IVR Year in Review

Historians will remember 2009 for many different reasons although chief among them will likely be the worldwide economic downturn and its effects on business. The IVR industry suffered as much as any, but there were several bright spots throughout the year. Despite some people writing off IVR systems as a mature product on the decline, there were several innovative uses of the technology that will almost certainly sustain it for years to come. Some novel uses include business continuity management systems created and implemented for the H1N1 pandemic (1, 2, 3) and other unforseen catastrophes. There were also many novel implementations of IVR in health care management and delivery including virtual medical clinics, out-patient monitoring and followup/medication reminder services. In addition, academic researchers found potential benefits from the use of IVR by making it easier for test subjects to submit real-time data via mobile phones while outside of the laboratory environment.

Despite the advances and new uses of the technology and potential for future growth in more traditional applications, there are still many common mistakes being made during the design and implementation that need to be addressed in order for companies to fully capitalize on the power of IVR. Several individuals and companies in and outside of the industry have complied very good lists of common problems and other considerations that should be made before rolling out an IVR system (1, 2, 3, 4, 5, 6, 7). By creating lists of best practices and learning from internal mistakes and customer feedback, IVR has potential uses for many years to come. It appears that 2010 will continue to be a difficult time for many companies, but those that work to improve their products and exceed customer expectations should weather the storm and flourish when the economic recovery begins in earnest.

Over the course of the year, this blog has been a work in progress and we want to thank everyone for spending a few minutes reading our posts each week. Please feel free to discuss any of our past or future articles in the comments section. Together we can make this blog and others like it forums for progress and improvement in the IVR industry. All of us at Universal Digital Productions would like to wish everyone a safe, happy and prosperous new year. See you in 2010!

A Voice Actor's Persepctive on IVR Mistakes

IVR technology has improved so much since its first commercial use, it would seem that most common mistakes could be avoided these days. However, as cloud-computing technology has made it possible for much smaller companies to implement IVR and voice recognition systems, common mistakes are creeping back in to the systems. The Techistan blog features a very thorough list of common IVR mistakes that should be avoided during design and implementation of a new system. The list is unique in that it was compiled by Allison Smith, a voice actor with several years of experience recording voice prompts for good and bad IVR systems.

Among the common mistakes, there are several key highlights including the idea of listing the most important menu options first. It seems obvious but Mrs. Smith includes a startling example of poor menu option placement. Another very important concept is pronunciation help in the recording process. Even the best voice actor may have trouble pronouncing unfamiliar/unusual names or trade lingo that might appear in IVR prompts. The actor will do her best to record the correct pronunciations but there is no guarantee without phonetic spellings or pronunciation samples. Perhaps the most basic and important tip is brevity. Most peoples' attention spans are relatively short especially when they are looking for a help or a crucial piece of information through a customer service line. Always put the the most important information first and keep it short and to the point. Most people never realize that they have grown accustomed to doing tasks a certain way but a fresh and different perspective on IVR systems can really help shake out the mistakes that creep in over time.

IVR Usage in 2009 and Beyond

In an effort to gauge the deployment of IVR in business, ContactBabel recently conducted a survey of call centers in the UK and found that an average of 64% of those surveyed use automated systems to initially greet callers. This is down a few percentage points from a peak of 67% in 2007 however it was a dramatic rise over a similar survey conducted in 2004. The many statistics of the survey show that IVR and speech recognition systems are deployed in greater percentages at large companies and those that conduct business in the telecommunications and utility sectors. Small companies and those in the retail and distributions sectors tend to be the least likely to employ automated operator systems. The author of the study extrapolates that although IVR usage is still widespread, it has peaked as a technological solution due in part to poor customer satisfaction scores and the rise of new customer communication tools.

Although it is true that SMS and web-based customer communication are seeing an increase in deployment and functionality for business, consumer access to these technologies is still much more limited than that of traditional touch-tone telephones. Estimates in December of last year approximate that only 54% of Americans are connected to the internet and 33% of those that are not connected have no desire to do change that. Although many Americans are doing away with traditional landlines, more than three-quarters have cell phones. As voice recognition technology improves, so does customer satisfaction for automated call center systems. There will come a time when wed-based support or some other methodology may dominate customer service, but as long as telephones are the most prevalent form of communication among consumers, there will be a place for IVR.

Customer Service Misteps

IVR is a powerful tool in cutting costs for many companies but the systems do not automatically offer improved customer service. Of course, customer service can be improved with a well designed IVR system, but there are always numerous considerations that must be taken in order to implement such a system. Besides the basic and more advanced tips for IVR design, there are several principles of customer service that are just as important as the technical aspects of the system.

CIO Insight has a concise list of the main things for a business to avoid in order to achieve better customer satisfaction. None of the tips specifically address IVR systems, but all are directly related and should be considered in the IVR development process. If an IVR system cannot help a customer solve a problem, it is very important that the live operator the customer is directed to is fully qualified to help and that there are no language or cultural barriers as a result of call center outsourcing. It is also extremely important to not only collect appropriate customer satisfaction data but also to analyze it properly to help improve the automated and live customer service system. The most important consideration is to never take existing customers for granted. New customers are always a goal, but retention and appreciation of existing customers should take priority. Employing and continually improving an IVR system can go a long way to achieving high levels of customer satisfaction.

Skills-Based IVR Routing

Everyone in the IVR industry is well aware of the ability for the technology to reduce costs in a call center by automating some functions while making others self-serviceable for customers. This frees up call center operators to handle more complicated tasks thus saving companies money and headcount in the call center. After implementing such a system, some companies go no further but oftentimes this results in a disconnect between the perception of satisfaction between company management and customers.

One method for updating an IVR system to improve customer satisfaction is the implementation of a skills-based routing procedure. Many companies already employ a simple version of this design which routes English or Spanish speaking customers to the appropriate IVR menus and, if necessary, live operators who speak their language. However, more advanced methodologies can be employed which perform specific customer and problem identification that can be used to route the call to the appropriate department and/or subject matter specialists. Customer satisfaction should be improved by such a design so long as the process involved to reach the appropriate operator is not overly long or complex. Another pitfall to avoid is to require the customer to repeat information to the operator that has already been collected by the IVR system. This results in customers feeling that their time up to that point in the call has been wasted. A skills-based IVR system will cost more to implement but it will also pay dividends in customer satisfaction and retention.

