IVR (Interactive Voice Response)

What is Interactive Voice Response (IVR): All You Need to Know

Long hold time and numerous call transfers frustrate customers. It delivers a poor customer experience, hurting your business growth and sustainability in the long run.

So, when a customer calls your support team, you need a defined system wherein the response time is faster, the average resolution time is shorter, and the backlog is minimum. IVR, or Interactive Voice Response, is a big piece of the puzzle to achieve these goals.

In this blog, we will go in-depth, covering everything from what is IVR (and multi-level IVR) and IVR call centers meaning to their benefits and the steps involved in IVR setups.

What is IVR or Interactive Voice Response?

IVR phone system’s definition is an automated voice response technology that interacts with the caller. A pre-recorded voice input greets the caller and provides them with relevant instructions on the IVR (Interactive Voice Response) menu options.

A key part of the contact center solution, the touch-tone feature allows the caller to press buttons according to these instructions and reach the relevant department.

The IVR process ensures that every customer is connected to an available agent without error or delay. As a result, the customer can quickly get an accurate solution without wasting time waiting and listening to dial tones.

IVR

A Common Misconception

There’s a common misconception that IVR is meant only for big enterprises.

But the truth is every customer-oriented business needs an IVR system. The IVR is an irreplaceable virtual assistant for small and medium businesses to big companies.

It is used prominently across industries such as contact centers, healthcare, banking, payment processing, etc.

What is Multi-level IVR? 

Multi-level IVR is a virtual receptionist connecting incoming calls to different departments. Here, multiple levels refer to multiple extensions. A series of pre-recorded IVR prompts guide callers on how to reach each of these departments.

Here’s a conventional multi-level IVR scenario:

  1. A customer makes a call to your business number.
  2. They hear a pre-recorded greeting on the IVR.  
  3. IVR prompts let customers choose from options on the IVR menu and act accordingly. For instance, your IVR prompt may read out:  “Press 1 to speak with a Support Agent; Press 2 to speak with a Sales Agent; Press 3 to get in touch with the Accounts Department.
  4. The caller presses the relevant button (s) to reach the appropriate department and speaks with the relevant agent.  

Multi-level IVR

Multi-level IVR is customizable, which means you can decide how many levels you want to add. At the same time, you can assign IVR to multiple numbers.  

Now that you know what IVR is, understanding how it works will allow you to deliver a more holistic experience to your customers and maintain a high customer satisfaction (CSAT) score.

How Does The IVR System Work?

IVR operates with the help of DTMF tones and speech recognition. DTMF tone, also known as touch-tone, is the technology behind the sounds you hear when you press keys on the phone. 

The DTMF tones are behind the interactive part of the IVR. For example, touching a number on the IVR menu creates a certain sound frequency. This is what automates the routing process. With speech technology, callers can easily navigate through the menu using spoken language.

IVR Call Flows

The IVR call flow is an important element that drives an efficient IVR system. It is the pathway taken by a caller to speak with an agent.

The caller is presented with a set of options on the multi-level IVR menu. They can press the relevant buttons on the menu and be directed to a live agent, or simply leave a voicemail. 

IVR call flows powered by DTMF tones and speech recognition removes potential IVR mistakes. Routing calls without mistakes speeds up the issue resolution process. 

This removes the need to hire admins, especially for transferring calls, and cuts down customer holding time. And that’s not all! IVR has too many upsides to view it as another business phone feature.

Why is IVR important? Benefits of having an IVR system:

1. Make your Customer Support More Efficient

Interactive Voice Response ensures that all queries are handled expertly by the best available agent. There is a pre-recorded greeting to answer customers at all times. This enables 24/7 availability for customers. 

Voice prompts direct customers to the appropriate expert from your company. Meanwhile, your agents also know that they will be getting calls within the umbrella of their expertise.    

This amounts to building a smooth and convenient experience for your customers.

2. Increases Profit and Business Productivity

For every customer going unanswered, you’re losing crucial business. You wouldn’t want that right?  

The IVR setup helps you handle huge call volumes without putting customers through a long waiting time. The IVR will greet and guide the customers when they contact your business. 

IVR combined with an automatic call distributor creates the recipe for a great customer service experience and helps retain customers. This contributes to a steady business flow. 

Moreover, the IVR will cost you much less than live chat or conventional customer support channels. The IVR further lowers operational costs by removing the need to hire an admin for routing calls.

3. Connects with Remote Agents

What happens when your agents are operating remotely? How does the IVR work in such situations? 

After greeting the caller, the IVR system can route calls directly to any business phone number. These calls may be routed to agents operating remotely or to their mobile phones. Multi-level IVR gives you the flexibility to operate from anywhere and at any time.

4. Acts as a Round-the-Clock Auto Attendant

The inflow of calls does not stop when you’re out of the office. But, having no human agent attending to customers may turn them away.

