Despite, the fast advance on technology, some businesses are still experiencing IVR failure. Interactive Voice Response (IVR) systems have been used by contact centers to automate customer interactions since the 1980’ and for the most part, they have managed to provide a stable solution for businesses that want to handle high call volumes.
Yet, with shifting consumer expectations over three decades, IVR technology hasn’t kept up. It now falls short of delivering the care and finesse users seek.
Additionally, lingering legacy challenges and lapses in updating system structures are causing major issues for global enterprise-level organizations.
When these systems falter, the fallout is often grave.
In this piece, we’ll outline five prevalent risks contact centers encounter due to outdated IVR systems. We’ll also provide real-world instances where these risks have materialized for major corporations.
Frustrated Customers and Negative Brand Perception
A subpar or faulty IVR system can result in agitated customers. They might hang up or look for help elsewhere. Such adverse experiences can tarnish a brand’s image and erode customer trust. If issues persist, customers might switch to competitors lured by attractive deals for newcomers.
British telecom provider TalkTalk was ranked the worst for customer service, with customers complaining about the difficulty of navigating their IVR system, generating national coverage of the issues in the UK.
And staying in the UK, last year it was revealed that patients calling the NHS were left on hold for up to x20 longer than they should be. When it comes to health issues, it is no longer a customer experience problem, it becomes a serious question to answer.
Loss of Revenue and Increased Operational Costs
IVR mishaps can lead to revenue loss as customers abandon calls or turn to rivals. Moreover, if the IVR can’t route calls or address issues efficiently, operational costs rise due to added agent burden. For contact center operators, it’s clear that each call carries a distinct cost. So, when a customer calls repeatedly, costs might multiply by up to five times. A suboptimal IVR might be draining millions from your business.
Australian airline Qantas faced significant backlash from customers after their IVR system failed to handle a surge in calls during a major disruption, resulting in long wait times and frustrated customers.
Missed Opportunities for Upselling and Cross-Selling
A proficient IVR system can spot chances for upselling and cross-selling during client engagements. But if the IVR overlooks these moments, businesses risk losing potential earnings. Lacking contemporary data analytics, machine learning, or AI features, a classic IVR is merely an enhanced voice message. Such a system won’t just deplete your funds but might also jeopardize lucrative future prospects.
Take CVS Caremark, for instance. They faced a notable revenue drop when an IVR glitch prevented them from advertising a fresh prescription synchronization initiative.
Increased Risk of Security Breaches
IVR systems often handle sensitive customer information, such as credit card details and personal identification numbers. If an IVR system fails to properly secure this information, businesses may face the risk of security breaches and potential legal ramifications.
Online and digital security has become more important than ever and the range of scams that are taking place around the world is growing. Businesses that use systems that do not have modern-day protection such as data encryption are taking a major risk.
Regulatory Compliance Issues
Businesses operating in regulated industries, such as finance and healthcare, must comply with strict regulations regarding customer data handling and privacy. IVR failures that result in the mishandling of customer information can lead to regulatory fines and penalties.
UK bank TSB faced serious regulatory scrutiny after an IVR failure caused a major incident as customers were left unable to get support following a separate IT issue. The incident resulted in customers being unable to access their accounts and potential breaches of data protection regulations.
How to avoid IVR Failure
IVR failure can have serious consequences for businesses and as time moves on, the threat of these dangers becomes more real. However, there are solutions that mitigate all the issues we have highlighted in this article, as cloud-based products such as OpenQuestion demonstrate.
With enterprise-grade cloud security and a guaranteed uptime of +95%, OpenQuestion is a technology that is designed and built for cutting costs, improving customer satisfaction and ensuring your business is future proofed.
For more information, contact our team here.