Best IVR Software of 2024

What is IVR software?

Interactive voice response (IVR) is a communication system that facilitates engagement through a network of caller inputs and automated responses. IVR software utilizes speech recognition technology and call management protocols to recognize voice commands, interpret keypad inputs, and direct calls through a network of custom menu options.

As a core feature of voice-over-internet-protocol (VoIP) phone systems, IVRs facilitate efficient communication with current and potential customers or clients. Therefore, choosing the right IVR software for your business ensures you can successfully manage calls and improve customer service.

Top 6 best IVR software  

We constructed a list of the top 6 best IVR software solutions based on detailed criteria and expert recommendations. The best IVR systems stand out for their customizability, call management features, and menu options.

Best IVR software at a glance

How do IVR systems improve customer experience?

Self-service is an essential component of customer service software, and IVRs improve customer experience by making accessing information without human assistance easier. Instead of waiting on a receptionist to answer calls, IVR software directs calls for a business, providing a more efficient method of managing inquiries that can be time-consuming for busy receptionists.  

By implementing an interactive voice response (IVR) system, you can seamlessly move customers through a call pathway by recognizing caller inputs and automatically routing calls. Generally, an IVR system works by creating a call-flow system with the following steps:

1. Incoming call: When a customer calls a phone number, a call path is opened. Within an IVR system, this initial call triggers an interactive voice response.
2. Menu options: The IVR’s initial response is a recorded greeting and a menu of options corresponding to specific phone keys. 
3. Caller selection: The customer chooses a path from one of the menu options that best reflects the objective of their call.  
4. Keypad or Commands: The IVR uses speech recognition or dual-tone multi-frequency (DTMF) technology to interpret the customer’s voice commands or keypad inputs. 
5. IVR Automation: The customer is then sent down a pathway of automated responses that lead to a predetermined set of phone numbers, extensions, or voice mailboxes. 

For example, an IVR can direct customers to the correct department to reach customer service. This can be done using a keypad (e.g., Dial #2 to contact customer service) or clearly stating the department you want to reach. By providing self-service menu options, IVRs offer a professional introduction to your business, making calling a more pleasant experience for customers who can efficiently receive their desired information on the first interaction.

Read more: Customer Service Software Guide

Key features and benefits of IVR

IVRs are one of many ways to improve communication flows by constructing a transparent call management system. Therefore, adopting an IVR system provides several features that can reduce wait times and increase customer satisfaction with their experience. 

Automated call routing 

One key feature of IVR software is automatically routing calls from a menu. Specifically, IVRs use speech recognition software and dial tone detection to trigger the automatic distribution of calls. This technology can route incoming calls based on a caller’s selections, transferring callers to specific phone numbers or placing callers in a queue to wait for the next available agent. Therefore, IVR software benefits businesses that want to streamline call flows by balancing self-service options with agent interactions.

Call scheduling & management

To set up call routing, most IVRs include a call editor that allows you to create a simple call management plan. The call management plan can create distinct call flows with specific pathways leading to phone extensions and voicemail boxes. Specifically, you can set up an IVR to answer calls or route customers to a voicemail box when your business hours have ended for the day. 

Additionally, you can use an IVR editor to create a custom schedule for your business. IVRs can also trigger collaborative call management features like simultaneous rings or call groups, which allow multiple agents to answer calls in a specific order. These features ensure that customers are more likely to reach an agent instead of waiting on the phone.

Customizable prompts and responses

Although IVRs automatically route calls through a series of menu options, you can customize your IVR system with greetings and prompts. Depending on the IVR service provider, some systems allow you to record greetings to introduce your business to customers directly. Other providers include professional voice recordings or pre-recorded messages that you can use to make announcements and provide menu options. These greetings are beneficial because they provide a more personalized customer experience.

Call recording & storage

Whether you work in sales or want to gather customer insights from agent interactions, you can use IVRs to record calls and store them in a database. Call recording features are often paired with artificial intelligence features like sentiment analysis or note-taking, which can provide additional information about customer experience and engagement, such as the length of the call and customer satisfaction with the information provided.

Inbound & outbound calling

While most IVRs focus on inbound or incoming calls, many IVR service providers also offer outbound calling features to improve customer service. For example, IVRs can schedule customer appointments during the inbound calling process. Then, the system can use outbound calling to send automated reminders and updates on the initial appointment.

Some IVRs incorporate call-back features that can call a customer when the next agent becomes available, minimizing customer wait times in call queues. Additionally, IVRs can utilize outbound calling to process payments or fees over the phone. 

Call monitoring & analytics

One of the benefits of using an IVR is the ability to track and monitor calls. By tracking calls, businesses can gather important insights about customer service and experience, which can be used to improve the acquisition and retention of clients or customers. 

