A Look at the History, Current Challenges and Future of IVR Technology
Interactive Voice Response (IVR) technology has been around for almost a century, and although there have been some technological advancements, it’s still considered to be outdated.
In this article, I will explore the history of IVR technology, the challenges it faces, and the future as Call Centers need to focus on both immediate augmentation and future orchestration to truly leverage the benefits of Conversational AI.
The Early Days of IVR Technology: The Voder and the Birth of Synthetic Speech
The IVR technology debuted in the 1930s with the Voder. This electronic machine could mimic human speech. Homer Dudley of Bell Laboratories designed it. The Voder used buzzing tones from relaxation oscillators for vowel and nasal sounds. However, its complexity and high cost made it impractical for daily use.
The Emergence of Touch-Tone and Synthetic Speech in the 1970s and 1980s
Over time, advancements in touch-tone and synthetic speech technology made it possible for the first IVR solutions to emerge in the 1970s. These early IVRs were still expensive and limited in functionality, but they paved the way for further development in the 1980s.
The Advancements of IVR Technology in the 1990s: Call Queuing and Automatic Call Routing
IVR technology continued to improve in the 1990s, and call centers began using IVRs for call queuing and automatic call routing. While these features were useful, IVRs still had significant flaws. Many customers found them frustrating and time-consuming to navigate, preferring to speak to a live agent who could provide personalized service and resolve their issue more efficiently, as explained in this article by Rain Francisco-Cabasi.
The Growing Global IVR Market and Its Future Projections
Efforts to enhance IVR technology persist, yet customer frustration remains high. Many find IVRs impersonal and hard to use. This often results in reduced customer satisfaction and loyalty.
To combat IVR limitations, call centers now use conversational IVRs. These systems use natural language to handle customer issues and direct other calls to human agents. This method has proven effective in boosting customer satisfaction and cutting call center expenses. The global market is projected to continue growing, reaching $6.7 billion by 2026.
The Need for Orchestration in Conversational IVR
Many businesses use AI technologies to augment humans and streamline operations, but the common approach is to apply AI in a way that might not always be effective, due to limitations in the technology platforms. The challenge with Conversational IVR systems is that they often require extensive programming to be effective, and even then, they may not always be able to understand customer queries accurately.
Future orchestration in the Contact Center
It is more productive to consider future orchestration for Conversational IVRs. In 2023, a good middleware should be able connect to all commonly used voice or AI services from Microsoft, Amazon, Google, OpenAI, and Genesys, among other enterprises.