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.

Choose Your Own IVR Adventure

Truly interactive programming has long been a goal of movie and television producers.  13th Street productions have effectively achieved the first step in reaching such a goal with the help of IVR technology.  In their first interactive feature film "Last Call," movie goers are asked to enter their cell phone numbers into a database which is used during the movie to direct the actions of characters.  In the horror film, the character calls a random viewer seeking help to escape the killer.  The IVR system registers the responses and the film proceeds according to those choices.  This can result in unique moviegoing experiences for each viewer.

Of course, this is only one step in the process of fully interactive movie entertainment.  The viewer does not have complete control over the action in the film but rather binary choices at several points in the action.  The ultimate goal is complete control over a virtual world, but this is a positive step which appears to be a hit among test audiences and well suited for the horror genre.  This application of IVR is another in a long line of uses of the technology above and beyond its initial concept.

In-Car IVR

IVR systems continue to be tested and utilized for applications outside the realm of telephone on-hold and customer service systems.  One such development is the use of IVR to communicate important auto related information to drivers.  In systems similar to OnStar, important information can be delivered to a driver through an IVR device located in the vehicle.  This information could include routine or immediate maintenance issues, recall notices or real-time traffic updates.  The driver would have the ability to activate and respond to such information using voice commands allowing for hands free operation and minimal distraction.  Although these systems are only beginning early stages of development, recent research suggests that drivers would find them more convenient that currently available systems.

An ATX Group survey revealed that a large majority of drivers would be receptive to in-car messages about recall notices, gas station locations, fuel prices and regular maintenance notifications.  Respondents also indicated a preference to in-vehicle messages as opposed to those delivered by direct mail, telephone, email or text message.  Pilot tests sending in-vehicle maintenance messages from dealerships have shown a high level of comfort among drivers as well as a very low number of opt-out requests.  An important factor in design and user acceptance is to ensure that the messages are delivered in a non-invasive manner but rather can be reviewed on-demand at the driver's leisure.  The ATX survey suggests that most drivers would be receptive to important and useful audio messages being sent to their vehicles allowing for yet another novel use of IVR technology to help improve daily life.

IVR Design Tips

Most negative customer experience issues related to IVR systems are due to poor system design.  Despite multitudes of customer feedback data and industry best practices, many IVR systems lack basic design features that would make them more acceptable to customers.  The principles behind a good design are rather simple however a designer can often make what seems like a straightforward navigation menu to other designers, but is overly complex or daunting for the average consumer.  To this end, Acclaim Telecom Services recently released a list of common sense IVR design tips.

Like many lists of design tips that have come before, Acclaim recommends that first and foremost, the navigation menu should remain simple and concise.  Many systems try to offer too many options potentially resulting in customers forgetting choices and having to re-listen to a particular menu.  Another very important design tip is to only ask customers to enter information once.  Any duplicate request for information is indicative of an inefficient system and can cause frustration among customers.  Perhaps the most important tip is to make it easy for a user to exit the automated system and speak to a live operator.  Too many systems either bury the live operator option deep within the menu choices or worse, don't even give the customer the opportunity to speak to a human being.  On one hand, this is an excellent money saving strategy, but on the other, it is terribly alienating for a frustrated customer.  These tips are very simple however they are so often missing from the most basic IVR system.  Simply adjusting the design mindset can help drastically improve customer experience and satisfaction with an IVR system.

Story Time Through IVR

While the most common use of IVR is for customer service and call routing, some companies are utilizing the technology for entertainment purposes.  Indian cellular provider Reliance Mobile has introduced a children's story telling IVR system.  Through the system, a user can select from many of India's most famous folk tales narrated in one of ten common languages for a small per minute fee.  In addition, a subscriber can select one of the stories as a caller tune for their phone.  Caller tunes play a specific song or track rather than a ringer when someone is trying to connect with a user by phone.  This serves as a form of entertainment for the caller, like on-hold music, while the connection is being established.

