Best IVR Systems of 2023: Compared & Reviewed

managers an improved oversight over their staff and the calls they make, including the caller data. IVRs work in conjunction with dual-tone multi-frequency signaling (DTMF tones), which is a telecommunication signaling system intended to dial phone numbers or assign commands to switching systems.

At its core, the process is simple: each number on a dial pad, including the pound and star symbols, is represented by a pair of tones, which register when the caller presses a button. The IVR system uses these tones, and often voice commands (reflect on any time you’ve been prompted to “press one” or “say yes”), to connect users to the appropriate parties using the company’s host system.

Interactive voice response systems have revolutionized the way customers address their many issues and questions when communicating directly with brands. Some newer IVR solutions are also emerging with more robust communication features, including voice recognition and artificial intelligence.

These advanced methods allow the system to automatically respond to callers by routing them according to the prompts triggered. When used properly, this type of technology minimizes wait time and provides a more frictionless experience for the customer. Oftentimes businesses set their system up with pre-recorded audio options, which are similarly customized to provide a smoother interaction based on the company’s most common needs.

How IVR Changed Call Capabilities

When IVR first emerged during the 1970s, it was initially largely considered too complex or expensive

for call centers to use affordably. It wasn’t until two decades later that more call centers began to invest in computer telephony integration (CTI) with IVR systems, which provided intelligent call routing.

With technological advancements also came IVR developments, such as voice recognition with a limited vocabulary instead of simply the DTMF response callers had grown used to. This meant that for the first time in practical use, call centers could use their IVR to identify and segment callers, and eventually gather an increased amount of data on each customer: with caller line identification (CLI) data, the customer can be authenticated, their account information verified, encrypted credit card information stored, and passwords or any other personal or security information could be dealt with faster than ever before.

How do IVR systems work?

As an essential element of automated customer service, contact centers use IVR systems to optimize

self-service and deliver quality, personalized customer experiences. When a manager chooses their ideal IVR package, the software is downloaded onto each of the cloud contact center agents’ computers.

These computers are already connected to the company’s telephone line with a VoiceXML (VXML) telephony server, and the IVR software is housed in a corresponding web or application server. This server is used to develop vocal and audial response applications and interactive menus, providing many companies the automated customer service portals with which callers are already familiar.

The VXML engine offers self-service options as interface for the caller, with the server translating commands, dialogues, and natural language seamlessly (essentially allowing computer-human communication). The servers also create dialogues featuring digitized audio, speech and DTMF key input recognition, synthesized speech, and mixed-initiative conversations.

Additional IVR solutions include outbound IVR, which is an early part of the customer journey where contact center agents reach out to customers. An outbound IVR system can be a predcitive dialer that reaches out to leads in an effort to convert them. Visual IVR is another growing IVR solution that uses an app-like experience to guide customers during call center contact to guide them to the right agent.

IVR Enables Automated Productivity

Contact center staff use this software to complete everyday tasks with improved speed and ease, from

reminding customers about calendar appointments and allowing them to process basic transactions or pay bills with touch-tone or voice-activated technology to relaying automated marketing promotions.

When properly integrated with other call center software, IVR systems present great opportunities for proactive marketers to encourage customers to easily redeem special offers, complete surveys, or simply be reminded of promotions ending soon. It’s also common practice to augment outbound telemarketing opportunities by using the chosen system to pre-authenticate leads. When verified, the IVR can connect the caller directly to the appropriate sales team member, possibly closing a sale. As staff perform their everyday duties, the IVR saves the received data.

IVR Systems Can Improve ROI

Over time, the system uses its collected data to become more engaging and relatable to callers’ basic

needs. This in turn improves the ROI by reducing operational costs and factors such as long distance carrier costs and the number of employees contacted to complete a single ticket. The call center employees also gain access to valuable at-a-glance information to more quickly assist callers after performing a brief security check. Automating this otherwise manual process guarantees security and a more confident interaction, which improves overall customer satisfaction (and eventually the brand’s reputation). For call center managers and their staff, using IVR results in reduced operational costs, fewer incoming calls that require human responses, and therefore overall increased productivity for the team.

Why should businesses use IVR systems?

IVR, while a common presence across all industries, is still largely underutilized by smaller businesses

and startups. Many managers don’t realize that by relying solely on human interactions to answer business phone calls, which inherently can only be handled during operating hours, they’re also limiting the potential maximum number of calls that can be handled at a time.

Without any further guidance, a caller’s response time is extended and their likelihood of walking away with a positive experience decreases, hurting customer service efforts. Above all, callers hate waiting- and all it takes is one bad experience to leave an unflattering impression of a business’s efficiency, so implementing a comprehensive IVR system guarantees that even a sudden influx of callers will be handled in an efficient, organized manner.

