Blog / What Is IVR & How It Is Beneficial For Businesses?

What Is IVR & How It Is Beneficial For Businesses?


July 8, 2022 Arun Upadhyay

What is IVR & How It Is Beneficial for Businesses?

Experiencing high call volumes is the reflection of your expanding customer base. While handling customers’ inquiries, it’s essential for you to deliver a personal touch and address their queries and requirements in no time. To maintain the flow of ongoing calls, you need to have practical solutions that can accommodate your customers’ requirements and satisfy them.

Businesses often face difficulty in sustaining high call volumes and search for some delegation to handle this situation effectively. An interactive voice response(IVR) system not only maintains the flow of calls but also helps businesses form an effective bond with their customers by solving their queries and requirements.

This article will teach you about IVR service and how it benefits businesses. So go through the entire post and learn about IVR solutions in a detailed manner.

Let’s get started…

What Is An Interactive Voice Response(IVR)?

In simple words, we can understand IVR as an automated phone system with call routing capabilities. Its primary function is to enable customers to connect with the computer before connecting to an agent/ call representative. The technology is widely being used in call centers.

IVR systems have become quite popular, and you have probably experienced this communication with virtual assistance by dialing an IVR number through your phone. These systems are highly advanced, and they can efficiently manage inbound calls by collecting relevant information about the customer queries before automatically moving the call to the right agent of the appropriate department.

The working functionality of the IVR system makes it unique. Whenever a customer calls using an IVR number, he hears a prerecorded voice menu, and he can navigate the menu either manually using the keypad or verbally. For complicated queries, the customer automatically gets connected to a concerned agent who can better assist him with his requirements.

We will cover some other significant advantages of using IVR numbers & services and how they are beneficial for businesses. But first, let’s understand the working functionality of IVR systems.

How Does IVR Work?

IVR solutions aim to save time and money by trimming hold time and requiring fewer human resources. There are mainly two components of IVRs that enable the computer to understand and go with callers’ requests. The first one is known as Voice recognition technology, and the other is called dual-tone multi-frequency signaling(DMTF)

DTMF signaling acts as a bridge between the computer and the phone and allows users or callers to select menu options using their phone’s keypad. It is touch-tone technology that offers intelligent call routing without the involvement of human operators.

Voice recognition technology used in IVR platforms enables “directed dialogue,” which means callers have the facility to give verbal responses instead of using the keypad of the phone to navigate the menu. For example, an IVR menu might say, for “New plans,” press three or say plans.”

New Age IVR Systems

Today we have highly advanced IVR systems that enhance the customer experience and make this IVR interaction more natural, interactive, faster, and enjoyable. These advanced IVR services use conversational AI that can quickly process natural language (NPL) Efficiently.

This unique voice recognition technology lets the computer understand and proceed with full sentences rather than limiting a few characters of word choice given by the caller. IVR service with built-in NPL functionality can efficiently answer open-ended questions such as “How may I assist you with today?”

How Are IVR Systems Beneficial For Your Business?

The automatic filtering process of IVR systems makes it unique. With the help of IVR solutions, agents are not required to grab bags whenever they connect with customers. The call representative already has an idea of the issue he will tackle before he answers the customer queries. Agents learn about the query type based on the menu item selected by the caller.

Meanwhile, the caller gets connected with the concerned agent for his queries without wasting time. This means it bypasses the time-consuming and hectic process of being manually transferred by the call representative from one department to another before speaking to a potential agent who resolves the customer’s queries.

Customers don’t like when they experience longer hold time and cannot get connected with the concerned agent. With the help of IVR systems, businesses can easily neglect the enormous cost associated with redundantly long call holding times. Also, they can easily gain the trust of their customers by offering them an instant solution for their queries.

Increase Credibility

IVR systems help you to improve your customer experience by offering auto-call attending features. With the help of this feature, you can increase the trust and credibility of your brand overnight. IVRs play a vital role in brand image building because they are designed to offer consistent, Interactive, well-coming, and onboard greetings to every caller before they get connected with the call representative. This shows your business’s professionalism and boosts your organization’s credibility in the eyes of customers.

Self-Service Customer Service

Regarding consistency, the IVR system will never disappoint you, allowing you to serve your customers even without available customer agents. Callers can access basic information apart from regular business hours or while call representatives are equipped with other calls. With the help of IVR solutions, you can easily craft a well-structured menu that will be capable enough to answer common customer queries. This is the most crucial aspect of IVR as it resolves more trivial calls independently and helps Agents to have more time to proceed with complex requests.

Advance IVR solutions are designed to incorporate with customers efficiently. These systems have biometric capabilities that can equally recognize the customer numbers and answer inquiries accordingly. Anything from acknowledging the caller’s birthday to scheduling an appointment can be easily accomplished without the assistance of a live agent.

Learn More, Save More

In today’s time, the success of any business depends on how a business gathers information about its customer base and resolves their queries. IVR lets your customer interact with a computer before speaking to an agent.

The system is designed to collect, process, and restore a high level of information. The data collected by IVR systems are valuable for your business and help you improve your IVR system.

The systems can efficiently manage customer calls and eliminate the need for more human resources to handle customer queries which help businesses to save money and time.


In a nutshell, we can say IVR technology is quite helpful in several cases. It helps organizations to collect relevant information about the customer and gather valuable insights, run campaigns, take feedback, schedule appointments, send timely reminders, and pass on other information to users. With this modern technology, enterprises have started modernizing their communication with customers and automating their operations which helps them target their market. And it contributes to the growth of the business.

As we can see, IVR service is quite beneficial for businesses, and how it can help a brand gain growth. It is highly recommended to get an IVR service from the top broadcasting IVR service providers that offer reliable services at the most cost-efficient prices. Fonada is one of the most popular IVR companies in today’s time and offers technologically advanced solutions that can boost your productivity.

Frequently Asked Questions

An IVR number is basically a phone number that is equipped with cloud telephony features. The feature is capable enough to handle and routes your client’s calls automatically.


There are three primary purposes for which businesses use interactive voice response.

  • Deflect inbound calls.
  • Enhance the customer experience.
  • Reduce call handling time


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