IVR stands for interactive voice response, but in business terms, it refers to a large umbrella of software-based communication solutions. Some IVR companies offer basic services that allow small businesses to record automated voicemail messages and route calls, while others offer website, database, and CRM integration as well as robust reporting and bill processing options.

In the past, IVR was limited to telephone calls. During an IVR call, an automated voice recording would interact with a client, and in return, the client would press corresponding buttons to navigate the system. Today, many IVR systems have speech recognition built in, so people can talk directly to the system rather than push buttons, but there are still many low-cost IVR services that offer button-response systems.

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Visual IVR is another term you’ll see on IVR company websites. Usually, companies that offer visual IVR also offer traditional phone IVR. Visual IVR essentially moves the first part of the customer interaction from the phone (e.g., listening to a recording and pushing buttons) to a device like a smartphone or computer.

By allowing customers to enter their information online, as well as what type of customer service they need, calls can be routed instantly without going through a touchtone or voice-activated menu. Instead, customers can connect with a customer service rep directly on the website, receive a call from a qualified rep or receive a number to call which will connect them with the right individual.

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