IVR (Interactive Voice Response)

What is IVR & How do Businesses Use It?

There is a simple connection between a customer and a business; communication forms a crucial part of this correlation. This entails that efficient communication should be a major concern in any business. But what if your customers out-balance your resources? Could you risk ineffective customer service? What alternative could there be? Well, IVR could help you fix this little problem easily.

IVR

Interactive Voice Response is a telephone-based menu system that allows the identification, routing, and segmentation of callers to the most suitable agent within a workforce.

IVR is a convenient option to help lower the operating costs and increase the efficiency of an organization.

[tweetthis]Interactive Voice Response is a telephone-based menu system that allows identification, routing, and segmentation of callers to the most suitable agent within a workforce. #custserv[/tweetthis]

IVR has several features that can help a business:

  1. It enables you to configure personalized messages and prompts.
  2. IVR also enables businesses to record customized messages, and greetings to ensure the customer experience does not deteriorate.
  3. It can also gather information about the customers’ requirements and can direct the call to the most suited department.
  4. It enables your customers to resolve their issues without interacting with any agent.
  5. This system enables businesses to prioritize calls depending on the callers’ value.
  6. It enables businesses to conveniently manage call volumes by directing the callers automatically to the agent or department most suited to their requirements.
  7. Small businesses and startups can make their brands look larger than they actually are. 

How does IVR work?

IVR is the first responder to a call. The system presents a greeting to the user, quickly followed by options based on the direct requirements of the caller.

Post greetings, IVR asks the customer to select from a series of prompts: “Press 1 for Sales”, “Press 2 for Support”, and so on.

Depending on the caller’s chosen option, the call is routed to the most suitable agent or department.

Advantages of using an IVR system

IVR system allows companies to enhance their professional image and offer their clients a high level of customer experience.

Some of the advantages of IVR that you can leverage are:

Increase first contact solution

IVR systems provide a first-contact solution to the callers. This is because callers can get the right information after a single call. The caller might require a salesperson, a technician, or a manager. IVR ensures that the caller is directed to the person meant to handle any concerning grievances.

More efficient customer service

IVR also allows the user to map their way based on their requirements. This method ensures that the user gets the right information quickly. It also gives the user the independence to choose their own options. An independent issue system lets the user log their problems effectively. Therefore, providing better and more efficient customer service.

Increase professionals and organizational efficiency

It ensures better proficiency in agents in addressing the particular problems of customers. There is no transferring of calls or consultation with a colleague when the call comes to these agents. From an organizational perspective, IVR reduces any hassles and enables the right use of employees in a business.

Low Operational Costs

IVR also eliminates the need for a receptionist or a customer service agent. This, in turn, saves time, effort, and capital and helps reduce the number of human errors.

High professionalism & customer satisfaction

Businesses can use the IVR system to greet their clients in a personalized manner. An IVR system also helps make a business appear large and experienced. This can boost customer confidence in the business.

Scalable

Interactive voice response systems can support the changing needs and expectations of your business and its customers. With several virtual communication features like multilingual capabilities, intelligent routing, etc., cloud-based systems are thoroughly customizable. If you expand your business, the IVR phone system can be upgraded to support your future needs.

Integration with other systems and technologies

IVR systems can be integrated with other customer service tools, enabling you to manage and personalize customer requests and self-service options effectively. You can integrate IVR with your CRM (Customer Relationship Management) software to automatically pull customer information related to the inbound calls. It can also be integrated with your shipping and eCommerce software to share the latest order information with customers without live agent intervention.

Aspects to consider when choosing an IVR system

  • Response time: An IVR system should respond quickly, sound crisp and expedite the process.
  • Customer feedback channel: IVR systems collect customer interaction data from the conception of a call. This can help a business identify user behaviors and requirements.
  • An IVR should be able to integrate entertainment, education, and sales initiatives. Therefore it should be necessary for an IVR to reduce the limitations of its use.
  • Features like real-time messaging and call-monitoring should be mandatory.
  • Real-time port usage and costs: An IVR system should provide real-time access to current usage and costs. This can help facilitate changes to optimize caller experience and expense.

Situations in which IVR is most effective

1. High call volume

High call volumes can pressure your agents significantly, leading to prolonged waiting times, misrouted users, and rushed service. This can negatively impact a company’s image. However, with the automated routing feature of an IVR system, you can be sure that calls will be routed to the right agent, thereby improving customer satisfaction.

2. Complex call routing

IVR allows you to implement several complex call routing strategies, including geographic routing, self-service routing, and skill-based routing, to best distribute call flows. With skill-based routing, you can divert calls to the right agent depending on certain criteria like time of day, the experience of the agent, and specific languages.

3. Self-service applications

IVR systems can automate tasks like payment processing, service activation, answering FAQs, troubleshooting services, and more. This saves time and enables you to serve your customers when your agents are busy. Callers can get information on their own even after business hours through an IVR menu and a business phone number.

Limitations of IVR

Though IVR systems offer several advantages to call centers, the technology has limitations that must be resolved.

1. Sensitive Customer Interactions

Most times, customers who are frustrated due to product issues contact call support. In such cases, an automated response might exacerbate their frustration as it cannot empathize with their issues. Poorly implemented IVR systems can result in adverse customer sentiment and higher call abandonment rates.

2. Complex Problem Resolution

Poorly-designed IVR demands a lot of user-based data that your customers may not possess. Going through a series of IVR prompts can leave them frustrated and uncertain regarding the problem resolution. Here’s when direct contact with an agent makes it easier for customers to explain their problem and get it resolved.

IVR Implementation Success Stories

1. Delta Airlines

Delta’s decade-old IVR forced customers to navigate lengthy menus and enter repeated information. Updating its IVR system helped the company improve its booking experience significantly.

Their new IVR system greets the customers by name and notifies them about delays, cancellations, upgrades, and personalized updates for upcoming itineraries. This enhanced their customer experience and lowered the rate of callers demanding an agent to below 10%.

2. NYC311

NYC311 sought ways to improve operational efficiency and deliver an exceptional customer experience at lower costs. With intelligent call routing and cutting-edge speech recognition, the company was able to offer efficient customer service experiences along with excellent self-service features. This increased their call center capability by 20% during emergency response and high-demand periods.

Read our in-depth guide on IVR: [Guide] Interactive Voice Response (IVR): Meaning, Benefits, and Setup

FAQs

In what situations is IVR most effective for businesses?

Interactive voice response examples of situations where it’s most effective include handling after-hours customer support queries, proactively resolving tickets via advanced routing, and retrieving information about customers.

How does IVR increase efficiency and cost-effectiveness for businesses?

IVRs can automate customer support tasks like providing information about services or products, taking orders, and more. This reduces the need for human agents to answer inbound calls, thereby saving money and time for the business.

Can IVR be scaled to meet changing business needs?

IVR systems can be scaled up or down to manage call volumes. Their capabilities and features can be adjusted to meet the changing needs as the business expands.

How does IVR integrate with other technologies and systems?

Cloud-based IVR can be integrated with CRMs like Zoho, Salesforce, Zendesk, and more, to get a full picture of the customer at a glance rather than switching between applications for customer data.

What are the limitations of IVR, and in what situations should it be used with caution?

The biggest problem with IVR is that it cannot empathize with human emotions. The system must be used cautiously for telemarketing campaigns, polling, and selling. If a sales agent is using IVR as an automated order form or a virtual brochure, it should be clear that the customers can speak to a live agent whenever they wish.

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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