The auto-attendant feature in the IVR is there to greet inbound callers during off-business hours. 

Also, pre-recorded greetings and voice prompts can be used to direct customers to the voicemail box. Agents can hear their voice messages and get back to them during working hours.

5. Smarten your First Contact with the Customers

The IVR is the first point of contact between your business and the customer. It is where the customer relationship and the lead generation process begin. 

Creating a smooth and convenient experience right at the outset will leave a positive first impression. 

Moreover, leading callers through a string of transfers can be a put-off. A customized IVR menu makes customer resolution faster, and the customer goes back on a happier, more satisfying note. It enhances their customer journey.

6. Time-efficient for Both Company and Customers

Your customer is looking for quick answers to their queries. Similar to how automatic call distribution addresses this requirement, the IVR comes in handy.

Multi-level IVR phone menus let customers self-navigate to the desired agent, making the issue resolution process smarter. For example, customers wanting to drop a voicemail or escalate their issue to a live agent need to tap on the relevant options on the touchpad menu.

Meanwhile, agents can also handle more customers with a faster resolution process in place.

7. Eliminates Human Errors

IVR completely removes the scope for human error. A single receptionist handling all phone calls is likely to make errors. 

The customer may end up directly interacting with the wrong agent or department. Interactive Voice Response will transfer the call to the most appropriate department and, most importantly, the best available agent. 

This saves customers from long queue lines or the transferring of calls between the departments.

Challenges of Interactive Voice Response 

The modern incarnation of the IVR setup solves many issues that came with the traditional IVR, but there are still a couple of issues that disrupt a workplace’s efficiency. Here are the common challenges of IVR.

IVR Downtime

Design errors and downtimes can be one of the worst nightmares of an IVR system. IVR downtime makes the customers look for other competitors that happen to have better IVR systems, and as a result, the overall business growth suffers.

Such issues make the system unprofessional and leave a bad impression, no matter how much effort is put into it. Downtime usually occurs when heavy loads are placed under your IVR system, and if this issue is not taken care of with periodic stress testing, the system gets affected in the long run.

Unnatural-Sounding and Stilted Script

Writing the perfect script is harder than it seems, yet many businesses take it lightly and do not consult with a professional before doing so. The common mistake many businesses make is writing from their perspective when putting themselves in the customers’ shoes.

Also, the use of complex English is a big no, as it makes things hard for those customers who are not fluent in English. The selection of tone is also crucial – robotic and cold tones make customers uneasy and make it difficult to keep conversations going.

Lastly, if IVR system scripts are not written after consultation with IVR designers or after surveying customers and consumers, they are highly likely to sound unnatural.

Way Too Complex Menus

If an IVR system includes too many menus and unnecessary functions, the callers get confused, resulting in many unsolved problems. While it’s true that the menus are present to allow customers to self-serve in less time, too many options on the menu only test their patience.

Many businesses keep a plethora of options because they’re yet to research the common problems that customers might have. A complex IVR system stands in the way of the system’s success in the long run.

Faulty Call Containment

IVR call containment is a metric that is used for the calculation of the effectiveness of an IVR system. High call containment of an IVR implies that few calls have dropped, no person is on hold, and vice versa. The vice versa occurs when an IVR system uses robotic voices and doesn’t have enough agents to guide customers.

As previously mentioned, stilted, robotic voices in the IVR system ruin the impression of any business, and many potential customers hang up in the middle of calls for this reason. Hence, the dropped call rate increases, and the call containment rate decreases.

Inadequate Caller Information

Most customers feel frustrated when asked to re-submit their personal information and re-explain their issues with an organization several times on call.

This results from not switching to an advanced IVR system that records a customer’s info. Intelligent IVR systems come with caller authentication technology so that nothing gets in the way of efficient problem-solving.

Interactive Voice Response- Use Cases

Any business that deals with customers regularly need an IVR system. Inbound customer support is way more efficient and streamlined with an IVR system in place.

From real estate to airlines, the IVR call in process is an important part of your customer support. Here are some of the use cases for IVR that you need to know: 

1. Call Centers 

When it comes to IVR call center, an interactive telephonic menu can prompt and lead callers to the right agent.

A pre-recorded message is used to create a personalized experience for the customers. The DTMF tones allow callers to press numbers on the IVR menu which directly routes them to the relevant agent. 

In this way, getting their queries answered becomes a much simpler and shorter resolution process.

2. Real Estate Lead Generation

IVR can be helpful in real estate lead generation. Let’s say a customer dials up your real estate agency. A pre-recorded greeting accompanied by a marketing campaign message plays out. It gives leads the option to record their questions as voicemail.