Although it may seem like a rather unimportant product, this and others like it are examples of non-traditional uses of IVR systems and their ability to generate revenue.  In the United States, IVR has been employed for some entertainment purposes but not to the extent that it has been applied in European and Asian countries.  This specific type of product might not work in the US, but a variation of it could be a hit with certain customers and/or demographics.  It's hard to gauge the market for IVR-as-entertainment in the US but for now it appears to be a potential opportunity for development in India.  Development of these types of IVR applications will help diversify the industry and allow it to live longer in a world where disruptive technology can change the world overnight.

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.

Proper Pronunciation of Nguyen

I'm convinced that one of the reason's people hate cold calling isn't because of rejection. I think we're really afraid of getting caught pronouncing the name wrong.



At Unidig we frequently record proper nouns for IVR applications. And whether we're recording a person's name, location or business - technology certainly gives us an edge we didn't have a few years ago. A partner recently said to me; "what did we do before You Tube?"

At UniDig we use You Tube and other online searches to find the proper pronunciation of a lot of local words and terms we may not be familiar with. Recently we recorded a project with the name Nguyen. It is a very common name in the states of California and Washington. As language enthusiasts, it is interesting to hear how different the name can sound depending on the Vietnamese or American accent used in the recording.

Here is the one we went with:





Executive Producer
Universal Digital Productions Inc.

Build a Better IVR Script

Without a doubt, IVR systems have become part of standard operating procedure for most businesses.  Improvements in technology and lower costs have made their implementation easy and affordable for any size business from multimillion dollar companies to at-home businesses of only one employee.  But an IVR system is only as good as its script.  Careful crafting and testing of scripts is essential for an effective and user-friendly IVR system.  Without an easy to understand script, an IVR system can be hard to navigate and/or cause a customer to become frustrated.  A good IVR system starts with a good script.

Craig Borysowich of Toolbox for IT has written an excellent summary of the method for creating, testing and implementing an IVR script.  A good script starts with clear objectives.  Without specific goals, implementing an IVR system is a waste of time and money.  It's also important to clearly identify the type of application(s) that will be employed in the system (e.g. data-capture, transaction processing, etc.).  The work flow of the system is critical.  Borysowich recommends applying Human Factors Analysis techniques to make the system logical, efficient and user-friendly.  The text of the script should be clear and concise when spoken so that it can be easily understood by customers.  Perhaps the most important step that is also probably often overlooked is usability testing.  Pilot programs should be run with actual customers to test the systems and their feedback must be used to revise the script.  Several cycles of testing should be performed where feasible to have a very refined script before it is rolled out for general use.  Using this type methodology will catch customer satisfaction issues before they happen on a large scale and the end result will be an efficient and useful IVR system.

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.

Customer Service Call Back

Although recent surveys indicate that customers have grown to accept performing common self-service tasks through automated IVR systems, when the need arises to speak to a live agent, long on-hold times still lead to frustration. Now some companies like Scottish Power give customers the option of being called back when an agent is available. The Virtual Hold system is triggered when call volumes are high and wait times are expected to be long. The customer can choose to stay on-hold or enter a call back number where they can be reached when their virtual placeholder in the queue reaches the front of the line.

Ideally, of course, customers would choose to experience no wait time, either on or off the phone, and prefer to be immediately connected with a live customer service agent. However, due to the downsizing of call center staffs to save money, waiting on-hold is simply unavoidable at times of high call volumes. The Virtual Hold solution is the next best thing to being immediately connected to a live customer service agent. The customer is free to do other things while waiting rather than listen to on-hold music and/or advertisements for other services. Although not a perfect system, Virtual Hold could result in improved customer satisfaction and retention.