IVR systems offer time efficiency, unlimited customer access, and the natural reduction of avoidable human error. Connecting callers to incorrect parties doubles the call length and wastes time for both the caller and any employees involved, leaving a poor lasting impression of that brand and weakening confidence, even in loyal customers. For this, keeping a streamlined call flow system and increasing first-contact quality is crucial for businesses, no matter the size.

CRM Integration Is Vital

Managers who implement a modern IVR system into their business infrastructure also see improvements in their community response. Many advanced IVR systems now offer integrations to existing customer relationship management (CRM) software, so the system already has access to existing data that compiles in real-time and stores to the CRM. From that point, a manager could use the collected data to make decisions and identify common caller needs, which are then used to create more personalized IVR prompts.

Take Customer Support and Call Centers to the Next Level

Managers in customer support centers or eCommerce settings are oftentimes best suited to leverage interactive voice response benefits. In these businesses, seeing valuable customer information readily available on a computer screen provides opportunities for cross-selling, upselling, and providing multilingual support to better assist callers with a more personalized interaction.

Features of the Best IVR Systems

Inbound call centers handle specific companies’ requests and administer customer support, while outbound centers tend to be used to distribute information, solicit donations or telemarketing products, debt collection, and market research. The most trusted IVR systems available today tend to cover the same bases, which are valuable for both types of team:

Speech Recognition

Many powerful IVR systems use AI-powered call-routing, which features natural language processing and analyzes normal speech to determine a caller’s intention and immediately send them to the right place. This happens when the IVR recognizes certain key words or phrases that the caller might use when prompted to describe their issue or inquiry in their own words. That’s why you can usually skip the menu by stating the phrase, “Speak to a representative.” This hugely beneficial feature expedites the transferal of callers to associates or internal brand apps to help further. For an online setting, through multiple rounds of prompts (questions triggering a response from the user), IVR technology allows digital assistant apps to screen for keywords and provide targeted responses. In an outbound call center, language data collected about users helps to provide notes on intention, issues addressed, and emotion – all which help caller profiling efforts.

Personalized IVR Menus

Interactive voice response menus present callers with sets of options to route them to the correct department or person based on their needs. Before being connected with a live representative, callers respond to prompts either with their voice or a combination of key presses. These menus are totally customizable, from the menu options themselves to friendly custom greetings that can be changed to reflect holiday hours, public-facing updates and any other news that might be worth sharing upfront. With the right menu, simple inquiries can be resolved quickly and easily. Concrete information, such as store locations or hours, order tracking information and account balances can be relayed instantly.

Automated Dialers

Outbound IVR systems that feature an auto-dialer can electronically dial numbers from their database and play messages when connected. Predictive dialers, frequently used by call centers, vary the caller rate proportionally to the number of available agents. This proves imperative for larger teams, especially if staffing is of concern to management (or is simply in need of improvement). By optimizing customer calls based on staff availability, IVR can guarantee not to overwhelm employees or callers. Most of the household VoIP brands provide their own auto dialer apps, so check your existing software to ensure a smooth integration.

Filtered Call Recording

By now, most callers are familiar with the disclaimer that precedes every human interaction call: “This call may be monitored or recorded for security or training purposes.” As consumers become more accustomed to self-service for their basic inquiries, social communities aside, call centers are often seen as the “face” of a brand, and these (hopefully brief) interactions will be the only kind they have. For this reason, many managers take the time to listen to calls and ensure that their staff is performing the best job possible. Many IVR systems also allow recording filtering and automatic routing to designated agents, so they only see relevant information. These outbound-center agents use the recordings to monitor performance, ensure overall quality service, and to train other staff.

Automatic Call Distributor (ACD) Connection

It’s common for the first voice a caller hears when contacting a business to be a recorded one.

Automatic call distributors, or ACDs, use digital storage devices to play greetings or announcements for callers, typically while simultaneously predicting their intent, unprompted. When paired with an IVR, which requests caller input and collects received information, ACDs are used to create caller profiles that include useful data like their preferred communication channel, previously requested services, and other background information.

Such information helps staff determine automatic-routing rules, which can shave minutes off of a simple call. Implementing an ACD is also an efficient way to direct callers to the most-skilled inbound center agents to handle particular issues (say, for example, if a caller needed to contact the IT department for a specific inquiry that a normal customer service representative might not be best suited to).

