What is IVR Containment and How to Use it to Improve Customer Experience

In the ever-evolving landscape of customer service technology, a key player has emerged: IVR containment. 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. This blog post aims to delve deep into what IVR containment entails, its impact on customer service, and the necessary shift towards a more customer-centric approach in using IVR systems. 

Understanding IVR Containment 

IVR call containment is a call center metric that measures the percentage of inbound IVR calls handled entirely by the system, without human intervention. Essentially, it tracks how well an IVR’s self-service options are resolving customer issues.  

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. 

What are IVR Containment Rates? 

To calculate IVR containment, you measure the percentage of calls resolved within the IVR system. The formula is relatively straightforward: 

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 with Customer Satisfaction: 

While a high IVR containment rate is theoretically ideal, it doesn’t always translate to positive customer experiences. 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 in Action

The emphasis on call containment and deflection is a relic of the past. In the 2020s, with advancements in AI technologies like Large Language Models (LLMs) 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 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. It’s time to move beyond containment and deflection, and towards a paradigm where every customer interaction is an opportunity to serve and delight.