IVR Software: Definition and Benefits

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We all have faced the IVR system at least once. Most call centers use this solution to optimize call volumes and manage call queues, but it would be a lie if we say that all users love IVR systems or enjoy using them. 

But why do call center owners still invest in using the IVR software if it harms customer satisfaction and doesn’t provide positive customer experience?

This is the question we have to answer today. A little spoiler: IVR software isn’t as bad as some people think of it.

What is the IVR solution definition?

IVR software is a tool that provides information to a caller based on his or her requests and routes calls to the agent. The IVR system is based on one of two different technologies: dual-tone multifrequency (DTMF), or voice recognition technology. DTMF allows user to select different sections of IVR menu when pressing a button on the phone – 0-9,#,*. Each button will link to a specific menu section, like “Account details” or “Actual discounts”. Voice recognition software works as it follows from its name – it recognizes the nature of customer requests using the recognition algorithm that allows the system to understand what the customer says. 

Why do call centers use IVR software?

First of all, the IVR system is a great self-service tool that allows customers to get needed information, assistance or even complete elementary actions via the IVR menu. So, customers can check the status of their delivery, pay a bill or be linked to the agent – whatever they need more. 

Secondly, IVR solution optimizes call volumes and helps call centers to deal with numerous calls about common questions that don’t need human intervention to be solved. Such elementary queries as “Are you working on Sunday?”, or “Do you have a web catalog?” can be easily resolved with the help of IVR software without agent participation.

Thirdly, IVR solution is irreplaceable if you want to set up intelligent call routing. The IVR system can gather data about customer request while customer is interacting with the IVR software, and this data is sent to another system, Automatic Call Distributor (ACD), that performs call routing and routes a call to the most relevant agent based on data received from the IVR system.

Finally, IVR software is an ideal solution to improve your call queue management. How can it help? IVR software can be used to remind customers about their queue position, estimated waiting time, and offer an option to order a callback if the customer doesn’t want to wait in the queue. 

Does the IVR system have any benefits?

Yes, it has numerous benefits, despite the fact that many people say the IVR system is outdated or it annoys customers. All disadvantages of the IVR system that are so often mentioned by its opponents are about bad configuration and design, not about the IVR technology itself.

People don’t love long menus, tons of advertising, irrelevant menu design, inability to reach the agent, and so on – and the goal is to avoid these issues. Those who ignore customer preferences have no chance to provide an affordable customer experience.

Anyhow, let’s find out the IVR system benefits.

Reduced operational costs

IVR software can easily reduce operational costs because it reduces call volumes. What does it mean when you don’t face massive call volumes you can’t deal with? On the one hand, it means you will avoid too long call queues and waiting times, so customers will not be annoyed and angry. On the other hand, you can avoid spending additional money on hiring new agents that will have to deal with such call volumes. Thanks to IVR software, all elementary calls will be handled automatically.

Higher agent satisfaction 

As it follows from the previous paragraph, agents are sometimes pushed to deal with elementary customer inquiries that contain common questions – and answers for such questions can be easily found without calling the agent.

Nonetheless, some customers still prefer calling the agent with any issue they face. Such questions frustrate agents, and such an issue can lead to negative results – high agent turnover and attrition rates, and this will lead to higher costs and losses of service quality.

IVR software keeps agents focused on really important requests, while common questions are processed in the self-service mode with the help of IVR solution. 

Automated calls

Could you guess that the IVR system can help in generating up-sales and cross-sales, or in feedback collection? But it can. 

IVR software can send pre-recorded messages as automated calls after importing a contact list into the system – a few clicks and automated calling campaign is all set!

You can use automated calls for any purpose – whether it is feedback collection or just a “Thank you for purchase” message. Such calls will have a higher engagement and response rate than SMS messages. 

Perfect call queue management

Customers hate waiting in queues, and that is also one of the main reasons why you lose current or potential customers. Imagine: a person calls your customer service department to get additional information before a purchase, but he or she has to wait in a queue for five or more minutes. What is the chance that a customer will wait? You have enough competitors who can offer faster service. 

IVR software eliminates this problem. First of all, it can keep customers informed about estimated wait time and their queue position – and this information is a great indicator for customers to stay and wait. 

Secondly, IVR software can offer any customer to book a callback – and a need to wait disappears! Customers will get their assistance in the nearest time, and no queues will annoy them. What could be better? 

Conclusion

As you can see, IVR software is one of the best tools for your call center. But as we have already mentioned, IVR software needs to be properly installed – and Voiptime Cloud are those who can do it for you!