Interactive Voice Response Advantages And Disadvantages



Interactive voice response, or IVR, is an automated telephone system that combines pre-recorded messages or text-to-speech technology with a dual-tone multi-frequency (DTMF) interface to engage callers, allowing them to provide and access information without a live agent.  If the IVR system cannot retrieve the information that the caller is looking for, the programmed menu options can provide assistance in routing callers to the appropriate representative for help. By integrating computer and telephony technologies, IVR software can improve call flow and reduce wait times, leading higher overall customer satisfaction.

Moviefone was one of the most famous and successful uses of IVR technology in the 1990s. Since the internet wasn’t as accessible then as it is today, movie-goers would call in and provide their zip code to get a list of available movie theaters near them with their respective movies and show times. While Moviefone is a product of the past, its underlying technology is still leveraged, primarily within call centers, to provide customer support and reduced call volume for customer service representatives.

Today, IVR software is also evolving. The development of natural language processing technology expands the range of ways that callers can now interact with computers on the phone. Instead of using a touch tone system, more advanced IVR software enables callers to verbalize their needs on the phone. Then, through speech recognition, IVR system can understand and respond to their inquiries in real-time.

IVR systems improve the customer experience by providing a self-service method for customers to access the information that they need without the assistance of customer support. It also reduces the call volume for contact centers, lowering wait times and operational costs for businesses.

Interactive Voice Response (IVR) is an automated phone system technology that allows incoming callers to access information via a voice response system of pre recorded messages without having to speak to an agent, as well as to utilize menu options via touch tone keypad selection or speech recognition to have their call routed to specific departments or specialists.

A well designed IVR software system can help increase customer satisfaction and improve contact center operations and KPIs. Particularly during times of high call volume, an effective interactive voice response system can help avoid hold time by helping customers find answers and perform simple tasks themselves. In cases where a customer needs or requests to speak with a person, ivr technology can help route calls quickly and seamlessly to the best call center agent to address their inquiry.

At TTEC, we understand how to empower our clients’ customers by making it easy for them to navigate through a smart scripted IVR system. Our ivr software saves time and makes it possible for brands to serve customers 24/7/365.

Our contact center technology solutions give customers the ability to handle routine transactions (pay bills, track shipping, make reservations, etc.) on the phone without agent-intervention. So, they can get answers faster, and you can keep costs down.

Applications of interactive voice response

IVR solutions have been utilized across a variety of industries, including banking, healthcare, education, and retail. Below we’ll delve more deeply into these use cases:

Healthcare: IVR technology has a number of practical uses within healthcare, such as pre-treatment questionnaires, patient satisfaction surveys, lab and appointment scheduling, post-discharge follow-up, lab results and patient monitoring.This research (link resides outside IBM) also highlights how it can increase overall patient satisfaction by reminding patients to adhere to their medication schedule.

Education: Research (link resides outside IBM) has shown that educational institutions can implement IVR to assist parents in retrieving a status update on their child’s performance and attendance in school. Parents can register with the system and then input a username and password to access key information on future calls.

Customer Service: Customer service call centers straddle across multiple industries. These centers are set up to handle a high volume of inbound calls using automated menus and pre-recorded to handle customer queries and complaints.

Finance: IVR can also be leveraged for a variety of tasks within banking and finance. They can provide account information, like account balances and loan application statuses, as well as enable changes to investment portfolios.

How interactive voice response works

Interactive voice response phone system typically consists of the following components:

  1. A TCP/IP network to provide internet and intranet connectivity.
  2. Databases to supply IVR applications with relevant data
  3. A web/application server where the IVR software applications will live. This server can host multiple applications, which are all written in VoiceXML. For example, there could be applications for contact centers, outgoing sales calls and speech-to-text transcription.

From here, one of three types of IVR systems is typically constructed.

  • Touch-tone replacement: This system prompts callers to use a touch-tone keypad selection to access information. For example, a pre-recorded message may say, “Press one for store hour information,” and the caller would respond with “one.”
  • Directed dialogue: This type of IVR provides specific verbal prompts to callers depending on their inquiry. For example, the recording may ask, “Are you looking for store hours or location information?” The caller may respond with “store hours.”
  • Natural language: This advanced IVR system uses speech recognition to better understand user requests. For example, the system prompt may ask, “what information are you looking for today?” and the caller may reply with “I’m looking for store hour information” or other similar phrases.

