Understanding IVR Voice Recognition Software Solutions

 
“We are experiencing high call volumes. You are caller number 10. Press 1 to schedule a callback.”

If you’re like many people, you’re thinking “Will someone really call me back? What if I’m in a meeting when they call me? I don’t want to start over.” So you decide to wait to speak with a customer service representative. There must be a faster, better way of resolving customer service needs.

Effective interactive voice response (IVR) software solutions improve the customer experience (CX) by offering self-service options that allow customers to access information and perform basic tasks without waiting for a customer service representative. IVR systems reduce contact center call volumes, wait times and operational costs. On the other hand, poorly designed systems diminish customer satisfaction and often produce high call abandonment rates.

How can you use IVR voice recognition software to enhance CX? Keep reading.

How Does IVR Work?  

Interactive voice response (IVR) is a telephone system technology that automates customer service interactions, efficiently resolving customer inquiries and basic issues. IVR uses text-to-speech technology and pre-recorded messages to assist callers without a live agent or direct them to the right live agent who can address their needs. Here’s how it works:

Consumer Connection and Interaction. When people call your business, the IVR system plays a pre-recorded welcome message and provides a series of phone menu options (e.g., departments or tasks such as making a payment). Many IVR systems use directed dialogue, a question-and-answer format where the system guides callers through a series of pre-defined phone menu options (yes/no questions).

Consumer Input. The caller chooses an option using their phone’s touch-tone keypad. Some advanced IVR systems incorporate speech recognition technology, allowing callers to interact with the system using their voice.

Call Routing. The IVR system routes the call to the individual, department, queue or message you’ve configured in your IVR application.

Self-Service Transactions or Automatic Information Retrieval. When the IVR system is integrated into databases, it can retrieve information (e.g., business hours, account balances) and convey it using pre-recorded messages. Callers don’t have to wait for a live agent to answer their questions. Customers can use the IVR to complete simple transactions, such as paying bills and updating account information.

Redirection. Redirection refers to transferring the call to another destination (e.g., routing it to the most appropriate department or agent). Some calls are transferred to an external system. An example of this is when a customer calls an airline about a flight reservation, and they get redirected to the reservation system to change a reservation or check in for the flight.

Analytics. The IVR system tracks each interaction, providing valuable information about call volumes and caller behavior. IVR analytics indicates how well the system is performing and identifies areas for improvement. For example, if callers select self-service options but always need help from a live agent, you need to revise your pre-recorded messages, phone menu options and processes. You can reorder your IVR menu to present the most commonly selected options first, speeding up the process for most customers.

 8 Advantages to Using an IVR System

IVR voice recognition software benefits customers and businesses in these eight ways:

Efficiency and Productivity. Callers can get answers (especially to basic questions) much more quickly without waiting for a live agent. IVR systems can handle routine inquiries and tasks, freeing up human agents to focus on more complex customer issues that require their expertise and judgment.

24/7 Customer Support. IVR systems are continuously available, enabling customers to access information or services beyond regular business hours. This feature is especially advantageous for businesses with a global customer base or those operating across different time zones.

Enhanced Customer Experiences. By efficiently routing calls to the right department or providing self-service options for basic tasks, IVR systems streamline call center interactions, reducing wait times (and frustration) and increasing first-call resolution. This creates more positive customer experiences, especially for people with simple inquiries.

Increased Employee Morale. Call center IVR systems contribute to a more positive, productive work experience for call center agents. IVR systems reduce live agent call volume and workload, giving agents more time to handle more complex issues. Engaging in these higher-level interactions can be more stimulating and rewarding for agents, boosting morale and providing a sense of accomplishment. IVR systems route calls accurately and give agents relevant customer information, allowing them to handle calls more efficiently.

Greater Insights. IVR systems can gather data on customer interactions, identifying common inquiries or frequently contacted departments. Businesses can analyze this data to identify areas for improvement in their products, services and customer service operations. IVR systems provide valuable analytics on call volume, first call resolution rates and customer satisfaction.

Opportunities to Scale Your Business. IVR-enabled call centers don’t have the physical constraints of traditional call centers. Traditional call centers require dedicated servers and physical space to house their equipment. Cloud-based IVR systems eliminate this need. Everything is hosted in the cloud, removing the limitations of physical infrastructure and allowing your contact center to scale up or down based on your needs without additional hardware investments. An agile cloud-based IVR system allows you to quickly create and modify IVR menus and workflows to meet changing requirements.

Reduced Operational Costs. By automating basic interactions, IVR systems can help reduce call center operating costs. IVR systems decrease labor costs by reducing calls to live agents, which are significantly more expensive than IVR calls. Also, the improved employee experience helps to reduce agent attrition—a significant savings when considering it costs an average of $20,000 to replace an average-performing contact center agent. 

Increased Revenue. Increasing efficiency and improving CX boosts revenue by reducing expenses and customer churn.

4 Ways to Enhance IVR Customer Experiences

Follow these four tips to provide a better IVR experience:

Create Simple, Easy-to-Navigate Menus. Complex IVR menus with too many layers and choices often lead to frustration, prompting callers to push “0” to speak with an agent. Keep your menu simple to contain calls (i.e., handle calls entirely through the IVR without live agent assistance).

Implement Callback Functionality to Reduce Wait Times. Despite better technology, long wait times still plague many IVR systems. When callers encounter a long wait time, give them an option to request a callback from a live agent. This option can be triggered through a touch-tone menu selection or a voice prompt from the IVR system.

