Manage Business Customer Relationships with Personalized IVR Solutions for Increased Profitability

In today's consumer-driven market, companies must allocate more resources to building and maintaining customer relationships. According to the Hubspot report on customer expectations, 79% of consumers value personalized service over personalized marketing, and 84% are willing to spend more money for excellent experiences.

As per a report by Research And Markets, the worldwide Interactive Voice Response (IVR) Systems market, which was valued at US$4.2 Billion in 2020 during the COVID-19 pandemic, is expected to expand at a compound annual growth rate (CAGR) of 7.9% during the period 2020-2027 and attain a revised market size of US$7.2 Billion by 2027.

To meet the demands for exceptional customer experiences, companies must prioritize managing their customer relationships, which can be achieved through the implementation of an IVR Solution. Strong customer relationships are crucial for building customer loyalty and retaining existing customers.

This requires understanding what it takes to provide top-quality customer relationships and create outstanding experiences with your customers in every interaction facilitated by the efficient installation of the tools such as interactive voice response (IVR) systems and CRM software.

In this article we shall cover how to get IVR solutions personalized for specific needs and how they leverage it to effectively manage customer relationships. First, let’s go through the overview of what an IVR is and how it works.

What is an IVR (Interactive Voice Response)?

Interactive Voice Response (IVR) is an automated voice system that simplifies customer segmentation and routing. It allows customers to make choices by pressing keys on their phone. IVR solutions have become an integral part of modern business operations.

Moreover, it is a technology that has transformed voice interactions, and despite its simplicity, IVR solutions have been applied in various industries such as healthcare, mobility, and customer support. They allow customers to interact with a business through a pre-recorded voice menu or touch-tone keypad.

Interactive Voice Response (IVR) is a cloud telephony technology that automates services and inquiries, making them accessible to the public around the clock. This way it conserves employee resources while saving businesses’ money. An effective IVR system can be an invaluable asset to your company.

Previously, interactive voice systems were limited to manual phone calls and responses via numeric keypads. However, with the advent of artificial intelligence, the current generation of IVR technology for businesses incorporates voice recognition, machine learning, and caller analytics.

How does the IVR System work?

Interactive Voice Response (IVR) is an automated telephony system that communicates with callers using a combination of voice and DTMF (Dual-Tone Multi-Frequency) keypad touch tones. There are three different ways in which IVR systems work. Let's delve into the technology that powers IVR, starting with the concept of DTMF followed by the one with speech recognition and the AI-powered IVR solutions.

DTMF, which stands for Dual Tone Multifrequency or touch-tone, refers to the tones generated when you press the buttons on your phone's keypad. Each key on the phone is associated with a specific frequency, such as 1209 Hz and 697 Hz for the number 1. You can find the frequencies for other digits here if you're interested.

When you make a selection through IVR on your phone, the corresponding frequencies are transmitted through the phone line to the IVR system. It then decodes the frequencies to determine which key was pressed. Depending on the selection made, different actions are triggered, such as playing the next IVR message or routing the call to the appropriate destination. Modern phone systems typically come with automated DTMF encoders.

Furthermore, Interactive Voice Response (IVR) systems with speech or voice recognition capabilities provide callers with a seamless and improved customer experience by enabling them to navigate the IVR menu with ease, using their voice and in any language.

With AI-powered IVR solutions, customers are no longer constrained by pre-set menu options, as the system attempts to understand the caller's intent and direct them to the appropriate information. This approach provides greater flexibility and customization in customer service, which can help businesses meet the needs of their customers more effectively.

Managing Customer Relationship with Personalized IVR Solutions:

IVR systems facilitate a high degree of personalization, fostering stronger relationships with customers. They offer extensive personalization options that can help businesses build better relationships with their customers.

These systems can be customized to greet known callers with personalized messages, using caller ID information or a cloud telephony system with CRM integration. The system can also identify and share additional information specific to the caller, creating a more personalized experience.

Companies that prioritize digital interactions with customers have set a new standard for personalized service. This includes providing tailored recommendations and allowing customers to easily return to a previous interaction without navigating complex menu hierarchies or re-entering personal information.

As a result, customers now expect other companies to offer a similar level of customization. IVR solutions can help companies achieve this higher level of personalization in various ways.

IVR systems can be programmed with several language options tailored to specific clients or callers, which is crucial for companies operating in multiple countries or looking to expand globally. In addition, businesses can record personalized greetings and include appropriate prompts to transfer callers to the appropriate department, making it easy for customers to navigate the system and get the assistance they need.

For instance, biometric authentication technology can use a caller's voice to quickly and efficiently verify their identity. Some companies, like an airline, now use IVR to welcome frequent flyers by name. Additionally, one financial institution adapts the IVR menu options presented to customers based on their individual call and transaction history.

If a payment transaction has recently failed, for example, the IVR can offer solutions to address the issue immediately after authentication. These types of personalized features can significantly enhance the customer experience and ultimately improve customer satisfaction.

How to Get IVR Solutions Personalized to Specific Business Needs?

With competition increasing every day, businesses need to focus on delivering personalized experiences to their customers to stay ahead of the curve. One of the best ways to achieve this is by using personalized IVR solutions. IVR systems are commonly used for customer service, support, and sales purposes. By using personalized IVR solutions, businesses can create a more engaging and customized experience for their customers.

Here is how businesses can get IVR solutions that are personalized for their needs:

Define your business needs: The first step is to understand your business needs and what you want to achieve with the IVR system. Identify the customer touchpoints where you want to use IVR and the type of interactions you want to enable.

Find a reliable IVR solution provider: Look for a reputable IVR solution provider that can offer personalized solutions tailored to your business needs. Check their credentials and customer reviews to ensure they have a proven track record of delivering high-quality solutions.

Work with the provider to create a customized solution: Once you have found a reliable provider, work with them to create a customized solution that meets your business needs. The provider should be able to offer features such as custom voice prompts, call routing, and integration with your CRM system.

Now that you have your personalized IVR solution in place, you can leverage it to manage customer relationships and increase profitability by providing seamless customer experience, personalized interactions, improving efficiency and gaining customer data and insights to identify the areas where you need to improve and optimize your business operations.

The Bottom Line:

IVR technology saves labor costs and optimizes resource utilization, automating routine customer interactions and allowing focus on more complex tasks. High call volumes are handled without delays, enhancing customer satisfaction and improving retention rates for increased profitability.

Knowlarity's IVR solution can help you create a personalized experience for your customers that is customized to their individual needs at any point in their journey. With the ability to modify call flows and prompts in real-time and use customized personas based on insights into each customer's journey, you can take your customer relationships to the next level.

Contact Us to know more about how personalized IVR can become the foundation of your customer relationship.