The sales team can then use the recorded voicemail and the customer’s query to contact the lead directly. This prepares the agent for a well-framed and informed response to the customer.

Recommended Read: 21 Real Estate Lead Generation Ideas: New & Super-Effective

3. Banking Industry

IVR banking has become a new reality. Banks handle a huge volume of calls from customers. IVR system helps take over by automating banking activities with minimal agent assistance. 

The software employs pre-recorded prompts to not only lead the caller to the respective agent. It is also meant to assist customers with activities such as account balance and the latest transactions. Some banks also offer credit card bill payments through IVR systems. 

4. Airline Companies

Conversational IVR is central to airline customer service. Customers can make flight bookings without agent assistance or escalate to a live agent. Prompts read by the auto-attendant help assist customers. 

Some airlines also use it to help passengers locate their luggage and find important flight and check-in details.

5. Payment Processing

Businesses can use the IVR software to offer an easy, self-help menu for making payments. Whether updating account information or making payments, the IVR dial pad can be very beneficial here. 

A smart telephony menu takes over simple tasks, with minimal involvement required from agents. Customers pay their bills in a matter of minutes. Meanwhile, agents can focus on addressing more queries.

How to set up an IVR system?

If you want to know how to set up an IVR system in the USA, the following paragraphs will have you sorted.

Firstly, you will need to install the IVR software. Better go for a business phone system that offers IVR software.  

With JustCall, IVR set up is extremely easy and takes less than a minute. 

You just need to select a number for the IVR or simply set it for your existing business number. Then you need to set up the IVR options for specific departments and add team members for each department. You can even add a team member to more than one team.


IVR System Best Practices

When customers enter the IVR menu, they anticipate a quick redressal of their issues. However, a never-ending set of prompts and messages can put your customers off.

You can alter the negative customer experience for the better by following the best IVR system practices. Here’s a list of some of the best IVR system practices:

1. Offer Appropriate and Specific Options on the IVR Menu

Keep your IVR menu relevant and specific. There is nothing more bothersome for a customer than a long waiting time or being transferred from one department to another.

It would also be a good idea to structure your IVR menu based on the most frequently selected options.

2. Live Agent Availability Option

Always offer your customers the option to connect with live agents. Customers should be able to escalate their issues to the relevant professional.

3. Tap into Voicemail Recordings

Your IVR menu should offer customers the option to drop voicemails. Agents can access these voice messages to gather information about the customers. This will help agents break the ice and build rapport with the customers.

4. Employ Natural and Easy Prompts

Your IVR menu should be easy to navigate and your prompts should be simple to follow. The voice prompt should sound just like a real agent and should not sound robotic.

5. Conduct Pilot Tests

Put yourself in your customers’ shoes. Make your IVR menu intuitive to the needs of the customers and simplify their journey to issue resolution.

6. Measure your IVR Performance

One of the most vital IVR practices is to assess your IVR performance. Just as you need to pilot-test your IVR system before implementing it, tracking the performance after implementing it is a lucrative practice. Taking the IVR insights as feedback, you can improve your performance to a great extent.

IVR and Auto-attendant Scripts

The IVR experience relies heavily on how well-crafted your prompts are. Framing a good IVR script takes time and involves some testing. Here are some IVR scripts that you can make use of:

The Welcome Message and Main Menu IVR Script

Nothing trumps a well-written welcome message. You want to leave a pleasant and fuss-free impression on customers, after all. 

“Hello and thank you for calling (company name). If you know the extension number of the party you are trying to reach, you can dial it now. 

To speak with a sales representative, press 1. 

If you want to connect with a customer support agent, press 2. 

For reaching our accounts department, press 3. 

If you want to speak with an operator, press 4. 

In order to leave a voice message press, 0. 

For repeating the menu, press 9.”

Out of Business Hours IVR Script 

It is important to have a separate, after-business-hours IVR menu. Let your customers know about your business hours and allow them to leave their queries on voicemail. 

“Hi, you have reached (company name). Our offices are currently closed. Our business hours are Monday to Friday from 8 am to 6 pm. 

Please leave a message with your name, contact details, and your query. Someone from our team will get back to you within a business day.”

Features of Interactive Voice Response System

1. Multi-level Interactive Voice Response

A multi-level IVR menu enables callers to navigate the menu and reach the relevant professional independently. You could assign a single IVR to multiple numbers or set multiple IVRs on a single number.

This helps route customer calls to different agents quickly. Customers simply need to press digits to carry out the desired action, such as talking to a live agent or dropping a voicemail.

2. Routing Inbound Calls to Live Agents 

A fast-tracked customer resolution process rears customer loyalty and positive word of mouth. This feature helps with just that. For callers seeking an immediate solution, there can be an option to connect with a live agent. 

