People used to think that classic IVR was the best way to automate phone calls, but now it only works in certain situations, including when you need to enter numbers or get basic information. It fails to handle more complex tasks, such as adapting caller journeys based on intent, and still relies on outdated keypad-based navigation, leading to a frustrating experience for 61% of users.
Conversational IVR, powered by voice control, makes interactions more natural and human-like by providing information, qualifying callers, and understanding what they want and how they feel, so journeys can be personalized and human agents can step in when needed.
Continue reading to discover additional benefits of conversational IVR and learn how to incorporate them into your overall customer experience strategy.
Conversational IVR is an automated telephony system that uses NLP to interpret and respond to human speech, allowing for natural, two-way conversations. Most of the time, this technology is utilized to answer incoming calls.
Here’s an example of how conversational IVR functions for insurance providers:
Caller qualification data collected throughout the conversation is instantly synchronized with your CRM or LMS systems, allowing call agents to step in with full context and personalize their approach from the very beginning.
Because callers must go through annoying menu systems to reach their intended destination, traditional IVRs often seem sluggish and rigid. There is frequently no assurance that they will arrive at all.
When this is paired with a lack of personalization, something that 67% of customers expect, it significantly increases the risk of delivering a poor customer experience and negatively impacting satisfaction levels.
Still, despite its shortcomings, a standard IVR can remain useful in certain scenarios. One simple example is entering numbers, which is typically easier with keypad keys than with voice instructions.
Book a demo to learn more about Phonexa’s IVR.
When configured correctly, IVR software enables you to resolve certain calls without involving human agents. For calls that do require human intervention, handling times are reduced because IVR-collected qualification data allows employees to start conversations with the proper context.
If your audience speaks multiple languages, introducing conversational IVR can significantly improve communication with your brand. Thanks to NLP, the system can recognize various languages and localize its responses, helping callers feel valued while also boosting conversion.
With AI integration, IVR can interpret caller intent and adjust call journeys in real time. For instance, when a caller inquires about solar installation pricing, the system delivers the relevant information and continues the interaction naturally, without forcing the caller back to the main menu.
Conversational IVR, like other AI-powered systems, is improving by leveraging real conversations as a basis for training. With every call, the system becomes better at qualifying inquiries, improving accuracy, and ultimately driving higher customer satisfaction.
Conversational IVR data is a crucial part of successful omnichannel strategies because it can influence consumer interactions beyond live-agent conversations. For instance, if the system identifies purchase intent, you can follow up with a promotional email offering a discount code to encourage conversion.
Here are some of the most important things that IVR systems may assist your organization with:
To build effective caller journeys, it’s important to categorize your callers’ questions into the following groups:
Important: This step requires call transcription or recording software, such as Phonexa’s Cloud PBX, to access and analyze historical call data.
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When configuring your IVR, make sure conversations begin with open-ended questions. For example, a simple “How can I help you?” encourages callers to clearly express their intent right away, placing IVR in the correct context.
Next, design caller journeys that:
Equally important is having the right logic in place for situations where the system cannot understand the caller. This might include asking for further information or developing “escape hatches” that let call agents jump in before the chance is gone.
At this point, you should get samples of what customers say in surveys, live calls, or chats to help your IVR’s natural language understanding (UNL) engine learn. Simply put, the more data you provide, the more intelligent your IVR becomes.
Also, be sure to provide samples with diverse speech patterns and accents so that the system works well for everyone who calls.
Here are the main ways to make answers for your chat IVR:
| Method | Description | Best for |
| Professional voice recording | Record professional voice actors in studio environments to achieve the highest possible audio quality. | Enterprises that require a distinctive brand voice to stand out in the market |
| Text-to-speech (TTS) generation | Transform text into speech using AI voice platforms such as Google or Amazon to produce a clear but more generic voice agent. | Systems that include numerous prompts and frequently updated content |
| In-house recording | Record scripts using your own voice or an employee’s voice with a good microphone. | Internal tools or small businesses focused on cost efficiency over premium sound quality |
To maintain a consistent voice across both pre-recorded and AI-generated lines, you can either rely on TTS for the entire script or develop a custom neural voice, such as by training Google’s Custom Neural Voice (CNV) model.
