Out of 15 IVR Best Practices, You Only Need These 7

Interactive Voice Response (IVR) systems are like digital receptionists—they help customers and agents alike by automating phone system tasks and providing useful information to callers. When it comes to IVR, there’s a lot of info out there about strategies, tips, and best practices. But there are only seven IVR best practices that truly matter when it comes to improving your system and optimizing each caller’s experience.

Implementing advanced IVR strategies won’t only streamline your call center operations, but it will also show your customers that you prioritize the quality of their experience. In turn, you can improve key call center metrics and ultimately, your bottom line.

1. Offer personalized greetings

Nobody likes to call a company and get a robotic, impersonal greeting. So if you’ve been using a generic voice for your IVR system, it may be time to make a change. Offering a personalized greeting will help callers feel more connected to your company and comfortable interacting with your IVR system.

To create a personalized IVR experience for callers, you’ll want to make sure that the welcome message is based on caller data. For example, when a customer calls, instead of hearing a generic greeting like “Welcome to ABC Company,” the IVR system could say “Hello Rachel, welcome to ABC Company.”

This small change can make a big difference in how customers perceive your company. With CRM integration, an IVR can use caller data, such as the caller’s name or phone number, to identify and greet callers by name.

Personalized greetings enhance the customer experience by making interactions feel more personal and less mechanical. They can significantly improve customer satisfaction rates, one of the key call center KPIs.

This strategy can make call routing more efficient, as personalized menus can be based on the customer’s history, which potentially reduces call handling time.

SEE: Learn how effective (or ineffective) call routing can impact your brand. 

How to implement personalized greetings

To get started with adding personalized greetings in your IVR system, follow these steps:

1. Integrate your IVR and CRM: Your IVR system should be linked with your CRM or other relevant customer databases. This allows you to retrieve real-time data about callers.
2. Choose the best call center software: Your software should be capable of real-time data retrieval and processing. It should also allow for the seamless integration of your IVR and CRM systems.
3. Design a personalized IVR script: Use caller data such as phone numbers, previous interactions, and customer profiles to tailor greetings to each caller. Design your IVR script to include these personalized elements.
4. Test and tweak regularly: Once your system is set up, you’ll want to test it regularly and make necessary adjustments to ensure optimal performance. Start by thoroughly having your team test the system, and then identify any areas for improvement.

If you’ve never done it before, check out this post about how to create an IVR recording.

Mistakes to avoid

While personalized greetings can be beneficial, there are some common mistakes that businesses make when implementing them:

• Using incorrect data: Make sure the data used for personalization is accurate and up-to-date. Outdated or incorrect information can make your customers feel like you don’t actually care about them.
• Being too casual: While personalizing your IVR system helps create a relational environment, you also want to maintain a professional tone. Avoid using slang or informal language.
• Not testing the system: If you don’t take the time to test IVR updates before going live, you may experience unexpected errors and inconsistencies.

Remember, the goal of this strategy is to leverage customer information to provide context-specific options and greetings that make your caller feel valued and appreciated. Without reliable IVR testing and or seamless CRM integration, it will be impossible to do this well.

2. Implement smart routing features

Routing is the structural foundation of your IVR system. It’s the process of connecting callers to the right agents or departments based on their needs and queries. And while you may think this is a basic feature, there are advanced IVR routing types available that will make call flows more efficient and ultimately create a better customer experience.

Smart routing features in IVR systems use AI and data to direct calls to the best agent or department for your caller. IVR systems included with the best call center software can analyze caller input, previous interactions, and even sentiment or tone to decide the best routing path.

Implementing or optimizing a routing system can create a huge reduction in call handling time, which is a vital KPI for any call center. It also improves the customer journey by reducing transfers and wait times, which ultimately leads to happier customers..

For agents, it also reduces the stress of handling complex queries outside their expertise.

With skills-based routing, you can specifically direct calls based on the agent’s skills, availability, or area of expertise. You can also elevate and more quickly route high-value customer calls to live agents, ensuring your best customers are quickly directed to your best agents.

Learn more about the forefront of smart IVR technology in my post about advances in call center AI.

