Which One is Right for Your Business?

For many contact centers and businesses, IVAs (Interactive Virtual Assistants) offer a better way to keep up with customer expectations and demands compared to IVR (Interactive Voice Response) systems. This is mostly due to the fact that IVA tends to offer superior benefits and incorporate more of the latest technologies — including AI-enhanced features, customer relationship management (CRM) integrations, and real-time voice responses with a focus on dynamic call routing and self-service.

Nevertheless, traditional IVR still serves a purpose for the contact centers of many businesses and organizations despite how it can be considered outdated. In any case, before you start using either system at your contact center, it’s a good idea to take a closer look at the differences between them.

IVA vs IVR: What’s the difference?

While IVR uses pre-recorded voice prompts to interact with customers, IVA employs AI to provide personalized voice responses in real-time — just like a real conversation.

With traditional IVR, callers interact by using touch-tone keypads or voice commands to navigate a fixed menu, allowing them to complete basic tasks and find information on their own.

IVA, on the other hand, is a more advanced technology that uses AI and natural language processing (NLP) to provide personalized responses to callers. It uses natural language understanding (NLU) to process and understand what callers are saying, thus allowing it to provide a more complex response.

Even conversational IVR, which also uses AI and NLP, is not as capable as an IVA. A conversational IVR provides a more user-friendly experience than traditional IVR, but it is not typically able to provide personalized, context-aware interactions like an IVA.

SEE: Discover even more benefits of conversational IVR. 

Five reasons it makes sense to go with IVA vs IVR

Although it’s neither a substitution for live agents nor a one-size-fits-all contact center solution, IVA technology offers a number of advantages over traditional IVR. In particular, there are five noteworthy benefits of using IVAs.

1. Fewer abandoned calls

An IVA helps reduce call abandonment rates by offering more efficient call handling compared to traditional IVR systems. Unlike IVR, which often requires callers to navigate through multiple menu options, an IVA uses advanced AI to quickly understand the caller’s issue, offering more personalized and accurate responses.

IVAs can also offer queue callback options when wait times are high, giving customers the flexibility to reconnect at their convenience. This combination of faster problem resolution and more customer-friendly options leads to lower abandonment rates, better first call resolution, and an overall increase in customer satisfaction.

SEE: Discover three scenarios where customers appreciate queue callbacks. 

2. Less agent turnover

Unlike traditional IVR menus, IVA can handle simple customer inquiries on its own, automating routine tasks and freeing up agents to focus on fewer yet more engaging interactions. This can lead to a more satisfied workforce, reducing call center burnout, decreasing staff turnover, and ultimately reducing the resources spent hiring and training.

SEE: Learn about the main causes of call center burnout and how to avoid them. 

3. Greater customer satisfaction

IVA simplifies and streamlines the customer experience with its AI technology, callback capabilities, and self-service options — all of which serve to improve call queueing times, provide speedier resolutions, and create fewer unresolved issues. Over time, this can lead to higher customer retention rates, greater customer loyalty, and improved customer lifetime value.

4. Expanded self-service abilities

If your contact center handles large volumes of routine inquiries like accepting payments, scheduling appointments, or looking up account information, IVA can take a lot of these tasks off the plates of your human agents. While traditional IVR can help people make payments, IVA can help them complete complex purchases, schedule appointments, file claims, and much more. When customers are able to solve their own problems quickly, they tend to be more satisfied.

SEE: Learn how to set up an IVR payment system. 

5. Increased scalability

With its ability to handle large call volumes and agile technology, IVA solutions enhance scalability by efficiently managing large call volumes without the need for additional human resources. Unlike traditional systems, which may require significant investment in hiring and training new agents to effectively handle peak calling hours, an IVA can quickly adapt to fluctuating demand.

IVA can handle multiple interactions simultaneously, providing consistent support even during high call volumes. This not only streamlines operations but also reduces the time and cost involved in staffing adjustments, enabling businesses to scale more effectively and maintain high service levels without sacrificing quality or customer satisfaction.

When it (still) makes sense to go with IVR

While IVA is ideal for modern contact centers, IVR may still be a better option for smaller contact centers that don’t have a wide array of specializations and departments.

For companies with limited customer service demands or a narrow range of call types, IVR can efficiently route calls to the appropriate departments without the need for extensive setup or advanced technology. It’s also a cost-effective solution for businesses that only require basic functions, such as authenticating callers, directing calls to a few departments. or providing simple self-service options like balance inquiries or store hours.

IVR systems are well-suited for organizations that don’t yet have the infrastructure or resources to implement an IVA. While it may lack the personalization and flexibility of more advanced systems, IVR can still handle a large volume of calls, reducing wait times and offering efficient routing.

However, businesses should be aware of IVR’s limitations, such as the lack of personalization, which can lead to customer frustration and higher abandonment rates if not carefully designed. With thoughtful implementation, IVR can still be an effective tool for basic call management.

Tips to get the most out of IVA or IVR

Whether you go with IVA or IVR, it’s important to be aware of the general best practices to provide a more optimized customer journey, improve customer satisfaction, and help take the burden off your live agents.

• Ensure clear and concise messaging: Keep menus simple and intuitive, with a maximum of five main options and three sub-options. Always include an option to speak with an agent.
• Think like your customers: Design systems based on common customer pain points and questions. Test with focus groups to ensure efficiency and user-friendliness.
• Make it simple to request a live agent: Always provide an easy option to reach a live agent, as some issues may require human assistance.
• Use clear and natural-sounding recordings: Choose realistic voice options or hire a voice actor to ensure smooth, natural interactions with customers.
• Offer multiple languages: Include language options to accommodate diverse customers and improve satisfaction.

How to improve IVR or add IVA to your call canter

If you already have a call center IVR, enhancing it with an Intelligent Virtual Assistant (IVA) can streamline operations and improve customer service.

Start by choosing a business phone service or call center software that integrates with IVR and IVA technologies. These platforms offer features like smart call routing, sentiment analysis, and voice biometrics, which can help automate processes and personalize interactions.

Integrating with CRM systems is crucial, as it allows agents to access customer data for more efficient and personalized service. Payment gateways can also be added for secure self-service transactions, reducing agent workload.

Key technologies for IVAs include natural language processing (NLP) for understanding customer queries, speech recognition for voice processing, and sentiment analysis to gauge caller emotions. Smart call routing ensures efficient call distribution, improving first call resolution.

By selecting the right vendors and technologies, you can enhance your IVR and IVA capabilities, improving both customer satisfaction and operational efficiency.