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 mainly due to the fact that IVA tends to offer superior benefits and incorporate more of the latest technologies, including enhanced AI features, customer relationship management (CRM) integrations, and real-time voice responses with a focus on dynamic call routing and self-service.

However, traditional IVR still serves a purpose for the contact centers of many businesses and organizations even though it may be considered obsolete. In any case, before starting to use any of the systems in your contact center, it is worth taking a closer look at the differences between them.

VAT vs IVR: What is the difference?

While IVR uses pre-recorded voice prompts to interact with customers, IVA uses artificial intelligence to deliver personalized voice responses in real-time, 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 artificial intelligence 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, 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 a traditional IVR, but typically cannot provide personalized, context-aware interactions like an IVA.

SEE: Discover even more benefits of conversational IVR.

Five reasons why it makes sense to opt for IVA over IVR

While not a replacement for live agents or a one-size-fits-all contact center solution, IVA technology offers a number of advantages over traditional IVR. In particular, there are five notable benefits of using VAT.

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 when it suits them. This combination of faster issue 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 queued callbacks.

2. Less agent turnover

Unlike traditional IVR menus, IVA can handle simple customer queries on its own, automating routine tasks and freeing agents to focus on fewer but more engaging interactions. This can lead to a more satisfied workforce, reduce call center burnout, decrease staff turnover, and ultimately reduce resources spent on recruiting and training.

SEE: Learn 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 artificial intelligence technology, call-back capabilities, and self-service options, all of which serve to improve call queue times, provide faster resolutions, and create fewer unresolved issues. Over time, this can lead to higher customer retention rates, greater customer loyalty, and better customer lifetime value.

4. Expanded self-service capabilities

If your contact center handles high volumes of routine inquiries, such as accepting payments, scheduling appointments, or looking up account information, IVA can remove many of these tasks from 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 can solve their own problems quickly, they tend to be more satisfied.

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

5. Greater scalability

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

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

When it (still) makes sense to opt for IVR

While IVA is ideal for modern contact centers, IVR may still be a better option for smaller contact centers that do not have a wide range of specializations and departments.

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

IVR systems are suitable for organizations that do not yet have the infrastructure or resources to implement an IVA. While it may lack the customization and flexibility of more advanced systems, IVR can still handle high call volumes, reducing wait times and offering efficient routing.

However, businesses should be aware of the limitations of IVR, such as lack of customization, which can lead to customer frustration and higher churn rates if not carefully designed. With a well thought out implementation, IVR can still be an effective tool for basic call management.

Tips to get the most out of VAT or IVR

Whether you opt for IVA or IVR, it's important to know general best practices to deliver a more optimized customer journey, improve customer satisfaction, and help ease the burden on your live agents.

• Ensure clear and concise messages: Keep menus simple and intuitive, with a maximum of five main options and three sub-options. Always include an option to speak to an agent.
• Think like your customers: Design systems based on common customer questions and pain points. Test with focus groups to ensure efficiency and ease of use.
• Simplify applying for a live agent: Always provide an easy option to contact a live agent, as some issues may require human assistance.
• Use clear, 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 VAT to your call center

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 intelligent call routing, sentiment analysis, and voice biometrics, which can help automate processes and personalize interactions.

Integration 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) to understand customer queries, speech recognition for voice processing, and sentiment analysis to measure caller emotions. Intelligent call routing ensures efficient call distribution, improving first call resolution.

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