Blog Post

Aug 03, 2022

You may have experienced IVR menus before. If you know the lines "press 1 for customer service or press 2 for technical help," then you're familiar with a basic IVR menu. When your call volume increases, you'll need a solution that can handle the extra load. An IVR phone system can help with that, providing a practical way to accommodate an expanding customer base.


In this guide, you'll learn all about IVRs(Interactive voice response software) and how they work. Then, you'll see some key tips for success when using them in your business.

What is Interactive Voice Response (IVR)?

how internatice voice response works

Interactive Voice Response (IVR) is a service offered by telephone companies which allows a customer to access information on a touch-tone telephone. IVR technology that allows a customer to interact with a computerized system in a more convenient way than traditional methods such as voice mail or operator assistance. The IVR system can be used for a variety of services, including menu options and automated call routing.

Check the -> Latest IVR System

 What is the purpose of IVR? Why Would a Business Use an IVR Systems ?

Interactive Voice Response services is used in businesses for three primary reasons: 


  1. Redirect calls from inbound. Reduce the amount of live calls processed by a live agent in order to reduce cost.
  2. Improve the user experience. Provide self-service to customers for simple account queries. Furthermore, getting to the right department can improve the resolution rate.
  3. Reduce the time it takes to handle. Help customer service agents have live information about the person calling, such as account verification and call driver.


IVR Solution based study by Zendesk


  • 70% of the respondents indicated they would like to solve problems on their own without the need for human intervention.
  •  63% would begin looking for solutions in the company's digital channels prior to making the decision to contact customer service by phone.

 

IVR conversation could save companies thousands of dollars each year by reducing the amount of talk time wasted and also provide customers with a better experience.

Types of IVR Software 

Basically two types of IVR there, the one is basic IVR (key press) other one is Advanced IVR or Speech enable IVR (Conversional AI)


At The VoIP Shop Contact Center, you can provide the following types of IVR:

1. Basic IVR: 

You can set up an old-fashioned IVR in which customers can input their preferences using the key presses available.

2. Speech-enabled IVR:

Allows callers to talk or ask questions in a conversational manner instead of having to navigate through IVR menus for key-press.

How Does an IVR System Work?

IVR works by merging exciting phone systems with VoIP technology to create an automated call routing system. The IVR software is used to support the creation of automated menus to direct calls to the correct departments, agents or databases.

Basic IVR Systems

Two major elements of IVRs that allow the computer to recognize and respond to the caller's requests. The first is voice recognition, and the second is Dual-Tone Multi-Frequency Signaling (or DTMF).


DTMF signaling occurs on phones and computers whenever callers use the phone keypad to select the menu options. This technology enables the intelligent routing of calls to be carried out without the need for a human operator.


IVR solutions with voice recognition features can be known as Directed Dialogue, meaning users can speak to the system instead of using the phone keypad to navigate through the menu. For instance, an IVR menu could say, "For Balance, press two or type 'Balance.'"

how ivr system works

Advanced IVR System

As IVR technology advances and improves, advanced systems make customers' IVR interactions increasingly natural, quicker and more pleasant. One of the most user-friendly innovations is Natural Language Processing software (or NLP) which is a type that is a type of artificial intelligence that is used in conversation. 


Thanks to the advanced technique for recognizing voices, computers can comprehend and process complete sentences, not restricting the user's choice of words by recognizing only specific commands. An IVR with built-in NLP can answer open-ended questions, like "what can we assist you right now?"



As you can imagine, customer like this way of speaking in customer support care since it allows the caller more flexibility. It's also faster to navigate the IVR since callers can get the message immediately.

The VoIP Shop Modern IVR functionality is available now!

 What is the purpose of IVR? Why Would a Business Use an IVR Systems ?

Interactive Voice Response services is used in businesses for three primary reasons: 


  1. Redirect calls from inbound. Reduce the amount of live calls processed by a live agent in order to reduce cost.
  2. Improve the user experience. Provide self-service to customers for simple account queries. Furthermore, getting to the right department can improve the resolution rate.
  3. Reduce the time it takes to handle. Help customer service agents have live information about the person calling, such as account verification and call driver.


IVR Solution based study by Zendesk


  • 70% of the respondents indicated they would like to solve problems on their own without the need for human intervention.
  •  63% would begin looking for solutions in the company's digital channels prior to making the decision to contact customer service by phone.

 

IVR conversation could save companies thousands of dollars each year by reducing the amount of talk time wasted and also provide customers with a better experience.

What is IVR menu? INTERACTIVE VOICE RESPONSE PHONE TREE

The IVR menu is a great way to help customers navigate the IVR experience. You can use it by pressing the touch-tone Dialpad or speaking your choice into the microphone, whichever option is programmed in for your IVR.


You may have experienced IVR menus before. If you know the lines "press 1 for Billing dep or press 2 for technical support," then you're familiar with a basic IVR menu.


