The Ins and Outs of IVR Voice Recognition

October 5, 2023

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Your customers want more fluid and personal interactions with brands, even as they demand the convenience of automation. For example, 40% of consumers prefer self-service over human contact, yet over 70% expect personalized interactions.

Fortunately, you can use IVR voice recognition technology to deliver that kind of attention. How does this convenient and practical technology work, and how can you take advantage of it?

Discover how IVR with voice recognition delivers better customer experiences with a high return on investment for you.

Key Takeaways:

  • IVR with voice recognition allows callers to speak naturally to an IVR system to move through a menu or handle transactions.
  • IVR voice recognition improves customer service, boosts your company’s productivity, and provides cost savings for various industries.
  • IVR voice recognition programs come standard with industry-leading contact center software.

What Is IVR Voice Recognition?

IVR stands for interactive voice response. This technology is an automated phone system where your callers communicate with a program that provides verbal responses after receiving input from the caller.

For example, a popular early use of IVR was (and still is) as an automated attendant. The caller listens to a prerecorded list of different departments, each with its own assigned number.

After the caller enters the number of the desired department into the keypad, the system transfers the individual to that department. Oftentimes, the caller can press 0 to speak to a human agent for further assistance.

IVR voice recognition brings additional capabilities. Now, your IVR service can listen to callers’ verbal responses and forward them through the menu. Artificial intelligence is continually improving this feature for the kind of fluid and personal experiences your customers want.

How Does IVR Voice Recognition Work?

The three following technologies make it possible for IVR to understand and respond to your callers.


A basic IVR system uses Dual-Tone Multi-Frequency signaling to interpret the tones from the caller’s keypad. With that input, the system follows your preprogrammed menu tree of options to direct the caller to the correct party.

2. Directed Dialog

The most basic IVR voice recognition uses Directed Dialog to interpret responses. The system asks for specific responses to move the caller through the system.

Directed Dialog usually restricts callers to a few words of input to proceed through the system. The caller might be able to say the name of a department instead of inputting a number.

For example, you could program the system to understand when a person says “billing” or “maintenance.” Then, the IVR service sends the caller to the corresponding department.

3. Conversational AI With NLP

Modern IVR voice recognition technology uses Natural Language Processing software for more lifelike interactions with the system. NLP is a type of conversational AI that can understand longer responses to open-ended questions.

In this case, the system could ask, “How can we help you today?” Then, the caller can respond in full phrases and get directly to the correct party without going through a long list of menu options.

What Are the Advantages of Installing IVR Voice Recognition for Your Company?

An IVR program improves the customer experience and makes things easier for your employees. Consider the following benefits:

  • Route calls efficiently: Callers get to the appropriate agent or department more quickly and resolve concerns on the first contact.
  • Reduce errors: The automated system collects and stores data directly from the customers, which lowers the number of errors that occur when human agents try to take notes while listening.
  • Decrease operational costs: You can hire fewer human agents and still assist callers during off-peak hours.
  • Increase security: IVR voice recognition allows you to verify caller identity and share information without exposing personal data to other parties.

IVR voice recognition with AI provides peak self-service for your customers!

Which Industries Are Using IVR Voice Recognition the Most?

Any business that relies on regular customer interaction, whether inbound or outbound, can benefit from an IVR with voice recognition. The following case studies show how a few industries typically use enhanced IVR nowadays:

  • Customer service centers: Companies that provide third-party customer support rely on IVR voice recognition for a speedy customer experience.
  • Health care: Facilities can handle scheduling, patient monitoring, and surveys, as well as deliver sensitive results and reminders.
  • Finance: Customers can process transactions and manage accounts more easily with IVR voice recognition.
  • Education: Students and their families can stay updated on grades and attendance.

Many other fields also use IVR voice recognition to provide the best service to their customers.

How Much Does IVR Voice Recognition Cost?

A solo, on-premise IVR software with voice recognition capabilities can cost hundreds of dollars per line. You would also have to configure and maintain the program, which requires hiring additional technical support.

On the other hand, contact center as a service (CCaaS) software provides IVR with voice recognition as a standard feature. An industry-leading hosted CCaaS, such as Intermedia’s Contact Center, has everything you need to benefit from IVR technology at a fraction of the cost of an on-premise solution.

How Do You Pick the Best IVR Voice Recognition Solution for Your Business?

The quality of your IVR with voice recognition depends on your contact center provider. Work with a company that provides a worry-free experience and has the following features:

  • Cloud functionality: Your provider hosts your system online for easy remote and hybrid work setups.
  • Integrations: Connect your contact center to your internal unified communications and business software, making it easier for agents to reach experts to resolve issues and collect data.
  • Award-winning support: Your provider should be available to assist you 24/7 if you have any challenges with your IVR voice recognition software and stay by your side as you install your system.
  • Data security: The provider should have ironclad data protection that complies with industry standards.

A world-class provider, such as Intermedia, ensures that setting up your IVR with voice recognition is a breeze.

Work With Intermedia To Quickly Set Up Your IVR Voice Recognition

Are you ready to see how Intermedia’s IVR voice recognition software can boost your contact center experience? Chat with one of our team members for a free demo.

Rob Gold

October 5, 2023

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