• Login
  • Status
  • Support
  • Partners
  • Pricing
  • Careers
  • ENLanguages
    • English
    • Deutsch
    • Français
    • 日本
    • 简体中文
    • العربية
    • 한국
    • Español
Customer Experience (CX) AI Platform
  • Customer Experience (CX) AI Platform×
  • Platform

      CXone Mpower Platform

      • Platform Overview

        Complete AI platform for customer service automation

      • Enlighten AI

        Powering smarter CX with AI-driven insights and automation.

      • Cloud Architecture

        Innovative cloud-native foundation to rapidly scale extraordinary CX

      • Dashboards & Reporting

        Gain a full operational picture of your contact center, with enhanced visualization of real-time and historical insights

      • Integrations

        Seamlessly connect your business systems with our platform

      • Trust & Compliance

        Securing your trust with every interaction

      Discover the full value of AI in customer service

      Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

      Calculate your savings

    • Products
      • Explore all Products

      • Capabilities

      • Interaction Orchestration

        Interaction Orchestration

        Orchestrate all interactions and workflows across every customer service touchpoint.

        Learn more

        • Omnichannel Routing

          Reduce wait times and boost conversions with smart customer-agent matching.

        • Proactive Engagement

          Generate more revenue, minimize hang-ups, and proactively connect to reduce friction.

        • AI Orchestrator

          Unify and optimize every customer service workflow from intent to fulfillment.

        • Agent Desktop Workspace

          Connect front and back office teams with data, conversations, and workflows together in one place.

      • Workforce Augmentation

        Workforce Augmentation

        Amplify team performance with specialized AI copilots for every role.

        Learn more

        • Specialized AI Copilots

          Elevate human performance with specialized AI copilots for every role.

        • Workforce Engagement Management

          Elevate employees, adapt to flexible work, and meet expectations - without compromise.

        • Automated Agent Notetaking

          Instantly summarize interactions - accelerating resolution times and agent efficiency.

        • Voice of the Customer

          Unlock customer insights to enhance experiences, drive loyalty, and boost business growth.

        • Interaction Analytics

          Gain AI-powered insights from 100% of interactions to drive continuous improvement.

      • Service Automation

        Service Automation

        Automated customer self-service solutions increasing retention rates.

        View Products

        • Intelligent Virtual Agent

          Boost self-service satisfaction and conversion with conversational AI agents.

        • Experience Optimization (XO)

          Synthesize real customer conversations to identify your top automation opportunities.

        • Proactive AI Agent

          Keep customers engaged in conversation from onboarding to installation, service, and retention.

        • Knowledge Management

          Activate AI-powered enterprise knowledge to increase self-resolution rates and loyalty.


      • Solutions

      • By Industry

        By Industry

        • BPO

          Business Process Outsourcers

        • Financial Services

          Customer experiences that count

        • Government

          Elevate citizen trust

        • Healthcare

          Healthy patient experiences

        • Insurance

          Secure policyholder experiences

        • Retail

          Delight customers where they shop

        • Telecom

          CX for Telecommunications

        • Travel & Hospitality

          Boost traveler and guest loyalty

        Discover the full value of AI in customer service

        Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

        Calculate your savings

      • By Business Initiative

        By Business Initiative

        • Grow Revenue

          Boost conversions and win rates to accelerate growth

        • Engage & Empower Employees

          Create a workplace of truly engaged employees

        • Boost Customer Loyalty

          Improve customer loyalty on interactions across the journey

        • Drive Digital Transformation

          Integrate digital technology at the center of CX

        • Small and Medium Business

          Drive growth and boost revenue with smarter, cost-effective customer service built for SMBs.

        • Call Center Software

          Empower agents to provide better experiences

        • Increase Operational Efficiency

          Leverage AI and automation to increase agent retention

        • Move to the Cloud

          Elevate experiences by moving operations to the cloud

        • Improve Compliance

          Protect your consumers with pre-built compliance solutions

        • Proactive Customer Engagement

          Elevate customer satisfaction with proactive conversational AI

      • Integrations & Custom Solutions

        Integrations & Custom Solutions

        • CXexchange Marketplace

          Discover partner solutions to extend capabilities on our platform

        • Pre-Built Integrations

          Seamlessly connect your business systems with our platform

        • Developer Tools & APIs

          Endless customization options with RESTful APIs and robust SDKs

        • Partner Ecosystem

          Embark on a journey of shared success and collaboration

        91% of customers recommend NiCE as a preferred CCaaS vendor

        Gartner® named NiCE the only Customers’ Choice CCaaS vendor in its 2024 Peer Insights™ “Voice of the Customer for Contact Center as a Service” report.

        Get report


      • View All Products
    • Services
      • Explore all Services

      Professional Services

      • Professional Services

        Industry-leading expertise, tools and know-how

      • Implementation Partners

        NICE-certified implementation partners

      • Business Consulting

        Your partner for successful transformation

      Training

      • Contact Center Training

        Tailored education delivered by CX experts

      Support & Assistance

      • Customer Support

        Global support you can depend on

      Make the smartest buying decision with the latest Gartner analysis

      NiCE has been named a Gartner® Magic Quadrant™ Leader for Contact Center as a Service for the 10th consecutive year and is positioned furthest on Completeness of Vision.