It's also referred to as the phone tree due to the fact that it has multiple levels. One option may be followed by three or four additional options, based on how deeply you program your IVR.


Naturally, the suggestion should be to make the IVR menu or the phone tree as simple as is possible. However, it's still dependent on the requirements of your company.

Requirements for a better IVR response system:

Cloud/application server: Where is the hosted IVR system is uploaded.

Databases: Real-time details that IVR applications are able to access.

TCP/IP network: the internet network that offers Internet as well as intranet connections.


When you decide to integrate call center IVR software into your contact center operations, make sure to choose the right phone system to support it. Best voice recognition software with IVR features is a great way to improve customer satisfaction and increase call throughput.

What is the use of IVR (Interactive Voice Response Transactions)?

Interactive Voice Response systems (IVR) is a service that allows customers to interact with a computerized system in a more convenient way than traditional methods. IVR is used for various purposes, such as automated form filling, money transfer, and account balance checking.


Below Sample processes that IVRs can do now:


  • Automatic form filling
  • Money transfer & make payment
  • Get information about product, status etc.
  • Account balance checking
  • Get details about account information


IVR Solutions are a great way to route calls based on the preferences of the caller. Through these preferences, it can determine if the caller wants to speak with billing or technical support, or simply want to talk to a human being.



It's also capable of providing important information like promos and updates, without requiring the caller to input any information themselves. One example is informing callers that their calls will be recorded and asking if they would like to proceed.

Requirements for a better IVR response system:

Cloud/application server: Where is the hosted IVR system is uploaded.

Databases: Real-time details that IVR applications are able to access.

TCP/IP network: the internet network that offers Internet as well as intranet connections.


When you decide to integrate call center IVR software into your contact center operations, make sure to choose the right phone system to support it. Best voice recognition software with IVR features is a great way to improve customer satisfaction and increase call throughput.

What is IVR payment?

Making payments over the phone is easy with The VoIP Shop's IVR feature. Just integrated our system with a reliable payment gateway, and you're ready to go! For more details, please let us know.

The VoIP Shop IVR System Features (Use cases) that might want you: 

1. Automatic routing

Automatic routing can create specific voice messages and answers within the IVR menu, providing your customers with the details they need without needing to speak to your representatives.

2. Prediction dialer

Predictive dialer will ensure that more customer calls are completed in less time. It's a fantastic instrument to communicate with your customers quickly.

3. Calls Forward-to-phone 

With IVR, your call center (cloud contact center) can stay connected with clients even when you're away from the office. The IVR systems will forward calls to your phone number, allowing you to answer customer queries anytime, anywhere.


Plus, IVR software can redirect calls during off hours so that customers can get help without interruption. and its boots customer experience better.

4. Callback

With Callback's feature, missed phone calls will become gone in your customer service department. 

5. IVR Calls Flow Designer

This feature allows users to create customized call flows for your company. Utilizing this software, you can develop more advanced IVR solution chains and ensure your customers are connected to the appropriate department or agent each time.

6. SMS/Text Messages

This feature allows the sending of personal or general messages to your customers and helps your contact center solution run more efficiently.

7. Calls to voicemail

This feature lets you direct your callers to voicemail when they choose an IVR response that is specific to them. By cutting down the number of inbound calls your agents must deal with, your team will reduce up to 85% of their working hours.

8. Intelligent dialer

The VoIP Shop will create numbers from any system or website and build a call queue directly within The VoIP Shop phone application.

How interactive voice response - IVR Service helps industries?

  • IVR systems have been used in a wide range of industries such as healthcare, banking and education, as well as retail. We'll go deeper into these scenarios:

🏥 IVR in Healthcare:

With IVR technology, healthcare providers can effectively communicate with patients before, during, and after appointments and tests. This allows for more efficient scheduling of lab results and patient monitoring, as well as satisfaction surveys and pre-treatment questionnaires. Thanks to online IVR system, healthcare is becoming more convenient for both patients and providers alike!

🏦 IVR in Finance & Banking:

In banking and finance, IVR services are a valuable tool for providing account information, updating investment portfolios, and more. With IVRs, users can easily access their account information and make changes to their investments without ever having to leave the comfort of their desk.

🎧 Customer Service:

Customer service is an important part of any company, and call centers are no exception. These centers straddle multiple industries and are set up to handle large number of inbound calls using automated IVR menus and pre-recorded responses. This ensures that customers have a smooth experience when contacting the company, and customer queries can be quickly addressed.

🏫 Education

With IVR technology, educational institutions can keep parents updated 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 IVR calls.

5 Tips and Best Practices to Improve Your Advanced IVR Systems

  • IVR systems have been used in a wide range of industries such as healthcare, banking and education, as well as retail. We'll go deeper into these scenarios:

Low-quality of Voice Speech: 

To ensure that your generated messages are clear and easy to understand, use a high-quality voice recognition software. This will give your customers the best possible experience, and they’ll be more likely to return to your store again.

