What is an IVR System?
In the current digital age, with its rapid tempo, companies must have intelligent methods of dealing with their customers. An IVR system is one of the most effective tools that they utilize. But what exactly is IVR? And how does it work?
This article simplifies it down and how IVR systems assist businesses to serve better customers, save time and money.
What Does IVR Stand For?
IVR is short of Interactive Voice Response. It is a technology applied in phone systems which enables callers to use voice commands or key pad inputs to interact with a computer operated phone system.
You must have heard IVR when you called a customer care call number and heard something like:
- Press 1-sales, press 2-support or press 3-call a representative.
- That’s IVR in action.
How Does an IVR System Work?
An IVR system operates according to the principle of linking a telephone system to a software program that is capable of identifying voice commands or touch-tone data.
It is a simplified step by step process:
Customer Calls In
The customer calls the phone number of a company.
IVR Menu is Played
The system reads out a recording of a greeting and menu choices.
Caller Makes a Choice
The caller talks a command or types in a number in the keypad.
Routing or Self-Service Happens
Depending on the input the IVR system:
- Forwards the call to the department or agent appropriate.
- Gives data (such as balance on the account or order status).
- Captures a message or makes a reservation.
Call is Completed
The information that the caller requires is obtained or he or she is linked to a human agent.
Key Features of IVR Systems
An IVR system of the modern day does more than being a mere call routing.
These are some of its key characteristics:
Multi-Level Menus
The companies can establish layered options, such as:
Press 1-Billing, Press 2-Tech Support…
Both options may result in more in-depth options.
Call Routing
The calls can be diverted according to the time of the day, location or the caller input.
Self-Service Options
Customers can:
- Check balances
- Track orders
- Make payments
- Update information
Speech Recognition
High-level IVR will enable the customers to talk normally without pressing keys.
Integration with CRM Systems
IVR has the capability to extract information in the customer databases so that it personalizes the interaction.
Benefits of IVR Systems
The introduction of IVR system is associated with a series of benefits, particularly to companies that receive high number of calls.
Better Customer Service
Customers receive faster response without extended waiting time. Most will use self-service instead of waiting to be connected to an agent.
Cost Savings
Less labor is required and this lowers the cost of labor.
24/7 Availability
IVR systems are able to receive calls at any hour of the day including during off-hours.
Efficient Call Routing
Customers are channelled on the correct department eliminating the transfers and wait times.
Professional Image
With an automated greeting and menu system, which is professional, even a small-scale business will sound big.
Types of IVR Systems
The IVR systems vary in types based on the needs of the business and the technology applied.
Inbound IVR
Awards the incoming calls and assists in directing or leaves self-service.
Outbound IVR
Applied to automated calls out (e.g. an appointment reminder, payment alert, survey)
Hosted IVR (Cloud-Based)
Cloud operated, which makes it simpler and less expensive to set up with small to mid-sized businesses.
On-Premise IVR
They are installed and operated on the own servers of the company- as is common with large companies that require complete control.
Use Cases for IVR in Different Industries
IVR is a flexible system and it is utilized in numerous sectors:
Customer Support
Provide 24/7 support, frequently asked questions, and auto troubleshooting.
Banking & Finance
Checks of balance, history of transactions, fraud warnings and loan status through automated menus.
Healthcare
Appendage scheduling, prescription refill and reminders via IVR.
E-commerce
Tracking of orders, status of returns and product details.
Government Services
Checks on tax status, renewal of licenses, information hotlines.
Best Practices for Setting Up an IVR System
The proper IVR system must not be frustrating, it should also improve the customer experience.
The following are ways of doing it right:
Keep It Simple
You should not give the callers excessive menu choices. Stick to 3-5 primary choices.
Use Clear Language
Use a natural voice. Avoid jargon.
Allow Easy Access to a Human Agent
Always have a feature of having a live representative available.
Personalize When Possible
Provide option based on customer needs using caller ID or account numbers.
Regularly Review and Update
The change in business necessities necessitates a corresponding change in update menu options and messages.
Common Complaints About IVR Systems (and How to Avoid Them)
Too Many Options
Solution: Restrict options available and layered menus.
Can’t Speak to a Real Person
Solution: There should be always a possibility to communicate with a live agent.
Unclear or Long Prompts
Solution: Make voice prompts short, clear and maintain menus lean.
Future of IVR: Smarter and More Human
The current IVR systems are developing. The next generation of IVRs will be more conversational, intelligent and helpful due to the power of AI and machine learning.
AI-Powered IVR Systems Can:
- Know natural language.
- Learn from previous calls
- Offer personalized service
- Minimize the requirement of live agents.
A large number of companies are currently integrating IVR with chatbots, CRM software, and omnichannel communication devices to provide a more seamless customer experience.