, and busy signals. Customize the tone and content based on your brand voice and target audience demographics.
4. Test the IVR flow: Run tests with external users to identify bottlenecks or areas of confusion and ensure the flow is intuitive and works smoothly.
5. Monitor and optimize: Use analytics to track performance and make necessary adjustments based on metrics like call abandonment or handling time to optimize your IVR system

Going beyond traditional customer service with Smart IVR 

Traditional multi-level IVRs have been a reliable solution for years, but customer expectations are evolving. Your customers don’t want to navigate through multiple menus to find the right option. They want a fast and simple option.

That’s why many forward-thinking businesses are upgrading to smart IVRs powered by AI voice agents that offer faster, more conversational customer experiences.

Why Are Smart IVRs the Game-Changer?

Smart IVRs let your customers skip the frustrating menu maze. Instead of “Press 1 for billing,” they can simply say, “I want to check my last payment.” Using AI, smart IVRs understand what customers need, respond naturally, and get them to the right place quickly—no guesswork or dead ends.

You can easily switch to smart IVRs with Plivo powered AI voice agents. By leveraging natural language processing (NLP), these voice bots understand customer intent and respond intelligently, eliminating the need for rigid menu navigation. 

They also integrate seamlessly with existing workflows and ensure smarter call routing, faster resolutions, and a modern customer experience that scales with your business. 

Here’s how smart IVRs with AI voice agents improve your customer interactions:

• Talk, don’t press: Plivo powered AI voice agents use Natural Language Processing (NLP) to understand and respond to what your customers are actually saying, not just what button they pressed.
• Smarter routing: Unlike multi-level IVRs, smart IVRs analyze caller data and preferences and dynamically adjust the call routing and response pathways, creating a tailored experience for every customer.
• Contextual awareness: AI-powered IVR tracks the history of previous interactions, to pick up any conversation where the customer left it to avoid unnecessary repetition.
• Data-driven operations: Smart IVR integrates with customer relationship management (CRM) systems and databases, to provide relevant, real-time information during the interaction.

Make the switch today with Plivo powered AI voice agents .

Traditional IVRs served their purpose, but it’s time to evolve. Plivo makes it easy to launch AI voice agents and create a smarter, more intuitive IVR experience that enhances your customer experience. 

Why Plivo?

• Superior voice infrastructure: To deliver get crisp call quality across 220+ countries 
• Low latency: Our PoPs are located in seven locations (California, Virginia, Frankfurt, Mumbai, Singapore, Sydney, São Paulo) across five continents. 
• High availability and uptime: With a redundant infrastructure across multiple geographies and at least three local carrier connections across countries, Zentrunk promises 99.99% uptime
• Full redundancy: Redundant links reroute traffic over backup networks in less than two seconds in case of backbone failover

With Plivo-powered AI voice agents, you can create smart IVRs that don’t only talk but empathize and engage with your customers. 

‍ Request a trial to Plivo today to get started.