IVR (Interactive Voice Response)

What Is Conversational IVR & Its Difference From Standard IVR?

Introduction

Have you ever called your favorite brand’s customer care number to be met with drawling, robotic menus over the telephone that only offer more questions and no resolution?

You are not alone. A standard IVR is frustrating for about 46% of the callers, who say that the unending, pre-recorded IVRs are a terrible experience.

Thankfully, with conversational AI-based IVRs, you can turn this metric around for your customers. AI-based telephonic exchanges better understand the customer’s query context and offer quicker resolutions than traditional IVRs.

There is more to conversational AI IVR than just that – which is what this blog is about. Let’s dig deeper into this technology and understand how your business can benefit from it.

What Is Conversational AI IVR?

Conversation IVR is a customer self-service technology that uses the power of artificial intelligence to let customers navigate their queries.

AI-powered IVR is like a traditional IVR equipped with Natural Language Processing engines and AI algorithms that “understand” the customer query and improvise the self-help menu in chatbots accordingly to provide relevant and targeted solutions.

Where telephonic conversations are concerned, the conversation AI software allows the callers to use natural language to voice their queries on call. It provides an automated response after understanding the query context.

This technology offers relevant solutions to callers and helps save the business a lot of agents’ time and effort.

How Does AI-Powered IVR Differ from Standard IVR?

Several distinct properties make AI-based IVR far superior and more utilitarian than traditional IVR conversation systems, especially for addressing the modern consumer’s needs. Tabulated below are the major differences between these two technologies.

Property AI-powered IVR Traditional IVR
Mechanism Works on voice inputs and provides an instant response based on identified key phrases. Navigates the callers through an exhaustive menu and lets them select the service they need.
Technologies used Artificial intelligence, machine learning, natural language processing, understanding, and generation to respond to callers naturally. AI and Natural language processing through speech recognition for smart call routing to get the caller to the right agent.
Operation Largely autonomous. Call routing happens only when an agent is required. All the call data is automatically stored and sorted for machine learning modules to improve the interface. As long as the menu remains unchanged, this IVR functions independently. However, if menu items need to be changed, the process is long and requires a lot of human resources to get the job done.
Availability This system can be kept live 24 x 7 x 365 These IVRs are good only when the agents are on the desk and available to operate the phones.
Convenience These systems work on natural language engines and can assist in nuanced subjects. They also keep learning from the collected data through machine learning modules. These systems are static and rely on the caller to select from a fixed list of inputs to generate any response.

As is evident, the traditional IVR conversation systems lack the “intuitiveness” and intelligence of their modern counterparts. Incorporating artificial intelligence into self-help customer service – regardless of channels – automatically elevates the service levels of a brand to new heights.

Systems that “understand” customer queries are better positioned and equipped to produce relevant answers and keep the customers engaged. Quicker query resolutions lead to more customers that are satisfied with the service catered to them.

How Does AI-Based IVR Work?

Nuance conversational IVR uses artificial intelligence algorithms to understand caller queries and personalize their service experience. The caller’s query is treated as a voice command the AI engine receives and processes in real time, enabling better and more relevant service.

The key components that make AI IVR work are Natural Language Processing, Natural Language Generation, and Natural Language Understanding. The five-step process as described below makes an AI-powered conversational IVR work:

  1. The first step involves input. The IVR AI interface “listens” to the caller’s query in this step.
  2. In the second step, the AI algorithms and machine learning modules kick into action when the caller elaborates on their questions and analyze the input data for keywords. This is where the AI engine understands query context, caller sentiment, and other parameters according to which a relevant response is to be generated.
  3. In the third step, the AI-based IVR works on forming a humanlike dialogue to respond to the caller with a relevant solution.
  4. The fourth step consists of delivering the dialogue in as natural a language as possible to humanize the interaction between the brand and the customer.
  5. In the fourth step, the machine learning module takes down insights from the call as learnings to incorporate in future calls.

It is an iterative process; with each new call the system handles, it logs new data in the machine learning module to glean learnings from. It helps polish the system to provide better customer service with each call handled. This makes conversational AI beneficial for a brand, especially where customer care needs improvement.

What are The Benefits of Conversational AI IVR?

AI-powered IVR provides countless advantages to businesses and consumers alike. Five of the major advantages are discussed in detail below.

1. Cost Efficient Systems

Self-service channels are more cost-effective than live agent channels – even more so when AI is involved. In a study conducted by Gartner, it was discovered that live agent channels cost a little over $8 per contact, whereas self-service channels cost companies a mere $0.10 per contact.

The numbers are staggering and optimistic as well. However, to truly benefit from the convenience of self-service, it has to be done right. AI-powered IVR helps boost customer satisfaction while delivering relevant solutions and improving first-call resolutions for your business.

2. Service Effectiveness Through Automation

Traditional IVRs are lacking, as already proven by numbers earlier in the blog. Customers do not wish to deal with monotonous menus that often fail to provide answers. A MindTree study highlights that while 70% of the customers get on self-service channels by various brands, only 9% get their queries fully resolved.

These numbers can be improved by implementing an AI-based IVR at your contact center. A better understanding of caller queries and serving relevant responses have higher chances of resolving problems without escalating or needing to connect them with a live agent.

3. Better Customer Experience

You are not alone if traditional IVR menus and ineffective self-service channels frustrate you. Incorporating AI-based IVRs helps improve customer experience with your brand by delivering contextual solutions instead of driving them deeper inside unending menus.

Voice-based interactions with an intelligent problem-solving system are quicker and more convenient for your customers to solve their problems independently. Especially when the queries are straightforward (like rescheduling a package or adding more items to an order already placed), a quick automated call that gets the job done has more likelihood of leaving a customer satisfied.

4. Faster Service

A well-trained AI algorithm that incorporates machine learning and implements it well has a high chance of drastically increasing your first call resolution rates. The major reason is that the calls commandeer the entire interaction rather than feeling bound to follow the pre-directed, recorded menus of the traditional IVR.

When the caller takes control, the conversation is targeted and personalized, delivering only relevant answers instead of straying into a needless display of irrelevant options.

Within fewer minutes, the caller can swiftly reach the answer to their query and hang up, satisfied.

5. Polyglot Solutions

AI-based IVRs come with a package of multiple languages. If your business operates globally, it is important to allow your international callers to converse with the self-service channel in the language of their preference.

This multilingual feature allows you to establish trust and understanding with your customers, offering more value and quick service with just one solution – AI-powered IVR.

Wrapping Up

Artificial intelligence can transform everything it touches for the better. It applies to the self-service channels of contact centers too. Traditional IVRs were a big hit at one point in the past; however, customers today have higher expectations from their favorite brands, and conversational AI-based IVRs are the way ahead.

On that tangent, JustCall provides businesses with phone systems and contact center solutions that implement efficient AI technologies, making operations smoother, more efficient, and impactful for customers.

Visit the website to learn more about how JustCall can help your business.

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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