With API technology, conversational IVR can seamlessly exchange data with other systems, enabling time-saving automation and supporting broader omnichannel marketing efforts.
Below is just a small sample of the solutions your IVR can integrate with:
Once your organization has set up conversational IVR, you need to ensure it works as intended. This can’t be done without extensive testing.
Your testing process should include:
Useful tip: Test IVR’s voice recognition in different environments, such as with background music, wind noise, or overlapping conversations, to ensure strong real-world performance.
Once IVR is up and running, it’s important to monitor its key performance indicators (KPIs), including abandonment rates, customer satisfaction metrics, and call recordings.
You can find friction spots in caller journeys and get rid of them using systematic A/B testing by looking at this data:
Pro tip: Testing one variable at a time helps pinpoint the exact changes that deliver results, allowing you to fine-tune your marketing efforts more effectively.
While this article primarily focuses on how conversational IVR manages inbound calls, the technology is equally applicable to outbound calls used for updates and notifications:
When it comes to employee-facing IVR applications, the most common use cases involve resolving HR-related or administrative questions, such as “How many paid holidays do I have left this year?” or “Where can I update a client’s status?”
You may also use conversational IVR in affiliate marketing programs, especially those focusing on pay-per-call.
In this setup, conversational IVR handles call qualification based on user attributes or conversation duration. For instance, advertisers may choose to pay only for callers who remain on the line for longer than one minute.
Once a lead is qualified, it must be routed to a caller distribution system, which is available through Phonexa’s Call Logic, our core solution built specifically for advanced call management:
When improving conversion outcomes across channels, inbound calls are only one part of the picture. To fully optimize how inbound demand is handled, you also need to incorporate web leads into your workflows. With LMS Sync, Phonexa’s lead management solution, you gain complete control over lead distribution and handling, supported by built-in fraud prevention and compliance capabilities.
LMS Sync brings all lead data into a unified dashboard, allowing teams to track where each lead originated, see how prospects interacted with your touchpoints, and access key metrics that inform your qualification and conversion strategies.
Here’s a look at how Call Logic and LMS Sync assist actual businesses:
Here are the two core solutions included at a single subscription price:
| LMS Sync | Lead management software |
| Call Logic | Call tracking and distribution platform |
Additionally, you get six supplementary features to enhance your core solutions:
Phonexa’s solutions are built to operate within a unified platform, minimizing the need to stitch together multiple tools and simplifying how data flows across tracking, distribution, and analytics.
“We have eight products in one, and no other platform for affiliate marketers and advertisers offers such comprehensive capabilities in a single suite. You can not only handle call tracking and distribution, but also lead tracking, lead distribution, and traffic-based tracking across all campaigns. Regardless of how you work with other entities, our platform allows you to track virtually any customer interaction and provides closed-loop reporting, even when multiple parties are involved.” – Talar Malakian, during the Revolutionizing B2B Marketing podcast
Book a demo today, and grow your business using Phonexa’s performance marketing solutions.
An IVR (Interactive Voice Response) system is an automated phone solution that guides callers to their desired destination via keypad navigation through decision trees. With AI integration, IVR can recognize spoken language and deliver AI-generated responses, an experience preferred by 66% of customers.
After acquiring the IVR system, integrate it into your platform, configure the API, and complete the necessary prerequisites. Then you can set up the IVR voice, design caller journeys, and thoroughly test the system until it is ready for deployment.
No, professional voice recordings are not strictly required. You can utilize cost-effective alternatives such as in-house recordings or Google’s text-to-speech (TTS) service. But for bigger businesses, it’s a good idea to hire experienced voice actors to record both scripted and AI-generated replies. This will help them build a unique and memorable brand voice.
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