What Is Interactive Voice Response (IVR)? | IVR Meaning
IVR allows customers to interact with your company through a phone menu system, which speeds up the process of resolving issues and improving customer satisfaction. If you’re interested in learning more about how IVR can benefit your business, keep reading.
In this blog post, we’ll discuss IVR’s basics and explain how it can help improve your restaurant operations. We’ll also provide some insights on the benefits and the costs associated with implementing this restaurant technology.
So whether you’re considering using IVR or are just curious about what it is, read on!
IVR Meaning: What Is Interactive Voice Response (IVR)?
Interactive voice response (IVR) is a technology that allows humans to interact with a computer system through voice and touch-tone keypad inputs. IVR systems are commonly used in the restaurant industry, hospitality industry, call centers, and customer service applications. They automate repetitive tasks such as handling customer inquiries, providing account information, and processing orders.
You can also use IVR systems for other purposes, such as interactive voice menu systems, phone banking services, and emergency hotline services. IVR systems typically use pre-recorded or text-to-speech responses to guide users through the available options. Users can input their choices by pressing keys on their touch-tone phone keypad or speaking specific keywords or phrases.
IVR systems can be very simple, with just a few menu options, or they can be quite complex, with multiple layers of menus and sub-menus. It can also be customized to provide a unique experience for each caller. For example, an IVR system for a bank might offer different menu options for customers calling from a personal phone versus a business phone.
In restaurants, an IVR system helps manage customer orders and payments. This system takes orders over the phone and then routes them to the appropriate kitchen staff. It can also take payments over the phone and provide a confirmation number to the customer.
Interactive voice response systems are generally used to save time and money by automating tasks that would otherwise require human interaction. IVR systems can handle high call volumes efficiently and free up customer service representatives to handle more complex tasks. Additionally, IVR systems provide a consistent customer experience regardless of the time of day or day of the week they call.
Example of Interactive Voice Response System
Some examples of interactive voice response systems include the following:
- Movie theater showtimes, directions to the theater, and hours of operation
- Mobile phone company self-service, customer service, sales
- Bank and stock account balances and transfers
- Medical records transcribed using an IVR system
- Self-service sales order forms via the phone keypad
- Simple order entry transactions
- Taking orders or reservations
- Selective information lookup
- Call center forwarding
- Marketing surveys
- Office call routing
Interactive Voice Response Technology
What Is IVR Technology?
IVR technology is an automated system that interacts with callers, allowing them to use key presses or voice commands to navigate a menu of options. IVR systems can be used for various purposes, including customer service, sales and marketing, and emergency response.
When used for customer service, IVR systems can automate many tasks normally handled by a human agent, such as taking orders, providing account information, or resetting passwords. This can free agents to handle more complex issues and improve overall efficiency. In addition, IVR systems can often provide a better caller experience than live agents, offering 24/7 availability and faster resolution times.
Sales and marketing teams can also use IVR systems to automate their outbound calling processes. For example, an IVR system can make appointment reminder calls or conduct market research surveys. Additionally, IVR systems can be used for emergency response, such as sending out automated alerts in the event of a natural disaster or issuing AMBER Alerts for missing children.
Interactive Voice Response Benefits
There are many benefits of using an IVR system, including the following:
- IVR ensures a drop in cart abandonment rate: One of the main benefits of IVR is that it helps reduce the abandonment rate. This is because customers who can quickly and efficiently resolve their inquiries are less likely to hang up the phone or leave the website before purchasing.
- IVR leads to a decline in human errors: IVR helps reduce human error. This is because the system handles all calls, so there is no need to manually input data or deal with customer queries. This leads to a more efficient and streamlined operation and reduces the potential for mistakes.
- Improved customer service: IVR systems improves customer service by providing customers with self-service options and reducing wait times.
- Improved accuracy and efficiency: IVR systems help improve accuracy and efficiency by automating order taking and payment processing tasks.
