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Introduction to IVR

Steven R. Brown

VP, Client Services

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Syllabus Introduction

Who is Angel.com?

What is IVR?

Uses of IVR

Why IVR? Increased Customer Satisfaction

Decreased Agent Costs

Big-Business Feel

Weighing the Options Hosted vs. On-Premises

Speech Recognition vs. Touch-Tone

Automation vs. Live Agents

VoIP vs. PSTN

Web Self Service vs. Phone Self Service

Personalized IVR Using Data to Personalize the Caller Experience

Organizing an Effective Team

Measuring Success of Voice Automation

Customer Successes with IVR

Appendix IVR Cheat Sheet for Businesses

Top 10 Questions to Ask Your IVR Vendor

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Who is Angel.com?

Hosted IVR and call center solutions provider

Founded in 1999; subsidiary of MicroStrategy, Inc. (NASDAQ: MSTR)

Over 1,600 customers in 20 different industries

Over 10,000 applications deployed – more than any other IVR/call center solutions provider

Presenter: Steven R. Brown VP, Client Services & Dean of IVR University

[email protected], 703-269-1090

In 6+ years with Angel.com, Steve has worked with hundreds of businesses large and small to implement effective IVR and VCC applications.

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What is IVR?

IVR = Interactive Voice Response General term for any computerized, automated telephone system.

Historically used to refer to touch-tone systems, IVR has evolved to include both touch-tone and speech-recognition based systems.

Caller Input Touch-Tone, a.k.a., DTMF (Dual-Tone Multi-Frequency)

Speech Recognition, a.k.a., ASR (Automated Speech Recognition)

System Response TTS (Text-to-Speech) – Digitized voice typically used to play back dynamic information to

callers.

Recorded Audio (e.g., .wav files) – Pre-recorded sound files for play back of static information; or, when stitched together, can be used to play back dynamic information.

Objective The goal of a good IVR application is to connect callers with the information they are seeking

as quickly and as efficiently as possible, which may mean either a fully automated response to the caller’s inquiry, or connecting the caller to the most appropriate live agent.

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Uses of IVR

Common Uses Call routing to live agents Phone survey (internal + external) Account information Transaction/payment Store/Branch locator

Unique Uses Benefits information and enrollment Marketing messaging using celebrity spokesperson Phone-in field test results Appointment scheduling and reminder Food ordering

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Why IVR?

Increased Customer Satisfaction Decreased or no wait times Retrieval of information is faster and can happen round-the-clock Connection to appropriate agent, no multi-transfers High-quality, consistent service

Increased Business Efficiencies Fewer agents (or none) required; many queries can be answered in an

automated fashion Agents handle fewer routine, low-value calls and have more time to

address customer issues of higher business value Cost per interaction is drastically lower with IVR than a live agent Automatically scaleable to meet peak demands in usage

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Weighing the Options

Hosted vs. On-Premise

Speech Recognition vs. Touch-Tone


VoIP vs. PSTN

Web Self Service vs. Phone Self Service

There are a number of options to consider when designing and implementing an IVR system:

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Hosted Benefits

Minimize capital expense and development expense Leverage outsourcers’ expertise in speech, telephony, and data center

operations Technology upgrades are taken care of by provider Planning for peak capacity handled by provider

Tradeoffs May not be well-suited for very high-volume applications Control of call infrastructure handed over to provider (but not necessarily

application development or business logic)

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On-Premise Benefits

Lower telco cost at very high call volumes Full control of infrastructure

Tradeoffs Upfront capital expense Application development is cumbersome Requires dedicated operations personnel

and facilities Serving peak capacity can result in

inefficient use of resources in off-peak

Total Cost of Ownership for On-Premise Deployments (Redundant) Servers

(Redundant) Networks

(Redundant) Storage

VoiceXML Platform

Speech Recognition Licenses

Text-to-Speech Licenses

Maintenance Fees

T1s + Phone charges

Data Center(s)

Maintenance Staff

Professional Services

Technology Replacement (Obsolete)

Multi-Vendor Selection Process

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Speech Rec. vs. Touch-Tone

Benefits Speech is a necessity when needing a large number of options (states,

musical groups, stocks, U.S. Senators) Capture Name and Address, Alphanumerics Can be more convenient for callers, such as callers who are driving Has the “wow” factor for engaging customers more directly than touch-tone Increases automation rates over touch-tone

Tradeoffs Application development can be more complex (error handling) May not work well for sensitive information (CC, PIN, Account #s)

Speech RecognitionThe ability to navigate an IVR menu tree through voice instead of the keypad

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Speech Rec. vs. Touch-Tone

Benefits Works reliably when the number of options is limited More traditional, so there is no learning curve Better for sensitive information Easier to develop application

Tradeoffs Lower automation rates than speech recognition Difficult to use with a large number of options Does not handle alphanumerics, names and addresses Difficult to use in a hands-free environment Perceived as older, less “human” technology

Touch-ToneNavigating an IVR menu tree by pressing numbers on a keypad

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Growth of Speech

Spending on services in speech will grow from $88.7m in 2004 to $230.7m in 2009, in step with overall growth of speech sales.

