What Is IVR & How Does It Work


Interactive Voice Response or IVR is an advanced technology that is incorporated into today’s leading Voice-Over-Internet Protocol (VoIP) solutions. IVR greets and acts on customers’ input and gathers information to help them. It works on DTMF input which is entered by the caller. If you would have ever said yes or pressed 1 for Hindi then you have already got a fair idea of what IVR is.  IVR uses the information that it collects from the users and routes the calls, verifies the caller’s identity, provides details to the caller, and manages the task of callers without a human agent, for instance making payments or changing the PIN.

How does An IVR Work?

The most basic IVR solution saves money and time by trimming hold times and requiring less workforce. There are two primary components of IVR that enable the computer to understand and process the requests of the callers. One is Dual-Tone Multi-frequency signaling (DTMF) and the other is Voice Recognition Technology.

The signaling of DTMF occurs between the phone and the computer when the customer uses the keypad on their phone to select options from the menu. The touch-tone technology permits intelligent call routings that take place with no human interaction.

The voice-recognized capabilities of the IVR platform enable Directed Dialogue. It means that the customer can give a verbal response rather than using the keypad to navigate the menu. For instance, an IVR menu might say, “Press four for billing or just say billing”.

Advanced IVR services make the customers’ interaction increasingly more natural, quicker, and enjoyable. One of the most customer-friendly features of this IVR service is the  Natural Language processing (or NLP) which is a form of conversational AI.

All thanks to the sophisticated voice recognition technology, the computers can comprehend and process full sentences rather than minimizing the word choice of the customers by recognizing only particular comments. A built-in NLP in an IVR, answers open-ended questions like “How can I help you today?”.

As we can imagine, users enjoy this conversational approach for offering their services as it gives them more freedom. This is also a much faster way of navigating the IVR because customers can get to the point right away.

Benefits of IVR Services

First of all, the IVR system provides the most core advantage of an automatic filtering process. Through the system, the business representatives get an idea of what type of queries they will be tackling before they answer the customers’ calls. This type of call is based on the options selected from the menu by the caller. Meanwhile, the caller gets the required answer from the representatives, who are prepared to answer the queries. This process bypasses the frustrating and time-consuming part of the process of manually transferring the calls  by business agents from one department to the others.

  • Improves Credibilities: When the enterprise implements the advanced business phone services with an auto-attendant, there is an overnight rise in trust and credibility for the brand. An Interactive Voice Response functionality maintains consistency, on-brand greetings, welcoming every user before they are required to talk to an agent. This portrays a norm of professionalism that helps in boosting the credibility in the eyes of the customers.
  • Manages Large Call Volumes: IVR handles a large call volume by communicating with multiple customers automatically, at a single time. And this is possible due to the advanced multi-level IVR solutions.
  • Generate More Leads: Through a rapid iteration process, IVR can keep up with the requirement of the customers ensuring more leads and customer loyalty.
  • Easy Set-Up and Activation: With the help of a smart plug-and-play solution, the existing CRM software can be integrated for easy access.
  • ●       Learn More, Save More: Learning more about your customer base is the core of any organization that strives to climb the ladder of success. The data which IVR systems collect about the customer’s inquiries is not only valuable for business strategies but also improves the IVR setup. This system supplements market research and lowers the costs of the company by eliminating the need to hire more human representatives. 

There are multiple IVR service providers in the market, but to be specific Knowlarity is considered the best IVR service provider in India. The features of Knowlarity’s IVR services include multilingual support, 24*7 customer support, call routing, a customizable menu, concurrent calls, and call recordings.

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