- Increased restaurant sales: IVR systems can help increase restaurant sales by upselling (learn how to upsell here) and cross selling through the IVR system.
- Reduced Customer Wait Times: IVR systems minimize customer wait times by automating order and payment processing tasks.
- Improved Order Accuracy: IVR systems can help improve order accuracy by automating the ordering process.
- Provide Customers with Self-Service Options: IVR systems can provide customers with self-service options such as the ability to check order status or make changes to their orders.
- Track Customer Call Patterns and Preferences: IVR systems can help restaurant managers track customer call patterns and preferences, which can be used to improve the customer experience.
- Improved Customer Service: IVR can help businesses provide better customer service by automating tasks such as call routing and handling customer information.
- Reduced Costs: An IVR system can help reduce the costs associated with managing phone calls. This includes the labor cost, overhead expenses as well as the cost of restaurant equipment and facilities.
- IVR enhances customer satisfaction: Another benefit of IVR is that it improves customer satisfaction levels. This is because customers can get the information they need quickly and easily, without having to wait on hold or speak to someone who may not be able to help them. In addition, IVR systems can offer a range of self-service options that allow customers to resolve their inquiries without needing to speak to a customer service representative.
Is IVR the Same as Voice Ordering for Restaurants?
IVR, or Interactive Voice Response, is a technology that allows customers to interact with businesses and organizations using voice commands. IVR systems are commonly used in call centers and customer service applications. They can be used to perform various tasks such as taking orders, making appointments, or providing information.
On the other hand, voice ordering systems for restaurants are one type of application that can make use of IVR technology. Customers can call a restaurant and place their order using voice commands, which the IVR system will relay to the restaurant staff. This can be a convenient way to place an order, especially if the restaurant is busy or the customer cannot speak to a staff member directly.
There are many other potential uses for IVR technology, and it is often used in conjunction with other systems such as automated call distribution (ACD) and computer telephony integration (CTI). IVR is a valuable tool for businesses and organizations of all types.
Frequently Asked Questions About Interactive Voice Response
What Is Interactive Voice Response, and How Does It Work?
Interactive Voice Response (IVR) is a technology that allows a computer to interact with humans through voice and DTMF tones input via a keypad. IVR systems work by playing pre-recorded audio messages to callers and waiting for them to respond by pressing keys on their phone’s keypad. The IVR system will route the call to the appropriate destination based on the caller’s response.
How Much Do IVR Systems Cost?
The average cost of an IVR system can vary depending on a number of factors, such as the features and complexity of the system, the size of the business, and whether the system is hosted on premise or by a service provider. However, most businesses can expect to pay between $500 and $5,000 for an IVR system. Not sure what is on premise? Take a quick read.
What are the Different Types of IVR?
There are two main types of IVR systems: inbound and outbound. Inbound IVR systems are typically used to automate customer service interactions, while outbound IVR systems are used for automated marketing or sales calls.
What Is an IVR Payment?
An IVR payment is a type of automated payment that allows customers to make payments using their phone keypad. This payment type is convenient for customers who do not have computer access or prefer to use the phone to make payments. To make an IVR payment, customers call the phone number associated with the company or service and follow the prompts to enter their payment information. This type is typically used for recurring payments, such as monthly bills or subscriptions.
Why Is IVR Important?
IVR systems are important because they provide a way for businesses to automate customer interactions. This can save the company time and money, while also providing a better customer experience.
If you’re thinking of implementing an IVR system for your business, our team at Order One is here to help.
Order One is our innovative optional voice ordering software solution for your restaurant. It offers an easy-to-use ordering interface for your staff or third-party agents, full channel availability (delivery, takeout, curbside pick up for restaurants, and group or catering sales for event venues).
It integrates into existing systems (POS system, payment processing software) and leverages interactive voice response (IVR) technology to drive more customers to digital channels for optimal revenue generation. Contact us today to learn more about how we can help you boost your business with this communication tool.