How to Use IVR to Improve Call Center Efficiency

Struggling to handle high call volume at your call center?

What if I say you can improve call center efficiency through a telephony technology?

With IVR, a VoIP technology, you can radically improve call routing, reduce customer wait times, and enhance the customer experience at your call center.

So, in this blog you will learn about IVR and how to use IVR to improve call center efficiency.

Further, you can explore the benefits, best practices, and common mistakes to avoid while implementing IVR.

What is IVR?

Interactive Voice Response (IVR) is an automated telephony system that allows incoming callers to interact with a menu system through voice and keypad inputs.

The IVR system relies on Dual Tone Multi-Frequency (DTMF) and speech recognition to collect, analyze, and direct callers to appropriate agents based on their responses to the call menu prompts.

IVR has made some significant changes in call centers. Its automated feature has made phone-based customer interaction more systematic and fruitful.

IVR system is popular as it guides customers, reduces response time and direct calls to appropriate departments to provide customers with a personalized experience.

Types of IVR systems

Based on the method you use for interaction, there are two main types of IVR systems. They are:

• DTMF-based IVR System: In this system, the caller responds by pressing numbers on their telephone keypad to select options. For example: “Press 1 for customer support”.
• Speech-enabled IVR system: This IVR system allows the caller to speak instead of typing. This system uses speech recognition technology to convert the numbers spoken by the caller into text.

How Does IVR Work In a Call Center?

As we discussed earlier, IVR consists of prerecorded voice messages. When customers call your call center, the system greets them with an automated welcome message.

Next, the IVR system presents menu options to the caller through voice prompts, like “Press 1 for Sales”, “Press 2 for Customer Support,” and so on.

In the meantime, the system gathers customer information through multiple menu options provided to the caller.

Then, based on the caller’s response, the system routes the call to the appropriate call center agents/ departments.

If the customer selects a specific department, say “Press 2 for customer service”, the IVR system automatically routes the call to customer service agents. The caller can either use keypad or speak aloud to select the option.

The IVR system manages incoming calls in two ways: using a Dual-Tone Multi-Frequency (DTMF) signal and speech recognition.

For some routine tasks, such as resetting passwords, checking order status, checking account balances, and making payments, the system allows the customer to do it on their own without needing a live agent.

The system only routes the call to a live agent if the customer’s issue is complex or requires human intervention.

Benefits of IVR for Call Centers

In the present context, the popularity of IVR has skyrocketed, and for valid reasons.

Below are some of the benefits you can expect after implementing IVR for your call center:

1. Improves Call Routing And Handling

IVR improves a call center’s call routing and handling through its call routing features. Most of the essential information the caller requires is in the pre-recorded messages. If callers need more information, they can choose to talk with the call center’s employees.

Customer calls are transferred to the relevant call center agents based on their selection during the interaction process. It helps improve a call center’s overall call routing and handling process.

2. Provides Self-Service Options For Callers

IVR provides self-service options that give callers the power to quickly resolve their queries and issues without the need for live agents. For simple actions like changing passwords and making payments, the system allows callers to act independently.

Callers don’t have to wait for the live agents to get the required information, reducing wait time and enhancing customer service. Likewise, with the self-service option, call centers can reduce costs associated with staff headcount and high call volume.

3. Increases First-Call Resolution Rates

First-call resolution Rates (FCR) measure the number of customer inquiries resolved entirely in the first call without the need for follow-up. According to SQM Group, the average FCR rate falls between 70% and 79%. Call centers with an FCR below 70% need improvements.

One way to increase FCR is by adapting the IVR system. The IVR system improves FCR by transferring calls to the relevant agents/ departments within seconds. It ensures customers reach the right person quickly.

Moreover, it has a self-service option that lets customers acquire needed information through pre-recorded messages.

4. 24/7 Support

The self-service option features of the IVR system allow customers to receive the needed information beyond office hours whenever they wish.

There is no fixed time required to access the information they need..

5. Improve Customer Experience

Calling is simple and hassle-free with an IVR system. An in-built self-service option allows customers to access call centers at any time of the day, whether on weekends or at midnight. Moreover, they can resolve their queries without the agent’s assistance.

And the flexibility to contact and receive information at one’s convenience directly improves the customer experience.

Best Practices for Implementing IVR in Call Centers

There is no guarantee that call center operations will improve just by implementing an IVR system.