Voice-Based Identification

In our current world of rapid globalization, more business is being conducted over the telephone and internet than ever before with key players often never meeting face-to-face. This allows small businesses to have a larger reach and market than they might have been able to achieve only a few years ago. Unfortunately, there are those in the world looking to fraudulently capitalize on these types of transactions. Companies have to be ever vigilant in the fight against identity theft and payment fraud. Most financial institutions rely on customer-defined PIN numbers, passwords and security questions to verify identity and complete electronic or telephone transactions. Other businesses are just as vulnerable yet they rarely require any kind of verification to complete an order or transaction.

Voice Commerce has developed a platform to provide voice identification, verification and payment services for businesses. The VoiceTransact Trust Center uses voice signature information to identify and verify a customer's identity before allowing a transaction to be completed. Not only can this technology be utilized to reduce payment fraud and identity theft perpetrated on a business, it could also help reduce call center costs by eliminating the time taken by an operator to verify a customer's identity. An IVR system could be implemented to verify the identity of a caller as part of the process of routing the caller to the correct call center operator. This would would allow the call center operator to immediately begin work on the customer's issue rather than having to spend time verifying the caller's identity through security questions and PIN numbers. Voice-based identification technology may not put an end to identity theft and fraud, but it will surely reduce the number of cases and could improve business processes along the way.

IVR Cheat Sheet

Anyone who employs an IVR system in their business knows that customers can feel frustrated and taken for granted when not immediately connected to a live operator to resolve an issue they've called about. In an effort to help businesses make a more user friendly IVR system, angel.com has created the IVR Cheat Sheet for Business. The cheat sheet lists ten key concepts that can help a business create a pleasing and useful interactive environment that will encourage customers to utilize it for self-service and still be satisfied with the results.

The cheat sheet simplifies and summarizes lists created by other IVR specialists and focuses the tips on simplicity and communication. Studies have suggested that users respond better to IVR menus that are not overly complex and achieve results in a short time. It is best to keep the numbers of choices limited otherwise the user will become overwhelmed. Communication with the customer is key. As they are waiting on hold or for data retrieval, information about approximate wait time is important so that customers do not feel that they have been left in limbo. Audience perspective is key when writing an article or delivering a speech so it should also apply to IVR systems. Taking users perspective into account will ultimately help improve overall customer satisfaction.

IVR from Microsoft

As speech recognition software continues to improve, its IVR technology is growing. The days of pressing number keys to navigate menus is coming to an end and voice response systems are becoming more common among companies and more acceptable to consumers. Complicated customer service procedures can now be carried out more easily with the voice response systems than with touch-tone systems, so much so that Microsoft has entered the market.

After the acquisition of the Tellme Networks in 2007, the Speech at Microsoft group was formed to utilize and market the technology. In addition to speech recognition applications in the works for use on home and office PCs, Microsoft recently introduced an outbound IVR system. Besides the standard function of calling customers with important account alerts, the IVR is capable of allowing customers to act upon the alerts through further voice response menus. The system is optimized to work on all common customer communication platforms: telephone, text messaging, email, instant messaging and web browsers. The end result is a highly personalized customer self-service experience. As companies continue to cut costs, they will likely employ more systems like Microsoft's to communicate and do business with their customers.

Real Estate IVR

IVR has proven to have many resource saving applications over the years. Many businesses have learned that implementing IVR systems can allow them to handle and route more inbound calls than they could with only live operators thus maximizing their ability to assist more customers. One such industry that has had very positive results with IVR systems is real estate. A recent study by Baylor University indicates that after personal referrals, IVR systems are the best method for new lead generation in the real estate business.

AdTrakker technology uses an IVR system with a unique phone number assigned to each real estate property. When a prospective buyer calls about a particular property, they are presented with a recorded message about the property and then given the option to be connected to a live agent or leave a voicemail. The AdTrakker system also has the capability to capture a buyer's name, phone number and address. Knowing where a buyer called from allows agents to estimate the buyer's current property value and use that information to identify listings that would be in the price range of the buyer. This concept may seem simple but it illustrates how an IVR system can be used in an uncomplicated manner to achieve excellent results for a business.

IVR Overdose

In light of the current economic situation, companies are learning how to do more with less in order to survive. This impacts customer service as much, if not more than other segments of a business. Even before economics pushed companies to cut costs, many businesses began utilizing IVR systems as a way to reduce overhead and ask their customers to handle common issues through a self-service solution. Although some research indicates that consumers have accepted telephone-based self-service, there is also resentment when companies put additional burdens on their IVR systems and force customers to resolve more complex issues with little help from live operators.

Research from 2007 indicates that 91 percent of American consumers already feel that companies expect customers to handle too much on their own with IVR systems. This has a directly negative impact on customer satisfaction and drives consumers away. However, the same research indicates that consumers are willing to utilize other technologies for self-service such as web-based or text message-based systems. It is important for businesses to consider the the complexity of the self-service solution before deciding to implement it on a specific platform.

The ability for a customer to see a list of options increases the ease of navigating a complex self-service menu. This can be achieved more easily in a web-based or visual IVR environment than in a standard IVR system. Similarly, the option to speak to a live operator should not be perceived by a company as a last resort for helping a customer. Some people want to use self-service, while others will always desire help from a human being. It is important to design IVR systems to take that fact into account as most callers are very frustrated when they finally reach the elusive operator. As the economy improves, certain cost control measures will likely remain in place as a means of improving profits. It is of the utmost importance for companies to maintain useful but not overwhelming IVR customer self-service systems.

Academic Research Through IVR

IVR technology has been used widely for many purposes beyond customer service including automated opinion polling and market research questionnaires. Behavioral researchers at the University of Buffalo have taken it a step further and are currently applying the technology in two National Institute of Health funded studies. The research involves investigating the effects of alcohol, marijuana and the situational behaviors that are associated with their use. The IVR systems are configured to make random calls to subjects' cell phones and conduct surveys of their experiences with respect to their use of alcohol and marijuana.

