Interactive voice response, or IVR, is one of the simplest and yet most powerful tools in customer service. When used correctly, it can reduce costs while increasing efficiency as it helps you meet your customers’ needs.
What is IVR?
Interactive voice response is an automated call system that helps get your callers routed to the right person on your team. The system offers callers a clear and simple menu. As they navigate that menu, you can identify them, put them into groups according to need, and then send them to the right agent.
When you set up your interactive voice response, you can personalize the messages that your customers hear. Once callers have made their choices, you can then prioritize calls according the values they have chosen. You can direct high-value customers to the front of the line and make sure everyone is transferred to the right department the first time.
What are the benefits of using IVR?
Improved company image. An automated call system is a trademark of larger companies. The IVR can thus make your company seem larger and more established than it is. By routing your callers directly to the appropriate department, you send a strong message of professionalism to all callers.
The IVR system also buys you some time to consider a customer’s name and need before you engage, which allows your people to approach callers with an idea of what is going on. This allows your people to interact more professionally with callers than might otherwise be possible.
Increased customer satisfaction. Customer satisfaction one of the most important elements determining whether your business will still be here in five years or not. When you use an IVR system, it becomes much more likely that callers will be routed to the correct department on the first call — the department where their needs can be addressed.
When customers get directed to an agent who can actually solve their problems, they are pleased. When they get their problems solved the first time around, they are satisfied. Research shows that people who have a good customer service experience are inclined to be very brand-loyal; improving communication with customers is essential.
Increased employee satisfaction. Few things are more demoralizing to your people than constant negative interactions with frustrated or angry customers. Call center attrition rates have typically been high, in large part because of the mental and emotional toll on agents dealing with people.
With a system that can route customers to the correct department and agent the first time they call, you increase the chance that your people can solve issues. By making sure customers are not shunted around to different departments, you keep them from becoming overly frustrated. It’s a win for everyone involved.
Increased profit margins. This might seem counterintuitive, because it does cost money to install an effective IVR system. But you are actually saving money if having an interactive voice response system means you don’t have to pay a receptionist or other full-time employee to answer the phone and direct callers.
Not only can you save money on personnel, but you will be using everyone’s time more efficiently. This always results in lower operational costs. Combine that with increased customer satisfaction, and the return on investment with IVR is excellent.
Increased strategic customer relations. As you work with your IVR system, you will be able to identify high-value customers as soon as they call. These may be customers with large accounts, frequent buyers, or people you’ve had a long professional relationship with. These types of callers can be sent to the front of the line and directly to the agent who can best meet their needs. When that phone rings, let your IVR system tell you who is on the other end.
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