      Get report

    • Resources

        Knowledge Base

        • All Resources

          Whitepapers, datasheets, demos and more

        • Analyst Perspectives

          Contact center reports from third party analysis

        • Terms Glossary

          Detailed descriptions of industry-related terms

        • FAQs

          Contact center focused frequently asked questions

        • Guides

          Expert insights for superior CX

        Learning & Insights

        • On-Demand Webinars

          Browse our extensive webinar catalog

        • Interactive Product Tours

          Explore the complete platform with our self-guided demos

        • Blog

          CX industry guidance by contact center experts

        • Why NiCE? Video Series

          Step Inside The Room Where It Happened to see CX AI in action

        • NiCE & Simple: Video Demo Series

          Brilliant, bite-sized videos from our top product pros

        Community

        • Events

          Upcoming events and webinars

        • Customer Stories

          Our customer's success is paramount. Read case studies about real CX transformation

        • NiCE Clubs

          Collaborate, learn, and share best practices for customer service excellence

        Discover the full value of AI in customer service

        Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

        Calculate your savings

      • Company

          Company

          • About Us

            Powering seamless cloud experiences

          • Investors

            Investors relations, reports and filings

          • Global Offices

            Interactive map of locations worldwide

          • Careers

            View job openings and learn about our culture

          • NiCE Leadership

            Meet our global leadership and executive team

          News & Media

          • Events

            Upcoming events and webinars

          • Press Releases

            Find the latest updates from NiCE

          • Media Center

            Media contacts and resources

          Corporate Governance

          • NiCE Trust Center

            Securing your trust with every interaction

          • Market Leadership

            Discover why NiCE is the market leader

          • Corporate Responsibility

            In a world where you can be anything, be NiCE

          Make the smartest buying decision with the latest Gartner analysis

          NiCE has been named a Gartner® Magic Quadrant™ Leader for Contact Center as a Service for the 10th consecutive year and is positioned furthest on Completeness of Vision.

          Get report

          • ENLanguages
            • English
            • Deutsch
            • Français
            • 日本
            • 简体中文
            • العربية
            • 한국
            • Español
          • Get Started
            • Login
            • Status
            • Support
            • Partners
            • Pricing
            • Careers

          Company

          • About Us
          • Careers
          • Global Leadership
          • Media Center
          • Investors
          • Awards
          • Global Office Locations
          • Contact Us
          • CCaaS
          • Customer Experience
          • NiCE Public Safety
          • NiCE Actimize
          • NiCE RPA

          Partners

          • NiCE Partners Overview
          • Developer Partners (DEVone)
          • CXone Mpower Partner Portal
          • NiCE Help Partner Portal
          • NiCE User Group

          Customer Support

          • Customer Support Overview
          • CXone Mpower Support Login
          • NiCE Customer Support
          © 2025 NiCE
          • Terms of Use
          • Site Map
          • Privacy Policy
          • Legal
          • Cookies Settings
          • Accessibility

          Stay Connected

          © 2025 NiCE
          Organizations of all Sizes Can Benefit from these 8 IVR Capabilities

          Organizations of all Sizes Can Benefit from these 8 IVR Capabilities

          by Michelle Melland
          September 22, 2020
          Share

          In today's call centers, customer experience (CX) is king and technology is one tool to keep it firmly seated on its throne. Modern consumers value speed, convenience, and choice and will reward businesses that provide those qualities in their customer service interactions. Conversely, they'll shop around when organizations don't deliver on these expectations. With the stakes so high, organizations need to pull out all the stops to satisfy customers, to include implementing experience-enhancing call center software.

          If CX is the king, then an interactive voice response (IVR) system is the butler that greets the castle visitors. A well-designed IVR, just like a competent butler, cordially greets guests, assesses the reason for their visit, and makes sure they reach their destination. This interaction sets the tone for the rest of the "visit."

          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?

          IVRs can do better

          IVRs often don't get the respect they deserve. Admittedly, the way some organizations have configured their IVR leaves much to be desired. Who hasn't been stuck in an endless phone menu and resorted to repeatedly yelling "representative" or pressing the zero key on your phone over and over? It makes you question the company's motives, as if they never want to connect you with a customer service agent. In these cases, these organizations have turned their IVRs into bad butlers who take you on a wandering tour of the castle and ultimately deposit you in the dungeon with no hope of escape.

          When we surveyed consumers for the 2019 NiCE CXone Customer Experience (CX) Transformation Benchmark study, we asked how satisfied consumers were with their IVR experiences. Only 26% scored them 9 or 10 on a 10-point scale. There's improvement to be made and many years of unfortunate reputation to overcome. It's important to get this right, because the same study also showed that phone is still the most commonly used support channel, which means high numbers of consumers will continue to interact with IVRs at the beginning of their calls.