To fully enjoy the benefits of IVR, it is essential to apply best practices during its implementation. Here are some key considerations:

• Define the Purpose and Goals of IVR: You should know why you want to employ an IVR system. Decide whether you wish to leverage it for call routing or self-service. This will help you design an effective IVR solution.
• Design Intuitive And User-Friendly IVR Menus: Design a menu structure that is easy to navigate. Do not design a menu based on your personal preference. Consider the customer’s ease while scrolling through the menu. Also, use simple language.
• Use Clear and Concise Voice Prompts: Check the recorded voice message quality. Confirm that the voice quality is clear, simple, understandable, and uninterrupted. Avoid sharp and low voice notes.
• Provide an Option to Speak To A Live Agent: Some callers prefer to talk with a call center agent directly. They do not prefer pre-recorded messages. Hence, let customers connect with available call center agents whenever required during the IVR interaction.
• Continuously Monitor And Optimize IVR Performance: Examine IVR performance metrics like call abandonment rates, call completion rates, customer satisfaction, and first call resolution rate from time to time. Then modify the IVR system as necessary to improve its performance.
• Revise IVR scripts: Ensure that the IVR script is up to date. IVR scripts should match the current data and services of a call center. Consider removing any outdated data.

Advanced IVR Features and Capabilities

IVR consists of advanced features and capabilities that simplify call center activities. Some of those features are as follows:

I. Personalization and Customer Identification

One of the best features of the IVR system is the personalized service to each customer and customer identification. IVRs identify customers based on their phone numbers and the account information they provide.

Moreover, according to their previous interaction, IVR provides personalized greetings and menu options to a customer.

II. Integration With CRM

By integrating IVR with CRM, call centers can route calls to appropriate agents/ departments based on customer interactions stored in CRM databases.

Additionally, it reduces manual work as it allows the automation of tasks like data entry and retrieval. Call centers can also track, analyze, and update customer interactions across multiple communication channels.

III. Intelligent Call Routing And Prioritization

Another essential feature of the IVR system is the call routing feature. IVR uses intelligent call routing features to transfer calls to the most suitable contact center agents or departments.

Likewise, prioritization features allow you to categorize calls according to their importance and priority. Priority ensures that the most pressing issues are addressed as soon as possible.

IV. Advanced Analytics And Reporting

The IVR system consists of advanced analytics and reporting features that provide insight into total call volumes, call duration, abandonment rates, first call resolution rates, customer satisfaction, the usability of menu options, and so on.

And call centers can use this data to make the right decisions and enhance customer service.

Common IVR Mistakes to Avoid

1. Long and Complex IVR Menus

One of the prominent advantages of the IVR system is the IVR menus which allow customers to resolve their issues quickly. Hence, you should avoid making IVR menus long and complex.

Customers become disappointed and find navigating through long and complicated menus difficult, often leading to abandoned calls. Thus, design simple and easy-to-use menus with options limited to five in one group.

2. Poor Voice Quality and Prompts

Another mistake to avoid is uploading poor voice messages and prompts. IVR systems with poor voice quality and prompts can easily hinder callers from scrolling through menus. So, the caller might not understand the tone.

As a result, you must ensure that the voice messages you record are in good tune and pitch. One person should do the voice recording to ensure that all the voice notes follow the same pattern.

3. Inadequate Testing and Optimization

It would be best if you avoid testing and optimizing the IVR system with a long gap. The long gap in testing and optimizing the IVR system will result in technical problems, which may affect call routing procedures and the overall process.

Hence, it is necessary to thoroughly test an IVR system to ensure that the self-service option works well and there is proper integration with other business technologies.

4. Lengthy Hold Times

No one likes to wait for a long time on a call. Customers may get frustrated and unhappy in such a situation. Hence, you must strictly avoid lengthy hold times when designing an IVR system.

To ensure customer satisfaction and reducing frustration, you can inform customers about how long the waiting time can be.

Wrap Up

IVR system significantly enhances the call center’s efficiency and productivity. It helps call centers manage incoming calls, reduce wait time, improve customer service, improve call center agent performance, and prioritize calls based on urgency.

Therefore, implementing an IVR system to improve your call center performance is a boss move.

Integrate this telephony technology into your call center today.

Trust me, you won’t be disappointed!

FAQS

Can IVR be integrated with CRM and other business systems?

Yes. An IVR system allows integration with CRM, ticketing platforms, and databases to automate workflows, collect data for performance analysis, and provide personalized responses to customers.

What metrics should I track to measure IVR effectiveness?

The key metrics include average handling time, customer satisfaction, call containment rate, call abandonment rate, and first-call resolution.

What type of calls are best handled by an IVR system?

Calls best handled by IVR tend to be routine calls, such as resetting passwords, booking appointments, tracking orders, and checking account balances.

Can small businesses benefit from IVR too?

Absolutely. Small businesses can implement IVR to display a professional image, handle calls, and automate customer service without additional staff.