What is an IVR (Interactive Voice Response) system?

Definition of interactive voice server IVR

Mathieu BANTEGNIE
Business Customer Manager

Today, an interactive voice response (IVR) system is an essential tool for any company that wants to improve the management of incoming calls and its customer experience. But how exactly does it work? What are the advantages ? And how to set up an efficient IVR? Our explanations and advice.

Interactive Voice Response System (IVR): what is it?

If you're not familiar with the term IVR, you've probably heard it before. Every time you hear « Press 1 for customer service, press 2 for after-sales service ... », you are in fact interacting with an IVR.

An Interactive Voice Response system is an automated telephone system that allows customers to interact with a business through configurable voice menus. It receives calls, reacts to user commands and provides information or redirects to appropriate services.

This system simplifies telephone reception, reduces waiting times, and efficiently guides customers to the advisor or service best suited to respond to their requests. It helps them get basic information without resorting to an advisor.

IVR: how does it work?

When a call is received on the company's main number, the Interactive Voice Response (IVR) system is automatically triggered. The first contact with the caller is the greeting message played by the system which introduces the caller to the interactive voice menu.

The voice menu then offers a series of choices to guide the user to the appropriate service or contact. The caller is invited to respond to the instructions and questions.  

Two interaction technologies are possible:

The keys on the keyboard of your phone: thanks to DTMF (Dual-Tone Multi-Frequency) technology. The user communicates with the voice server by pressing the keys on their phone. Each key answers to a specific option (for example, « Press 1 for customer service, press 2 for sales »). DTMF tones are transmitted in real time, to allow the system to respond immediately to the user's choice.
Voice recognition: using ASR (Automatic Speech Recognition) technology, the voice server analyzes the key words or sentences spoken by the caller to determine the appropriate action or response. For example, if the caller says «technical service», the system recognizes this request and guides the call accordingly.

Depending on the user's responses, the IVR can:

Guide the caller to the correct department or contact person.
Broadcast a message tailored to the caller's request.
Ask additional questions to narrow the focus of the call.

It is possible to program submenus to provide information or services in more detail and precision. This creates multi-level choices that guides the user intuitively through the system.

Thanks to these technologies, IVR optimizes the caller experience because it provides fast and efficient access to necessary services, while reducing the workload of teams.

When to use an interactive voice response system?

Interactive Voice Response systems are used by a lot of companies and administrations to manage a large volume of telephone calls. Although they have long been used in certain specific areas such as call centers, banks, public administrations or hospitals, their use has now spread to address organizations of all sizes.

For a company, the IVR meets several uses and goals:

For multi-site companies: when an IVR centralizes the telephone reception of several geographically distant sites.
For the segmentation of customer service: when dispatching calls according to products or services is beneficial for better management of requests.

What are the advantages of using an IVR?

Using an Interactive Voice Response system has several advantages:

Reducing operational costs

An IVR takes care of common requests from callers, which considerably reduces the work of reception agents. It automates repetitive tasks and frequently asked questions so they can focus on more complex calls and other higher-value tasks 

This optimization of call flow reduces pressure on staff, reduces the need of additional agents and receptionists. It therefore allows some savings on operational costs.

Furthermore, because it reduces waiting times and streamlines call management, IVR contributes to better use of available human resources.

Improving brand image

With the use of an IVR, you convey a professional and modern image. This careful first impression reinforces the perception of well-thought organization and seriousness of your company among customers.

The ability to guide callers to different departments and services on first contact demonstrates a desire to save time and respond efficiently to customer needs. This immediate support approach improves the brand image and increases customer confidence in the company.

Continuous availability

Available 24/7, an Interactive Voice Response system never leaves your callers unanswered. It ensures permanent availability, day and night, so that customers quickly get answers to their questions without waiting for offices to open.