How to implement smart routing

It’s relatively easy to set up an IVR smart routing system. But to dig into the more advanced options that allow you to fully optimize IVR call flows, follow these steps:

• Map out customer journeys: Get a clear picture of your customer’s journey by studying your CRM data, call logs, and conversations between agents and customers.
• Identify key segments: Look for common traits or markers among different types of calls. For example, you may notice that most billing inquiries come from a specific demographic or region.
• Group agents and skills: Determine which agents have the necessary skills, knowledge, or experience to handle specific types of calls.
• Set up routing rules: Create rules that direct certain calls to designated groups of agents based on their skills or customer needs.
• Monitor performance: Keep track of call distribution and agent performance to regularly reassess and adjust routing rules as needed.

When in doubt, you can refer to your IVR provider’s knowledge base or customer support team to guide you through the setup process and provide customized recommendations for your business.

Mistakes to avoid

Avoid making the routing paths too complicated as it can confuse the system and lead to incorrect routing. While IVR systems are quite intuitive, complicated setups may cause delays or system errors.

Also, don’t neglect regular system updates and maintenance. If you’re not running on the most recent operating system or haven’t updated your IVR software in years, you are asking for trouble. Regular use of IVR testing tools will ensure that your system is up-to-date, secure, functionally integrated, and capable of handling major spikes in traffic.

3. Add Natural Language Processing (NLP) technology

Natural language processing allows computers to understand and interpret human language. There are many use cases for NLP, and more companies are adopting the technology as advances in AI reduce both its cost and complexity.

In call centers, NLP technology integrated into IVR systems helps customers interact using their own words rather than pushing buttons. A caller may say “I want to make a payment” instead of pressing “1” for billing, which makes the experience feel more personal and intuitive.

A true conversational IVR can also understand the context of a conversation and remember previous interactions, which helps with more complex queries. Adding NLP to your IVR system can be a valuable investment for your call center. Here are some benefits:

• Improved user experience: Customers feel more relaxed when they can talk naturally and have their needs met.
• Reduced call durations: As customers use natural language, they’re more likely to get the right information faster, which reduces call duration and improves efficiency.
• Lower agent workload: With complex tasks automated, agents can focus on more critical or high-value calls and build better relationships with customers.

SEE: Discover additional conversational IVR benefits. 

How to implement natural language processing

Integrating NLP into your call center workforce management strategy may seem daunting, but it’s relatively simple with the right IVR provider.

• Collect and process data: Collect as much data as possible, including previous call logs and recorded conversations to train your NLP models.
• Customize for your business: Work with your IVR provider to customize NLP models for your specific business needs.
• Test with various users: Test the system with a variety of customer queries and continuously refine it based on the results. The more diverse the queries, the more accurate and efficient your NLP system will become.

As you can see, implementing natural language processing abilities is all about training the AI, which means that your system will get smarter over time, leading to compounding benefits from this investment. Learn more about how to train an AI model.

Mistakes to avoid

Avoid relying solely on NLP without providing an option for customers to speak with a human agent or use their keypad for inputs.  While natural language processing can subtly detect emotions and respond, it’s not perfect. Therefore, offering an option to speak with a live agent is always important for customer satisfaction.

Keeping a close eye on IVR analytics will help you identify places to improve your NLP-enabled call flows. Dig into each step of the caller journey to see where a conversational IVR is really helping callers and where it needs additional training.

And since this technology is still evolving, regularly train and update your NLP models to stay ahead of the curve. If you don’t, you may risk providing incorrect information or responses to customers.

5. Create multiple on-hold messages

When customers are on hold, you have the opportunity to direct their attention to a company announcement or promotion. But when the same on-hold message plays on a loop, it can be frustrating for the caller, especially if they’re trying to multitask while waiting for an agent.

Instead, add several messages that can offer new information that customers may not have known before. The key is to make sure these messages are actually helpful and provide value to your callers.

Creating multiple on-hold messages means that callers will hear something different each time, whether it’s a helpful tip, a product announcement, or even music. For example, if a caller has been on hold for more than five minutes, they may hear an invitation to follow the company on social media or learn about new promotions.

Adding additional on-hold messages is a small but effective way to improve your call center’s efficiency and customer experience. Here are some benefits:

• Reduced dropped calls: By keeping callers engaged with new information, they’re less likely to hang up and call back later.
• Decreased perceived wait time: Multiple on-hold messages keep the caller’s attention focused on something other than waiting, making time feel like it’s passing faster.
• Increased brand awareness: This is a powerful marketing strategy that allows you to promote your company’s brand and values while customers wait.