In the past, these studies have relied on subjects taking surveys at scheduled times and giving their responses based on remembering what they were thinking and feeling at moments in the past. With the use of IVR technology, subjects can be inconspicuously surveyed over their cell phones while they are actually partaking in alcohol or marijuana and can give much more relevant responses. Not only does this give more pertinent data for the study, but it also increases the privacy of participants. The true test of this survey methodology and it's future will be to see how it compares with similar studies conducted in more traditional manners.

IVR and H1N1: Round Three

As fall begins in North America, there is a heightened level of anxiety about the flu spurred by fears of an H1N1 pandemic. Earlier this year, the outbreak that began in Mexico and quickly spread around the world was a bit over-hyped by incessant media reports about growing numbers of cases and deaths caused by the virus. The initial outbreak occurred near the end of the flu season in the northern hemisphere so it's effects were likely less than if the outbreak had occurred at the beginning of the season. Now that North America is entering a new flu season, more precautions than usual are taking place in businesses and schools to avoid being dramatically impacted by the H1N1 virus.

Earlier this year, many technologies were employed in various ways around the world to disseminate information about the spread of the flu and where individuals could seek medical treatment if infected. The health ministry of India deployed an informational IVR system to offer advice for those infected while some colleges in Canada implemented proactive IVR systems to periodically monitor student health. SoundBite has recently joined the fray with the introduction of an IVR system that will not only keep employees informed about the latest H1N1 news but will also make outbound notification calls when on-site flu shots are to be administered. This proactive approach is an effort to minimize the number of employees that are affected by the virus causing them to miss work. In this rapidly shrinking world, the issue of a global pandemic is more real than ever and preparedness is key to avoiding a health disaster. Of course, a preemptive strategy is only part of a business continuity plan and organizations must be prepared if they are unable to contain an outbreak among employees.

IVR Implementation & Performance Considerations

Development and implementation of IVR systems can be a complex projects requiring careful management of cost and resources, but more specifically there are several considerations within the design phase that can make a truly helpful and customer friendly system. The IVR Deconstructed blog from Plum Voice has a list of five important considerations in IVR implementation. Audience consideration is key but not just from the perspective of what a customer might want, but also looking at the most popular questions and/or issues arising from past call center data. It is also important for customers to be able to find their desired information quickly without having to navigate through numerous menus. Keeping it simple is usually the best course to take in developing IVR systems.

In addition to the considerations during the implementation of the IVR systems, choosing appropriate metrics to measure effectiveness is important in closing the loop on the development of a system. Without clear measures of success, there is no way of knowing if the desired outcome has been achieved by the implementation of the system. The always useful Call Centre Helper advises paying attention to the percentage of abandoned calls handled by the IVR system. Their data suggests that the recent increase in abandoned call percentage indicates that customers find systems too hard to navigate. Considering these tips for implementation can help customers to overcome their preconceptions and previous bad experiences with IVR. The goal is to implement a system that the customer can use.

Integrated Health Care IVR

With the health care debate continuing in the United States, many companies have introduced innovative solutions to help in health care management through IVR technologies. From appointment notifications and followup care to maximizing doctors' appointment schedules, several specific programs have been unveiled in the past few months to help save both time and money. Now CallFire.com has unveiled an IVR solution that combines many of these concepts into one convenient package.

In addition to offering appointment reminders to patients, the CallFire system can be configured to quickly fill canceled appointments by making automated outbound calls to patients on a waiting list. Further customization options allow for the patient data to be integrated in such a way that outbound calls can be personalized. The IVR system is also capable of making followup calls after appointments and surgeries to ensure that patients adhere to post-visit instructions. Most importantly, the system collects patient feedback through voice response surveys that assist in improving services and overall medical care offered by the physician. Continued advances and integration of IVR technology into the medical profession will undoubtedly help save time and money for doctors and patients alike.

IVR Development Issues

Development and implementation of IVR systems is crucial to achieving the end result of an efficient tool for managing customer service. An inefficient development process can result in delays in deployment and a substandard product. A recent survey conducted by the Customer Experience Foundation has found that delays in projects and poor budget estimates of IT solutions are costing call centers considerably, both monetarily and in the eye of the customer. The survey suggests that more that one quarter of projects is delayed and that more than half of project managers simply expect problems to arise during development that will slow and/or delay implementation. IVR systems are among the the types of IT projects with the highest-risk of delays.

The survey suggests that "bad practices" and "classic mistakes" contribute to delays. It appears that little to no cost-tracking and inadequate testing are common during development with the goal of quicker delivery driving poor project management. The results also suggest that the lack of post-project reviews and executive sponsorship contribute to the problem. Besides the monetary costs associated with delays, implementing a poorly tested IVR system costs money from a customer satisfaction perspective. The lessons learned from this survey are that developers must invest in adequate resources from both a financial and managerial perspective. Better budgeting and resource management is key to avoiding costly delays. Secondly, the culture of blame must be changed so that more effort is put into solving problems during development rather than assigning responsibility for the problems. Both of these suggestions are not easily achieved but with the proper leadership, the process of IVR system deployment can be improved.

Business Continutiy and IVR

The future is always uncertain and major catastrophic events can occur at any time from natural disasters to pandemic outbreaks. In such cases, company offices may have to be closed for an extended period of time for the safety of the employees and the public as a whole. Thankfully, as long as telephone and Internet lines are functional, business can go on via telecommuting. But such an option is not available without a viable business continuity/disaster recovery plan. It is an integral part of companies both large and small.

Many tools can help achieve a plan, foremost of which is redundant off-site data storage locations where electronic business operations can be run if there is an issue with normal operations at headquarters. In addition to data management, communication with employees is crucial. Emergency notification and informational IVR systems should be created to maintain communication with employees who may be working from their homes. Read more about the other important considerations of business continuity/disaster recovery plans here.

Call Center Metrics

Measurement is key to determining efficiency and effectiveness but choosing the right metric can mean everything when it comes to accurate evaluation. A recent webinar at DataInfoCom examined the switch that Dell made from measuring average customer call times to measuring the rate at which issues were solved on the first call. Although call center cost is directly tied to the length of calls, there is certainly something to be said for tracking the number of calls by a single customer in order to resolve a single issue. The results of Dell's decision to track the new metric led to an increase in the average customer call time, but over the same period the number of issues solved on the first call improved by 20%. Although not specifically stated, this would almost certainly improve customer satisfaction since multiple calls to resolve issues were less frequent.