Better customer experience

Thanks to fast and accurate orientation, waiting times are significantly reduced and so is customer frustration! In addition, personalized customer journeys which identify the reasons for calls from the first interactions, make it possible to route each caller to the service or contact person best suited to their request.

A real time saver

An IVR resolves issues faster because it guide callers to the appropriate department from the start of the call. Resolution rates are increased from the first contact, which is a major advantage for both the company and the customer.

This efficient pre-routing of calls also reduces the volume of incoming calls per department. Advisors are freed from the simplest requests to focus on more demanding cases. This optimization of time contributes to an increase in team productivity.

Real-time responsiveness

The IVR offers great responsiveness in real time thanks to the statistical analysis of call traffic. By continually monitoring and adjusting customer journeys, the company can optimize the user experience and improve its services. This autonomy in managing journeys, whatever their complexity, allows the company to quickly adjust its IVR to changing customer needs and new market requirements.

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11 tips for making a good IVR

To design an Interactive Voice Response system that is efficient and appreciated by users, we recommend several best practices:

1. Simplify your menus

A good IVR relies on the clarity and simplicity of its menus. To make it more efficient, define and isolate the most important messages to deliver to customers. After testing, messages without added value should be banished.

The complexity must be reduced to limit the number of choices to a maximum of 9. The goal is to minimize the number of menu options to avoid losing the caller in overly complex call scenarios. Conversely, simple and direct menus offer a better user experience and faster navigation to information or service.

2. Give the possibility of replay

Don't forget to offer users the opportunity to listen to the menu options again. They should be able to do this without having to repeat the call. This feature makes the system more accessible, especially for new users or those who might not have grasped all the options when first listening to it. Replay helps reduce errors in menu selection and improves overall user satisfaction by giving the user control over navigation speed.

3. Take care of the content of your messages

Messages broadcast by the IVR must be brief, clear and expressed politely. The tone is friendly with a professional voice that embodies the company's image.

Avoid long introductions and complex vocabulary to keep the caller interested and ensure clarity of information.

Accompany messages with appropriate music that matches the company's sound identity and that conveys positive emotions.

4. Stream with impeccable audio quality

What's more unpleasant than having to listen to understand a poorly recorded voice message? The quality of voice recordings is a fundamental aspect of successful IVR. The information delivered are clear and professional, with high-quality audio that suffers from no distortion or interference. This ensures that all users, regardless of their listening devices and the environment they are in, can understand messages effortlessly.

5. Collect feedback to improve your IVR

To maintain the effectiveness of your IVR, feel free to collect the opinions of your callers. In order to do this, you can integrate a survey or satisfaction survey at the end of calls to measure satisfaction and the quality of conversations. This immediate feedback is valuable for understanding user expectations and making adjustments to your structure or your messages.

6. Create multilingual voice announcements

Do not neglect your foreign callers. An IVR goes international! Create ads for markets where your business is present. This ensures better understanding and will not miss important calls.

7. Identify the caller to better guide them

Identifying the caller's location allows them to be quickly directed to the appropriate site or agency to optimize call management. With the use of information such as zip code, IVR can automatically route the call to the most relevant local service.

8. Offer a callback option

Offering callers the option of being called back if the wait is too long is seen as a guarantee of quality. This feature shows that you respect your customers' time and are careful with their comfort. By allowing callers to request a callback, you improve your customer satisfaction metrics and reduce call abandonment rates.

9. Offer the anticipation function

Allowing the caller to select a response before the list of choices ends makes IVR faster and easier to use. This anticipation function speeds up navigation and improves the user experience by making the system more intuitive. This allows callers to access the service they need more quickly.

10. Connect your IVR to your business software

Integrating IVR with ERP or other business software allows recognition of the caller and prioritizing important calls. This integration facilitates the management of customer data and improves the personalization of the service.

11. Analyze your IVR to improve it

Analyzing call flows and caller behavior is the best practice for optimizing IVR. Collect data on user interactions with the system to identify needed improvements and adjustments along the customer journey.

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