What is an IVR?
An IVR is an automated interface that allows callers to interact with an organization at the beginning of a phone call. IVRs typically play a recorded greeting and then may provide menu options that ultimately lead callers to an agent or self-service functionality. Many people know IVRs as the system that tells them to "Press 1 for sales."IVRs are commonly used in call centers, where they're integrated with automatic call distributors (ACDs) to handle call routing. However, their use isn’t limited to call centers - they can be used in any type of organization that needs to ensure phone calls are directed to the correct destination.IVRs have benefited greatly from modern technology. Early versions used DTMF (Dual Tone – Multi Frequency) for caller input, meaning interactions were limited to what callers could enter using their phone's keypad. Today, artificial intelligence allows callers to voice their needs to IVRs that use automatic speech recognition (ASR). Additionally, smartphone users can use a visual IVR to express their needs before the call is connected.The Rodney Dangerfield of call center software?

Capabilities
High quality IVRs have capabilities that enhance customer experience and streamline some key operational processes. Organizations may decide to leverage all these capabilities or just choose a few to implement. IVRs should be flexible enough to adapt to business needs. Below are some examples of these capabilities.1. Playing customized greetings
Don't underestimate the importance of a first impression! IVRs should let you easily record and implement your greetings. Many businesses even hire voice talent to make sure the branding of that first impression is just right. But for times when branding is of secondary importance, like in the case of a website outage, organizations should be able to quickly switch the greeting to inform callers of status.Additionally, the best IVRs can play different greetings based on the number the caller dialed. For BPOs, this means they can set up different greetings for their different clients. For regular businesses, this gives them the ability to, for example, play different greetings (and provide different menu options) for their separate sales and service lines.2. Assessing what the caller needs
Traditional IVRs require customers to use the keypad on their phone to interact with the menu ("Press 5 for corporate sales"), but more modern systems may allow callers to simply say their menu option, or bypass the menu altogether by stating what they need ("I need help placing a corporate order"). Regardless of the method, the information collected by the IVR informs the system about what the caller needs and enables the next capability.3. Facilitating smarter routing
IVRs typically team with automatic call distributors (ACDs) to route each caller to the agent that can best help them. The information the IVR collects during the upfront interaction, whether it's menu choices or spoken needs, is passed to the ACD, which uses the data in its routing routine. For example, a caller who needs help with corporate sales would be routed to a corporate sales specialist rather than a regular sales agent. Calls can also be routed based on geographic location, language preference, and much more. Smarter routing should result in a more satisfying outcome and experience.4. Enabling self-service
Modern IVRs enable customers to self-serve for simple tasks like checking store hours, finding out account balances, and rescheduling appointments. This allows businesses to provide 24/7 coverage and appeals to customers who want to quickly resolve their own issues. Additionally, handling these contacts in the IVR is much more cost-effective than having an agent handle them. IVR self-service requires integration between the IVR and other business systems. For example, if changing an appointment is a self-service task, the IVR needs to talk to the customer appointment scheduling system.5. Understanding human speech

6. Managing caller expectations
IVRs can help manage caller expectations about wait times – and that’s particularly helpful when call volumes are high and queues are full. No one likes to wait in queue, but if the IVR can provide an estimated wait time, it makes it at least a little more palatable. Additionally, good IVRs can offer callers in queue the option to receive a callback from an agent so they don't have to continue to wait.7. Jumpstarting the agent interaction
The information IVRs collect can also be passed to agents to jumpstart the conversation. For example, if an IVR authenticates a caller's identity, that information can be transmitted to the agent and trigger a screen pop from the CRM system. Not only can the agent skip the authentication process, but she also has instant access to customer history so she can personalize the call and get down to business. This can lower average handle times (AHT), decrease labor costs, and allow agents to focus on problem solving.8. Collecting customer feedback
Capturing customer feedback is key to continuously improving customer experience. IVRs can present surveys at the conclusion of phone calls so that businesses can measure customer satisfaction (CSAT), Net Promoter Scores (NPS), and more. Asking for feedback immediately after the contact will ensure the experience is still fresh in the caller's mind. Timely and regular feedback will help business leaders understand how an important touchpoint in the customer journey - the call center - is performing.Are IVRs just for large enterprises?

Benefits for everyone
IVRs can yield benefits to every size operation. As organizations expand the use of IVR capabilities, they should experience a corresponding expansion of the benefits they realize. We've touched on some of these benefits already, but here is a more concise list.Labor cost savings
Resolving customer inquiries in the IVR versus having agents handle them is a much more cost-effective solution - pennies versus dollars. Additionally, when the IVR passes data to agents, allowing them to bypass certain process steps, this lowers average handle times (AHT) and cost per contact (CPC), which ultimately reduces labor costs. Smarter customer-agent matching also lowers these two metrics because more qualified agents will likely bring interactions to a speedier conclusion. Finally, for small businesses that have been using a staff member to route calls, automating this process will at least let them reallocate these labor hours to more value-added tasks.Improved customer experience
This benefit will only be realized by companies that don't configure their IVRs to lead callers into the Dungeon of No Escape. Well-designed IVRs can enhance the customer experience in several ways. For example, many consumers value having options for how they interact with businesses. IVR self-service provides choice to customers who want to solve their own simple problems. Additionally, since IVRs enable better routing, callers are more likely to be matched with an agent that will deliver a satisfying experience. Also, when IVRs provide 24/7 self-service coverage, customers will have peace of mind that the business is always there for them.Improved agent experience
How can a system that agents don't directly use improve their experience? For one thing, smarter routing increases the likelihood that agents will receive inquiries that they can actually resolve. Everyone wants to feel competent at their jobs, so this is bound to boost agent satisfaction. Additionally, when IVRs handle simpler tasks, this lifts some of the burden of mundane work from agents. The contacts that make it through to agents will be more complex, allowing agents to exercise and showcase their problem-solving skills. Many agents will find this more rewarding.Faster resolutions
Many of these capabilities - self-service, 24/7 coverage, better agent matching - mean customer inquiries will be resolved more quickly. Enabling customers to solve their own problems, especially after hours, means callers don't have to wait for an agent to become available. They can self-serve and be on their way. But for customers that do want some agent assistance, the smarter routing enabled by IVRs will match them to an agent who is more likely to have the qualifications that will result in a faster resolution. The call center will hum like a well-oiled machine!Summary