In an effort to further improve customer satisfaction, Dell also implemented an IVR survey at the conclusion of technical support. This allowed them to collect immediate feedback and pass the information on to the call center operators quickly so that they could modify their approach to achieve maximum effectiveness. The overall concept of this plan could easily be applied to any self-service IVR system. Customer satisfaction with self-service IVR systems is typically very low so it would logically follow that a system that could easily assist a customer in resolving an issue in one call, without the help of an operator, would improve overall customer satisfaction. This type of plan would simply require the IVR system to quickly and easily allow customers to resolve common issues themselves in as short a time as possible. There are some aspects of an IVR system that are harder to control than others, such as the speech recognition components, however the layout and menus can and should be designed for optimal customer use. It is not the "magic bullet" in the realm of customer satisfaction, but it could be a relatively easy method to achieve better results.

Customer Retention and IVR

Despite the many improvements of IVR systems since their inception, they still score poorly on customer surveys. This is once again evident in a UK consumer survey conducted by Greenfield Online. The survey reports that 41% of users find voice self-service to be the "most annoying" customer service tool when compared with paper communications, email, text messages and live call center agents. Furthermore, only 1% of consumers have a positive impression of the technology. A main point of contention is the lack of integration between voice self-service and operator assisted service. This most likely refers to situations where customers are asked to repeat information to a live agent that they have already reported to an IVR system earlier in their call. The end result is that customers are left feeling less like an individual and valuable asset to the business and more like one of many identical clients.

Some would suggest that these results are an indication that IVR simply does not work and should be replaced by live customer service agents. However, this assertion assumes that live service agents are better equipped to handle the burden of customer support than an automated system or combination of the two. The fact is that while a human agent may be able to recognize speech better than a voice self-service system, the cost of doing business in such a way is unsustainable. It would be unprofitable for most companies to respond to every customer service issue with a live agent. The increased manpower requirement would likely lead to outsourcing to a foreign call center which introduces another set of customer satisfaction issues. Furthermore, call center agents would simply be overwhelmed by the volume of inbound customer service calls.

UK consumer data suggests that 73% of customers end a relationship with a business due to poor customer service and this costs the business £248 (approximately $400) per year. From this information, it is clear that there is a fine balancing act between running a cost effective business and maintaining customer satisfaction. It would appear that one of the best ways to retain customers while still employing an IVR system is to address the issue of perception. A customer wants to feel that his business is just as important as anyone else's and this can be achieved by creating a personalized voice self-service experience. There are redesign and implementation costs, but the long-term dividends gained by having satisfied customers can far exceed the short-term monetary investment.

28 Tips to Improve IVR

The UK magazine Call Centre Helper has released a list of twenty-eight tips from industry experts to improve IVR systems. Some are intuitive while others are not quite as obvious. The highlights of the list include involving linguists to help develop a usable system that recognizes speech patterns, making engaging menus that don't bore the customer and allowing the customer the option of quickly reaching a live operator. The suggestions repeatedly emphasize the importance of speech recognition. Without good speech recognition algorithms, the system's effectiveness is greatly reduced.

The tips also include the need for audience analysis. Without a good understanding of the customers and their expectations, the system will not be an effective tool for dealing with common issues that may arise. They also advise against making overly complex menus that offer too may options at any particular level. Again this goes back to understanding the user of the system and a barrage of information and/or options can be overwhelming to the customer. Perhaps the best bit of advice is not to expect perfection from the initial system implementation. A good IVR system must be viewed as an evolving tool that can be changed to best fit the intended users. It is important to remember that the system is flexible and can be modified multiple times and continually improved based on user feedback.

Rise of the Hosted Contact Center

IVR systems have long been utilized by companies in an effort to reduce costs and burden on their customer support personnel. Further monetary savings have been achieved by outsourcing some or all of the infrastructure required to operate an IVR system to a hosted contact center. It should come as no surprise that in this recent economic downturn, while many companies have tried to find ways to remain profitable, companies specializing in hosted contact services have seen tremendous growth.

A recent study by DMG Consultants indicates that growth in the hosted contact center infrastructure market has exceeded expectations through the first half of 2009. Forecasts suggest that the market will grow by 30 percent in 2009 and again by 35 percent in 2010 before settling to 20 percent growth in 2011. The reasoning behind the massive growth arises from the fact that many companies see the benefit of IVR technology but don't have the capital to invest in the costly equipment. The downstream effects of this growth bodes well for the future of the IVR industry as whole through these tough economic times.

IVR for the Hearing and Speech Impaired

Although web-based customer service utilities are growing in popularity, telephone-based IVR systems are still the standard for a vast majority of companies. In the UK, more than 75% of customer service interactions are handled over the phone by automated systems. Although the systems operate relatively efficiently and effectively, an estimated nine million hearing and/or speech impaired customers are excluded from this type of services. The convenience of checking balances, paying bills or scheduling service visits simply isn't an option for speech and hearing impaired customers through traditional IVR systems.

Thanks to advances in mobile telephones and their networks, video IVR systems are finally a reality. Not only do they improve customer service experience in general, they allow hearing and speech impaired customers to enjoy the same self-service options that are available to non-impaired customers. Adoption of these types of systems will surely take time, but with the explosive growth of smartphones and the accompanying downloadable customer service applications, there is sure to be an exponential demand for telephone-based visual customer service interfaces. Traditional IVR systems are by no means a thing of the past however. Visual service is simply an augmentation of the existing service options for some customers while for others, it's an option that they can finally utilize.

Another Medical Application of IVR

In an ongoing effort to use technology to improve medical care, many forms of IVR systems have been implemented in many stages of the treatment process. From simply finding an available physician to complex follow-up after a hospital stay, IVR systems are helping doctors provide better care for patients at decreased costs. Houston, TX based HealthHelp has found a way to further improve their management of radiology benefits to allow for twenty-four hour service through an IVR system.

