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What Is IVR and How Does It Work?

What Is IVR and How Does It Work?

When we call a business seeking assistance for something, in most cases we’ll reach a customer service department. The goal when calling these call centers is to find someone who can assist you with any issue or matter that you‚Äôre calling about. To get a person on the phone line who is more experienced in the issue at hand can be a godsend. Many companies across the United States, ranging from property management companies to Fortune 500 beverage distributors, utilize call center services as their front line for customer service. In 2018 alone, there were a recorded 7,400 call centers in the United States, which employed 50 or more call center workers in each. The call center industry as a whole employed approximately 2.3 million workers in that same year.

In some cases, the wait time to get to a call center representative can belong. In a lot of cases, though, customer service departments have installed technology that will allow you to get to a virtual representation in a timely fashion. One piece of technology which allows for a seamless and clear phone call experience for both the caller and customer service rep is IVR (interactive voice response). We’ll discuss what IVR actually is and how it works.

What is IVR?


IVR technology has helped the call center industry immensely. This tech is a self-service technology that allows customers a way to get in touch with a contact center with minimal effort. This can be done through the utilization of a touch-tone keypad or voice input. The thing which separates IVR technology from many other call center software is that it gives a customer the ability to solve the most basic issues by themselves. Though a call center representative is always there to assist the customer if need be, IVR call center technology gives a caller greater freedom in navigating the calling environment and answering their questions.

Providing a caller with the ability to perform such navigation gives them greater satisfaction with their call experience. Let’s say, for instance, that a caller dials the call center for a property management company. They are seeking a guide for managing a rental property, and they have a few questions. With the IVR system, they can navigate software that allows them to find information on a host of property-related questions. Maybe they have other questions about a specific rental property, a lease agreement, the amount of a history of mortgage payments, or the vacancy rate of a set of short-term rentals they have their eye on. A properly set up IVR system will assist a caller with such questions and much more.

How does IVR work?

IVR systems help to cut down on hold times for a caller. The way that this occurs is by one of two methods: voice recognition technology and dual-tone-multi frequency signaling (also called DTMF). With DTMF signaling, a connection is established between the phone and the computer when callers use the keypad on their phone. Using such touch tone tech, what occurs is intelligent call routing. IVR allows this to take place without the need for a call center representative.

Conversational AI is also another method for how IVR works. Such technology can make a faster, and better, call experience for callers. This computer technology is able to understand and process full sentences. This prevents awkward call experiences where a caller’s word choice is limited by the system allowing only specific voice prompt commands. Such a system can help large companies like Pacific Private Money, which might receive a deluge of customer calls on a regular basis.

Callers who reach companies like these might call inquiring about mortgage investments, rental businesses, lease agreements, investment properties, Invesco mortgage capital, investment opportunities in San Francisco, and even how to lower costs on residential rental properties. Through utilizing IVR technology like DTMF and voice recognition technology, this private lending and investment firm will have a great way of providing quality customer service to their callers.

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