Smart IVR: What It Is & How It Can Help You

More than 50% of customer service agents face burnout due to overwhelming queries. This leads to reduced service quality and customer dissatisfaction. 

These days, customer service is paramount to the success of a business. In fact, 32% of customers will walk away after just back interaction.

The solution? Smart IVR. This AI-powered tool handles routine queries so you only divert important or complex queries to your agents, saving them burnout.

The best part? It works 24/7 to solve customer queries so it’s no surprise that 70% of service organizations already use intelligent service assistants.

In this blog, we’ll explore what Smart IVR is and how you can build smart IVR with Plivo to elevate your customer support. 

Let’s dive in.

What is Smart IVR?

Smart IVR (Interactive Voice Response) is an advanced customer support technology that uses artificial intelligence (AI), contextual awareness, and data-driven insights to deliver a more intuitive and personalized caller experience. 

Unlike traditional IVR systems, smart IVR goes above and beyond rigid menus and predefined options and adapts to the unique needs of each caller. This approach makes customer interactions faster and more efficient. 

Here’s how smart, AI-powered IVR compares with traditional IVR:

How does smart IVR work?

Smart IVR runs on advanced technology such as AI-powered voice agents and audio streaming to understand human output and deliver seamless conversations over various channels.

Here’s how it works:

1. AI-powered functionality: Smart IVR, when combined with voice agents uses natural language processing (NLP) and machine learning to understand spoken or typed inputs. This allows users to interact in conversational language rather than pressing buttons.

2. 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.
3. Data-driven operations: Smart IVR integrates with customer relationship management (CRM) systems and databases, to provide relevant, real-time information during the interaction.
4. Personalized call flow: By analyzing caller data and preferences, the system dynamically adjusts the call routing and response pathways, creating a tailored experience for every customer.

Benefits of Smart IVR

Now that you know what Smart IVR is, let’s dive into its key benefits for your business. On top saving time for your customer service agents, it can help you with a lot more:

Personalized and intuitive conversations

By integrating customer data or using IVR scripts, Smart IVR systems tailor interactions based on individual histories and preferences. 

24/7 customer service availability

Smart IVR systems provide round-the-clock support, so your customers can resolve their queries, regardless of time zones or business hours. This continuous availability enhances customer satisfaction as they always get timely responses to inquiries.

Reduced operating costs

Automating routine inquiries through Smart IVR systems decreases the need for live agents, leading to significant cost savings. Handling simple tasks like order confirmations or account balance inquiries via IVR reduces the overall number of support tickets and operational expenses.

With Plivo’s audio streaming features, you can build a smart IVR starting as low as $0.003 per minute - 40% lower than competitors. 

Enhanced customer insights

Smart IVR systems collect valuable data from customer interactions and provide insights into common inquiries and areas for improvement. You can use this information to improve service protocols, and address emerging customer demands.

Improved customer satisfaction

Smart IVR systems effectively address customer issues and lets them enjoy self-service for surface level queries. You can optimize your IVR for self service resolved quickly without the need for multiple interactions.

Using Voice Agents to Build AI Powered IVR Solutions

Unlike traditional IVRs that rely on static menus and human intervention, AI-powered voice agents introduce intelligence, efficiency, and adaptability to the IVR experience.

Here’s why you need to integrate your voice agents for your IVR systems:

Scalability without the overhead costs

As businesses grow, the demand for customer support increases. With human agents, this growth requires hiring and training additional staff, leading to higher costs and operational complexity.

AI voice agents handle customer queries 24/7 without requiring additional human resources. They can instantly scale to accommodate a surge in call volumes, making them a cost-effective solution for growing businesses.

For example, during seasonal sales or peak times, voice agents can manage thousands of simultaneous calls without delays, ensuring customers get instant responses.

Less training, more customer service 

Training human agents is time-consuming and can involve a significant learning curve. Human performance also varies due to fatigue or lack of knowledge about complex scenarios.

AI voice agents don’t require traditional training. They leverage machine learning models that can quickly process past customer interactions and data to provide context-based resolutions. Updates or improvements can be implemented instantly across all interactions, ensuring consistent service quality.

