Interactive Voice Response (IVRs) have become important tools for busy call centers. Not only are they easing the customer journey, but they are also increasing workforce engagement since agents and reps receive the most relevant calls. With IVRs, callers choose where they are routed, and the system sends them to an automatic call distribution (ACD) to ensure a pleasant customer experience.
We'll walk you through exactly how an IVR works, the many benefits that come with it, and the industries that commonly use it — from sales to insurance.
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What is IVR?
IVR stands for Interactive Voice Response. IVRs were created to help route calls appropriately, so your leads aren't waiting in a queue that doesn't serve them. This eliminates any frustration they might have with your company upon initial contact.
If you're operating a small business, you can get by without having an IVR. However, it'll be harder to scale to a larger number of clients and employees. An IVR can decrease the time spent fielding calls and ensure everyone receives calls that will help increase your ROI.
How Does IVR Work?
When a lead calls a call center, an IVR will answer, provide general information about the company, and ask a question to determine whom they need to speak with. Once the lead answers the question, the IVR will send the information to an automatic call distribution system, which hands the lead to the next viable representative.
Types of IVR Systems
Each IVR system will handle calls differently, so it's important to verify what type of IVR system you're investing in. Here are just a few of the types you'll encounter:
| Type | Description |
|---|---|
| Touch-Tone | The IVR will prompt the caller to tap a number on their phone, which corresponds to a department. For example, it could say, 'Press one for customer service', and if the customer is looking for the customer service department, they would open their numpad and tap '1'. |
| Speech | With speech IVRs, the system will ask the caller to answer its questions verbally. For example, the IVR could ask you to say 'yes' to confirm that all the information is correct before sending you to the ACD. |
| AI | AI IVRs are similar to speech IVRs. By utilizing AI, the IVR can have a full conversation with the caller before routing the call to the appropriate rep. |
| Visual | This type of IVR is rarer than others, but if your workflow requires many questions, it may be worth investing in a visual IVR. Visual IVRs will send users a link to a webpage for answering questions. This determines who they will speak to. |
| Outbound | Outbound IVRs work in conjunction with your CRM to automatically call leads to confirm appointments or give alerts if there is an issue with the account. These systems will only send users to a representative if they request one or if an issue requires human assistance. |
When deciding which IVR to invest in, evaluate your business's needs and ask if this is the call center solution you're looking for. If it doesn't fit your workflow or your customers aren't receptive to it, you should look for other ways to improve your business.
Key Benefits of IVR
The best benefit of using an IVR is the shorter turnaround time on calls. When customers know where they will be routed, and agents are given context before calls, resolutions are found faster. Here are some additional benefits you can expect from your IVR:
Reduced Calls from Bad Leads
In some cases, IVRs act as a barrier to entry for complicated services. If you've worked in a call center, you are bound to receive a call that is irrelevant to your business. That's why IVRs will ask questions for clarity before it hits the representatives. This ensures the leads are willing to hear from the agents.
Collects Data on Common Issues
If you're having a series of similar concerns coming in through your IVR, it should log the issues it encounters so you have a comprehensive view of what your clients are facing. This way, you can improve your customer journey map with accuracy.
Shorter Waiting Periods
Customers who are routed to the appropriate representative will have shorter wait times since they won't have to go through a single person. Traditional workflows require a lengthy process using a few people to route calls properly, and they will get backed up.
Challenges with IVRs
While there are several benefits to an IVR, there are some pitfalls you should know before making a purchase:
- Don't overcomplicate the choices: With too many choices, users can get frustrated and abandon the call entirely.
- Make sure it feels personal: IVRs can fall into the trap of feeling impersonal or dismissive. Evaluate the service's tone and ensure it matches what you're seeking.
- Maintain the menus: Improperly mapped menus or expired options break your customers' trust in your company.
Ultimately, an IVR is a lead management tool, so you'll want to closely monitor it when you begin using one to ensure it's doing its job correctly.
Common IVR Use Cases
IVRs are used by several companies across different industries. Here are a few ways IVRs are used:
Insurance
Within the insurance industry, calls are based on claim status, policy information, payments, and more. Because there are so many departments, large insurance companies need to use an IVR to ensure customers get the proper information.
This is especially important if you're working in an insurance brokerage that sells multiple types of insurance, such as health or life insurance. Each industry has a different workflow that will direct your calls and IVR differently.
Sales
Calls that sales floors receive can come from many places. It's not only important to track where calls are coming from, but it's necessary to filter the bad leads. With an IVR, you can route your leads to the department best suited to their situation and guarantee a satisfactory resolution for both you and the consumer.
If you sell or work with many products, having an IVR direct your clients to the exact product they are searching for can reduce time spent on the phone and place you as a reliable resource for future purchases.
Banking
Banks have different departments to filter the needs of their customers. Fraud reporting, loan status, account balances… Knowing exactly what your client is looking for before they get on the phone with a representative gives you the advantage of finishing the call sooner rather than later. This gives a seamless experience to your customers and increases trust in your bank.
Healthcare
In the healthcare industry, IVRs are used to schedule appointments, refill prescriptions, update lab results, take patient surveys, and more. However, healthcare IVRs will need to integrate with your CRM to relay information to your client without a technician or desk staff.
Before purchasing an IVR, always make sure there is an integration set with your current CRM.
Customer Service
Before a call routes to a customer service representative, the client should go through an IVR. This ensures that the representative in charge of that account has all the necessary information needed to take care of the account, expediting the process for both the customer and representative.
IVR Best Practices
If you've already purchased an IVR, and you're wondering how you can make the most out of it, here are some of the best IVR best practices you can follow to ensure customer satisfaction:
- Keep Menus Short: IVR menus should be as short as possible so your customers don't get overwhelmed by the options.
- Use Natural Language: Awkward and robotic language can put off your customers and make them unwilling to share information.
- Offer Options to Speak to a Representative: Give your customers the option to speak to a representative if they are uncomfortable with giving information to an IVR.
- Personalize the Call with Your CRM: If you have the customer's information stored in your CRM, connect it with your IVR and create messages that personalize it to your customers.
- Always Adjust: You should continuously adjust your workflows to match the changes from your clients. Your IVR shouldn't be any different.
IVR + CRM: How They Work Together
IVRs and CRMs work together to create personalized experiences for your customers. Depending on the system you invest in, IVRs will take the caller's number and retrieve information from your CRM to create tailored messages and responses for your customers. It can also send information to your CRM to better filter and create notes for your reps. The reason for the call and current call disposition can be recorded even before the representative picks up.
For call center CRMs like Hooked, IVRs sit at the top of the customer experience. This creates better routing for your customers and a better agent experience since they will receive more relevant calls.
Of course, we always recommend using a CRM alongside your IVR to capture all the data and equip your team with the best tools for success. If you're seeking a CRM specializing in dialer and AI functionality, book a demo with us today! We've combined a dialer, CRM, and AI assistance to give your team the best chances of succeeding.
