What are IVR companies? How are they different to a live answering service? Chances are, you’ve just asked yourself that very question and you’re wondering whether either are a viable option for your business. Perhaps you’re researching better ways to handle your customer calls because voice mail alone isn’t cutting it.
Either way, you’re here to make a decision. To find out which is the right option for your business. After all, what is the difference really?
In this blog we’ll cover the following to help you make your decision
- What is an IVR?
- What’s the difference between an IVR and an answering service?
- Who might use an IVR or answering service?
- How to choose between an IVR company or answering service
What is an IVR?
Businesses use IVR companies for several reasons, primarily to enhance efficiency and manage high call volumes effectively. IVR systems provide a cost-effective solution for automating routine inquiries and processes, such as checking account balances, placing orders, or making reservations. By allowing callers to navigate through a menu of options using their touch-tone keypad or voice commands, IVRs streamline the call handling process, reducing the need for human intervention and minimizing wait times. This automation not only improves operational efficiency but also ensures consistent service delivery round-the-clock, enhancing customer satisfaction.
Moreover, IVRs offer scalability, making them suitable for businesses of all sizes and industries. Whether it’s a small startup or a large enterprise, IVR systems can handle a high volume of calls simultaneously without significant additional costs. This scalability is particularly beneficial during peak periods or promotional campaigns when call volumes may spike unexpectedly.
What’s the difference between IVR and answering services?
| Aspect | IVR (Interactive Voice Response) | Live Answering Service |
|---|---|---|
| Interaction Type | Automated, pre-recorded messages | Live operators |
| Personalization | Limited | High, with tailored responses |
| Complexity Handling | Suitable for simple queries | Suitable for complex inquiries |
| Cost | Generally cost-effective | Can be slightly more expensive |
| Scalability | Highly scalable | Medium scalability |
| Customer Experience | May be impersonal or frustrating | Personalized and empathetic |
| Handling Time | Quick for routine queries | More time for each interaction |
| Flexibility | Limited by pre-defined options | Adaptable to caller’s needs |
| Complexity of Setup | Moderate | Simple |
Want to see how AnswerConnect’s flexible plans and pricing can work for you?
IVR Companies
IVR companies are great for businesses of all sizes. Businesses preferring the human touch of a receptionist, however, may choose instead to go with an answering service. Both systems are dependable ways to handle calls 24/7. Which system is best for your business depends on your needs: Interactive Voice Response IVRs have their advantages. They’re cost-efficient and can be as simple or complex as you make them.
They feature time-based call routing and visual voice mail. Take a look at our spotlighted client, Backside Five who uses our own IVR software, as a way to provide a 24/7 customer service line for their up-and-coming apparel company while keeping down the overhead costs of a new business. John Ashton, talk radio host of Those Weekend Golf Guys, rarely sees his desk. He uses our business line while on the road visiting clients. Consider going with an IVR if you’re looking for a toll-free business number to route calls and take messages accessible from your web browser or smart phone.
Answering Service
An answering service is the live version of IVR companies, with more bells and whistles. Virtual receptionists don’t just take messages and transfer calls, they schedule appointments, place orders, anything an in-office employee could do. Dr. John Tuggle of Wellness and Better Health Chiropractic uses AnswerConnect as his clinic’s appointment desk/messaging center. An answering service is perfect for giving your business the feel of a much larger office or simply providing your customers with the luxury of talking to a live person day or night.
Both
It doesn’t have to be either/or. Many of our clients supplement their IVR with an answering service, giving them the ability to prioritize their calls. The IVR can route high-priority calls—sales or tech support, for example—directly to internal staff and route low-priority or after-hours/overflow calls to the answering service. Each option has its strengths. You may need to experiment. Choosing a company with the flexibility to grow or scale down with you is the best way to always guarantee a perfect fit with your business and budget.
Who might use an IVR or answering service?
Every business is unique – so using an answering service or IVR will be something that is entirely particular to them. But, to give an impression of how each may be use in a real-life context, check out this handy table.
| Industry | Answering Service | IVR |
|---|---|---|
| Healthcare | Medical practices or clinics for appointment scheduling | Hospitals for prescription refills |
| Legal | Law firms for client intake and appointment scheduling | Legal offices for basic case inquiries |
| Real Estate | Property management companies for maintenance requests | Real estate agencies for property inquiries |
| Hospitality | Hotels for reservations and guest inquiries | Airlines for flight status and bookings |
| Retail | Online stores for customer inquiries and order tracking | Retail chains for store locations |
| Financial Services | Banks for account balance inquiries and fund transfers | Insurance companies for policy information |
| Travel & Tourism | Travel agencies for itinerary changes and booking modifications | Car rental companies for reservation changes |
| Utilities | Energy providers for billing inquiries and outage reporting | Telecommunication companies for account management |
How to choose between IVR companies or an answering service?
When choosing between the two IVR companies or an answering service, it’s important to count all the pros and cons. You need to be able to consider what will have the best longer term impact for your business and which is the most sustainable for your end goal. Look to the future, not just the now. For example do you want to emphasise the human touch from your service? After all, recent data from Forbes noted that over 70% of customers grow frustrated with automated answering. Here are a few things you should bear in mind when conducting your analysis of each.
- Nature of Customer Inquiries:
- IVR: Ideal for handling simple and routine inquiries efficiently, such as checking balances or providing basic information.
- Answering Service: Suitable for complex inquiries or situations requiring personalized assistance, such as technical support or appointment scheduling.
- Budget Constraints:
- IVR: Generally more cost-effective for businesses with high call volumes or repetitive inquiries due to lower ongoing costs.
- Answering Service: Offers a higher level of customer service but may have slightly higher costs, particularly for businesses with fluctuating call volumes.
- Scalability:
- IVR: Highly scalable and suitable for businesses expecting fluctuations in call volumes or planning for growth.
- Answering Service: Some flexibility in scaling up or down, but may require adjustments in staffing to accommodate changes in call volume.
- Customer Experience:
- IVR: Offers 24/7 availability and consistency in service delivery but may be perceived as impersonal by some callers.
- Answering Service: Provides a personalized and empathetic customer experience, enhancing customer satisfaction and loyalty.
- Technical Complexity:
- IVR: Requires technical expertise for setup, customization, and maintenance but offers automation and efficiency benefits.
- Answering Service: Involves less technical complexity as the service provider handles infrastructure and staffing, ensuring seamless integration with existing systems.
AnswerConnect – IVR & Answering Services
Fortunately with AnswerConnect we offer the best of both worlds. Whilst we’ve been voted by Forbes as US’s number 1 answering service, we also provide exceptional IVR systems. This flexibility of being both an IVR company and answering service affords businesses complete versatility when making the choice that’s right for them. While IVR systems excel in automating routine inquiries and streamlining operations, live answering services offer a human touch and personalized assistance that can enhance customer satisfaction and loyalty.
Remember, you should carefully consider their specific needs, budget constraints, scalability requirements, and desired level of customer experience when choosing between these two options. They both have their pros, cons and why they’re better for some businesses over others. By weighing these factors thoughtfully and aligning the solution that works best for your business, you can make an informed decision that align with your specific goals and priorities, ultimately leading to improved customer service and business success.
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