HealthHelp manages a clinical database to assist physicians in choosing the best radiology solution for a particular diagnosis. Under the previous system, doctors were limited to using a call center and/or online form to interface with the service. The system was further limited by the fact that it was only staffed during certain hours of the day. Qwest recently developed an IVR system for HealthHelp that collects the pertinent insurance information, American Medical Association (AMA) codes and specific clinical queries that allow the automation to quickly process and approve the necessary medical tests. As a result, the correct medical test can be determined and conducted at any hour of the day thus allowing for more responsive medical care. A widespread development and adoption of this type of application could conceivably save many lives and health care dollars around the country and the world.

Integrated IVR

Recent research suggests that more customized and customer focused IVR systems result in improved service and experience for users. Integration of customer profile information into the IVR system can make for a much more personalized customer experience. InVox has integrated this concept into their recently announced cloud telephony offering. In addition to creating an online user interface for the IVR workflow design, the system is capable of using customer specific data to customize and enhance the IVR menus and on-hold messages.

The inbound call system is capable of identifying incoming callers and cross-referencing them with their in-house records. For example, the system can look up future appointment schedules and supply the customer with a reminder or even an offer to reschedule. It is also capable of transcribing voicemails which it can then deliver to the proper recipient in text form. The system can also solicit spoken responses from customers to handle common transactions like a traditional speech self-service IVR system. These types of increased integration of value added services are likely to be the future of telephone-based customer service systems.

Automated Medical Followup

The ongoing healthcare debate in the United States has been spurred by many things, chief among them are the rising costs of medical care. Regardless of the outcome of the debate and future legislation, improved care and reduced costs should always be a goal to strive for in the medical field. Audiopoint has recently released a product that aims to do just that. NotifierRx is a telephone based application that can be used to communicate and follow-up with discharged patients to monitor their recovery and address any problems in a timely manner.

The recovery period following a hospital stay is fraught with opportunities for relapse or infection that can result in a costly readmission for care. NotifierRx communicates important recovery and medication reminders to patients but also allows for medical staff to acquire specific follow-up information. The patient can be asked a series of questions through an IVR system and his or her spoken answers are recorded for the physician to review. Based on the questions, appropriate actions can be taken quickly that could result in outpatient or even in-home care saving both time and money that would otherwise be spent during the readmission to the hospital. Time is of the essence in medical care and using automated systems to help with patient monitoring can shorten the response times and achieve cost savings and improved customer care.

Speech Self-Service Lessons

Although speech-based self-service IVRs are becoming more popular among most companies, popularity among customers is decreasing at an alarming rate. Recent survey data suggests that as many as 40% of customers avoid using speech self-service IVR systems and 42% prefer using web-based self-service utilities rather than telephone-based systems. Furthermore, only one-quarter of respondents reported that they would use a speech-based option again. As companies continue to implement speech-based systems as a cost savings measure, many considerations can and should be taken as a means of improving customer satisfaction and experience.

One third of customers complain that they often have to repeat information to a human operator after already providing the same to the IVR system earlier in the service call. More than 20% of customers complain that the systems do not understand or recognize spoken commands. Finally, 16% of customers are annoyed by systems that do not allow them to skip directly to menus that they want. Integrating the IVR and human operator databases could cut down on the need for customers to repeat information during a call. Since most customers feel that they must over-enunciate when dealing with speech recognition systems, the software could be improved to accommodate both conversational and more precise speech patterns. Finally, creating shortcuts and/or keywords for frequent callers would assuage some of the frustration associated with listening to long lists of multiple menu options. It is important to take these and other customer complaints into consideration when designing and implementing an IVR system, otherwise the money that is saved in the call center will not make up for unsatisfied or lost customers.

Intelligent IVR

Improvements in IVR systems often come in the form of better work flows and more accurate menus for customers, but the new intelligent IVR system from Convergys looks to put a new spin on progress. The inbound IVR system offers intelligent self-service meaning that the system not only routes a caller to the proper menu item, but also creates a profile of the items he or she chooses along the way in order to better assist in resolving the issue at that time and, if necessary, in the future. Furthermore, the system uses saved profile information to better identify a caller and therefore offer more personalized and customized assistance. The result of the improved system is a projected 20% reduction in call handling times while giving a 20% increase in call containment all translating into a cost savings for the business.

The intelligent system also offers improvements to outbound IVR through intelligent notification. The system can leverage customer information and common inquiries to proactively contact customers immediately when a problem arises rather than having to wait for the customer to initiate contact regarding a service issue. This strategy can result in cost savings through a 20% reduction in the number of inbound customer calls. Furthermore, the system can be used to better acquire new customers while using customer profiles to retain current customers or even win-back lost customers. All told, the intelligent IVR system promises improvement in the two most vital aspects of IVR evolution: cost savings and improved customer service.

The Science of On-Hold Music

Since IVR systems are utilized as a means of employing fewer operators in a call center, customers will inevitably spend some amount of time on-hold while waiting to speak to a service representative. In a world of increasingly available information, even the shortest wait can not only feel like an eternity, but it can actually frustrate and alienate the customer. Most IVR systems that put a customer on-hold employ neutral or pleasing music to ease the frustration of the wait time. Some companies add periodic messages to the on-hold music that can work to further ease or exacerbate the situation.

A series of studies has shed some light on how customers respond to on-hold music and messages. In one experiment, researchers found that messages announcing the customer's place in the queue lead to more positive on-hold experiences. Even without knowing how long the wait would be, customers responded positively if they knew how many or how few people were ahead of them in line. However, periodic recorded apologies about the wait time with no other valuable information resulted in more negative customer experiences. The messages only served to remind the customers that they were waiting on-hold. This study suggests that customers on-hold would rather be told that they are making progress towards an operator than get a recorded apology every thirty seconds.

Avalanche Calling

Standard IVR technologies coupled with minimally staffed call centers are usually capable of handling most day-to-day business of utility companies. However, large scale service interruptions can result in sudden spikes in call volumes by as much as 40 times typical levels. A traditional call center would be completely overwhelmed by such an event and customers eager for information would be left on-hold and frustrated. Avalanche Calling can be activated in these types of situations to help cover the increased load on the call center while still providing valuable information to customers.

