Improving IVR Containment Rate for Better Customer Experience

In today’s fast-paced customer service landscape, IVR containment rate have emerged as a vital metric to measure system efficiency and improve user satisfaction.. This concept has become increasingly crucial in assessing the effectiveness of Interactive Voice Response (IVR) systems.  

However, with emerging trends and evolving customer feedback, it’s imperative to reexamine the traditional metrics associated with IVR containment rate. This blog post aims to delve deep into what IVR containment rate entails, its impact on customer service, and the necessary shift towards a more customer-centric approach in using IVR systems. 

Understanding IVR Containment rate

IVR containment rate measures the percentage of inbound calls resolved within the IVR system without the need for human assistance, reflecting how effectively the system supports customers. Essentially, it tracks how well an IVR’s self-service options are resolving customer issues with IVR benefits. One solution built for this purpose is Teneo OpenQuestion which gives you the opportunity for IVR self service.

What Does IVR Stand For? 

IVR stands for Interactive Voice Response. It’s an automated telephony technology that interacts with callers through voice and DTMF tones input via a keypad. IVR systems guide callers through a series of menus and options, allowing them to access information, perform basic tasks, or redirect their call to the appropriate department or agent. 

How do I calculate Containment Rate? 

IVR containment rate are calculated by dividing the number of calls resolved entirely within the IVR system by the total number of inbound calls. For example:

This calculation provides a clear metric to assess the effectiveness of your IVR system in handling customer inquiries autonomously. 

A robust IVR menu aims to direct callers efficiently and provide 24/7 self-service solutions for tasks like providing FAQ information, sharing account details, scheduling appointments, and processing invoices. Theoretically, high call containment rates suggest enhanced customer satisfaction and reduced agent workload. 

Balancing IVR Containment rate with Customer Satisfaction: 

Although high IVR containment rate suggest efficiency, they don’t always guarantee positive customer experiences. Striking the right balance is crucial to ensure customer satisfaction while optimizing self-service systems. Research from Contact Babel’s “The US Contact Center Decision-Makers’ Guide” reveals that in many cases, customers are frustrated with IVR systems to the point that they often feel prevented from speaking with a human agent. Data shows that 35% of customers manage to bypass the IVR system without selecting an option and 7% of calls are abandoned out of irritation. This indicates that at least 42% of callers are dissatisfied before their actual request is addressed. 

Case Studies: IVR Containment rate in Action

Modern IVR systems focus not just on high containment rates but also on effective resolution. For example, companies like Swisscom achieved an 18-point increase in tNPS by integrating AI-driven IVR solutions. In the 2020s, with advancements in AI technologies like Large Language Models (LLMs) from models like GPT-4o and Vector Databases, our focus should pivot to resolving customer issues swiftly and effectively. The goal is to understand and promptly meet customer needs, linking their requests to our internal systems for quick resolution. This approach aligns with modern customer expectations and can significantly enhance customer satisfaction. For instance, Swisscom’s emphasis on resolving issues efficiently using AI led to an 18-point increase in their transactional Net Promoter Score (tNPS). 

Personal Experience: The Pitfalls of Containment 

An illustrative example of the limitations of containment-focused IVR systems is a personal experience with Lufthansa’s in-app chat. A delayed flight and a missed connection resulted in 49 minutes of frustrating interaction with an automated system before reaching a human agent. This scenario highlights the need for a more balanced approach, prioritizing customer needs over mere containment. Check out this article, for other examples of Chatbot Gone Wrong.  

Future of IVR Containment: Beyond Traditional Metrics

In conclusion, while IVR containment leads to call containment has its place in evaluating the efficiency of customer service systems, it’s crucial to align it with current customer expectations. The focus should be on creating systems that not only contain calls. It should also genuinely resolve customer issues in the most efficient way possible. By integrating advanced AI technologies and prioritizing rapid issue resolution, businesses can foster positive customer experiences. Through this, they’ll be building loyalty and trust. The future of IVR systems lies in leveraging containment rates to not only measure efficiency but also improve customer engagement. By integrating AI and customer feedback, businesses can transform every interaction into an opportunity for success.