Skip to content
Home ยป Benefits of interactive voice response

Benefits of interactive voice response

What is IVR?

IVR, also known as Interactive Voice Response also known as IVR is a phone system that blends pre-recorded text messages or text-to speech technology with a dual tone multi-frequency (DTMF) interface that allows you to interact with customers, allowing them to give and retrieve information without the need for a live agent. When the IVR system is unable to retrieve the information the customer is searching for the menu options programmed will assist in routing users to the appropriate agent to get help. Through the integration of telephony and computer technology, IVR software can improve the flow of calls and decrease the wait time, which results in better overall satisfaction with customers.

Moviefone was among the most well-known and profitable applications of IVR technology in the 1990s. Since the internet was not as widely accessible as it is now, movie lovers would dial in and enter their zip code in order to receive an overview of movie theaters close to them, along with their movies and times of the show. Although Moviefone may be a technology from in the past, it’s core technology is still used, mostly within call centers to provide customer service and reduce the number of calls for customer service reps.

In the present, IVR software is also developing. The growth of the technology for natural language processing increases the number of options that callers have to communicate with computers over the phone. Instead of using an automated touch tone system more sophisticated IVR software allows callers to communicate their needs over the phone. Through speech recognition, the IVR software can comprehend and respond to the caller’s queries in real-time.

IVR systems enhance the experience of customers by providing an easy way for customers to find the information they require, without the assistance of support. They also decrease the volume of calls to contact centers, thus reducing waiting times and costs for companies.

How does interactive voice response work?

Interactive voice response phone systems typically, it consists of these elements:

A network of TCP/IP to provide intranet and internet connectivity.
Databases that provide IVR applications with pertinent data
A web/application server on which you can host the IVR software applications can reside. The server is able to host multiple applications, all developed in VoiceXML. For instance, there might exist applications that deal with call centers. sales calls, as well as speech-to text transcription.

From this point there, the first of three kinds of IVR systems is usually designed.

Touch-tone replacement: This method requires callers to make the touch-tone keypad to gain access to information. For instance, a recorded message might read, “Press one for store time information,” and the caller will respond by saying “one.”
Directed dialogue: This kind of IVR gives specific prompts verbally to the caller based on their question. For instance the recording could be asked, “Are you looking for information about store hours or locations?” The caller may reply by saying “store times.”
Natural Language: The sophisticated IVR system makes use of speech recognition to comprehend user’s requests. For instance, the system will prompt “what information do you want to look for this moment?” and the caller could respond by saying “I’m seeking store hours information” or similar phrases.

The benefits of interactive voice response

IVR technology provides companies competitive advantages and improves automation processes. The benefits of IVR technology include:

Effective call routing: After receiving pertinent information from the contact, IVR solutions route calls to the right call center agent decreasing wait times and improving first contact resolutions.
Lower operating costs: IVR systems are incredibly efficient in terms of cost. They can not only decrease the volume of calls to Customer Service representatives and can also extend access to information even during non-peak times of the day like weekends, nights and on holidays.
Error Reduction: If implemented efficiently, IVR systems are able to help reduce the number of errors that occur during the customer service procedure since it doesn’t rely on human representatives from customer service to record notes and then route the calls correctly.
More security: Some IVR systems include the use of voice recognition technology to verify the identity of a person and add an extra measure of safety. This is especially useful when dealing with sensitive personal information like phone and social security numbers, savings and checking account information, as well as laboratory results from doctors’ appointment.

The challenges of interactive voice response

While interactive voice response could bring advantages to businesses however, it has limitations that it has to overcome and improve for.

Complex IVR menu choices: Although IVR technology is able to streamline process of making calls in the call center, it may be a source of frustration for callers if the automated messaging system is too complicated. Pre-recorded long messages can force users to wait indefinitely to choose their preferred option and result in lower satisfaction with the service.
Long wait times: Despite advancements in technology, lengthy wait times are still a major issue on a lot of IVR systems. Callback capabilities can ease the frustration of callers as they can go on working on other things during their daily lives until the customer support agent is able to take their call.
Unpersonal communication: If customers contact a customer support line, they might already be extremely frustrated with an issue with a service or product. A system that is automated could cause more frustration since a recorded message isn’t able to understand the issue they are facing at present.

Unprofessionally implemented IVR systems can result in high rates of abandonment and negative customer perception. Because a low level of customer satisfaction can damage a brand’s reputation through negative reviews and social media posts, companies should be careful in the implementation of IVR solutions.

Interactive voice applications responses

IVR systems have been used across many industries that include healthcare, banking education, retail, and banking. We’ll go deeper into these applications:

The healthcare industry: IVR technology has a variety of applications in healthcare, including questionnaires for pre-treatment, survey of satisfaction, laboratory appointment scheduling, follow-up after discharge with lab results, and monitoring for patients. The study (link is not available on will also highlight the ways it can improve the overall satisfaction of patients by reminding patients of adhering to their prescription schedule.

Education Research (link located outside from has demonstrated that educational institutions are able to implement IVR to aid parents in finding a status update regarding their child’s attendance and performance at the school. Parents can sign-up using the system and create the username and password in order to gain access to important information about future calls.

Customer Service Call centers for Customer Service are a crossroads of different industries. They are designed to handle high volumes of calls inbound with automated menus and recorded messages to answer customer questions and complaints.

Finance IVR could also be utilized for various tasks in finance and banking. They are able to provide information about accounts including balances, account balances as well as loan statuses and also allow adjustments to investment portfolios.