Avalanche Calling uses cloud technology to virtually increase the IVR capability through off-site servers that are paid for on an as-used basis. This allows for more capacity when necessary without the need to actually invest in new hardware. In self-service mode, customers can enter a postal code to acquire information specific to outages in their service areas. Practical testing has indicated that 95% of customers will be satisfied with information provided by the Avalanche Calling IVR freeing customer service operators to address issues of the remaining 5% of callers. Such virtual outsourcing of IVR technologies could prove to save companies capital expenses while allowing for increased capacity and the ability to assist customers in times of increased need.

Visual IVR Effectiveness

Video IVR continues to show promise as customer research conducted by Genesys Telecommunications Laboratories shows that visual IVRs used on mobile phones can reduce automated transaction times by as much as 56%. This not only translates to call-center resource savings, but also into increased customer satisfaction. Although most customers want to speak to a live operator when they have problems with a service, many people might prefer a self-service approach that includes both audio and visual components. Ultimately, customers hope to complete their transactions quickly and easily and research data suggests that this is more achievable with a user friendly visual menu.

As people become more familiar with using web-based utilities to report and resolve service issues, IVR appears to be following suit and progressing away from the standard audio interface that has been the norm in the industry. As discussed earlier this week, some companies have already begun to employ the video systems in place of more traditional IVR. Although the new element of the IVR system requires more time for development and implementation, the end benefits certainly outweigh the cost. As the use of video capable smart phones grows, there is undoubtedly a market for companies to improve their customer self-service menus to accommodate this emerging technology. The end result is most certainly reduced costs for staffed call-centers together with increased overall customer satisfaction.

Video IVR

Business communication around the world is evolving constantly due in no small part to rapid developments in technology. Although IVR systems for customer support have evolved in that time as well, a key feature that is missing in most service applications is a visual interface. Almost no home telephones are equipped with video capabilities so there has been no practical method for integrating video into IVR systems for most users. However, as mobile devices become more ubiquitous and increasingly capable of many applications besides DTMF dialing, there are many emerging opportunities to integrate video into IVR systems for customer service.

With the development of more powerful mobile networks and video equipped wireless hand-held devices, there will likely be an increase in the development of video IVR systems over time. Video IVR adds a new dimension to self-service menus by allowing customers to see all available menus in addition to hearing the standard recited list of options. A system recently implemented by Egypt's Etisalat even allows customers to connect face-to-face with a service agent through a video chat. These types of video enabled service products could increase overall usability and customer satisfaction of IVR systems in general. Consequently, video IVR could prove to be a major segment of the IVR production business in the future.

IVR Lessons

E Source has completed and published rankings of the best IVR systems for utility companies in the United States and Canada and found some conflicting, but useful results that can be applied across the board for makers of IVR systems. The leading statistic is that utilities only offer 54% of what customers want leaving almost half unsatisfied. Previous research indicates that 70% of users were successful in completing self-service transactions on the first try but the same users reported that they were unsatisfied with the automated experience. These type of results confirm that there are still opportunities for improvements in IVR systems and that focusing on the customer experience could be the key to achieving better satisfaction ratings.

The overwhelming data suggests that customers still prefer to complete transactions with a live phone operator or a web based utility rather than an IVR system. The common thread among those utility companies with the highest rated systems is that they consistently focused on the customer experience. Those that scored poorly employ systems that are technically capable of guiding the user through the automated transactions, but still left the customers unsatisfied or frustrated in the process. There are certainly strong preconceptions about IVR systems among most users, however this study shows that there is a need to continually improve and develop IVR systems from the perspective of the user as opposed to simply design them to complete the task at hand.

IVR on Smartphones

A recent survey suggests that 75% of smartphone users would rather a device that allows them to speak most of their commands as opposed to pressing a series of buttons to complete the same task. The reasoning behind the result is that most smartphone users are more inclined to be multi-taskers and voice activated commands easily allow for a user to complete tasks without diverting much of their attention. This type of interface relies on IVR systems to achieve such hands free operations.

The survey also indicates a shift in cell phone etiquette. In the past, people were less inclined to use their phones in public places, but this survey reports that 71% of smartphone users said that they would be fine using their phones at a restaurant. Despite the mixed customer reaction to IVR systems in customer service, it appears that IVR continues to have a future in many applications. Capitalizing on the public desire for voice activated services shows that there is still a large market for IVR systems.

IVR Karaoke

On the lighter side of the IVR business, cellular company Loop Mobile has launched a new service called Karaoke Messaging. The service allows users to record karaoke versions of popular Bollywood songs, save them or even then send them to their friends. The service uses IVR systems to provide instructions and other options to the user including listening to the original song to review the lyrics.

The service is only currently available in India, however this type of application could become very popular in other countries including the United States. In our "American Idol" and "Rock Band" culture, karaoke has changed from novelty product into a growing industry. The process could be easily implemented by US cellular providers and could prove to be a lucrative service especially among younger customers. As the cell phone continues to develop from a simple utility device into an entertainment gateway, there will be more innovative ways that IVR can be used to deliver content to the customer.

IVR in NHS

Throughout the debate over government involvement in health care in the United States, many on both sides have pointed to the successes and failings of the national services offered by Canada and the United Kingdom. Efficiency is always a popular topic of discussion and while inefficiencies are inherent in almost any system, recent initiatives by hospitals in the UK's National Health Service (NHS) are making efforts to save money and time for both doctors and patients.

According to internal statistics, almost fifteen percent of patients miss scheduled hospital appointments. This results in fewer patients being treated by doctors as well as puts a financial strain on the NHS system. Using a combination of text-to-speech and IVR technologies, NHS hospitals are automatically calling patients seven days prior to appointments to confirm the date and time of scheduled visits. Since implementation, the hospitals have seen a "significant improvement" in appointment attendance as well as shorter waiting lists for other patients to see doctors. It is unclear if recent research published in the Canadian Medical Association Journal influenced this project, but it appears to produce similar benefits for both patients and doctors alike.

