How Interactive Voice Response (IVR) Works in Customer Communication Services?

Interactive Voice Response

IVR (interactive voice response) is a phone system technology that allows incoming callers to access information via a voice response system of pre-recorded messages without having to speak with an agent, as well as menu options via touch-tone keypad selection or speech recognition to have their call routed to specific departments or specialists.

A well-designed IVR software solution may enhance contact center operations and KPIs while increasing customer happiness. An efficient interactive voice response system can help avoid hold time by assisting consumers in finding answers and doing simple tasks themselves, especially during times of heavy call volume. When a client requires or wishes to talk with a human, IVR technology can assist in rapidly and smoothly routing calls to the right call center agent to handle their query.

TTEC knows how to empower our companies’ consumers by making it simple for them to navigate a sophisticated scripted IVR system. Our IVR software saves time and allows companies to serve clients 24 hours a day, seven days a week.

Our contact center technology solutions enable clients to complete ordinary transactions (pay bills, monitor deliveries, make bookings, etc.) over the phone without the assistance of an employee. As a result, they will receive faster responses, and you will save money.

What is interactive voice response?

A typical interactive voice response phone system includes the following components:

  • A TCP/IP network that connects to the internet and intranet.
  • Databases that provide pertinent data to IVR apps
  • A web or application server will host the IVR software applications. This server is capable of hosting numerous VoiceXML-based apps. There might be uses for contact centers, outgoing sales calls, and speech-to-text transcription, for example.

From this point on, one of three types of IVR systems is commonly built.

  • Touch-tone replacement: To access information, this system encourages callers to use a touch-tone keypad option. For example, a pre-recorded message may say, “Press one for store hours information,” to which the caller would answer with “one.”
  • Directed dialogue: This sort of IVR gives callers tailored voice cues based on their questions. “Are you looking for store hours or location information?” the recording could inquire. The caller may reply, “Store hours.”
  • Natural language: To better comprehend user demands, this modern IVR system employs voice recognition. For example, the system prompt may ask, “What information are you looking for today?” and the caller would respond, “I’m looking for store hours information” or something like that.
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The Advantages of Interactive Voice Response

IVR technology provides organizations with a competitive advantage and boosts their automation initiatives. Among the many advantages are:

  • IVR systems direct calls to the proper call center employee after gathering important information from a specific caller, minimizing wait times and enhancing first contact resolutions.
  • Reduced operating costs: IVR systems are extremely cost-effective. They not only lower high call levels for customer support professionals, but they may also provide information during off-peak hours, such as nights, weekends, and holidays.
  • Error Reduction: When used correctly, IVR systems may decrease mistakes in the customer service process since they do not rely on a human customer care agent to take notes and route incoming calls.
  • Increased security: Some IVR systems use speech recognition technology to authenticate an individual’s identification, offering an added degree of protection. This can be useful for extremely sensitive personal information such as social security and phone numbers, bank account information, and lab results from doctor’s appointments.

Examples of IVR automation

IVR may be integrated with your internal systems to assist consumers in self-resolving basic queries. IVR automation is a win-win situation: you save time by freeing up support employees, and clients address their concerns more quickly.

Here are some instances of how IVR might assist you in automating routine tasks:

  • Examine the account balance. The current balance of a customer’s accounts is shared via IVR.
  • Examine the order status. Customers submit information about an order’s current status.
  • Product research. Callers want to know more about items.
  • Payment of bills. IVR software can get account information and take credit card information without the assistance of a human call center agent.
  • PINs can be set or changed. Customers can set up or modify their card or account PIN.
  • Fill out surveys. Customers can provide feedback at the conclusion of a call using modern IVR.


How do IVR menus function?

IVR menus typically comprise a top-level menu for incoming callers as well as additional submenus as needed. Callers can direct their calls using the menu choices.

All IVR systems allow users to pick options by pressing a number on their phone’s touch-tone keypad; however, this has limits. An IVR system that has to route hundreds of different sorts of inquiries might be restricted to only nine possibilities (the number zero is normally designated for speaking with an agent).

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Accepting oral input is a relatively recent feature of the IVR system. This makes the experience more enjoyable and conversational while also enabling customers to speak about any issue and be appropriately routed.

Interactive voice response applications

IVR systems have been used in a wide range of industries, including healthcare, banking, retail, and education. We’ll go through these use cases in further detail below:

Healthcare: pre-treatment questionnaires, patient satisfaction surveys, lab and appointment scheduling, post-discharge follow-up, lab results, and patient monitoring are all practical applications of IVR technology. This study (link is external to also shows how it can improve overall patient satisfaction by reminding patients to stick to their prescription regimen.

Education: According to research (link sits outside of, educational institutions can use IVR to aid parents in obtaining a status update on their child’s performance and attendance at school. Parents can register with the system and create a username and password to have access to important information on subsequent calls.

Customer Service: Customer service contact centers work for a variety of businesses. These call centers use automated menus and pre-recorded instructions to handle a high volume of incoming calls and address customer questions and concerns.

Financial: IVR may also be used for a range of banking and financial functions. Account information, such as account balances and loan application statuses, can be provided, as can changes to investment portfolios.


What exactly is interactive voice response?

What exactly is interactive voice response (IVR)? IVR, or interactive voice response, is an automated telephone system that engages callers by combining pre-recorded messages or text-to-speech technology with a dual-tone multi-frequency (DTMF) interface, allowing users to supply and retrieve information without a human being present.

In banking jargon, what is IVR?

IVR transactions, or Interactive Voice Response transactions, are telephone transactions in which you submit your credit card number on an automated system to make a payment to a vendor for the purchase of products, services, or other items.

What are the goals of IVR?

Companies employ Interactive Voice Response (IVR) for three main reasons: Redirect incoming calls. To cut expenses, reduce the number of live calls handled by a live representative. Improve the consumer experience.

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