Imagine uncovering the secrets behind successful omnichannel and IVR best practices through firsthand insights from over 25 organizations worldwide. You may feel, as we did, that at last there may be answers to critical vexing customer service issues facing contact centers.
Our study, enriched by online and phone mystery shopping, delved into these capabilities and leveraged our expertise across AI and automation technologies, offering a comprehensive view of industry advancements.
The study uncovered three key themes that highlight how organizations are navigating their digital transformation journeys. These include the evolution of IVR through conversational AI the advancement of AI-powered chatbots, and valuable lessons for creating a seamless omnichannel customer experience (CX).
THEME 1: The IVR Evolution: Transition to Conversational AI
Over the years, contact centers have explored various strategies to guide customers to digital channels and enhance IVR containment. These efforts offer a dual advantage: customers gain quick access to information, while the business realizes reduced operational costs.
Currently, in most organizations, IVR systems have a common set of basic self-service features, such as bill management, balance inquiries, and PIN resets. But for many of them, innovation, and the introduction of new capabilities such as conversational AI and deep links, has been slow.
The effectiveness of these existing IVRs, measured by their containment rate (the percentage of calls resolved without human intervention), varies significantly.
Our research across different companies indicates a range from 35% to as high as 85%, with financial institutions and telecommunications providers typically achieving the highest levels of IVR containment.
Several factors influence higher containment rates. These include:
- Streamlined, simple, and intuitive processes.
- The demographic makeup, technical proficiency, and comfort of the customer base.
- The volume of simple, straightforward inquiries as a percentage of total inquiries.
- The success of initiatives designed to encourage customers to migrate to digital channels.
To drive higher containment, some companies have installed deep links within the IVR system. This encourages containment within an IVR while simultaneously offering customers a convenient and quick way to obtain information without waiting for a human agent.
In this scenario, customers are given an option to receive secure and encrypted SMS links that takes them to the relevant information online. This approach allows customers to receive faster access to the information they need, and the company subtly encourages the shift towards digital channels.
...contact centers have explored various strategies to guide customers to digital channels and enhance IVR containment.
On the flip side, some organizations send customers to agents immediately after understanding intent as part of their CX strategy as they wish to offer a “white glove” service experience.
Interestingly, organizations that have already achieved high IVR containment (above 70%) are cautious to drive higher containment.
There’s a recognized risk that aggressively pushing for even greater self-service containment could negatively impact the overall CX, highlighting the delicate balance between operational efficiency and customer satisfaction. This is true for all channels.
The Future of IVR
So, what’s the next wave of innovation for the IVR? The technology within reach for most companies is natural language processing (NLP), the core technology driving conversational AI.
Virtual agents (voice bots) are powered by conversational AI. These bots can understand, interpret, and generate human-like responses, significantly improving the CX. This is a huge improvement as it eliminates customer frustration caused by most traditional DTMF (“Press 1 for X”) IVRs.
While some pioneering organizations have invested in conversational AI, the majority acknowledge that its full implementation and optimization within their IVR systems is a future endeavor, not a current priority.
We also noted that most organizations are interested in biometrics and leveraging virtual agents using conversational AI. The integration of biometrics is gaining significant traction, particularly within the banking sector.
The primary driver behind the growing adoption is the potential to alleviate customer frustration and reduce the time spent navigating traditional security and validation processes. In this, customers willingly consent to having their unique voiceprints captured and securely linked to their accounts.
Subsequently, when a customer calls, the virtual agent engages them in natural conversation, seamlessly comparing their live voice against the stored voiceprint.
Upon a successful match, access is granted, bypassing cumbersome security questions and PIN entries. Furthermore, biometric technology incorporates AI-powered recognition to detect and flag potential voice clones used by fraudsters.
Ushering in Proactive and Personalized Interactions
Conversational AI unlocks a range of possibilities for developing advanced self-service capabilities that were simply unattainable with the limitations of older DTMF technology.
Often serving as a crucial first step in a broader organizational AI strategy, companies are proactive in understanding customer intent. A personalized CX is delivered by intelligently analyzing historical customer data and behavioral patterns.
Consider this example: once a customer is identified and authenticated, AI recognizes established patterns. For instance, if the customer history reveals a recurring tendency to call for bill payment around the same time each month, it can proactively address this need with a tailored greeting:
“[Customer Name], thank you for reaching out to us. We see that your bill is due on [Date]. Would you like to make a payment today, review your current balance, or hear a summary of your recent charges? Please let me know what you would prefer.”
