How Interactive Voice Response (IVR) Works

Arnab Dey Technology 21 November 2022 6 Mins Read

IVR systems are commonly used to assist consumers, allowing them to get their needed info about a company or its merchandise.

What Is Interactive Voice Response (IVR)?

Interactive Voice Response

An IVR is a system that provides freedom to customers to socialize with a company through voice. It can be used in many industries, including call centers, banks, insurance companies, and hospitals.

Usually, IVR service provider is for consumer support processes. For example, someone calls your company and hears, “press one if you want to talk to someone about our service.” The customer presses one and hears another prompt: “Please tell us your name.”

If the caller responds by saying “Karen Jones,” the system will recognize that as a valid response because it matches up with the data in their database.

In addition, if Karen Jones has frequently been calling but hasn’t made an appointment yet for her upcoming surgery next week at 2 p.m., then there’s no need for her assistant to spend 20 minutes talking on the phone until they reach an agreement. Instead, all they’ll need to do is listen as Karen selects options from the IVR menu!

IVR Systems: How It Works?

IVR Systems

An IVR is a voice-based system that allows the caller to communicate by utilizing voice commands. The IVR system is designed to recognize the caller and react to voice commands by executing specific tasks.

Callers can navigate an IVR system by speaking detailed instructions or pressing keys on their keypads.

The IVR will then execute the instruction based on what you say or how you input it, such as if you press 1 for English and 2 for Spanish, it will route your call accordingly.

IVR systems can be assigned to perform various tasks, such as:

  • Provide info about your trade, products, and services.
  • Allow consumers to create reservations for appointments or book flights over the phone.
  • Offer customers support by answering questions about their accounts or technical difficulties with products they purchased from you.

IVR systems often include multilevel menus, enabling users to get extra info prior to taking action. Suppose a customer calls and chooses the service department, for instance.

In such an event, a sub-menu may then inquire about the specific commodity with which they have an issue. In this approach, the IVR can direct the call to a particular team dealing with that product.

Advanced Features Of IVR

Advanced Features Of IVR


Consumers will frequently call the consumer support department to obtain answers to straightforward inquiries. “Can you please locate my package?” How much money do I currently have in my account? When do you open your doors?”

IVR enables firms to answer these straightforward queries without human engagement, which frees up employees working in crowded call centers to concentrate on more complex issues requiring a natural person’s involvement.

IVR’s capabilities for providing self-service are not limited to just responding to a query. Instead, you may also use it to enable callers to perform tasks that, in the past, would have required assistance from a live person. For example, you can use IVR to modify a PIN, activate an account, or take orders from clients.

» Payments

Reading payment details over the phone may be a very frustrating procedure, particularly when some info is misunderstood due to translation issues.

According to the findings of a survey carried out by Zendesk, customers find it bothersome when they are required to repeat themselves. Over forty percent of respondents cited the have to repeat themselves as the aspect of bad customer service that irritated them the most, making this the third most popular response.

The abilities of IVR systems allow for the elimination of the annoying duty of reading payment details to an agent, who subsequently inputs that data into the payment system.

Instead, the caller enters their payment information straight into the IVR, which is then linked to a payment gateway. Due to this feature, your clients won’t have to continue repeating themselves, and there will be less of a possibility that the information will be entered incorrectly.

Benefits Of Using IVR

Benefits Of Using IVR

» Managing Huge Numbers Of Calls

In contrast to a single agent, who can only answer one call simultaneously, an IVR system can manage an unlimited number of calls concurrently.

IVR enables businesses and contact centers to maintain better and keep track of their key performance indicators (KPIs), such as their Average Handling Time (AHT), Call Abandonment Rate, Call Containment Rate, “Zero Out” Rate, and others. This, in turn, resulted in improved customer service and increased customer retention.

» Automating Repetitive Procedures To Enhance Employee Productivity

By providing callers with the ability to do IVR self-service, an IVR system may automate tedious processes, frequently asked queries, and routine contacts. This frees up customer support representatives to address more difficult calls or inquiries.

It results in a considerable increase in productivity and efficiency on the part of agents, as well as the provision of agents with work that is more meaningful than answering repetitious queries. IVR self-service helps clients obtain faster responses and reduces the average amount of time they spend on the phone.

You May Also Check: 6 Employee Motivation Mistakes and How to Avoid Them

» A Quicker Resolution Upon Initial Contact

With multilevel interactive voice response (IVR) menus, businesses can create a variety of prompts for new customers, existing customers, frequently asked questions (FAQs), language choice, a connection request to the agent, and other alternatives.

It allows them to accumulate all the necessary details to best route inquiries to the most appropriate agent for quick resolution rather than multiple transfers.

» 24/7 Access

IVR gives the consumer the ability to access resources at any time that are related to customer assistance. It enables customers to get real-time data whenever it’s most convenient, regardless of office hours, weekends, holidays, location, or anything else.

To succeed in today’s cutthroat market, every company must first have a deep understanding of its clientele and then work to fulfill its requirements.

One such option is interactive voice response (IVR), enabling enterprises to provide superior service to their customers, lowering their overall service costs, and improving their return on investment.

IVR systems will undergo development due to the introduction of novel technologies, such as those driven by artificial intelligence that processes natural language. They will be able to handle complex consumer inquiries on their own, without the aid of a person.

Do You Need An IVR System?

If you are facing any of the below, then IVR is the right solution for your business:

  • Managing large volumes of calls
  • Reducing operational costs
  • Improving customer experience
  • Automating mundane tasks that machines instead of humans can handle. These include routing and recording calls at specific times on specific days, taking exceptions or errors in the system by either re-routing to an agent or sending a text message to an agent when something goes wrong, etc. In addition, automating mundane tasks allows agents to focus on more essential tasks like resolving customer issues as opposed to answering call after call without any significant value added from their end. You also save time because of this; if an automated script handles 80% of all incoming calls, then only 20% need human intervention, which means less workload per agent!

IVR systems are great tools to boost customer service, performance, and efficiency. It helps businesses reduce operational costs and enhance the customer experience.

It is a system that uses the phone as an interface. You can use it in contact centers or other applications where users interact with computers by telephone.


Interactive voice response (IVR) systems are great tools to boost customer service, performance, and efficiency. It helps businesses reduce operational costs and improve the customer experience.

If you’re ready enough to integrate an IVR system into your business, then Telnum is the place to go. Having extensive experience in providing VoIP numbers and IVR, you can be assured you are partnering with a reliable service provider. Call us for more specific details or visit our website.

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Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. If you want to read refulgent blogs so please follow Voice Faction.

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