Integrating IVR and Public Transit

As the use of public transit increases around the United States, the need for reliable service also increases. This includes implementing systems that allow customers to get up-to-the-minute information about wait times and route changes for buses, trams and trains. The city of Santa Monica is doing just that for the Big Blue Bus lines with the installation of real-time updated signs, a web-based ride planner and an information IVR phone line.

The current information system includes a hotline to a call center only available during specific customer service hours. The new IVR system is projected to be in place by February 2010 and will feature a twenty-four hour, fully-automated message center that will offer real-time information about delays and route changes. Not only will the new service require fewer call center staffers, but it will also ideally result in no customers waiting on hold to get valuable information. Public transit is not perfect, but making real-time information available to customers greatly improves use and satisfaction in this important energy saving service.

IVR and H1N1: Round Two

Last month the spread of the H1N1 virus had slowed considerably in North America but cases were beginning to erupt in other parts of the world. As a result, the health ministry of India created an IVR help line for residents to access updates about the outbreak as well as get help in locating medical assistance. Although it is still summer in North America, many local and state governments are preparing for the upcoming flu season that in some places could begin as early September.

Several colleges around Ottawa, Canada are developing IVR systems to monitor and contain any outbreak that might occur in their on-campus residence halls. Algonquin College is using a system that will periodically call all students to poll them on any flu-related symptoms they might be feeling. The college administrators will then be able to use this "snapshot" as a means for making decisions about canceling classes to minimize student contact. As the threat of the H1N1 virus returns this fall, there will likely be more localized IVR systems implemented to deal with dissemination of information about the flu.

IVR Psychology

A new report by T3i Group suggests that the global IVR market will grow almost 20% by 2013. The growth will likely come in the three largest IVR applications: incoming call handling for call centers, inbound self-service calls and outbound calls such as customer reminders and notifications. The self-service sector appears to be a key area of growth as the cost savings and return on investment from IVR systems greatly outweighs the effectiveness of largely staffed call centers.

With market growth comes the need to continually improve customer experiences and satisfaction with IVR systems. In an effort to achieve improvement, some companies are studying the psychology of IVR messages. Many customers have a preconceived idea about IVR that is immediately triggered when they are greeted by an on-hold message. Some customers feel neglected and unappreciated when they hear standard messages, but customers who are greeted with empathetic messages are more willing to accept wait times before speaking to a service representative. Furthermore, exposing waiting customers to advertising while on hold may have unintended effects due to the negative associations of being kept on hold. Changes to IVR messages need not be dramatic. Simply employing new and different ways to show empathy to customers could pay dividends in future sales and service.

IVR Evolution

IVR has been a major force is cost savings for most companies as they require fewer call center agents to handle customer interactions. However, they sometimes leave customers feeling frustrated especially with particularly complicated IVR systems. Since the advent of the Internet, some people have gone so far as to create websites to disseminate the code numbers and back doors to bypass many major companies' IVR systems so that customers can immediately connect to a call center employee. Fonolo has taken this concept a step further and created a web based system that works with companies to make IVR navigation easier and less painful for customers and customer service representatives alike.

Fonolo works with businesses to create maps of their IVR systems and then create web based portals for customers to use allowing them to pinpoint exactly where they want to go in the IVR menus. From the Fonolo website, a customer can search for participating companies, decide their particular destination and begin their call. Before the call begins, the customer enters a call-back number where they can be reached. The customer takes no part in the call as the Fonolo "Deep Dialing" technology navigates to the desired point in the menu. When the intended party is reached, Fonolo calls the previously entered customer contact number and connects the customer to the intended party. This should result in a much better calling experience for both the customer and the customer service representative.

Fonolo's service is free for customers with the cost being supported by participating companies. After an initial setup cost to map the IVR menus, companies only pay for phone minutes used during customer calls. This does not signal the end of IVR systems but rather a potential evolutionary step to more widespread use and improved customer experiences with the systems. This could even result in further cost savings as this technology could decrease customer service agents' time per call and lead to more situations where customers can resolve issues without ever needing to speak to live agents.

Cloud Telephony and IVR

Small businesses are created every day and most strive to increase their sizes to become medium or even large business. In the process of growing, both in size and in customer base, more resources are required by a business to stay connected to its customer base. The realm of customer service is no small part of a business. The advent of IVR systems served as a way for a businesses to avoid the need to invest time and money in a staffed call center to handle the daily volume of phone inquiries from customers and clients. Instead, calls could be interactively routed to the appropriate responder by a computer system rather than a human operator.

Cloud telephony could be the next evolutionary step forward in the realm of small business customer service. A drawback to a traditional IVR system is that the installation and start-up costs associated with implementing the technology can be prohibitively large. Cloud telephony offers the benefits of the IVR systems without the capital investments typically required. Rather than purchasing and physically locating the equipment on-site, the small business instead outsources the ownership to a dedicated service provider who assumes all installation and maintenance costs of the systems. Meanwhile, the small business "rents" the equipment for IVR and other uses and connects via Internet-based protocols. This would allow small businesses to be more competitive with larger firms in the same markets by cutting the costs associated with creating complex IVR systems for customer service. There are still issues to be resolved with basing such a concept on Internet protocols, but the approach could allow for better customer service for businesses of any and all sizes.

IVR in Training

Train by Cell has created a unique solution to the company training that has in the past been handled by in-class instruction or web-based utilities. Both in-class and web-based training have their benefits, but they require employees to generally take time out of their workdays and be available at a certain location or in front of their computers. Train by Cell has introduced a training scheme that is accessible on any smart phone including the ubiquitous Blackberry and iPhone. Employees are able to listen to training over their phones and then respond to questions through an IVR system or text message to test their comprehension of the material.

This system would not necessarily be ideal or optimal for all types of employees, however it could be extremely efficient for sales associates who conduct much of their daily work outside of the office. Mandatory training requirements could conceivably be met while waiting in an airport or during train commutes. This novel approach to corporate communication could save money for employers who would otherwise have to pay instructors to conduct one or more training class while taking employees away from their work. Furthermore, employees would be more free to complete training when their schedules allowed thus improving their overall productivity.

