Contact Center Glossary

IVR (Interactive Voice Response)

What is IVR (Interactive Voice Response)?

IVR (Interactive Voice Response) is an automated telephony system that allows callers to interact with a phone system using voice or keypad inputs. It’s commonly used in call centers to route calls, provide information, or automate common tasks without speaking to a live agent.

How IVR Works

When a customer calls a business, the IVR system greets them with a recorded message and menu options (e.g., ‘Press 1 for billing, 2 for technical support’). The caller responds via touch-tone or voice, and the system either routes the call or provides the requested information.

Types of IVR Systems

Single-Level IVR

Offers a basic menu with one layer of options.

Multi-Level IVR

Includes multiple menu tiers for more complex routing.

Hosted IVR

Cloud-based IVR services managed by third-party providers.

On-Premises IVR

Installed and managed internally by the organization.

Benefits of IVR in Call Centers

– Reduces call wait times by automating simple tasks
– Improves call routing accuracy
– Lowers operational costs
– Enhances 24/7 support availability
– Provides scalable self-service for customers

Best Practices for Designing IVR Menus

– Keep menus short and intuitive
– Offer a ‘speak to agent’ option
– Use natural-sounding voice prompts
– Test menus regularly for usability
– Align menu options with business goals

Use Cases for IVR

– Account balance or order status lookup
– Appointment scheduling or reminders
– Call routing to appropriate department
– Feedback surveys
– Outage or emergency alerts

Related Topics for Further Reading

– Call Routing
– ACD (Automatic Call Distributor)
– Self-Service Support
– VoIP
– Chatbots

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