What is IVR (Interactive Voice Response)?

IVR is a voice/call-processing option for improving call center functionality and integration. It enables callers to have more flexibility to access information or leave messages. Use of this option can “offload” call volume from agents to the IVR or improve load balancing by having agents handle recorded messages during slow periods.

How Does IVR Work?

Let’s say you have an organization with a call center that boasts 24/7/365 availability. When a customer calls, they want immediate assistance, regardless of whether it’s 3pm EST or 2 am PDT. How do you support your customers with 24/7/365 availability? Through IVR (Interactive Voice Response). Here’s an example:

Jennifer calls at 1 am to let you know that her Internet has just crashed, and she is having very little success in rebooting it. She listens to a list of potential selections and decides to enlist the help of option 2, a technician. But, before she can speak to that technician, she needs to ‘voice’ her issues. She states that her Internet has crashed and rebooting it by pushing the button on the back of the router isn’t working. The ‘interactive’ voice asks if she’s tried unplugging the device for 30-seconds and replugging it. Jennifer, says no, but she will happily try that next. When she comes back to the phone, voila, the internet is back, and Jennifer is a happy customer once again. The IVR asks if she can assist Jennifer with anything else and Jennifer states no, but thank you for your help. The call is terminated without anyone at the organization ever having to lift a finger…other than implementing an IVR in their call center.

Benefits of an IVR System

The benefits of using an IVR system for your call-center environment include, but are not limited to, the following:

Leads to better customer service – when you can give your customers the ability to interact with someone in your organization, they come away with a better feeling about their experiences. Even if they have only interacted with a digitized voice. If their issues are being handled, they walk away happy.

Helps you project a more professional image – in today’s world, everyone is looking for the quick answer. When your organization offers an easy way to communicate via any means necessary, they are showing that their customers matter, and they value their professional reputation.

Improves agent performance and morale – providing sales agents, marketing professionals, and technical support staff with the tools that make them more efficient and effective in their jobs leads to a more satisfying work experience. Answering the same questions days after day is not rewarding, but using an IVR system that allows those same employees the freedom to tackle more complex issues boosts morale and gives their work-life meaning.

Reduces manual errors – mundane tasks day-after-day means the potential for manual errors rises exponentially. Remove the human-quotient, and the mundane tasks are managed exactly the same way each and every time they are encountered.

Continuous availability 24/7 – as shown in the example above with Jennifer and the IVR system, availability is a non-issue. Calls are automatically routed through the automated attendant to the IVR system.

Challenges of Interactive Voice Response

While the benefits of an IVR system are pretty self-evident, there are challenges that should be discussed. 

Lengthy menu options – older adults, especially, frequently have a hard time following telephone menus and seemingly never-ending instructions. So much so, that they often hang up and re-dial hoping a live person will finally answer the telephone. Also, younger callers get frustrated with the number of selections they encounter and the slowness of numerous phone options.

Impersonal touch – one of the greatest disadvantages of IVR systems is that many of us miss the interactive communication between people. Instructions are oftentimes difficult to follow or understand. Just recently, I overheard a horror story from an older gentleman who was trying to refill his prescription for a blood thinner. He called the pharmacy and was greeted with a very pleasant, digitized voice. It asked him to select from the following options, “If this is an emergency, hang up and dial 911. If your prescription has run out, press 1 to refill.” He pressed 1 and was then asked to either ‘say the prescription number’ or press the numbers corresponding to the prescription on his telephone, “For ABC, press 1…” He looked for the Rx number and was taking too long. The IVR system repeated the options, and he finally had the number and was saying it when the IVR interrupted stating that the Rx number he was giving was not valid. This process took him about 15 minutes where he finally hung up and had to drive to the pharmacy to get his prescription refilled. 

Long hold times – if you’ve ever called into a call center, you know about waiting for your turn to be heard. Even in an IVR environment, there are just so many lines that can be handled at one time. At peak hours, call centers may have over 100 calls incoming. While I love to listen to music, my time is valuable. 

Interactive Voice Response FAQs

Who uses an IVR?

IVR systems are usually implemented by call centers to handle the easier customer issues. 

What is the purpose of IVR? The IVR system was developed to free up time for call center personnel to handle more complex issues, to reduce the need for additional personnel to answer inbound calls thereby reducing costs, and to increase customer satisfaction by providing 24/7/365 availability.

What is a smart IVR?

Combines historical customer data and real-time context to predict intent and inform routing logic for the best unique experience and outcome.

What is IVR call flow?

IVR call flow is the path that a customer takes that allows them to be routed to the correct department within an organization’s departmental structure.