Additional Interactive Voice Response (IVR) Resources

  • Customer’s dislike having to enter a seemingly endless series of prompts into an IVR telephony menu system, wondering if they’ll ever be able to have an issue resolved. It’s hardly surprising that the majority of customers are dissatisfied with their IVR phone experiences. However, the problem isn’t IVR technology, its IVR design. In this article, learn the ten IVR best practices to ensure your menu design is intuitive and customer friendly. 
  • Digital transformation best practices, including real time routing, voice recognition and interactive ivr solutions, and machine learning powered automation optimizations, to achieve the contact center of the future, today.
  • What is IVR software good for, if it can’t help customers resolve their calls without needing to ask for an agent? In this strategy guide, learn how to leverage next-gen IVR telephony technology to make your call automation software work for customers, not against them, so they do not become frustrated and ask for a live agent (especially during times of high volume customer calls). 
  • The implementation of contact center automation is accelerating, so it is essential for companies to implement best practices, or risk falling behind the competition. Technological advances in routing systems, robotic process automation (RPA), AI, and machine learning (ML) are literally changing the face of customer care.
  • An IVR system (IVRS) accepts a combination of voice telephone input and touch-tone keypad selection and provides the appropriate responses in the form of voice, fax, callback, email and other contact methods. In this article, learn more about the definition of ivr, and how to modernize your ivr application to improve call center efficiency and customer satisfaction.
  • Drive business results with  contact center outsourcing and omnichannel solutions that help brands orchestrate a seamless customer experience within and across every touchpoint.
  • To create personalized, customer-centric experiences, the right IVR technology and contact center infrastructure is essential. Our contact center software and Humanify® Technology Platforms deliver enterprise-class solutions for omnichannel interactions.
  • : Poorly designed and outdated interactive voice response systems can be frustrating because customers feel that the IVR menu design does not match what they need. In this article, learn how advances in conversational and natural language IVR technologies are helping to modernize voice customer service and improve customer experiences.

Benefits of interactive voice response

IVR technology offers competitive advantages to businesses and advances their automation efforts. Some key benefits include:

  • Efficient call routing: After obtaining relevant information from a given caller, IVR solutions route calls to the appropriate call-center agent, reducing wait times and increasing first contact resolutions.
  • Lower operational costs: IVR systems are incredibly cost-effective. They not only reduce high call volumes for customer service representatives, but they can extend access to information during off-peak hours of the day, such as nights, weekends, and holidays.
  • Error Reduction: When deployed effectively, IVR systems can reduce errors within the customer service process as it does not depend on a human customer service representative to take notes and route incoming calls appropriately.
  • Increased security: Some IVR systems incorporate voice recognition technology to verify the identity of an individual, adding an extra layer of security. This can be helpful for highly sensitive personal information, like social security and phone numbers, checking and savings account information, and lab results from doctor’s appointments.

Challenges of interactive voice response

While interactive voice response can offer benefits to businesses, the technology still has limitations that it needs to resolve and optimize for.

  • Overcomplex IVR menu options: While IVR technology can streamline the call flow within call centers, it can also frustrate callers if the automated messaging system is too complex. Long pre-recorded messages may require callers to wait unnecessarily to select their intended option, resulting in lower customer satisfaction.
  • Long hold times: Despite the advances in technology, long wait times remain a problem on many IVR systems. Callback functionality can alleviate frustration as callers can continue with other tasks in their day until a customer service representative is able to attend to their request.
  • Impersonal communication: When customers are calling a support line, they may already be highly frustrated by a product or service issue. An automated messaging system may exacerbate frustration as a recording does not have the ability to empathize with their current problem.

Poorly deployed IVR systems can lead to high call abandonment rates and negative customer sentiment. Since low customer service satisfaction can harm a brand via negative reviews and public social media complaints, businesses should be thoughtful in their deployment of IVR solutions.

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