IVR Condescension

Anyone familiar with IVR knows that despite all of the positive attributes, there can be frustrating aspects to the technology.  Whether it's substandard speech recognition software or a menu option that creates an endless loop, there are many sources of frustration for users that are preventable with a good design.  One very important and often overlooked source of frustration can be derived from the IVR system's "tone of voice."  Despite the fact that the voices behind IVR systems are human beings, they are still disembodied recordings which cannot necessarily adjust to the mood or demeanor of the user. 

In a typical conversation, the parties can usually pick-up on each others mood and adjust the volume, inflection and tone their voices to empathize and/or convey emotions.  Common computer systems employed in IVR cannot efficiently detect and process such information.  Oftentimes, users find IVR instructions and prompts sterile at best and condescending at worst.  A recent story on CNN.com discussed what users perceive as condescending voices that give directions on most GPS devices.  This problem is identical to what can happen in IVR prompts.  In an ideal world, IVR systems would be capable of interacting with users in an appropriate tone at all times, but the systems are not equipped to detect the wide range of human emotion in voices let alone be prepared to respond appropriately.

Although it is unrealistic to record voice actors responding to every possible customer reaction, one way to avoid a condescending tone is to carefully review the script and attempt to predict user reactions.  Another possibility is to run focus groups and studies that simulate the IVR environment and use the feedback to improve the script's verbiage.  Avoiding concatenation of sentences is also recommended as such a practice only further de-humanizes the IVR prompts for the user.  Finally, although it is impractical to record prompts across the gamut of human emotion, several takes of each prompt could be recorded and tested in beta versions of the IVR systems to improve before general release.  Until computers are capable of seamless interactions with humans, script design and testing is key to avoid creating a "condescending" IVR system.

Disecting an IVR Failure

Recently, the Bangalore Water Supply and Sewerage Board (BWSSB) announced that they would be opening a live call center to handle and address water supply shortages plaguing it's customers around the south Indian city.  The call center is set to replace an IVR system that was so woefully inadequate, approximately 80% of registered complaints were not being addressed.  Officials at the BWSSB blamed the failures on incorrect account numbers and incomplete customer address information left as voice messages on the system.  The call center will put customers in direct contact with human operators who will verify specific account and address information with customers so that their issues can be resolved in a timely fashion.

This situation seems to be a clear failure of the IVR system design and not of IVR technology.  The main purpose for the implementation of an IVR system is to save money by employing fewer live operators.  A secondary feature is to empower customers to access company services and complete simple transactions without the help of a human call center agent at any time of the day.  The system that the BWSSB employed failed to adequately accomplish customer self-service thus forcing the utility company to spend more money on a staffed call center.  By adopting a few simple design strategies, the BWSSB IVR system could have been a sufficient method for reporting water outages.

Many IVR systems employed by utility companies will request that customers enter an account number or telephone number associated with an account in order to access associated information such as a customer name and address.  A good system will ask customers to verify that it has accessed the correct information by prompting the customer to enter a PIN or some other form of identification.  Upon completion of the verification, the system can then proceed to record the customer complaint or issue.  The BWSSB system simply recorded customers speaking their account numbers or address so that a technician could then follow-up on the complaint.  The lack of real-time verification resulted in most complaints being left unaddressed.  The troubles were avoidable if a properly designed IVR had been utilized saving the BWSSB time and money.  Now they are forced to spend more of both at the added expense of customer satisfaction.

Empathetic IVR

Although numerous studies have indicated that customers have become more accepting of IVR systems, there are still instances that can cause frustration, especially systems that employ sub-par voice recognition software.  Frustrated and angry users will tend to emote their feelings in their speaking voice causing an already poor voice recognition system to have more trouble understanding the customer.  This leads to a vicious cycle in which the user tends to become more frustrated while the IVR system becomes less likely to recognize menu choices and/or voice commands.  Ultimately this can lead to a very negative customer experience which can effect a company's bottom line.

Yang Liu, a computer scientist at the University of Texas at Dallas, is conducting research that could change the face of voice recognition software as we know it.  She and her graduate students have received a three-year grant from the Air Force Office of Scientific Research to investigate emotion recognition and modeling in speech processing.  Liu's research will focus on voice pitch, intonation patterns and word choice and their associations with a variety of emotions such as anger, sadness, happiness, surprise and frustration.  If successful, her research could be applied to many applications including IVR systems that could quickly recognize a frustrated user and immediately transfer him or her to a human operator.  This would lead to a better overall customer experience and likely improve customer retention.

Golden Rules of Self-Service

There is, and perhaps always will be, an ongoing debate about the effectiveness of customer self-service through IVR systems.  A simple web search will return countless anecdotal accounts of frustration and trouble with IVR self-service solutions.  However, most consumer research indicates the opposite.  In addition, customer satisfaction data collected by companies further indicate a general acceptance of the technology by a majority of consumers.  These results raise the question: what is it about IVR systems that elicit such varied user perceptions?