Reduce Long Waiting Times:

It is extremely frustrating for callers to engage via an IVR menu and then be placed on hold for a while. In reality, more than 70% of customers are extremely frustrated when they are for longer than one minute. It is possible to prevent this from happening through callbacks or automated routing, which provides sought-after details.

Step by Step Information

Introducing your callers to new information gradually will help them understand what you are saying more easily. Wait for a caller to ask for more information before providing it, and make sure to keep the conversation flowing. its make better customer experience

Don't avoid 100% Live Agents Presents

Delight your customers with a personalized IVR experience by giving them the option to speak to a live operator at some point during their call. Some of your customers might have very specific requests, and they'll want to speak with your agents right away.

Complicated Call Flow

If your IVR is not well designed, it will ruin the customer experience. 63% of people agree that poorly designed IVR systems makes it difficult to find what they are looking for and wastes their time. Make sure your menu is clear and concise, so callers can easily find what they need and get their questions answered quickly.

Top 11 IVR System Benefits for Company, Employee, Customers

IVR System Benefits

1. Quick processing

Instead of having an employee attempt to figure out what the customer wants, the customer could use the IVR working process to discover the most similar item available.

2. Huge Inbound calls

The IVR systems is overwhelmed with all the answer incoming calls in at once, so customers are forced to connect to the appropriate department one-by-one. This gives employees more time to resolve customer complaints.

3. Better customer experience

An IVR systems ensures that all customers hear nothing but ringing phone noise. The IVR response unit can help ensure that customers are quickly transferred to the most appropriate person for assistance.

4. Zero connection errors

Customers can easily transfer calls to the right department by using an interactive voice response IVR. This provides a more efficient and pleasant experience for both callers and receptionists.

5. Greater efficiency

The ability to handle inbound calls from an automated system means that the same number of employees can handle more calls, which means faster response times and a smoother customer experience.

6. Multiple Option

Your IVR system is really helpful, especially when it comes to giving you clear options. If you don't see an option that fits your needs, there's always the option to talk to a real person answering phones customer service. They'll be able to help clear things up for you.

7. Save Customer & Employee Time

With an interactive voice response systems, you can easily ask questions like “Check balance?” or “delivery status” without having to pay your employees to answer them. This saves you time and money, and ensures that your customers always have the information they need.

8. Engage More Mobile User

IVRs are incredibly efficient, allowing mobile customers to quickly reach a solution. This allows them to maximize their time and ensures more return for businesses.

9. Improve Brand Awareness

With an IVR phone, companies can tailor their systems to better meet the needs of their customers. This creates a better perception of the brand as a whole, and lets the company build a strong reputation for customer service.

10. 24/7 Availability

With the IVR system available 24/7, customers can always get in touch with customer service. Even if they don't get an answer right away, they're still making progress and improving their chances of returning to the business in the future.

11. Personalized Caller Details

A well-designed IVR system is like a well-trained cloud contact center solutions call rep. In gathering the personal details of the customer, or by integrating with CRM databases The system will be able to provide customized special offers or notify the customer about upcoming sales.

Our experienced voice talent will provide the perfect message for your IVR systems, in any language. Contact us today to take advantage of all our benefits!

IVR - CRM Integrations with different Apps

If you're using The VoIP Shop for phone service, you might be able to integrate their IVR with different apps your company uses. This can open up a lot of new possibilities, like being able to take customer calls from within your sales or marketing software!


  • By integrating a CRM system (ex interactive voice response salesforce) , the IVR can gather more details and enhance the classification of customers. This would assist in identifying the customer with the right person. 
  • Back-office systems can be incorporated with an interactive voice prompt so users can receive notifications about their account, purchase or transactions without contacting an agent.
  • Integrating payment gateways allow automated payment options by phone without speaking with an agent.
IVR CRM Integrations with different Apps

Interactive Voice Response IVR FAQs 

1 Q. What is IVR in PBX?

IVR is a powerful piece of software that can be used to create any type of interactive voice response system, while soft-PBX systems are specifically designed for use with PBX features, such as call routing and voicemail.

2 Q. What is IVR in CRM?

IVR technology is used in customer relationship management (CRM integrations) software to provide customers with a more personal experience. With IVR, customers can speak directly to a customer service representative and receive help with a variety of customer issues. IVR can also be used to schedule appointments, answer questions about products, and much more.

3 Q. What is a smart IVR?

An smart IVR is designed with enough menu options to enable your clients to complete basic, everyday tasks like checking their balance on their account or paying their bill without the need to speak to a person.

4 Q. What is inbound and outbound in IVR?

Outbound IVR technology is used to notify clients about an appointment or critical emergency. Inbound IVR phone systems try to anticipate customer's expectations, routing calls through your system.

5 Q. Who can uses an IVR?

IVR use cases include: Account information checking, sales calls follow-ups, appointment confirmations, etc. Interactive Voice Response, or IVR, is a great way to improve customer service. Corporations from virtually every industry can use IVR to improve their interactions with customers.

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