For example, if a new product is launched, AI agents can be updated instantly with FAQs or key information, unlike human agents who may take days or weeks to fully adapt.

Plivo, a voice API platform can help you supercharge your voice agents and build smart IVR for customer service. Here’s how Plivo does it:

1. Capturing Input: Plivo captures the customer’s audio input (e.g., spoken queries or commands).
2. AI Bot Processing: This audio input is transmitted to the business’s own AI bot, where advanced algorithms analyze and process the request.
3. Generating AI Responses: The AI bot generates an intelligent, context-aware response.
4. Delivering Output: Plivo transmits the AI’s response back to the customer in real-time.

How Smart IVR Improves Customer Support for Your Business?

Enhancing traditional IVR systems with AI and audio streaming can create more intuitive and efficient customer interactions.

For example, instead of navigating through multiple layers of options by pressing keys (e.g., "Press 1 for refunds"), users can simply state their query (e.g., "I want to talk about a refund"), and the system understands and routes the call appropriately. This makes the interaction more natural and reduces customer frustration.

Here’s why you need smart IVR for customer service:

Proactive customer engagement

Smart IVR can automate reminders for medical appointments, service visits, or delivery schedules. It can send real-time updates about account activity, payment deadlines, or service outages. It can also collect customer feedback immediately after interactions to gauge satisfaction.

Dynamic call routing

Direct callers to the most appropriate agent based on their query type or customer profile. Or, transfer calls to agents with complete context, including caller history and ongoing concerns, ensuring seamless service.

Real-time call analysis

Analyzing live calls to extract actionable insights such as customer sentiment, intent, or key entities mentioned.

For example, during a customer service call, Smart IVR performs real-time transcription and records keywords like "refund," "complaint," or "order status" are recognized. The system can then provide live prompts or assistance to the agent or automate responses.

Real-time transcription

Smart IVR transcribes conversations so you can use the text to update customer records or assist agents with relevant information.

Speech recognition

Smart IVR systems can understand and process spoken language by converting it into text. This allows the system to interpret what the caller is saying and respond appropriately without requiring them to press buttons.

For example, if a customer says, "I want to check my account balance," the speech recognition technology converts their words into text. The Smart IVR then processes the request and provides the relevant information automatically. This makes interactions faster, more natural, and user-friendly, enhancing the overall customer experience.

Automation of voice channel operations

AI powered IVR can automate functions traditionally performed by human agents, such as answering routine queries, recording information, and providing real-time assistance.

Data collection and analytics

Smart IVR can collect data during IVR interactions to analyze customer preferences and behavior. You can also measure the effectiveness of customer support through call resolution times, customer satisfaction, and IVR usage rates.

Enhance the functionality of Your IVR with Plivo-Powered Voice Agents

IVRs already manage twice the volume of customer interactions compared to live agents. 

You can double down on these benefits by transforming traditional IVRs into smart IVRs using Plivo-powered AI voice agents. 

Plivo helps you launch AI-powered voice agents that can interact with customers and solve most of their queries without human intervention.

There are two ways launch a voice bot with Plivo:

Using Speech-to-text and Text-to-speech integration

Get started in 3 easy steps:

• Sign up for Plivo to purchase a number through the Voice API or Plivo console.
• Once you have your number, link it to an application equipped to accept voice calls, transcribe speech, and forward this text to your WebHook.
• You can plug in Plivo's Voice API with any LLM model, like ChatGPT, to launch your bot

Using OpenAI's real-time API for live customer interaction

Launch AI voice agents and voice agents with Plivo using just a few lines of code!

• Log in to your OpenAI Account: Secure your API key and RealTime API access.
• Log in to your Plivo Account: Sign up and get a voice-enabled number.

Launch Plivo-Powered Voice Agents to Build a Smart IVR for Your Business

Now you know, it’s that easy to integrate with Plivo to launch your voice agents. Plivo-powered AI voice agents can handle more complex customer queries 24/7 as we promise:

• 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 and OpenAI’s RealTime API, you can create voice agents that don’t only talk but empathize and engage with your customers. 

‍Request a trial to Plivo today to get started.