Best Practices for IVR Use

It takes a while to determine the best customized features to include in an IVR package, and nothing

helps like having somewhat-intimate knowledge of your audience’s needs. Like all other aspects of business, learning the nuances takes a while – but there are a few simple ways to provide an immediate improvement for your IVR setup and the subsequent customer experience, even without maximizing your customization efforts.

In an age of automation, many callers prefer the ability to complete transactions and gather information without having to speak to an agent. Simple information, such as account numbers, balances, or schedules, can easily be attained from a simple pre-recorded message that a caller hears before a menu, or is prompted to access from the menu with the press of a button. This kind of easily accessible information is also ideal for departments and call centers that don’t staff experts at all times, in which case an intelligent IVR system can route callers to the department voicemail systems and assure them that their call will be returned during office hours.

Prioritize Customer Experience

The most important thing callers forget when interacting with an IVR system is usually just how simple

the program they’re interacting with is. IVR functions are triggered by factors like voice recognition and words or phrases used, and many customers (especially when frustrated) may find the voice prompts irritating, inaccurate, or otherwise bothersome. The best way to combat this kind of resistance is by striking the right balance between being informative and personable. Choose your menu options wisely, and don’t make menu options too long. Don’t be afraid to further segment long menu options to separate sub-menus if the choices take too long to read aloud.

Also, try to set up at least a short welcome message to precede any menus or other recordings. If a caller is greeted by a pre-recorded message thanking them for reaching out, it’ll always leave a better impression than the company that simply provides hold music and no wait time information (the same way customers expect to be greeted when entering a retail store).

To consider customer experience, think about their primary goals: to resolve a problem or find the answer to a question in the shortest amount of time possible. To accomplish this and still provide a singular brand experience, the same for every caller. That means automating the menu, either with a voice recording (which provides a more personal feel, since a human voice-albeit a recorded one- is the first thing a caller hears), or with a temporary message relaying general information, which might change over time depending on factors such as holidays, weekend hours, locations, or promotional updates. Either way, the best course of action is to humanize the IVR experience as much as possibly by making it sound like a real brand associate, with a professional-sounding voice and accurate, up-to-date information.

Utilize Caller Locations and Language Preferences

If you plan to implement a speech recognition tool, first study the product and learn about the type of

Automated Speech Recognition (ASR) engine and grammar development behind the speech engine. Depending on what part of the country in which you live and operate, different tools might have an easier or harder time recognizing local dialects. Many IVR systems integrate with other omnichannel contact center solutions to better understand your customer base and communicate with them effectively in the absence of a human agent.

Call centers aren’t the only types of organizations that use the daily benefits of IVR; transportation, travel/tourism, healthcare, retail and eCommerce, and government services all use the technology to handle large volumes of callers. Many integrate their auto-attendants with their existing automatic call distributors (ACDs), which simplifies routing for both parties. Some companies even make bill payment easy and fully automated with keypad touch-tone functionality, enabling customers to pay their bills even without an internet connection (but still without human interaction). Regardless of your personal preferences, always prioritize your customer’s ideal means of communication over your own.

How much do IVR systems cost?

The remaining factor every manager should consider before choosing their ideal IVR system is their

budgetary means. Like most other types of software, the cost of an IVR software depends on the size of the team it’ll be used to support and the number of features it offers for regular use.

Larger teams can expect to pay more for additional lines and advanced integration features, including things like text-to-speech, order processing, or survey capabilities. Pricing is also affected by whether you prefer to have in-house lines or a hosted IVR. Single in-house lines cost about $1,450 and hosted lines run at about $800 per line, so it’s easy to see why larger corporations budget for tens of thousands of dollars to retain their phone systems. Cloud IVR systems are usually more affordable, since they don’t require new equipment or regular maintenance.

Some brands boast easily customizable IVR packages and often utilize cloud communications. With this kind of system, clients have the option to choose between a server-less contact center platform, which only charges for the time agents are actively using the service or charges a flat rate for seats, regardless of volume, or a more comprehensive package with intelligent IVR flows and no additional coding.

Many small businesses, such as luxury resorts, travel agencies, and other hospitality businesses, prefer using services with cloud-based capabilities. Many of these packages are priced differently by country, and enable clients to create complex call routing procedures with multi-level call flows, starting with basic plans less than ten dollars a month and ranging to $24.99 per user for small businesses. It’s a more affordable option for many smaller and growing teams, and often boasts competitive wholesale call rates and SIP trunking. Similar services offer tiered pricing that decreases with larger teams and is on average about $19.95 per seat per month for fifty to 99 users. These systems are great for businesses that have offices in multiple locations, even across countries. This might include hospitals, auto manufacturers, insurance agencies or other financial services.

The Best IVR Systems of 2023

What are IVR systems?