Interactive Voice Response (IVR) provides an automated interaction with telephone callers. A number of companies employ IVR solutions to minimize the cost of regular sales, collections, inquiries, service and support calls made to and from the company.

In the past, IVR solutions have employed pre-recorded voice notifications and menus to offer information and alternatives to callers, and use touch tone telephone keypad access to collect replies. Today, advanced IVR solutions are capable of accommodating input and replies collected through spoken words that come with voice recognition features.

IVR solutions have several useful capabilities, including the ability to recover information such as flight schedules, order status, bank balance inquiries, product details, movie screening times, etc. from any telephone. IVR solutions are also frequently used by customers for outbound calls to transport or collect information needed for past due bills, appointments, and other crucial activities or affairs.

While human interaction is not necessary because the IVR system permits limited access to a particular database to provide the information or service that customers need, occasionally an option to speak with a live operator during specified business hours is available. In addition, IVR systems are employed to notify non-emergency issues regarding utility services, as well as to schedule future meetings with government or state offices. The integration of text to speech capacity enables IVR systems to bring practical information – news, traffic, weather or stock reports.

Another function of IVR systems is surveying, campaigning and polling. Specific pre-recorded ‘yes’ ‘no’ and ‘undecided’ questions are asked, and voice and/or keypad responses are collected.

Traditionally, IVR systems are set up in house, but they can also be installed by hiring outsourced solution providers (OSPs). IVR service providers sustain the system on their business site by incorporating it into the customer’s network. While this means no additional infrastructure is required in your premise and you gain a reliable IVR customer service team, you lose full control over crucial tasks, and risk adding features that do not match your business model.

In order to provide a user friendly and convenient service to your customers, it is vital that your IVR system is well designed. The objective is to ensure that the customer obtains the necessary information or service desired in a few easy steps.

The most attractive characteristic of an IVR service is its cost-efficiency. With today’s advanced, intuitive systems, and pre-recorded information, the need for an operator or receptionist is almost completely eradicated. The only drawback is that not all customers like interacting with an automated computer system and prefer instead to speak with a live person. Others may have speech problems which may cause the voice recognition software not to understand what is being said.