IVR

IVR

Interactive Voice Response (IVR) is a telephony technology that makes it possible for people using touch-tone telephones to interact directly with a computerized database, without the need for human interaction. One of the most popular uses of IVR is the use by banking institutions to let customers obtain account information over the phone. Some IVR systems use voice recognition to allow customers to access the system by speaking instead of by using the touch-tone keypad.

Uses of IVR Systems

Banks use IVR systems to provide a variety of services to customers. The system can provide information about account balances, deposits, and withdrawals. Some banks enable customers to use the system to transfer funds between different accounts. Credit card companies often use IVR systems to let customers check the status of their accounts.

Retail companies use IVR systems to help customers locate store locations, and to order various products. Phone surveys can be set up through IVR systems so that human operators are not required. Flight information is available from airlines using IVR systems. Movie schedules are often made available through IVR systems. Pharmacies use IVR systems to let customers order prescription refills.

IVR systems are often used as the front end for call center services. The IVR system is used to:

  • Identify the caller

  • Identify the caller's problem

  • Possibly provide a prerecorded answer to the problem

  • Route the call to the best person to handle the request.



These systems are used by businesses in one of two ways. An IVR system can be purchased and installed at the place of business. Alternatively, the IVR system can be outsourced to another company that hosts the system. The systems are computerized, with current systems using interfaces, making it easy for businesses to customize their systems.

IVR Technology

IVR systems are often criticized for being unresponsive to customer needs and difficult to use. Advice is available online on how to bypass IVR systems to get to a human response. Partly in response to the criticism, there have been continuous efforts to upgrade IVR technology in order to make the systems more user-friendly.

Known for the robotic tone of the voice responses given to customers, early IVR systems relied entirely on having the customer use the touch-tone keypad. More modern systems stress the use of voice interaction with the customer. Initially, customer voice responses were limited to simple one-word answers such as “yes” and “no.” However, systems today are making efforts to use more sophisticated voice-recognition software that allows customers to respond with a wide range of answers including complete sentences. There have also been advances in the ability for IVR systems to respond in natural sounding speech.

Advantages of IVR Systems

The principal advantage of IVR systems for businesses is that they reduce the expense associated with the hiring and training representatives to interact with customers. These systems cannot completely replace the need for human interaction, but since IVR systems can readily operate 24 hours a day, they are useful for handling routine matters.

By Charles Hair           


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