          Businesses need to configure their IVRs with customers in mind, including programming concise menus and providing an easy way to quickly connect to an agent. Otherwise, some of the IVR’s capabilities, discussed below, won't be maximized.

          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

          IVR must be infused with AI

          In order to provide some of the aforementioned capabilities, an IVR must be infused with artificial intelligence (AI) so that it can understand and process human speech. An IVR uses natural language processing (NLP) to interpret what callers are saying to it - "What time does the Main Street store open on Saturday?" - and then transforms it into a format other systems can use. Then it uses text-to-speech (TTS) to read the response back to the caller - "The Main Street store opens at 10 am on Saturday." In addition to enabling self-service, these language capabilities are required for callers to vocally interact with menus.

          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?

          Are IVRs just for large enterprises

          No, but the question is understandable. Considering all the capabilities above and comparing them to some small business's needs may seem like we're suggesting they use a sledgehammer to pound a nail into the wall. Even if all these capabilities don't get used, SMBs need good “butlers”, too. Recall that an IVR's most basic functions are to greet callers, find out what they need, and help them reach their destinations. Just about any business that takes inbound calls can use those capabilities, even if they don't have a call center.

          SMBs can use IVRs in place of receptionists to transfer calls to staff members. For example, anyone calling the main phone number could be asked by the IVR to enter the extension of the person they want to talk to or simply speak the staff member's name. Or the menu could ask them to choose the department they need, and the calls could be transferred to a general line within the department. And if the business has a jack-of-all-trades that can solve just about any customer issue, they could configure a service menu where most of the menu options transfer callers to their rock star problem solver. This helps convey the message that the organization is committed to customer service while also ensuring customers are connected to the person who can help them.

          Expanding these examples out a bit, providing customers with self-service options is useful and attainable for any size organization. If companies focus first on automating low hanging fruit - simple tasks and common questions - they'll quickly realize cost savings. Plus, being able to provide 24/7 support will set small businesses apart from their competition and should improve customer satisfaction.

          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

          IVR the butler of the call center

          IVRs can play an important role in setting the tone for an exceptional customer experience. Whether it serves as the prelude to an agent interaction or handles the entire customer inquiry, an IVR is a valuable tool for organizations to have in their toolkits. The CX-enhancing capabilities of cloud-based IVRs are available to businesses of all sizes, typically at a very affordable cost. Then it's up to organizations to design their IVRs to be good “butlers” that lead callers to the rich experience of outstanding customer service.

          About NiCE CXone Interactive Voice Response (IVR)

          NiCE is an industry-leading provider of call center software, used by organizations of every size. Our IVR solution, CXone Interactive Voice Response (IVR), is voice self-service that accelerates resolution, improves routing and cuts costs with automation. Packed with capabilities, CXone IVR allows organizations to better respond to dynamic conditions as well as optimize the customer journey. To learn more about our IVR software, download the datasheet. And IVRs aren't just for inbound calls. Read this blog post to find out more about the capabilities and benefits of outbound IVRs.

          About the Author

          Michelle Melland

          See All Blogs

          Follow Us

          Follow us to get the latest news from your preferred Social Network

          linkedinlinkedinlinkedinlinkedin

          Popular Posts

          5 reasons why AI without memory is just guesswork

          July 2, 2025

          AI that forgets isn’t worth paying for: 5 reasons memory is key to AI-powered experiences

          Read

          July 1, 2025

          Create a streamlined world: Where tickets and data live in one place

          Read
          The power of partnership: How NiCE, AWS, ServiceNow, and Snowflake are creating a NiCE world

          June 24, 2025

          The power of partnership: How NiCE, AWS, ServiceNow, and Snowflake are creating a NiCE world

          Read

          June 18, 2025

          Reimagine automation with CXone Mpower Agents that act, resolve, and scale instantly

          Read

          June 17, 2025

          Building a NiCE world: The stories making the world brighter

          Read

          More from the blog

          5 reasons why AI without memory is just guesswork
          AI

          AI that forgets isn’t worth paying for: 5 reasons memory is key to AI-powered experiences

          Think about the last time a business truly impressed you. Not with flashy tech or a clever ad, but with the simple power of remembering who you are.

          July 2, 2025

          Customer Experience

          Create a streamlined world: Where tickets and data live in one place

          What if service wasn’t something customers had to chase… but something that found them? What if technology didn’t replace people… but actually amplified their ability to serve? What if we could finally blur the lines between the front office and back office… making the entire customer journey seamless?

          July 1, 2025

          The power of partnership: How NiCE, AWS, ServiceNow, and Snowflake are creating a NiCE world
          AI

          The power of partnership: How NiCE, AWS, ServiceNow, and Snowflake are creating a NiCE world

          At NiCE, our vision is to create a world where customer service just works. It’s a world that is seamless, smart, and connected across every interaction.

          June 24, 2025