After-sales support, or customer support, is one of the most important aspects of running a business. The reason behind this is that it increases the retention rate and lowers the churn rate to enable a business to generate more revenue.
Imagine trying to solve a problem as a customer but getting stuck in a long list of confusing IVR menu options. The system is badly organized, and the design makes it hard to use. This can quickly lead to stress, wasted time, and a very frustrating experience.
As per HubSpot, 93% of customers like to purchase products again when they get positive customer support. These stats show that customers like a convenient and problem-solving team for their issues.
There is more to learn about this if you want! This article will provide you with more of what most brands don’t know about how to reduce churn rate.
What is Interactive Voice Response (IVR)?
IVR is a telephony technology that is primarily used by businesses to connect with other companies or potential clients for the brand’s benefit.
While the traditional IVR systems use pre-recorded messages that guide users through the entire process, the innovative IVR systems use advanced technology. In most cases, the IVR menu is navigated using the keypad of the phone itself and is designed to answer simple queries.
However, in extreme cases, customer representatives might have to pitch in and solve customers’ queries.
Identified Gaps and Weaknesses of Traditional IVR
IVR systems have been a standard for customer service for some time. They have helped people to find answers to their queries and handle problems that required complex steps. However, that doesn’t mean that it’s free of any pitfalls.
As the technology is advancing day by day, the need for fast-paced customer service is becoming undeniable for brands to succeed. This is where the IVR system began to fall short. Over here, you’ll be looking at those aspects:
1. Static Nature
One of the biggest challenges of the traditional IVR system is its static nature. In other words, the old-school IVR systems were enough to get the job done. However, they were not scalable.
Now, scalability is a very important metric as it determines the process’s dynamic capabilities. Therefore, the fast-paced nature of the arena demands that systems come in a more flexible format that can adjust.
Sadly, traditional IVRs do not have the technical skills for scaling. As a result, they failed to keep up with the necessity for scaling.
2. Limited Language Prowess
Language plays a major role in communicative job roles. This is where the lack of language proficiency becomes a significant barrier to problem-solving. Imagine trying to help an individual who can only speak Spanish, and the representative does not.
Maybe you can imagine the amount of hassle it will be. This is a big problem for traditional IVRs. The archaic code was never powerful enough to bridge multiple languages. In most cases, people had to bring in individuals who spoke the respective language, like a translator.
This is not a sustainable practice and also has numerous loopholes that need to be plugged. Furthermore, traditional IVR had some major concerns that should be solved. However, it did serve a purpose. This is where AI-powered IVR comes into the picture.
What is AI IVR System?
AI IVR is a telephony technology system that businesses use to connect with potential clients and other companies.
Such systems are used to streamline a lot of the process, which are popularly known as conversational IVR systems. This is the next logical step towards technological advancements to make the world a better place to live for everyone.
The conversational tone makes it easier to communicate and convey the queries. The AI integration gives it a better cognitive ability to understand problems. The smarter module is more efficient and customer-friendly.
Customers do not have to follow a complete SOP to complete the job. They can engage in a conversation and get the job done with more ease.
Why Is AI IVR Better Than Traditional IVR?
The benefits of AI IVR are not linear because Artificial Intelligence (AI) in itself is a complex system that human beings are still understanding.
Hence, here are some of the most important benefits of AI that people need to know to understand it better.
1. Natural Language Processing (NLP)
Natural Language Processing (NLP) is one of the most important aspects of AI-driven IVR to benefit businesses. Moreover, NLP streamlines the biggest problem of understanding language. In other words, it can help individuals to understand the queries regardless of the language barrier.
2. Improved Call Routing
Call routing allows brands to stay connected and find a flexible and understandable solution to problems. This is another important aspect of IVRs for companies to resolve complexity. Smart call routing can make the process more seamless.
Therefore, it’s necessary to maintain a better CSAT score for everyone involved.
3. Lowered Operational Cost
Operational costs for customer service departments can be quite high due to high-cost tech. The reason is that customer support is a tech-heavy vertical. However, integrating AI can be quite expensive, but it will be a one-time investment.
4. In-depth Analytics
Last but not least, traditional IVR does not offer in-depth analytics. On the other hand, AI-based IVR can offer deeper analytics that can help experts make better calls, which allows for better improvement opportunities.
All in All…
AI in IVR isn’t just enhancing performance, but it’s also redefining the entire customer service vertical. Its ability to streamline interactions and deliver faster responses has encouraged businesses to integrate AI across other departments as well.
Moreover, this approach leads to improved customer satisfaction (CSAT), better operational efficiency, and smarter handling of queries. This whole process makes AI a key enabler of modern, scalable support systems for business success.
