IVR Phone System: Guide to Automate Caller Response

IVR Phone System: Guide to Automate Caller Response

A well-architected IVR phone system can streamline business operations and improve customer experience with the best contact center solutions at an affordable cost for small businesses. Learn more about improving your customer service strategies by providing self-guided automation that will be guaranteed to improve customer service and raise your brand profile. 

What Is an IVR Phone System?

An Interactive Voice Response (IVR) phone system is an automated telephony system that allows callers to interact with an online system using voice or keypad inputs. 

An IVR phone system is commonly used by businesses to provide automated customer service, such as routing calls to the appropriate personnel, providing current account information, and billing functions. An IVR phone system can also be used for customer surveys, appointment scheduling, and order tracking by customers to streamline certain customer service functions.

IVR phone system technology has started incorporating features such as natural language processing and speech recognition with the rising popularity of Artificial Intelligence. These advancements have made IVR phone systems more natural and user-friendly, increasing user adoption and satisfaction.

IVR phone systems can be hosted on-premise or through a third-party IVR phone system provider. The cost and complexity of the system depend on the features and customization required.  

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Benefits Of Using A IVR Phone System for Businesses

Here are some of the benefits of using an IVR system for businesses include the following:

Improved Customer Service

IVR phone systems can provide automated customer service solutions allowing businesses to handle large calls efficiently. Callers can receive quick and accurate responses to their queries without waiting for a live agent.

Cost Savings

IVR phone systems can help businesses save costs by reducing the need for live phone system agents to handle frequently asked inquiries. IVR phone systems enable businesses to redirect resources there to other areas of operation by reducing laborious activities.

Increased Efficiency

IVR phone systems can simultaneously handle a high volume of calls, reducing wait times and call abandonment rates during surge times. This can increase efficiency and productivity for businesses within their customer service departments.


IVR phone systems can be customized to fit the needs of any business, providing a personalized experience for users. This can help improve customer satisfaction and brand loyalty, aiding in your brand image management strategies.

Data Collection

IVR phone systems can be used to collect data from incoming callers, which can be analyzed to gauge customer behavior and preferences. This can help businesses to make informed decisions about their operations and marketing campaigns using IVR phone systems.

With the advancements in IVR phone systems, businesses can use these benefits to enhance their operations and provide a better customer experience.

Who Can Benefit from Using an IVR Phone System?

IVR phone systems can benefit many businesses and organizations that handle many phone calls. Some of the industries that can benefit from using an IVR phone system include:


Hospitals, clinics, and other healthcare providers can use IVR phone systems to schedule appointments, provide test results, and offer health advice without the need for extra staff. An IVR phone system's features can give patients more autonomy over their care at healthcare facilities. 

Banking and Finance

Banks, credit unions, and other financial institutions can use IVR phone systems to provide account information, process internal and external transactions, and offer financial advice to customers without the need for live customer care agents. IVR phone system can offer cost-effective solutions for financial institutions to elevate their customer care initiatives. 


Retailers can use IVR phone systems to handle customer inquiries, process orders, and provide product information. IVR phone systems can also be used to enable customers to access information about their orders without the need for customer service agents. 

Travel and Hospitality

Airlines, hotels, and travel agencies can use IVR phone systems to manage customer reservations, provide travel information, and process customer payments.


Government entities can use IVR phone systems to inform the public about services and programs, process virtual applications, and handle public inquiries.

How Much Does IVR Phone System Cost?

The affordability of an IVR phone system can vary depending on several factors, such as the size and complexity of the IVR phone system. The number of calls expected and the features required.

There are generally two pricing models for IVR systems: subscription-based and per-minute usage. 

  • Subscription-based models typically charge a monthly fee, ranging from a few hundred dollars to thousands of dollars, depending on the provider and the features included in the system. 
  • Per-minute usage subscriptions can charge a fee for every minute a customer spends on the IVR phone system, which can range depending on the provider and the volume of calls handled by the IVR phone system.

However, some providers now offer cloud based IVR phone systems, which are more cost-efficient and accessible via any device. These cloud-based IVR phone systems have lower setup costs and require no hardware purchase, making them a popular choice for small to medium-sized businesses that are looking to get started on their IVR phone system journey.

How To Choose an IVR Phone System for Your Business?

Here are some tips for choosing an IVR phone system for your business:

Determine Your Business Objectives

Identify the features and functionalities that your business requires before deploying an IVR phone system. Consider the size of your business, the volume of calls expected, and the type of customer inquiries that will be handled using an IVR phone system.

Consider The User Experience

Choose an IVR phone system that is user-friendly and easy to navigate. A well-designed IVR phone system can frustrate callers and result in a positive customer experience.

Consider Customization Options

Select an IVR phone system that can be customized to your business needs. Customization options can include voice commands, language options to support multilingual users, and integration with other business solutions such as CRM.

Check For Integration Capabilities

Choose an IVR phone system that can easily integrate with your existing systems, such as CRM, ticketing, and accounting systems.

Evaluate Pricing

Consider the cost of the IVR phone system and compare it to the latest contact center features and functionalities included in the package. 

Read Reviews and Check References

Research different IVR phone system providers and read reviews from other businesses similar to yours. Check references to ensure the provider has a track record of delivering quality service in your industry before investing in an IVR phone system.

An IVR phone system that meets your business needs, improves customer satisfaction, and enhances your operations should not be a decision to be made lightly. Compare the best IVR phone system providers before selecting the best vendor for your business. 

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