The ability to handle complex requests and proactively offer timely assistance based on past interactions or current events represents another significant leap forward.
The technology within reach for most companies is natural language processing...
Conversational AI enables a new level of personalization. By analyzing a customer’s past purchase history, browsing activity, or explicitly stated interests, the IVR can offer highly relevant product or service recommendations during the interaction.
Imagine leveraging this technology to recognize a recent customer purchase, such as a premium mobile phone. The virtual agent engages with a relevant and timely offering:
“Thank you, [insert name], for your recent purchase of our premium phone. We are delighted to share that our new noise-canceling headphones are now on sale. Tell me if you’re interested, and I’ll tell you all about them.”
These advancements in biometrics and conversational AI signal a transformative era for the IVR, promising more secure, efficient, and ultimately more satisfying customer interactions.
THEME 2: The Chatbot Evolution: From Basic to Intelligent AI Bots
Currently, the majority of chatbots deployed offer fundamental functionalities, relying on logic programming to deliver responses to frequently asked questions. However, a significant shift is underway.
Many organizations are deploying a digital-first strategy, which encourages customers to initiate their service journeys through digital channels, with the ultimate goal of achieving high containment within these channels.
Organizations will also continue to invest heavily in enhancing their chatbot capabilities, with many projects in progress to develop and launch more advanced AI chatbots that work well in their mobile apps before their websites.
A compelling illustration of this trend can be seen in the Canadian banking sector. Major banks have widely embraced chatbots within their mobile apps, while less than half currently offer this feature as a readily available option on their web channels. This disparity highlights the strategic emphasis for these companies on mobile as the primary digital touchpoint for AI-driven customer interaction.
Looking ahead, the trajectory is clear: AI-enabled virtual agents are increasingly being recognized as a potent tool for comprehensively addressing customer inquiries and, strategically, for reducing the overall call volume directed to contact centers.
These upgraded chatbots will be able to deal with a much wider range of customer questions and issues, making the self-help experience quicker and satisfying.
Furthermore, a leading practice emerging in this space is the simultaneous development of AI-powered voice and chatbot solutions. This synchronized approach streamlines back-end design, unlocking significant cost efficiencies and paving the way for a truly integrated and seamless omnichannel conversational experience.
THEME 3: The Omnichannel Evolution: Bridging Silos
This lack of channel integration often leads to frustrating situations for customers, requiring them to repeat information when switching between these channels. The result is a disjointed and fragmented CX, impacting satisfaction and hindering business efficiency.
Not surprisingly, unfortunately, the majority of organizations we interviewed have not yet designed and implemented a robust omnichannel strategy, as evidenced by not having transitioned to a cloud-based contact center-as-a-service (CCaaS) platform. Organizations that have not yet implemented a robust omnichannel strategy cite cost, lack of resources and other priorities within the organization.
...AI-enabled virtual agents are increasingly being recognized as a potent tool for comprehensively addressing customer inquiries...
The foundation of a truly seamless and integrated omnichannel experience first rests on optimizing and connecting the underlying technology infrastructure. Those that have implemented CCaaS with it are now focused on conducting a mandatory cleansing of their data. This groundwork is essential to enable deeper and effective integration between various channels.
Two key priorities are emerging:
First, the protection of sensitive customer data will necessitate the adoption of advanced authentication methods to effectively combat fraud and identity theft.
Consequently, we are witnessing a growing trend towards enhancing authentication protocols, with the integration of biometrics playing an increasingly important role in bolstering customer data security. This will be true for all channels beyond IVR.
Second, organizations are recognizing the need to facilitate smoother transitions between digital and voice channels. Today, organizations are using features such as click-to-call and scheduled callbacks. These functionalities bridge the gap between online self-service and human support, ensuring a more fluid and less disruptive customer journey.
When a customer needs to speak with a human agent, that agent will have access to the customer’s past interactions and their steps in the current journey. This “context-aware handoff” allows the agent to understand the situation immediately, delivering a customer-centric yet efficient experience.
Conclusion
The journey to elevating CX through advanced IVR and ultimately omnichannel strategies is dynamic and ongoing. Our study reveals a clear trajectory towards more intelligent, personalized, and seamlessly integrated customer interactions.
From the evolution of IVR systems driven by conversational AI and biometrics to the maturation of chatbots and the imperative of bridging channel silos, the path forward is marked by innovation and a relentless focus on the customer.
While challenges remain in achieving full integration and optimizing new technologies, the commitment to a digital-first approach and context-aware handoffs underscores a shared vision for a more fluid and satisfying customer journey.