Key takeaways
- IVR technology automatically routes callers to the right agent, reducing handle time and frustration
- Post-call IVR surveys provide more accurate customer satisfaction data than agent-led feedback collection
- Self-service IVR options reduce operational costs by handling routine inquiries without agent involvement
- Effective IVR systems improve first-call resolution by prequalifying callers before agent connection
- Continuous IVR testing and monitoring is essential to ensure optimal customer experience
What is an IVR? An Interactive voice response (IVR) system is an automated phone system that allows callers to navigate menus using voice or keypad inputs to reach the right department or resolve issues without speaking to an agent. You’ve likely interacted with IVR technology when you’ve called your bank, booked a flight, or made a reservation and were asked by a friendly, automated voice to press 1 for X, 2 for Y, or 3 to speak with a representative.
IVRs are fundamental pieces of technology in contact centers. In fact, according to a 2018 Call Centre Helper industry survey, 86.1% of contact centers had reportedly installed an IVR system. So, what is the magic behind IVR technology and why are so many companies utilizing the technology to improve their business?
Here are the four key reasons IVRs are integral to contact centers:
- Simplified call routing to the right agent
- Better measurement of customer satisfaction
- Time-saving self-service capabilities
- Reduced call transfers and improved first-call resolution
1. IVRs simplify call routing
IVRs simplify call routing by automatically directing callers to the most qualified agent based on their input. A robust IVR system with routing rules implemented in the customer journey design phase can actually reduce customer and agent frustration, and improve average handle time (AHT, the total time spent handling a customer interaction) by routing callers to the appropriate department or agent. This helps to verify the customer is connected to the most-qualified specialist and receives personalized service in a timely fashion. This is only the case, of course, if contact centers can ensure that the customer journeys they’ve designed are working properly, which requires rigorous and continuous IVR testing to ensure quality customer experiences.
2. IVRs help measure customer satisfaction
IVRs provide an unbiased method for collecting customer feedback through automated post-call surveys. Telling agents to ask customers to rate their service on a scale of one to ten may sound good in theory, but it can end in inaccurate results. Instead, at the end of a transaction with an agent, sending callers through an IVR for a post-call survey can help organizations better understand metrics, like customer satisfaction (CSAT, a measure of how well a company’s service meets customer expectations).
3. IVRs facilitate time-saving self-service
IVRs reduce operational costs by enabling customers to resolve simple inquiries without agent assistance. Allowing callers to choose the kind of help they want via an IVR can help organizations save resources. A caller may find it easier to self-serve for quick inquiries such as account balance, store hours, or order status updates. Performing these tasks through the IVR allows callers to quickly get the information they need without ever needing to speak with an agent. This translates to cost-savings by reducing the number of agents a call center needs.
4. IVRs reduce call transfers
IVRs improve first-call resolution (FCR—the percentage of calls resolved during the first interaction) by prequalifying callers before connecting them to an agent. No one likes to be put on hold, especially customers looking to get their question answered or issue resolved. IVR technology can be used as a method to prequalify callers and connect them with the right agent, the first time. Using an IVR greatly reduces the possibility of callers being transferred to multiple agents, which will likely only add to their frustration.
To get the most out of IVR technology and take advantage of these benefits, it’s imperative that contact centers continually test and monitor the performance of IVR systems to ensure the designed customer journeys are hitting the mark and performing as intended. This is especially important when new steps, options, or elements are added and deployed.
Need help with IVR testing? The Cyara Agentic Platform can help you test every customer journey with our IVR testing and monitoring services.
Frequently Asked Questions
What is an IVR system?
An interactive voice response (IVR) system is an automated business phone system feature that interacts with callers through a menu, allowing them to enter responses via their phone keypad to complete tasks or be directed to the right agent.
How does IVR improve call routing in a contact center?
A robust IVR system with routing rules can reduce customer and agent frustration by connecting callers to the most qualified specialist, which improves average handle time and helps ensure personalized service.
Can IVR be used to measure customer satisfaction?
Yes, sending callers through an IVR for a post-call survey after a transaction is a more reliable way to gather customer satisfaction (CSAT) metrics than asking agents to collect that feedback manually.
What kinds of self-service tasks can an IVR handle?
Callers can use an IVR to quickly get information such as account balances, store hours, and order status updates without ever needing to speak with a live agent, which reduces costs and saves time.
How does IVR help reduce call transfers?
By prequalifying callers and connecting them to the right agent the first time, IVR technology greatly reduces the likelihood of customers being transferred between multiple agents, which lowers frustration and improves resolution speed.
Why is IVR testing important for contact centers?
Continuous testing and monitoring of IVR systems ensures that designed customer journeys are performing as intended, which is especially critical whenever new steps, options, or elements are added and deployed.
How widely adopted is IVR technology in contact centers?
According to a survey cited by Cyara, 86.1% of contact centers had installed an IVR system by 2018, reflecting how fundamental the technology has become to contact center operations.