Outbound IVR vs. Predictive Dialers

For years, predictive dialers have been employed by telemarketers so that one operator can call several phone numbers simultaneously and make a sales pitch to the first person that answers his or her phone. Predictive dialers are also used by some companies to communicate with their customers and clients. The systems are popular because of their cost effectiveness since they allow operators to connect to a customer almost every time they dial a group of numbers. As efficient as the systems are for operators, they can be equally frustrating for the customer who is the second or third to answer the call in the few seconds after the operator has already connected with the first customer. Those later customers are greeted with silence and usually assume it to be a wrong number. Those same customers may be called several more times in the following minutes before finally being connected to the operator, at which time the customer is usually not interested in the information or the sales pitch.

Recent data suggests that outbound IVRs are rapidly taking the place of predictive dialers as speech recognition and dual-tone multi-frequency technology improves. Some companies are even employing them as a means to conduct standard business transactions in lieu of operator assisted calls thanks to the ability to verify customer identity and record user submitted information through the IVR system. There are several advantages, the greatest of which is cost. Live operators are still employed to assist if problems should arise during a call, but far fewer are required than in a call center using predictive dialers. Furthermore, customer satisfaction is greatly improved as calls are received by the customer on the first attempt rather than multiple attempts. Current trends suggest that outbound IVR will continue to excel as the technology improves resulting in greater cost savings through efficiency and improved customer satisfaction.

Virtual Walk-In Clinic

A new service based in California offers a creative approach to dealing with the rising costs and decreased productivity for doctor's office visits. Doctors on Demand Health Networks provides a virtual walk-in clinic for patients seeking quick, non-emergency related health care. The network consists of a pool of licensed physicians who are seeking additional work hours without the need to hire more staff to assist in scheduling and record keeping. A doctor in the network simply notifies the system when he or she has had a patient cancellation and the network will attempt to match someone in need to that doctor at that open appointment time.

Patients enroll in the service by phone through an IVR system that collects their contact information, medical histories and current health issues. Doctors who are available for an appointment can listen to the patient medical histories as well as voice notes left by other doctors in the system. The system then notifies the patient of the appointment with the best available doctor for the particular health issue. After the appointment, the doctor can then use the IVR system to record notes on the visit. Additionally, the system handles billing and electronic record keeping for the visit.

This is, of course, not a replacement for traditional family practitioners nor is it legally allowed as primary care. Rather, it is a way for doctors who have spare time and desire for extra work to help more people. Furthermore, this approach could potentially be employed by other appointment-based businesses in an effort to cut costs and improve efficiency.

Improved Self-Service Through IVR

One of the drawbacks of IVR systems is that customers sometimes feel that the available options do not specifically address their particular question or need sending them into a loop of menus in search of the proper path to resolve their issue. A newly announced system from eGain promises better self-service capability by using case-based reasoning technology to simulate intelligent dialogs between clients and the most qualified customer service agents. The end result of the improvement is that more customers would be capable of completing their calls without ever needing to speak to a live agent.

Such a system would naturally offer cost savings by requiring fewer human agents to handle issues that the system is unable to resolve. Furthermore, the developers claim that there is no additional implementation cost as the system uses the same knowledge base, customer interaction records, and reports as a traditional IVR system. Additionally, the system is designed to be implemented in concert with web-based self-service portals which are fast becoming a major part of customer service departments. While there will always be a need for human interaction between customers and live service agents, advances like these will certainly increase consumer confidence and, more importantly, comfort levels with IVR systems.

A Novel Use of IVR

Medical science has made tremendous strides in developing treatments to chronic illnesses that, in the past, were usually terminal. Many treatments to such illnesses require vigilant monitoring of a patient's blood chemistry. These can range from routine home monitoring of blood sugar levels for diabetics to regularly scheduled blood tests for patients suffering from blood clotting disorders.

A study published in the April 28th issue of the Canadian Medical Association Journal tested the use of IVR in communicating with patients undergoing anticoagulation therapy. The rigorous treatment involves periodic blood testing and medication to maintain normalized levels of clotting factors in the blood. For the study, an IVR system was implemented that contacted the patients to communicate medication reminders, blood testing appointment times and notifications when appointments were missed. At the conclusion of the study, the authors found that the workload on the staff was reduced by 33% and some patients asked to continue the service as a way to manage their treatments. More research is certainly required, but this study indicates the potential of IVR as a part of medical therapy.

IVR and Voice Biometrics

In an effort to ensure security in these times of increasing identity theft, businesses that deal in sensitive customer information must be extremely vigilant as the gatekeeper of such information. Under current conditions, most credit card users, for example, are prompted to answer a number of standard questions supplied by an IVR system with the goal being verification of the customer's identity before giving sensitive account access. Often times, customers will find that after they have suitably identified themselves through their unique answers to the IVR system's security protocols, they are connected to a customer service representative who will ask some of the same and/or additional questions to further verify their identities. This can not only be frustrating, but also a tremendous waste of resources.

One area of research aimed to improve the process is the technology of voice biometrics. Employing the concept that every person has a unique "voice print," the system aims to verify a customer's identity by comparing his voice to a stored sample. Of course this idea does not come without issues to consider, chief among them is extraneous noise introduced during the recognition process by a poor telephone connection or from external sources in the customer's calling environment. Opus Research recently released a report on the state of the technology which is concisely summarized by it's author, Dan Miller, at TCMnet.com. As voice biometric systems improve through more pilot projects and widespread implementation, the technology is sure to offer resource savings for businesses that employ them as well as improved experiences for customers that use them.

IVR and H1N1

Although the threat of the H1N1 swine flu virus appears to be less severe than first predicted, some nations are choosing novel approaches for dealing with the potential pandemic. Yesterday, the health minister if India unveiled an IVR system that will be used to disseminate information about the flu including symptoms, spread of the flu and where to seek treatment. The IVR messages are available in English, Telugu and Hindi and are also accessible through SMS text messages on cellular phones.

The concept of using IVR systems in a disaster scenario could be especially useful in the event that such a disaster affects emergency information staffing centers but not telephonic infrastructure. A highly populated nation in crisis needs a proven method of dissemination of information to its citizens. Many people, especially in lower income areas, would rely entirely on the telephone for information and updates on the situation. An IVR system could potentially save lives and ultimately valuable resources during disaster recovery periods.

Wes Raine
http://thirteenthgeneration.blogspot.com/