An interactive voice response (IVR) is an automated phone system that uses prerecorded messages and text-to-speech technology—engaging callers without a live agent. Cloud infrastructure has increased the adoption of this technology, and natural language processing (NLP) has expanded how callers interact with computers over the phone. We analyzed the latest IVR statistics to understand its role and potential in modern business operations.
IVR Usage Statistics & Growth
Business phone systems with integrated IVR solutions efficiently undertake call routing, call management, and simple tasks like bill payments and reservations. These systems have become widespread because they help companies respond to customers in a timely manner. These IVR stats illustrate the growth of this communications technology.
1. Global IVR systems are expected to reach $6.7 billion by 2026
(Source: Cision PR Newswire)
Advanced technologies like NLP and artificial intelligence (AI) in the U.S. have propelled market demand in North America. These technologies reduce the time spent solving individual queries and decrease call duration, helping lower overall organizational costs. In 2020, the global IVR market was estimated at $4.2 billion, and with a growth compound annual growth rate (CAGR) of 7.9%, it’s projected to reach $6.7 billion by 2026.
The U.S. IVR market has an estimated value of $1.4 billion in 2021, accounting for a third (31.4%) of the share in the global market.
2. 40% of IVR market growth will come from North America
One of the contributing factors of IVR growth in North America is the increasing market for IVR use in small to medium enterprises (SMEs). IVR research indicates that 40% of the market’s growth between 2021 and 2025 will be in this region. Some identified prominent players in the IVR market include AT&T Inc., Avaya Holdings Corp., Cisco Systems Inc., Concentrix Corp., RingCentral Inc., and Verizon Communications Inc.
3. IVR’s FCR rate is the highest among all contact channels
(Source: SQM Group)
Successful and well-designed IVR systems resolve inquiries on the first call. One research found that the IVR self-service first call resolution (FCR) rate is 74%, and those who opt for a self-service option prefer it to an IVR used to navigate callers to agents for issue resolution. High ratings are also due to the low complexity of some calls handled by IVR systems, such as order confirmation, account balance checking, and status updates.
IVR Statistics & Customer Service
IVR statistics and research found that these solutions help customers resolve their issues swiftly and ensure they’re connected to the right people or departments when needed. During high call traffic, a well-designed IVR system minimizes wait time and helps customers perform simple tasks themselves. These IVR stats offer critical insights into customers’ feelings and perceptions about IVR systems.
4. The global customer experience management market size is valued at $14.95 billion
(Source: Fortune Business Insights)
The global customer experience management market is projected to grow from $14.95 billion in 2022 to $52.54 billion by 2030. This emphasizes the importance of client servicing in retaining customers and building a valuable business relationship. Businesses need to focus on catering to the growing demand of customers and provide solutions that improve customer satisfaction.
5. Survey respondents: Self-service options are a convenient way to address service issues
(Source: Zendesk Blog)
Three-fourths of survey respondents reveal that a robust customer self-service portal is a convenient way to address service issues. Callers can quickly and easily access information and solutions over the phone, reducing wait time. It also gives customers more control over the conversation and eliminates the need to speak with agents to answer inquiries.
Want to know more about different types of phone systems? Read our voice-over-internet-protocol (VoIP) phone systems guide and determine which platform and provider best suits your company’s needs.
6. 81% of consumers want more self-service options
Customers demand greater speed and convenience when it comes to customer service. Eighty-one percent of clients expressed that they want more self-service options, and more than a third of respondents want to see companies make self-service smarter. IVR systems accurately interpret customer needs and responses more intelligently than traditional answering phone systems and automatic call distribution (ACD) solutions.
7. More than a third of customers want to resolve their own issues
As IVR systems gain popularity, customers are prioritizing speed and service delivery, with 35% of consumers saying it’s very important to have a fully self-serve client care option available to resolve their issues. Automated options cover frequently encountered issues and divert calls from the queue, decreasing call volume. Offering self-service channels improves FCR rates and contributes to higher customer satisfaction.
Tip: It’s best to allow your customers to use self-service options, but always give them the option to speak to an operator or agent. Some complex situations or concerns require human intervention. Read our IVR design best practices and tips to learn how to optimize your menus.
8. The majority of customers are looking for personalized IVR experiences
(Source: Salesforce Research)
Sixty-three percent of customers want IVR systems to provide a personalized experience, catering to their specific concerns. Customers value individualized service over customized marketing, which requires a clear understanding of your customers’ needs. IVR systems can facilitate personalized options, such as language choices, custom greetings and messages, and additional promos and products specific to each caller.
Take a customer-centric approach and visualize what customers want from an IVR. Whether you’re enhancing your IVR system or it’s your first IVR, RingCentral’s IVR Designer allows your team to customize your phone system. Its flexible IVR phone menus enable you to create an interactive flowchart using an easy-to-use, drag-and-drop interface. Use RingCentral and build up to 250 IVR menus and submenus per account. Check out our RingCentral review for more.
9. Most callers have an ‘average’ first impression of IVRs
(Source: Call Center Helper)
When asked what kind of first impression their IVRs create, out of 176 contact center professionals, three-quarters (73%) of respondents scored their IVRs as a three out of five, indicating an average impression. It’s important to review your IVR flow from your customer’s perspective. Assess your messaging and check if the information provided is updated and the options provided are easy to understand.
IVR Financial Statistics
With an IVR system, your company provides at least the basic level of customer service at any given time, allowing agents to concentrate on higher value and more complex cases. This optimizes the time and effort of support agents while boosting client satisfaction. The following IVR industry statistics show how IVR systems impact your bottom line.
10. Improving containment rates by at least 5% reduces up to 30% of business costs
(Source: McKinsey & Company)
A business’ IVR containment rate refers to the percentage of incoming calls successfully handled by an IVR without human intervention. Research suggests that improving IVR containment rates by 5% to 20% can reduce your call center costs by anywhere from 10% to 30%, yielding a solid return. A higher IVR containment rate also indicates your IVR resolves customer concerns independently.
Read our IVR containment rate guide to learn more about IVR containment rates and how to improve your performance for more significant cost savings.
11. Businesses spend 7 times more to process payments via an agent than through an IVR system
IVRs provide a gateway for customers to complete simple transactions like bill payments or locate information quickly. Regarding value, it takes six or seven IVR calls to equal the cost of one person-to-person call. Speeding up a customer journey yields financial benefits to your bottom line by increasing FCR and decreasing abandoned calls.
For more information, read our comprehensive IVR guide. It details how IVR systems work, their benefits, and critical features.
Frequently Asked Questions (FAQs)
IVR metrics gauge the overall effectiveness of your IVR solution. Some helpful IVR and call center key performance indicators (KPIs) include first call resolution (FCR), call completion rate, average wait time, customer satisfaction scores, and call abandonment rate.
To improve customer satisfaction and increase your IVR utilization rate, provide callers with a user-friendly experience through clear language and an option to speak with an agent. Remember that customers want to save time, so relay only essential information. Also, continuously look for ways to improve your IVR menu and keep options relevant, especially if you have recently introduced new policies or products.
There is no recommended single industry standard for IVR containment rates because a containment rate for one industry is not necessarily applicable to another. According to PlumVoice, processing payments with an 85% or higher automation rate is a good average. IVR containment rates vary as each business and industry deals with various customer issues that vary in complexity.
These IVR statistics show that customers are open to using automated phone systems, but they must be user-friendly and personalized to the client. IVR use has grown rapidly in recent years and will continue to become a nearly $7 billion market by 2026. These solutions contribute to better customer experiences, faster processing of simple tasks, and improved cost efficiency.