Technology - February 2001

Interactive Voice Response Systems Grow Up

by Mark Wayman

Although interactive voice response systems (IVR) have been around for decades, they are continuing to evolve and change in an effort to meet the business challenges of 21st century companies enthralled with the Internet. Used historically in the financial services industry, the most common example is toll-free banking numbers that allow customers to call in for payment and account balance information.

Primary components of the IVR system include hardware (typically a personal computer), customized software and voice connectivity (typically a phone system). As an example, (Avaya formerly Lucent) offers its version of IVR known as Conversant. This is not your dad’s IVR system. Available options include:

Support for 18 languages

Natural language speech recognition

Hooks to Customer Relationship Management (CRM) modules

Vonetix voice-to-Internet integration tool

Given the accelerating importance of the Internet, many will argue that integration between IVR systems and the ’Net is a critical factor. Since a majority of companies now offer customer self-service through the Internet, it is crucial that all customers receive the same information regardless of delivery method (Internet or phone). A second critical factor is the ability to link customer relationship management (CRM) systems to IVR. For a growing number of companies, customer information and activity is stored in a CRM system. Typical systems include Siebel, Onyx and Kana. To be effective, an IVR system must be able to exchange information with the CRM system. Yet a third important attribute is the ability to integrate IVR with the existing phone system. In the Avaya Conversant example above, the IVR system seamlessly integrates with the Avaya Definity phone system (PBX). Integration reduces support and maintenance issues, and provides a more scalable and robust customer self-service solution.

A prime example of IVR at work in Las Vegas is BFD, which has most recently blended IVR with the Internet. Let’s have a look at how IVR technology has enhanced the business model of three of its clients. First, BFD and MTV teamed up for the "Wanna Be a VJ 3" contest. This interactive viewer application allowed MTV’s audience to vote online or by phone for the next MTV VJ. The application used a 1-900 line, and each call cost 65 cents. BFD’s iControl product, which allows IVR to be managed over the Internet, was the featured product. Second, BFD provided an automated toll-free customer support system for SEGA’s Dreamcast launch. By handling most of the commonly-asked questions via IVR, SEGA significantly reduced its call center costs. Third is Don Best’s Scorephone, which allows Stardust customers to receive up-to-the-minute updates on sports scores. Unlike traditional lines, the BFD Scorephone is fully automated, and reads current information received from the Internet, translating it directly from text into voice messages.

A second Las Vegas entity dependant upon IVR is First National Bank of Marin (FNBM), which provides credit cards to the sub-prime market. Telecommunication Manager Jess Guerrica states that FNBM utilizes the call-in system to provide customers with balance, last payment date and next payment date information. The system has several obvious advantages. First, it operates 24 hours a day, 365 days a year - no vacations, no sick days, no time off. Second, it is automated and accurate. And, of course, the IVR system reduces personnel costs. FNBM uses the Avaya IVR product.

With the growing popularity of the Internet, some critics have predicted the demise of IVR as a customer service tool. Despite these criticisms, the ever-evolving IVR continues to be a cost-effective and efficient means for interfacing with customers. And given its ability to integrate with Internet-based systems, a comprehensive IVR/Internet solution may just be the best way to let customers help themselves.

Mark Wayman
Mark Wayman is an e-Business Solutions Manager for Sprint e-Business and contributing writer for TheSiliconOasis.com.