Routing_Inbound_Calls_to_Live_Agents

The call will get routed to one of the available agents. You can customize the IVR menu to ring up an idle agent, the moment a customer selects the ‘live agent’ option.   

3. Voicemail Recording for Customers

Inbound calls can be routed to the voicemail box during out-of-business hours or when no agent is available to attend to customers. Customers will make calls and hear pre-recorded voicemail greetings from the IVR menu. Offer a ‘voicemail drop’ option so callers can leave a voice message.

Agents can refer to the voicemail for responding to the customer. This ensures better customer service as every customer’s query has been heard.

4. Notify Agents of Calls from the IVR System

Let’s say the same agent (s) is handling sales and support calls. When this agent receives a call, this IVR phone system feature will show the agent whether this is a sales-related call or a support query. 

The agent will be notified of the IVR option the customer has selected. This way, they can get ready for the call and prepare their answers accordingly.

5. Customized Greetings

Another one of the IVR features allows you to add customized IVR greetings. You can greet all customers with a ‘welcome message’ and voice prompts for easier navigation.   

You can use text-to-speech software to generate your saved message automatically. Likewise, you will need to set voice mail recording for post-business hours calls on the IVR system.

6. Forward Calls to Other Numbers

Forward calls to your mobile or external number. If the contact center agent is not available in the office or working remotely, there is the option of transferring the call to his mobile number or any other external number.

7. IVR Analytics

Tracking your team and IVR performance becomes possible with the help of IVR analytics.

You can keep track of the IVR menu options selected by the customers. You can customize your IVR menu accordingly.

You can also track outside office hours, calls abandoned, and the average answer time. You can analyze this for the entire time as well as for a specific agent.

Call analytics also enables you to keep tabs on the number of incomings and missed calls. In addition, you can monitor the performance of your agents with data on the number of calls made, calls answered, and average answer time.

Call-center-analytics


Set up an IVR System Right Away

Good communication isn’t just a nice-to-have for business; it’s a must-have skill. With Interactive Voice Response, customers can quickly reach out to the most appropriate agent without getting lost in the maze of transferred calls.

If you still haven’t included IVR software as a part of your support system, it’s high time you did.

Want to know how 6,000+ companies are scaling support with JustCall’s IVR? Book a free schedule call with our experts today.

Frequently Asked Questions

What's an IVR (Interactive Voice Response)?

IVR systems are an innovative addition to business phone systems that automatically redirect incoming calls to suitable agents after analyzing customer inputs via pre-decided menus.

How interactive voice response works?

IVR setups first greet callers with a prerecorded message and then flash multi-tier menus. Next, they prompt callers to choose an option from the menu. Based on their responses, the IVR system routes the inbound call to the specific department or agent best-suited to address the customer’s query.

What are the benefits of IVR call flow?

Organizations using IVR setups enjoy the following benefits:

  • Fewer call routing
  • 24/7 availability
  • Create a better professional image
  • Auto address simple inquiries
  • Reduce average handle time
  • Eliminate extended hold times
  • Enhance customer journey
  • At-scale personalization
  • Reduced data-entry errors
  • Saves time and money
  • Uncovers cost savings and growth opportunities
How to Optimize Your IVR Call Flow?

Here are some tips to optimize IVR call flows:

  • Add the live agent option in the main menu
  • Keep messages crisp yet professional
  • Update IVR prompts regularly
  • Personalize your greetings
  • Do not sound salesy by greeting callers with a marketing message
  • Blend your IVR system with a customer relationship management system or CRM software to identify callers beforehand and update the IVR scripts with appropriate account details and prompts.
Who uses an IVR?

IVR setups are primarily common in organizations that have to handle heaps of customer-facing calls regularly, and often at all times. Case in point, telecom companies that use IVR to interact with customers about billing queries, complaints, and technical support. In addition, organizations that preserve confidential information, like healthcare providers and financial institutions, also often deploy the IVR process.

What is a smart IVR?

Smart IVR systems are new-gen IVR menus that transfer and handle incoming calls as well as free up agents from day-to-day tasks like answering repetitive questions. Smart IVRs leverage the power of artificial intelligence and natural language processing to optimize the customer engagement process. And because these systems use AI, they add a human touch to every customer-facing conversation.

How to get started with IVR?

You need a phone system that offers the IVR feature. The simplest way to get started with the IVR process is to sign up for JustCall, a leading cloud phone system. We offer the widest range of cutting-edge features, including a comprehensive IVR solution. Sign up today, get your phone number (or port it), and instantly move to the IVR setup process. All these take just a few minutes and you would be ready to broadcast IVR prompts to everyone calling your number.

With a foundational role at Saas Labs, Anand has been a key player in establishing the Product Management function and spearheading the launch of our Conversation Intelligence solution. His expertise in AI innovation guides both the strategic direction of the products and a team committed to excellence.

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