ClickFox recently conducted a survey asking participants about their preferred method of interactions with their banks, cable/wireless providers, utilities and insurance providers.  The results indicate that most customers prefer to use self-service to resolve simple tasks like paying bills or checking account status, but would rather human interaction for more complex tasks such as filing claims or seeking technical assistance.  Of course these results also show that there will always be a place for human customer service operators but there is room to increase self-service and customer satisfaction at the same time. To implement an effective system, developers must take consumer demographics into account and consider how their range of customers will respond to certain types of self-service interactions.  By avoiding common mistakes in development, companies can also avoid negative attention on the web and social media sites.  1to1 Media suggests that there are five golden rules that will help increase self-service interactions while concurrently improving customer satisfaction.  Using best practices, knowledge bases and end-user analysis in IVR development can result in cost-savings and customer retention.

IVR Dos and Don'ts

After years of growing pains and mixed reviews by users, IVR systems are ubiquitous in large and small companies, yet many are still poorly designed or ineffective. Despite volumes of customer feedback and frequently publicized best practices, there is still often a disconnect between design and functionality/effectiveness of some IVR systems. DestinationCRM.com has put together a concise list of Dos and Don'ts for IVR systems that should serve as a starting point for companies that are new to IVR implementation as well as those who are considering changes and upgrades. These key ideas will not only improve customer satisfaction but it should also decrease overall call volumes to live operators in call centers.

One of the keys to good IVR systems is a clear road map specifying the call center processes that are most troublesome and time consuming. Identifying those key areas are an excellent starting point for planning an IVR system. However, many companies fall into the trap of expecting the IVR to be a replacement for human operators while it should instead be used to free call centers of easy tasks so that they can focus on more complex problems requiring one-on-one customer support. It is also very important to implement IVR systems around existing processes. Attempts to update processes and implement IVRs concurrently typically overwhelms an already overtaxed system. Simply learning from what others have done both correctly and incorrectly can lead to a smooth implementation and a benefit to all parties including the end user.

Political IVR

Outbound IVR systems have long been used as a means of calling potential voters to conduct polling, tele-campaigning or to remind voters of election dates and locations. In recent years, the internet and technology have become more ingrained in organizing grassroots efforts in support of a cause or a candidate. Prompted by these developments, Guide by Cell recently announced a new division called Win by Cell that utilizes the pervasiveness of cell phones in modern life as a means to mobilize political activists and supporters. Win by Cell specifically targets cell phones as a means to raise money, distribute information and integrate with online communities and social media networks to increase overall awareness of a campaign.

In addition to simply receiving SMS/MMS messages about a campaign and upcoming events, an integrated IVR menu allows users to hear audio messages from candidates and campaign spokespersons. The IVR system also allows users to call-in to pledge donations. This is specifically useful in campaign rally situations where supporters want to make a pledge on the spot but would normally be limited to doing so with a campaign worker. As with all advancements in IVR technology and their uses, Win by Cell is another in a long line of services designed to encourage automation and self-service while increasing customer participation.

IVR Popularity

Since IVR was first introduced as a customer service tool, there have been many detractors. However, a recent survey indicates that the tide has turned and customers have accepted IVR and, in some cases, even prefer it to live operators. Speech-enabled self-service IVRs have become so commonplace that many consumers report that they prefer to use such systems for simple tasks such as checking account balances, flight statuses or shipment tracking. The survey results show that more than 50% of participants reported a preference for speech-enabled IVR for most simple transactions.

The survey also suggests a positive consumer response to proactive IVR systems. Such systems are being used to place courtesy calls to customers as reminders of appointments or other important upcoming activities. Of course there is nothing new about the practice of proactive calling, but customer acceptance of the technology is improving along with the general trends in IVR acceptability. Despite all the positive marks for IVR systems, there is room for improvement. Although customers appreciate the ability to handle simple tasks themselves, they still want the option to easily bypass the IVR to speak to a live operator. Respondents also said that improving speech recognition and accuracy would greatly improve their calling experiences. Overall the results of this survey are very positive but continual improvement and meeting customer expectations will result in increased business for everyone involved in the IVR industry.

Monitoring the Situation with IVR

For many years IVR has been used as a tool by businesses to route calls from customers to appropriate departments and employees. Recently, IVR has been been utilized to disseminate information from businesses to customers and employees alike. With the advent of the text messaging, email and the internet, IVR has lost some of its uniqueness as a large scale communication tool. However a mere 25% of the world is connected to the internet severely limiting its reach. Cellular phones, on the other hand, are used by more than half of the world's population. This fact alone will keep IVR an important technology for years to come.

High in the Himalayan Mountains of Asia sits the Kingdom of Bhutan. The economy of the mostly rural country is dominated by farming. Every farmer's livelihood is dependent on his ability to find the best market price for his harvests. At one time, finding the best market prices was difficult, but thanks to the integration of cellular phones and IVR into their lives, tracking prices is easier for farmers than ever before. A farmer need only call the hotline and select his language to get up to date information on where he can sell his produce in order to maximize his profits. Although such a system seems commonplace here in the United States, there are emerging markets like Bhutan all over the world where IVR is only now being implemented.

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.

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.

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.

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.

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.

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.

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.

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.

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.