It’s a real challenge to get customers to open emails, listen to sales pitches from agents, or open physical mail, so why not use the on-hold time to share information and build relationships? It can save everyone time while making the most out of each customer interaction.

How to implement multiple on-hold messages

Implementing this strategy starts with brainstorming a list of messages that may be useful to the person on the line. You’ll need to dig into your customer profiles as well as their interests and demographics to come up with helpful and effective messages.

Once your team has compiled the list, put a plan in place to rotate through these messages. You may also want to split test and track which message resonates most with callers, or run an IVR survey to gather feedback. Another option is to target special offers or messages to a specific group.

By customizing messages for your audience, your caller will feel like they’re receiving a personally tailored experience, all through the magic and careful preparation of your automated message system.

SEE: Learn how to avoid the six main reasons callers abandon your IVR survey. 

Mistakes to avoid

First and foremost, no matter how many messages you’re broadcasting on the hold line, make sure they’re relevant. If the content isn’t aligned with the needs of your client, your team may experience an uptick in dropped calls or even complaints.

Other common mistakes include playing messages that are too long, have poor sound quality, or feel misaligned with the brand. Make sure your quality and cohesion standards are met, as it’s easy to overlook these small details when getting started.

Using queue callbacks — where customers agree to receive a call back when an agent is ready instead of waiting on hold — can be a wonderful alternative or complement to using multiple hold messages. In many cases, callers prefer a queue callback option as opposed to waiting for an agent to pick up

5. Increase accessibility for all callers

It’s essential to make sure your call center caters to the needs of all customers, whether that means your callers have visual impairments, hearing impairments, or other physical challenges. And your IVR system is capable of making the necessary accommodations.

Visually impaired customers may have difficulty navigating traditional IVR menus and options. But with text-to-speech technology, your system can read menu options out loud to guide the caller through the selection process.

For hearing-impaired customers, offering a chatbot or SMS options can make all the difference. By texting their query, they can receive the same level of support as someone who is speaking on the phone. You might also consider implementing a visual IVR for common queries with multiple steps.

SEE: Learn about other use cases for visual IVR. 

You can also make sure you’re using an IVR system that can easily interface with braille display devices. This allows customers to navigate menus and make selections without needing to hear or see them.

Other accessibility best practices include creating an intuitive IVR phone tree, making sure your selection options are clear, minimizing background noise, and providing the option to repeat menu options. You can even integrate an adjustable speed control which can help those with cognitive impairments process information more easily.

There are several benefits to providing increased accessibility for all callers:

• Shows that you care: By providing communication options for all customers, you show your company’s commitment to inclusivity and diversity while making a real difference in people’s lives.
• Become a preferred choice: By making it easier for anyone to access your services, you create a loyal customer base who will continue to choose your company over competitors.
• Increased efficiency: By providing accessible options and accommodations, you reduce the need for call transfers or additional support channels. This translates into faster resolution times and improved efficiency for your call center.

Organizations are becoming increasingly aware of the importance of accessibility and inclusivity, so implementing these features in your call center adds a modern and helpful touch that will only increase in value over time.

How to implement increased accessibility

Implementing increased accessibility is less about adding one new feature and more about making it a standard practice that applies to multiple aspects of your call center. Here are some steps to follow:

• Start by conducting an audit of your current IVR system and identifying areas for improvement.
• Work with accessibility experts or consultants to ensure that all changes meet compliance standards and cater to diverse needs.
• Train your team on how to navigate accessibility features within the IVR system.

By incorporating these practices, you can provide a seamless and inclusive experience for everyone who engages with your center.

Mistakes to avoid

Many people create features that are meant to improve accessibility, only to find that they’re exclusionary in their way. For example, adding a chatbot option to help hearing-impaired individuals may not be effective if the bot primarily uses voice commands. Learn more about when chatbot call center options work well (and when they flop).

Another common mistake is not ensuring that the accessibility features are easy to navigate and use. If a person needs to follow three additional prompts to reach an accessibility feature, they may simply hang up or opt for a different support channel. Keep an eye on important call center metrics in order to know whether your IVR is working as well as it can for callers.