For example, a VoIP phone system gives businesses various insights about call volume, type, and frequency. Some IVRs can also track how long it takes for a call to be answered by monitoring the time it takes for a caller to move through a defined call path. Systems that record calls can also analyze call quality, such as ensuring agents or service representatives handle calls effectively.  

Third-party integrations

IVR software provides efficient call management, but many systems also offer integrations with third-party applications and software providers to improve business communication. For example, some IVR software provides Integrations with popular CRMs, like Salesforce or Hubspot, to enhance workplace management and customer acquisition.  

Security protocols

Although all businesses should adopt a secure phone system, some industries require more cybersecurity features. A secure IVR system that is compliant with privacy laws and standards is a top priority for those in industries like law or healthcare. Businesses that handle customer data, like payment processing, will also benefit from more advanced security features.

For example, some IVR solutions include payment card industry (PCI) compliance, which provides multiple layers of data encryption to protect financial data. Choosing a HIPAA-compliant IVR to safeguard protected health information (PHI) benefits healthcare providers. Therefore, advanced certifications and encryption are integral features of IVRs.

Read more: What Is Interactive Voice Response (IVR)?

Best practices for using IVR software

Once you have selected the right IVR software for your business, you can implement a few best practices to improve customer experience and call management.

Analyze call volume & type

After choosing an IVR service provider, you should continuously monitor and assess your IVR system. While some businesses use an IVR to provide information, others use the service to route calls within a company. Some combine both, so consider the type of calls you plan to handle when using an IVR and how you can scale your system.  

In addition to call type, take some time to evaluate the volume and frequency of calls you receive. While some plans are geared towards large businesses with a high call volume, others are best suited for low call volumes and frequency. Regularly check your dashboard or call monitoring reports to track the volume and type of calls you frequently receive to ensure that your phone system and plan are the best for your business and customer.

Balance automation with engagement

Most IVRs operate on a self-service model, in which callers move through the menu options and paths without additional assistance. While this automated experience is one of IVRs’ benefits, it doesn’t always prioritize customers who need more assistance. Therefore, it is important to balance automated options with opportunities for more direct customer engagement.

For example, if your phone system is integrated with a CRM or collects customer insights, use that data to determine which stage of your call pathway would benefit from more customer engagement, like access to a customer service agent or representative. You can also offer menu options that immediately route callers to an agent for more complex questions and concerns.  

Simplify call management plans 

As a communication network, IVR systems can include multiple levels of menu options and call paths. This can make IVRs challenging to design for larger businesses and even more unwieldy for callers to navigate. Therefore, create a caller-centered system that prioritizes ease and efficiency with a few simple menu options and an organized call flow diagram.

A caller-centered system also focuses on creating call flows that are intuitive and easy to use instead of creating a maze of menu options and call routing. This means analyzing the time it takes for a customer to move through a call journey and whether or not they receive the information they need on the first call.

Frequently Asked Questions (FAQ)

What is IVR software?

IVR, or interactive voice response, is a communication system that routes and responds to calls using predetermined pathways. In software, IVR is the back-end program or technologies that manage call interactions within an IVR system. Generally, IVR software is programmed using speech recognition, dual-tone multi-frequency (DTMF) technology, and automation protocols that facilitate a network of interactions, which leads to more efficient call handling.  

How do I set up an IVR system?

Setting up an IVR system involves several steps. First, choose an IVR service provider that reflects your business needs and customer calls. Then, determine how to use your IVR based on your call volume and types. With this information, you can create a call management plan, like a call-flow diagram or phone tree, to visualize the caller pathways in your system. 

After making a clear call routing plan, you can craft scripts and prompts to respond to calls and customer inquiries. Depending on your service provider, you can use an IVR editor to design these call flows and upload your scripts and automated responses. Finally, you can add any additional features to your IVR system and, once completed, regularly assess call data to make changes to your call management plan.  

What are the requirements for IVR?

There are several system requirements for using an IVR. First, IVRs are often one feature of a phone system, so you must choose a phone system that works for your business, like a VoIP business phone or a cloud-based system. To run a phone system efficiently, you need a stable internet connection to support your business’s call volume and flow.

Then, you should determine the type of database that works best for you. Many IVRs include call monitoring and recording, which produces a significant amount of data. Use a database with a scalable storage system that you can increase as your data grows. Finally, every IVR requires a secure server to host your phone, so ensure that your system complies with the cybersecurity standards for your industry.  

What is the difference between a call center and IVR?

The primary difference between a call center and IVR is how the systems interact with callers. A standard IVR system automatically routes callers through the phone system based on automated interpretations of voice commands and keypad inputs. In contrast, a call center utilizes live agents to answer calls, provide support, and manage call flow. So, while call centers often utilize IVR systems, IVRs are automated systems, while call centers offer more hands-on assistance.