What is IVR? (2024)

Interactive Voice Response or IVR Technology, is a telephone technology that allows customers to interact with the company’s host system through configurable voice menu options, in real-time, using DTMF tones, without the need for human intervention. IVR systems allow you to record customized greetings and prompts for a personalized customer experience.

What is IVR? (1)

How does an IVR system operate?

Interactive Voice Response or IVR Technology, is a telephone technology that allows customers to interact with the company’s host system through configurable voice menu options, in real-time, using DTMF tones, without the need for human intervention. IVR systems allow you to record customized greetings and prompts for a personalized customer experience.

Where are IVR systems used and how?

IVR systems can normally handle and service high volumes of incoming calls making them very popular with contact centers. It is generally used to route calls to the right department, via an IVR menu for example press 1 for sales, 2 for support or wait to speak to an operator.

The technology has also advanced to automate simple tasks and processes. This is widely used in banking, flight-scheduling information, and televoting. Using telephone banking as an example, by pressing certain buttons, you can access your account balance, transfer funds or check exchange rates without ever speaking with a customer service agent.

What’s more, IVR systems can also be used by global companies offering callers to speak to agents in different languages. For example, press 1 for English, press 2 for Spanish, etc.

What is a phone tree?

A phone tree is an IVR menu with many “branches” of pre-recorded messages. A particular option chosen will direct the caller to a secondary set of options, tertiary and so on, depending on how far you program your IVR. It is important to find the right balance. It is never good practice to over complicate the phone tree.

Advanced IVR technology - NLP

Advanced IVR systems use Natural Language Processing (NLP) to enable customers to interact with menus using natural speech recognition. Helpful for customers who are sight impaired or have difficulty navigating the IVR menu via touchpad. NLP uses Artificial Intelligence (AI) to turn speech into structured data, being able to recognize various languages, accents and nuances.

Benefits of using an IVR system

An IVR system is designed to boost the competence of any business by increasing flexibility, simplifying processes, and reducing costs, at the same time as improving customer satisfaction.

With IVR software, businesses and call centers can:

  • Reduce operational costs – by reducing human contact center agents and receptionists.

  • Improve customer experience – callers get the specific information they need 24 hours, a day even outside business hours, with less waiting time.

  • Reduce human error - incoming calls follow the same logical sequence, no chance of routing to the wrong department or customer service agent.

  • Resolve issues faster – callers are immediately directed to the sales team or department most capable of giving the right answer.

  • Upgrade company image – small businesses can appear to have a much larger workforce.

Setting up your IVR

3CX has a built-in IVR which allows you to easily record and configure IVR prompts.

If your IVR system will require a complex configuration and you also want to include advanced features like speech-to-text and voice recognition, then the 3CX Call Flow Designer is the perfect solution. The call flow designer will allow you to set up more complex phone trees using a drag and drop interface.

Further reading

What is IVR? (2024)

FAQs

What is IVR and how does it work? ›

Interactive Voice Response (IVR) is an automated phone system technology that allows incoming callers to access information via a voice response system of pre recorded messages without having to speak to an agent, as well as to utilize menu options via touch tone keypad selection or speech recognition to have their ...

What are examples of IVR? ›

IVR phone systems are automated phone systems that use text-to-speech and pre-recorded messages to route calls. For instance, when you call your pharmacy to refill a prescription and reach a menu of call options, this menu is the IVR.

What does IVR stand for in healthcare? ›

IVR (Interactive Voice Response) systems are effectively used in healthcare and hospitals for drug and health library information, prescription refills, history records, medical transcripts, patient information services, automated pre-admissions, patient account records, appointment scheduling and reminder, lab results ...

What does IVR mean in banking? ›

What is IVR in Banking Sector? An Interactive Voice Response (IVR) system in the banking sector is a computer-based system that allows bank customers to interact with the bank's telephone system through their phone keypad or voice commands.

How do I connect to IVR? ›

To set up an IVR, you will need a phone system with IVR capabilities and a script that outlines menu options and call routing. You can opt for a dedicated IVR software or a virtual phone service that offers IVR features.

What are the disadvantages of IVR? ›

  • Interactive Voice Response (IVR) systems offer several benefits, but they also come with some disadvantages. ...
  • - IVRs often lack the personal touch that human customer service representatives can provide. ...
  • - IVR menus can become overly complex and lengthy, leading to customer confusion and annoyance.
Sep 26, 2023

Is Siri an IVR? ›

This is known as conversational IVR. Conversational IVR is built on conversational AI, the technology that powers popular apps like Alexa or Siri.

Who uses IVR? ›

Call centers use IVR systems to identify and segment callers. The ability to identify customers allows services to be tailored according to the customer profile. The caller can be given the option to wait in the queue, choose an automated service, or request a callback.

Why do companies use IVR? ›

Increased productivity: Frees up employees to handle more complex tasks by automating simple inquiries and transactions. Streamlines call handling, allowing agents to manage more customer calls in less time. After-hours call handling: An IVR lets you provide a distinct call flow outside of business hours.

What is another name for IVR? ›

IVR is also known as a telephone menu or voice response unit.

What are common IVR messages? ›

IVR greeting messages

Please be patient and stay on the line. Your call will be connected to one of our customer support representatives as soon as possible. Your current hold time is [number] minutes. Hello and thank you for calling [Company], [the company's mission statement or slogan].

What are the capabilities of IVR? ›

The self-service capabilities of IVR aren't limited to answering a question; IVR can also be used to let callers take actions that traditionally required help from another human. For example, IVR can be used to change a PIN code, activate an account or accept orders from customers.

What does IVR stand for in Walmart? ›

Interactive voice response, or IVR, is an automated telephone system technology that enables callers to receive or provide information, or make requests using voice or menu inputs, without speaking to a live agent.

Is IVR payment safe? ›

Security: IVR payment systems must be PCI DSS (Payment Card Industry Data Security Standard) compliant. This ensures that IVR payment systems go through a rigorous process to demonstrate that sensitive customer data is highly secure.

What is your IVR number? ›

An IVR number is a phone number with cloud telephony features that attends and routes your customer calls automatically without any manual intervention. Both the incoming and outgoing calls can be managed through an IVR number and your business message can be delivered to them hassle-free.

Does IVR record calls? ›

It's also used to provide information like promos, updates, or other important information or instructions. One example is to inform callers that the system will record calls and will ask if they want to proceed. Traditionally, it was only used to organize call queues of call centers.

What are the pros and cons of IVR? ›

Although IVR seems cost-effective and time-saving, it can easily damage a business's customer base if poorly implemented. A bad IVR experience can change how customers perceive a business and cause customers to prefer competitors. This can cause the brand to lose customers.

How much does IVR cost? ›

IVR Pricing at a Glance

Broader call center software that comes with IVR costs anywhere from $60-$100 per agent per month for a basic plan and $100-$200 per agent per month for a premium plan.

Top Articles
Latest Posts
Article information

Author: Velia Krajcik

Last Updated:

Views: 6504

Rating: 4.3 / 5 (74 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Velia Krajcik

Birthday: 1996-07-27

Address: 520 Balistreri Mount, South Armand, OR 60528

Phone: +466880739437

Job: Future Retail Associate

Hobby: Polo, Scouting, Worldbuilding, Cosplaying, Photography, Rowing, Nordic skating

Introduction: My name is Velia Krajcik, I am a handsome, clean, lucky, gleaming, magnificent, proud, glorious person who loves writing and wants to share my knowledge and understanding with you.