6. Add IVR-to-SMS functionality

One of the most effective ways to branch into multichannel offerings is by adding SMS functionality to your IVR system. This opens up a whole new realm of possibilities for customer support and engagement in a modern and convenient way. Any good contact center solution will have this option, as will most modern call center software.

IVR-to-SMS functionality allows callers to choose to receive information through a text message while interacting with your IVR, often speeding up the resolution process. It works seamlessly, and the transition from call to text is usually instant.

You can use this technology to field customer inquiries such as appointment confirmations, order updates, account balances, or service requests. The options are endless, and you can customize them to meet the specific objectives of your business and customers.

One common strategy is to use SMS to streamline the IVR authentication process for callers. Instead of having a live agent verify who is calling, you can send a one-time-passcode to callers to enable MFA or 2FA. This ensures that callers have easy access to their data, but it remains secure from bad actors.

The main benefit of adding SMS functionality to your team is reduced handling time, and this reduced time can be significant in comparison to other best practices on this list.

For example, if a customer chooses to receive an update through text message rather than waiting for it on the phone, they can move on with their day.

This also helps agents better manage multitasking by freeing them up to handle other calls while waiting for a text response.

How to implement IVR-to-SMS functionality

If you’re working with one of the best IVR providers, they will be able to set up IVR-to-SMS functionality with ease. You can also opt for a standalone SMS application that integrates with your current IVR system. This allows you to choose the specific features and capabilities that best suit your business needs.

Here are a few steps for getting started:

• Choose a trusted contact center, IVR, or SMS provider that offers reliable and secure service.
• Integrate the SMS application into your IVR system or work with your provider.
• Train your team on how to use this feature or onboard new agents who specifically field SMS communications.

Once implemented, make sure to regularly test and monitor the functionality to ensure it’s working smoothly for both customers and agents. Keep an eye out for updates to ensure everything runs smoothly down the line.

Mistakes to avoid

Avoid overuse of this feature — not all messages are best delivered via text. Also, follow business text messaging best practices to stay out of legal trouble. Ensure customer consent before sending texts to comply with regulations. Lastly, avoid technical jargon in your SMS messages; you want to keep things clear and simple.

7. Simplify your menu options to reduce customer frustration

You may think that creating a simple menu is a beginner’s task, but many call center menus are complex and confusing and require regular optimization. Taking a step back and editing down your options is the best first step before implementing more sophisticated systems.

IVR simplification begins with an in-depth analysis of your current call flows, from the first prompt to agent handoff. You can track and document each level of your menu and determine whether it is necessary or if it can be combined with other options.

For example, if a caller is given the option to speak with a live agent, they may also have options for billing, technical support, and general inquiries. Instead of having separate prompts for each option, you can combine them under one prompt labeled “all other inquiries” or something similar.

Complex menus lead to higher call center queuing times as customers cannot make use of self-service options or require transfers to speak with the correct agent.

Simplifying your IVR menu can bring a lot of benefits to your call center, including:

• A faster and more streamlined customer experience, reducing frustration and increasing satisfaction.
• Easier setup of more advanced IVR optimizations such as speech recognition.
• Improved call routing, reducing misdirected calls and increasing efficiency for agents.
• Potential cost savings by reducing the need for additional prompts or menu options.

Simplifying your IVR menu makes it easier to train agents on the system, and also makes it easier for customers to navigate the menu and find the option they need. This is one of the least expensive ways to improve customer experience for contact centers and call centers.

How to implement IVR simplification

Here are a few steps to follow when implementing IVR simplification:

• Analyze your current call flows and document each prompt and menu option. Notice if any prompts are barely used, as well as which ones customers usually select.
• Pay attention to your customer complaints to identify pain points that can be resolved with a simpler menu schema.
• Combine similar options under one prompt, removing any unnecessary prompts or options.
• Test the new simplified menu with a small group of callers to gather feedback and make any necessary adjustments.

Mistakes to avoid

It’s easy to change too much too fast when updating your IVR menu, which can be confusing or frustrating for both customers and agents. Because of this, it may be best to simplify things one step at a time. This way, you can gather feedback on each change and make sure it’s working as intended before making further changes.