Interactive Voice Response (IVR) is a technology that allows callers to quickly and easily navigate to the right person using the keypad on their phone. This creates a better customer experience and lowers the cost per call. Find out how the technology works and all the benefits of IVR.
What is the IVR?
An Interactive Voice Response (IVR) system is an automated telephone system that combines pre-recorded messages or so-called text-to-speech technology with a dual-tone multi-frequency (DTMF) interface. In plain English, this means that customers who call can get help without having to speak to an employee. The phone system recognizes the buttons pressed on a physical phone or virtual keypad, allowing a customer to navigate through menu options to get to the right place.
Have you ever called your bank? You were probably given voice instructions on how to get through to the right queue for your query. This is a classic example of how an IVR system works. Pressing a number button for a menu item takes you to the next option, and the company can use auto-answer messages or connect the call to a person.
This is one of the many reasons why 61% of customers still prefer to speak to someone over the phone when they need help. According to a study by Salesforce, 75% also believe they get the fastest response time if they call a company. In Sweden, an early version of the system has been around since 1984, so customers are used to it.
8 benefits of an IVR system
1. Interactive voice response for a better customer experience
IVR systems provide a personalized customer experience, as the caller can easily reach the right contact person by pressing a button, instead of being routed through several different people. Some IVR systems are even so good that self-service customers can solve problems entirely on their own. If problems can be solved efficiently, customers are more likely to be loyal to the company. A study by Forbes shows that 58% of customers are willing to pay more for really good customer service, which says a lot.
2. transfer calls to the right person or department
Customer service agents often specialize in different parts of the company’s services, so not everyone can help with every problem. Customers who are passed from one person to another before reaching the right one are more likely to be dissatisfied with the service they receive. For example, if you call your bank for help with business services, you don’t want to end up with junior staff without the right experience.
This is where IVR systems come in: they can be programmed so that the caller can navigate to the right person or department themselves. These 3 smart button dials (IVR), for example, make it easier for IVR users.
3. Increase call capacity with interactive voice response
Companies that use IVR systems can handle more calls than those that work in the traditional way. These features open up a whole world of automated responses that allow customers to solve their problems without talking to a person. This gives staff more time to deal with the issues that actually require direct contact – by phone or face-to-face.
Simple questions about opening hours or visiting address do not need to be answered by a person. Well-programmed IVR systems thus make life easier for both customers and businesses.
4. Improve the image of the company
How businesses handle incoming calls is hugely important to the customer experience. An effective interactive voice response system gives callers a good picture of the company, while automated responses solve customers’ problems without taking up staff time.
If you’re a small business or a start-up, IVR can also help you to be perceived as bigger than you actually are. It also shows that your business takes customers seriously by being reliable and accessible.
5. IVR allows customers to call at their convenience
IVR allows your customers to call at their convenience. The service is available 24 hours a day, 7 days a week. Any query with an automated response can be handled by the system, whether during office hours, at night or on public holidays. Customers like that. According to Smart Insights, 88% of US customers use IVR services to get answers to questions.
6. Help customer service to provide the best possible service
IVR systems are not only good for customers who can manage with automated assistance, they are also beneficial when customers actually need to talk to a real person. The system gives staff time to focus on the calls they receive and solve problems faster and better.
Because well-programmed IVRs connect customers to the right person with the right skills, staff can respond with reassuring expertise to callers. When it comes to accessibility for customers with disabilities, such as visual or hearing impairments, IVRs are a flexible and important solution.
7. Correct contact on first attempt with IVR
Business switches without IVR risk sending customers the wrong way, or even disconnecting them. In large companies with a lot of staff, lack of organization can actually be disastrous. IVRs that intelligently connect customers to the right contact on the first try simply make for happier customers – that’s always good for business.
Reducing time-to-resolution, or how long it takes to resolve a customer issue, is an important part of a contact center. IVR systems use smart routing capabilities to connect customers to the most capable agent directly, reducing the time it takes to talk to different agents. IVR ensures that the issue is resolved faster with minimal wait time and therefore higher customer satisfaction, meaning you not only reduce time-to-resolution but also first-contact-resolution.
8. Interactive voice response lowers cost per call
Some business numbers are more expensive to call than regular mobile numbers. Customers have to pay for them, which can lead to them hanging up without getting help with their problems, which is bad for business.
IVR calls go through faster than regular calls. This means customers get answers quickly and save money on phone costs. As a business, you also avoid tying up staff in calls that can be easily answered with an automated service. Find out more about how IVR reduces your costs.
Conclusion
If you want to innovate and improve the way you work, use an effective IVR system that suits your needs – it provides the right foundation for effective customer care. Customer service is always an important part of any business, and investing in the best technology can go a long way.