Visual Self-Service

Video capability has long been a goal for telecommunications providers. From seamless video teleconferencing for business to more personal video chats between geographically distant family members, bandwidth has been the limiting factor. Those factors have since been overcome through the proliferation of T1 and fiber lines and with the introduction of low-cost and/or free applications such as Skype and Google Video. Now, we are seeing similar increases in transmission speeds and bandwidth associated with cellular data networks. An obvious application for this functionality is to offer visual customer-service in place of more traditional IVR self-service options.

This is not an entirely new concept as 2009 saw examples of the adoption of this technology for cellular video chats with customer service agents and for visual IVR menus designed for the hearing impaired. Australian cellular service provider Ovum recently announced a major increase in development in visual self-service solutions on their mobile devices. The reason for the development goes beyond the concept of simply improving customer service. According to estimates, the average cost for a customer self-service transaction through a mobile self-service application is 15 cents versus 50 cents spent on the same transaction conducted through a more traditional IVR system. As is usually the case, the development of this new technology will be a win for both the customer and service provider in the form of improved service for the customer and lower operational cost for the business.

IVR Reminders

The idea of employing IVR systems for purposes other than answering and routing telephone calls is not new. Over the past several years IVR has been used in outbound information dissemination as well as for reminders from businesses, like doctors offices, about upcoming appointments. IVR Technology Group has taken this concept a step further to create iConfirm, an automated appointment reminder service. Nowadays, most people rely on appointment books or calendars on their computers or smart phones to manage their increasingly busy schedules. iConfirm builds on this model and integrates it with old fashioned telephone reminder services.

iConfirm is an online service that allows the user to input the times and dates of appointments and then receive an automated telephone reminder from an IVR system. Since the messages are delivered by a virtual operator, they are always done so pleasantly, consistently and in a timely fashion. Also, since the system is automated, human error will not result in delayed or missed appointment reminder phone calls. Although the idea in and of itself is not new or entirely original, it could be a very useful and convenient service in our increasingly busy lives. This is only one in a long line of uses for IVR above and beyond its original intent.

IVR in Recession

Don't be fooled by the title of this post...it should not imply that IVR systems will see a decline in use as a result of the global recession experienced over the past year. In fact, trends indicate that if anything, IVR usage is on the rise because of the need for companies to continue to cut costs. Historically, IVR systems have been implemented by companies as a way to handle normal or increased call volumes with a smaller call center staff. However, saving money is only one of the driving forces in the boost in IVR system utilization. Recent technological advances in speech recognition and innovative applications for IVR systems in general have done as much to spur growth in the industry as companies' bottom lines.

DMG Research recently reported an expected average compounded growth rate of approximately 13% for hosted inbound IVR solutions over the next four years while outbound IVR solutions growth could reach nearly 19%. This is not to say that the market will not see any contractions. The same study indicates that sales of on-site IVR systems will likely see a decrease as hardware and start-up costs outweigh the convenience for maintaining on-premises systems. On the forefront of increased IVR deployment are self-service solutions for all types of companies, both public and private. As users continue to accept IVR as a normal way of doing business, self-service will become more common at companies large and small. The IVR system market is not recession-proof but it certainly seems to be well poised to weather the financial storm and grow in the process.

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 in 2010 and Beyond

Aspect recently sponsored a benchmarking survey to study IVR and voice self-service usage as well as future implementations of the technology and it's good news for the industry. The survey suggests that both large and small companies see the benefit and need for voice self-service applications. Of the more than one hundred global contact centers surveyed, more than three-quarters already employ IVR systems as part of their business. Among the companies that do not yet use the technology, almost 40% plan to adopt it in the next year and nearly one-quarter more are planning to do so in the next two years.

The survey also indicates that the top three goals for 2010 are to improve customer experience, improve productivity while controlling expenses and preserve existing revenue streams. As IVR has become accepted by companies and consumers alike, there have been moves to improve overall customer experience and functionality of the systems. Awareness of this and other important goals should help drive the industry forward over the course of the next year and beyond. Self-service appears to be the future of the industry and continued customer acceptance will help the industry continue to grow in 2010.

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 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.