Conversational Ai • Last Updated 10/5/2023

IVR for call centers: Top 3 benefits to consider

Learn what IVR is and how your business can benefit from implementing it in your call center.


By Emily Bowen

IVR call center graphic shows IVR routing

Using Interactive Voice Response (IVR) in your call center is an efficient and cost-effective way to streamline your customer service operations. In this blog post, we'll discuss the various benefits your business could achieve by implementing IVR in your call center.

What is an IVR-powered call center?

Using IVR in a call center can help businesses automate their customer service experience and improve customer satisfaction. In this section, we'll take a closer look at what IVR is and how it works.

What is IVR?

Call centers can use Interactive Voice Response (IVR) technology to automate customer interactions. Instead of interacting with an agent, IVR allows customers to interact with a computerized system to provide information, complete transactions and access services. For example, you can set up an IVR system that allows customers to access frequently asked questions (FAQs) or to initiate a call with a customer service representative by selecting the department they want to speak with or the issue they have.

How does IVR work?

Customers interact with a pre-recorded menu through DTMF (dual-tone multi-frequency) or voice to obtain information or complete transactions. Typically, customers will be prompted to enter an account number, a phone number or other information to initiate the call. The IVR then accesses the customer's account information, allowing the customer to complete the transaction or access the information they need. The IVR system may allow customers to select from a list of options such as customer service, billing and technical support, which helps to quickly route the customer to the most appropriate person or department.

3 advantages of using IVR in your call center

IVR has become increasingly popular for businesses that rely on phone communications. According to Deloitte, at the end of 2020, only 32% of businesses using call center technologies ran them using cloud-based IVR; now, 75% expect to make the move before the end of 2023. Using IVR in call centers offers a variety of advantages, from cost savings to improved customer service and automated self-service. In this section, we'll take a look at the specific benefits of setting upIVR in your call center.

1. Cost savings

IVR call centers provide cost savings in several ways. For instance, an IVR system can reduce costs in the following areas:

  • Staffing costs: Customers can access automated self-service options to resolve their issues without having to speak to a human representative. This reliance on automation and technology reduces the number of agents needed to answer or route calls.
  • Operational costs: Since IVR can route calls to the most appropriate agent quickly and easily (or even fulfill customer requests without requiring a human representative to get involved), call centers can reduce the operational costs associated with managing customer inquiries.
  • Total call costs: Because IVR relies on dedicated phone lines and VoIP solutions, the cost of each call is greatly reduced compared to traditional phone lines.

2. Improved customer service

With IVR, customers can access automated self-service options to resolve their issues without having to wait for a customer service representative to answer their call.

McKinsey highlights one North American financial institution that implemented an IVR system into their call center strategy. The financial institution was able to improve caller satisfaction by 10–25% after implementing an IVR system.

Call centers can also reduce wait times and frustration by using IVR to route customers to the most appropriate customer service representative right away. Automated routing can help customers avoid the annoying scenario of having to speak to multiple representatives in order to get their questions answered. Finally, customers can access the IVR system 24/7/365 for answers to FAQs or automated transactions, which gives them the flexibility to access customer service whenever they need it.

3. Automated self-service

IVR allows customers to access customer service without having to wait for a representative to answer their call.

The McKinsey case study mentioned above highlights how the same institution found that 50% of their total annual call volume was handled by the IVR system, which freed up representatives who previously would be needed on the line.

Customers can access automated self-service options to check on the status of their order, make payment inquiries or update their contact information. This saves customers time and helps them resolve their issues with less frustration. Automated self-service options can reduce the number of customer service calls that have to be handled by human representatives, which can further reduce operational costs.

Implementing IVR in your call center with Telnyx

Telnyx's flexible IVR Cloud solutions helps businesses easily set up and implement automated customer support systems. Businesses like Cisco, Talkdesk, Aircall and Replicant leverageTelnyx’s full feature set and diverse implementation options to meet their IVR needs and improve customer satisfaction.

Replicant, a contact center and customer service platform, uses conversational AI to solve customer problems over the phone. To solve customer issues more efficiently, they needed talk-time latency of less than one second. Replicant chose Telnyx for its carrier-grade Call Control API, elastic SIP trunking, global numbers and networking offerings. Replicant then leveraged these products to build a fast, reliable autonomous call center. Telnyx helped Replicant cut its talk-time latency from over three seconds to under one second while reducing voice costs by 86%. These improvements helps Replicant offer better products to its customers at competitive prices at scale.

Using Telnyx to build an IVR solution

Telnyx provides a powerful Voice API that can help you build an IVR solution designed to meet the needs of your customers. With Telnyx, you can easily set up and manage simplified, cost-effective IVR services.

Easy to use

Telnyx’s IVR solution has an intuitive user interface, so you can quickly configure automated voice menus and customize your IVR call flow to meet your customer’s needs. We offer a full feature set, including transcription, text-to-speech and recording to support advanced IVR capabilities. You can also set up virtual receptionists to greet and direct incoming calls and use call routing to route calls to the right department or agent.

Options that suit your call center’s needs

We offer a wide range of implementation options—such as dial-pad, voice understanding and hybrid—and you can choose from real-time REST API or pre-defined TeXML scripts. Sound daunting? We’ve got you covered. Telnyx has in-house experts who can advise on telephony integrations, regulatory compliance and best practices to help you build your IVR the right way.

Cost-effective, usage-based pricing

Telnyx offers a pay-as-you-go plan that allows you to pay for services based on usage. This ensures that you only pay for what you use and helps manage operational costs. It also allows you to easily scale your offerings as your customer base grows without worrying about additional hardware or software costs.

Works with systems you already have

Finally, Telnyx’s IVR solution integrates seamlessly with existing systems, such as customer relationship management (CRM) and customer service application. These integrations allow you to access customer data easily and quickly , enabling you to provide personalized and timely customer service.

Use the Telnyx Cloud IVR to build a scalable IVR solution for your call center that will delight your customers and simplify your operations. Ready to get started? Watch our webinar to learn how to build your IVR with the Telnyx Voice API or check out our developer documentation demo.

For more information, contact our experts today.

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