Spending on services in DTMF will decrease from $317.5m in 2004 to $229.5m in 2009, in keeping with the overall decline in DTMF.

North American Speech vs. DTMF services revenues

2004 2005 2006 2007 2008 20092004 2005 2006 2007 2008 2009

0

50

100

150

200

250

300

350

Rev

enue

s ($

m)

Speech services revenues

DTMF (touch-tone) services revenues

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Automation Benefits

Per minute costs are much lower Provides 24*7*365 access to information for all, and ready access for

callers without web access Often more efficient than talking to an agent, esp. for repeat callers Offers consistent service quality and easily handles repetitive tasks Often preferred for personal or sensitive information

Tradeoffs Not as personal as a live agent Often seen as a barrier by callers Cannot automate all services required by callers

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Live Agents Benefits

Seen as more customer-friendly – callers like talking to agents More traditional, so frustration levels can be decreased Agents can handle tasks not possible through automation

Tradeoffs Costs are much higher when including salaries, benefits, office space, etc. Agents perform repetitive tasks, leading to higher turnover Not consistent – caller’s experience differs by agent Waiting on hold for a routine task is inefficient for callers

Bottom Line: Automate straightforward tasks and transactions (see “Personalized IVR”), but always provide option for live agent.

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VoIP vs. PSTN

VoIP: Voice over Internet Protocol Benefits

Through associated protocol, SIP (Session Initiation Protocol), data can be passed along with the call

Can carry phone calls into the IVR and transfer calls out of the IVR to live agents

Typically less expensive than PSTN

Tradeoffs Call quality can be diminished depending on the bandwidth available

through the end-to-end connection over the IP network – issues can include delays, static and echoing

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VoIP vs. PSTN

PSTN: Public Switched Telephone Network Benefits

Consistent high audio quality Typically already in place at most facilities Not affected by power outages Traditional technology that all agents know

Tradeoffs Difficult to pass additional information along with the call Typically more expensive than VoIP

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Web vs. Phone Self Service

Web and Phone self service are complementary channels for providing self service to customers, partners, and employees

Web and Phone can (and should) use the same backend database(s) to power the interaction with visitors and callers

The telephone extends the reach of Web applications, providing on-the-go, convenient access without duplicating infrastructure

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Personalized IVR

“Personalized IVR” Uses customer profile data to power the IVR interaction Engages in one-to-one dialog with caller

Two-way benefit Reduced cost to company through efficient automation of call Increased customer satisfaction through quick answers to common

questions

Better tracking and monitoring of customers

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Personalized IVR

“Impersonal” IVR

“Thank you for calling ACME, a leading

provider of services to consumers. Listen

closely to the following options as our menu

items have recently changed. Please select

from one of the following four options. Press 1

if you are new to our service and would like to

sign up, or if you have questions about service

availability in your area; press 2 if you have

recently signed up for ACME service and are

inquiring about your service transfer; press 3 if

you are an existing ACME customer and have

a question about billing, support, or some

other inquiry. Or to reach a live agent, press

0.”

“Personalized” IVR

“ACME, the no gotcha services

company. In case you’re calling about

your service transfer, I see that we’re still

processing it. Your transfer request is

scheduled to be completed on April 20th.

Is there anything else I can help you with

today?”

Example:

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Personalized IVR

“ACME, the no gotcha services company…If you’re new to our service, just say ‘learn more’”

“Learn more”

“I’ll transfer you to someone who can tell you more about us, but first, let me check for ACME service availability in your area. Are you calling from the phone number where our service will be used?”

“Yes”

“Just a moment while I check…Great, ACME service is available! Do you have high-speed Internet access?”

“Yes”

“Excellent. We look forward to having you as a ACME customer. I’ll transfer you now.”

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Personalized IVR

Keys to Offering Personalized IVR Uniquely identify callers (Caller ID, Account Number,

Phone Number) Lookup caller profile in customer database Identify different “bins” that callers fall into, and create customized call

flows for each “bin” Optimize for the frequent caller experience

Technical Requirements Web-based transactional CRM system Integrated customer data

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Organizing an Effective Team

Business Roles Business Project Manager

Maintains budget, schedule, and project timeline.

Call Center Manager Manages call center agents,

introduces and trains agents on new technology.

Technical Roles Technical Architect

Defines technical interfaces between systems.

Programmer Writes code to link IVR with

backend CRM/database systems.

VUI Designer Writes prompts, designs call flow,

“where the science meets the art”.