Provide Different Language Options. This is particularly important when your offices and customers are in various countries and/or your callers speak different languages. Enable customers to select from menus available in multiple languages.

Deliver Personalized Support. When the IVR system is integrated with other systems (e.g., customer relationship management [CRM], billing), the IVR system can deliver personalized greetings, prompts and information based on the customer’s profile and call history.

Set up your IVR system to:  

• Tailor greetings and menus by using customer data profiles. By integrating with customer relationship management (CRM) or other data management systems, IVR systems can personalize greetings by name. Based on the customer’s account information or call history, the IVR system can present the caller with a tailored phone menu of options. For example, a customer calling about their mobile plan wouldn’t hear options related to internet service.
• Understand intent through speech recognition and natural language processing (NLP). Advanced IVR systems with speech recognition and NLP go beyond simple keyword recognition. They can analyze the context and intent behind a customer’s spoken request, allowing the system to respond in a more personalized way and route them to the most suitable agent.
• Deliver dynamic responses based on previous interactions. If the IVR system is integrated with call history data, it can acknowledge past interactions and offer relevant follow-up options. For instance, if a customer previously called about a billing issue, the IVR could ask if they’re calling for an update on that issue.Provide proactive reminders. Outbound IVR systems can be used to remind customers about expiring contracts, upcoming service upgrades or loyalty program rewards based on their individual plans or usage patterns.

Enhancing Your IVR System With Helpful Software

When you integrate your IVR with other software systems, your IVR system does more than just provide basic information and route calls.

Payment Processing Software. Integrating your IVR with your payment solution allows customers to pay their bills quickly and easily—24/7, anywhere they have access to a phone. The self-service payment IVR allows call center agents to spend their time resolving more complicated customer issues, and your business saves money by avoiding live agent calls. Callers enter the amount they wish to pay and their card details, and your payment system receives the key presses as confirmation of payment.

Customer Journey Orchestration. A customer journey orchestration system integrates the IVR with other systems (such as content relationship management or billing) to recognize repeat callers and tailor services accordingly. A journey orchestration (decisioning) system uses NLP to analyze customer responses to IVR prompts, identifying intent and needs. The decisioning system determines the most appropriate response or action based on customer information (intent, account information and behavioral patterns) and business rules or logic. The best response may be delivering personalized prompts through the IVR or routing customers to a specific agent group based on customer needs (e.g., tier 2 support).

How IVR Benefits Various Industries

Many industries use IVR voice recognition software to streamline customer interactions, improve efficiency, and enhance customer satisfaction and loyalty.  

Telecom Companies. Telecommunication companies use interactive voice response (IVR) systems for

• Account management and self-service

  • Balance inquiries and bill payments
  • Activation or deactivation of services
  • Changing plans
  • Troubleshooting for common issues (e.g., resetting voicemail passwords)

• Customer support and call routing
• Marketing and upselling (delivering targeted promotions based on a customer’s account information or call history)

Retail and e-commerce. Retailers use IVR systems for

• Customer service and order management

  • Guide customers through the return or exchange process
  • Provide status updates re: orders, delivery and returns
  • Answer routine customer questions (e.g., store hours, returns procedure)
  • Inform customers about product availability in specific stores
  • Route customer escalation calls that can’t be handled via self-service or live chat to live agents

•  Post-purchase support

  • Answer frequently asked questions about product features and usage instructions
  • Provide troubleshooting steps

• Account management

  • Update account information
  • Change passwords
  • Manage loyalty program points

 Healthcare. Healthcare providers use IVR technology to communicate with patients.

•  Appointment scheduling and rescheduling
• Pre-treatment questionnaires
• Patient satisfaction surveys
• Post-discharge follow up
• Test results
• Prescription refill reminders
• Medication reminders
• Payment

 Financial Services. Banks use IVRs for

• Account inquiries (e.g., account balances, recent transactions, and loan application status)
• Account updates (e.g., changing contact information, resetting passwords)
• Transactions (e.g., transfer money between accounts, make payments)
• Card activation
• Reporting a lost or stolen credit/debit card

IVR systems streamline policy management for customers of property and casualty insurance agencies.  Using an IVR, policyholders can

• Access information about coverage details, deductibles and renewal dates
• Make premium payments
• Get answers about billing statements or recent charges
• Start the claims reporting process (and be routed to the appropriate claims department)

Government Agencies. Local, state and federal government agencies use outbound IVR systems to deliver important public service announcements or emergency alerts. Inbound IVRs allow people to request documents and information using self-service options (or by being routed to the correct agent).

• Public program eligibility requirements and application processes (e.g., social services, unemployment benefits)
• License and permit renewals (e.g., driver’s licenses, business licenses)
• Tax information and payment options
• Public health updates and advisories

Logistics and Transportation. Shipping companies use IVR systems to provide tracking information and scheduling for pickups and deliveries. Bus and train companies allow customers to access timetables and purchase tickets using an IVR.

Are you ready to upgrade your IVR?

CSG Interactive Voice Response (IVR) is an enterprise inbound and outbound voice services package customized to your business needs. Our solution features:

• Highly customizable IVR experience
• Intuitive phone menu navigation
• Advanced speech recognition or text-to-speech for personalized interactions
• Conversational AI for greater personalization
• Virtual assistance, natural language understanding (NLU)/NLP and omnichannel offerings 

Download our eBook to learn four keys to modernize your IVR.

CSG Forte, our complete payments platform, offers convenient options (including IVR payments) that allow customers to pay how they want, when they want.