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What’s IVR?

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Interactive voice response (IVR) allows users to interact with a database using voice commands or telephone keypad. It saves money and resources for businesses by providing routine services 24/7. IVR systems are used for reporting non-emergency problems, scheduling appointments, and conducting surveys. OSPs maintain the system at their premises, but poorly designed IVR systems receive criticism. The goal is to provide customers with what they need in as few steps as possible.

Interactive voice response (IVR) is a telephony technology that allows users to interact with a database using the telephone keypad or voice commands. Automated IVR systems allow businesses to save money and employee resources by making routine services and requests available to the public 24 hours a day.

Most people use interactive phone systems on a daily basis to do things like check bank balances, manage credit cards, check store hours or locations, or order prescription medicines. Human interaction is not required because the IVR system allows only limited access to the database, although there may be an option to switch to a live operator during business hours. The systems are also used to report non-emergency problems to cable or utility services and to schedule appointments with government or state offices, such as the Department of Motor Vehicles. By integrating text to speech (TTS) functionality, IVR systems can also provide dynamic information, such as weather, news, traffic or stock reports.

Campaigners, pollsters, and survey workers also use IVR systems. In these cases, the system makes outgoing calls. A recorded voice asks questions and requests simple answers, such as “yes”, “no” or “undecided”. Depending on the application requirements, it may have very limited or extensive built-in speech recognition technology. Responses can also be sent via the telephone keypad, asking the responder to press 1 for yes and 2 for no, for example. IVR automation allows you to reach many more people than actually manned phones.

Commonly, IVR systems are installed in-house, but there are also “outsourced solution providers” or OSPs. These providers maintain the system at their premises, integrating it through the customer’s network. OSP solutions have advantages and disadvantages. The obvious benefits include avoiding the installation of new infrastructure and the provision of staff to maintain the system. Disadvantages can include a feature set or model that may not fit the company’s business model as well as it would like, and giving up control over critical functions.

Poorly designed IVR systems are often criticized by the public for not providing easy or helpful support. The goal of any system should be to provide the customer with what they need in as few steps as possible, taking into account safety and logistical needs. There are many systems available in a range of complexities, and solution providers can help businesses find the right solution for their needs.

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