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Measuring Success

Key Performance Indicators (KPIs) for IVR Automation Rate (Caller Self-Service) Abandon Rate Call Duration Zero-out

Tools for Measuring Success Wizard of Oz testing Data capture and reporting in IVR Call recording

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Family Dollar

Company: Low-price retailer with 5,000+ locations and annual sales

in excess of $5B.

Challenge: For 38,000+ employees, automate internal HR processes

such as the paper-based process for the 4 Firsts new hire program.

Solution: Speech-based IVR for new badge ordering, and real-time

feedback through phone-based survey. Application built by HR

manager using point-and-click Angel.com Site Builder.

Results: “Feedback from the field regarding our new Angel.com

application has been positive. Many of our employees do not have

Internet access. Therefore, an IVR-based phone application will help

us provide and collect information more efficiently.” Michael Lariosa, HRIS Manager

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Organization: Florida public school system that houses over 20,000

students.

Challenge: Measure satisfaction of parents and identify areas of

improvement. Streamline the survey and reporting process and

accommodate students/parents without Internet access.

Solution: Outbound IVR survey distributed to students/parents with

complete back-end results reporting system.

Results: The school system saved time and money, while providing

everyone with a convenient opportunity to participate. An impressive

38% of those who answered the call completed the survey.

Charlotte County Schools

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Borland Software

Company: Leader in platform-independent tools for optimizing software development processes.

Challenge: Replace existing Aspect system to manage queueing and routing calls to support agents in geographically dispersed call centers.

Solution: Angel.com Virtual Call Center providing up-front IVR plus call queueing and routing to Atlanta and California, and soon to Ireland, Amsterdam and Singapore.

Results: Borland’s call abandonment rate has dropped by 67%, and their average speed of answer has improved by 44% “The Angel.com solution means changes that used to cost me thousands of dollars and weeks to implement can now happen in real-time and without incurring any additional costs.” – Gary Janos, Director of Technical Support

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Next Steps

Sign up now for next week’s webinar www.angel.com/ivruniversity

Where you can find more information

Angel.com IVR Blog: http://blogs.angel.com Insights and News on the IVR Industry

Angel.com Monthly Newsletter: www.angel.com/newsletter New Technology, Tips & Tricks, Industry News and more

IVR University: www.ivruniversity.com White Papers, Articles and Webinars on IVR Design

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Appendix

IVR Cheat Sheet for Businesses(Top 10 list of best practices in designing an IVR system)

Top 10 Questions to Ask Your IVR Vendor

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IVR Cheat Sheet for Businesses

1. Let callers know what to expect from the system immediately. This is a simple

rule that applies to any customer experience - present a pleasant greeting and

explain succinctly what the system can and will do for the caller.

2. Do not hide the option for callers to speak with a live agent. No matter how

useful your IVR system is for customers, there will always be times when customers

want and need to speak to a live agent to resolve their issue.

3. Whenever possible, give the caller an approximate time for the completion of

the request. If transferring to a live agent, let the caller know the expected hold time

and provide options to go back into the IVR system.

The following is a Top 10 list of best practice guidelines to follow for designing a

customer-friendly IVR system.

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4. Do not make callers repeat information collected in the IVR. If you want callers to

believe that the IVR can help them resolve a problem, respect the time they put into

the IVR and don't ask for the same answers twice.

5. Provide callers with an option to navigate the system using touch-tone

(keypad) or speech recognition. Let callers choose the most effective option based

on their general preferences, location or understanding of the system.

6. Personalize the IVR for each caller by integrating with your customer

databases and CRM systems. If callers know that the system recognizes their

identity, they will be far more likely to stay in the IVR.

7. Identify and communicate a few universal commands that are recognized at

any time during the call. Examples include "beginning" to go back to the start of the

dialogue and "help" to get detailed information on the current request for input.

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8. Keep the interface simple - use closed, short prompts, limit the number of

menu choices and request simple, one-word responses. Callers will only use the

IVR system if they perceive that it is easy to use and useful in resolving their issue or

information request.

9. Always let the caller know what is happening. Keep in mind that the IVR dialogue

should be similar to a conversation between two human beings. The system should

explain pauses with messages such as "Thanks for the information, let me look up

your account" or "I am trying to find the most appropriate person to handle your

request".

10. Provide courteous, smooth error-handling. Generic error messages that are not

tailored to the caller's specific situation will drive callers away from the IVR. The

system should always take the blame for errors.

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Top 10 Questions for Vendors

1. How many customers do you support on a daily basis?

2. How many voice applications have you hosted in company history?

3. How do we know you are a viable long-term partner?

4. How is integration with existing applications handled?

5. What type of analytics tools can your company provide?

6. Where is my voice application hosted?

7. Who are your marquee customers?

8. Do you have a team that can build, deploy and help me maintain my

application?

9. Are there any hidden costs, such as licensing renewals or

maintenance fees?

10. How much do you know about IVR best practices?

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