ACD vs IVR: Which One Will Save You More Customers?
ACD (automatic call distribution) and IVR (interactive voice response) are two different ways for call centers to handle inbound calls. ACD automatically routes incoming calls based on predefined rules — an IVR guides callers through pre-recorded menu options so they can route themselves. In a perfect world, you’re able to use both to optimize around the caller experience. If you have to pick one, though, ACD is the clear winner for customer retention. While IVR systems are cheaper and can help free up your agents, it requires callers to take the initiative. Plus, nobody likes being stuck in a phone tree. 1 RingCentral RingEx Employees per Company Size Micro (0-49), Small (50-249), Medium (250-999), Large (1,000-4,999), Enterprise (5,000+) Medium (250-999 Employees), Large (1,000-4,999 Employees), Enterprise (5,000+ Employees) Medium, Large, Enterprise Features Hosted PBX, Managed PBX, Remote User Ability, and more Six (more) reasons why ACD is the better choice In addition to higher customer retention rates, there are several other reasons why ACD has the edge over IVR for call centers. 1. You’ll answer more questions and resolve more problems When was the last time you called a business with a problem and got your question answered from an automated menu? I’m assuming never. Or maybe almost never if you’re lucky. Even with recent call center IVR upgrades, they still have a long way to go. Customers aren’t calling to find your address and they know that they can pay their bills online. The only reason they picked up the phone and dialed your number is because they want to speak to someone who can actually help them. ACDs make this happen. IVRs, on the other hand, can frustrate your customers, and they tend to answer questions they aren’t even asking. 2. Improved call center KPIs ACD systems are faster and more efficient for call centers. This can help improve many of the key call center metrics you’re tracking to measure success, including: First response time (FRT). First-call resolution (FCR). Average handling time (AHT). Net promoter score (NPS). Customer satisfaction score (CSAT). Average abandonment rate. Average time in queue. An IVR can negatively impact just about every metric unless you do everything perfectly. Even when done well, things like first call resolution, customer satisfaction, and average time in queue can still get worse. 3. Increases brand loyalty If your customers are calling you, they likely have some sort of problem. Forcing them to navigate a long phone menu can make matters worse, make them wait longer, and build up frustration by the time they get to talk to someone. Providing phone support from a live agent goes a long way, especially in an era where so many businesses fail to deliver. Quickly connecting callers to a qualified agent proves that you actually care. If your customers feel like you care about them, you’ll not only retain them, but it’s also easier to turn them into loyal customers with higher lifetime value. Plus, they’re more likely to talk about their five-star experience, recommend you to their friends and family, and even pay more for your services. 4. Limits repetitive self-service Self-service isn’t always a good thing. For a lot of call centers, it doesn’t make sense at all, despite sounding good on paper. Most people can troubleshoot common issues on their own through your website, Google, or even forums. But if they’re calling you, it’s likely that they have a more complex problem to solve — one that likely requires skilled agents. Many callers have likely tried various other solutions and the last thing they want to hear is a self-service voice menu telling them to go try things they’ve already done. What about callers who would actually benefit from self-service? Worst case, they talk to an agent for a few minutes and receive excellent care along the way. Best case, they’re able to get all of their questions answered in a few minutes and leave feeling like you’ve exceeded expectations. 5. It’s easier to prioritize incoming calls If your call center software is integrated with your CRM, you can use customer data to prioritize your most important calls. This ensures that callers with the highest sales potential or those paying for faster service are quickly routed to a live agent ahead of others. SEE: Learn how to test call center integrations before you buy. You probably don’t want an enterprise client paying $20,000 per year sitting on hold behind a solo user who pays $20 per month. 6. Connects callers to the right agent on the first try IVR systems fail when they don’t help callers help themselves. As we’ve already discussed, most people calling want to talk to a real person rather than navigating a complex and long-winded phone menu. If the caller presses a wrong button or doesn’t understand your options, they’ll likely end up talking to the wrong person. You may be able to get by with a general operator after your IVR to direct calls to the appropriate department. But this leads to longer hold times, and your callers still haven’t connected with someone who can help them. ACD systems eliminate these problems by automatically routing inbound calls to the most qualified agent on the first try. Customers get faster care because the rep who answers the phone can provide assistance without having to transfer them to someone else. ACD features to look for As you’re comparing different tools and call center software, these are the features you should pay attention to. If you attend live demos, be sure to ask about them so you know how they work and each system’s capabilities. Call distribution methods Because call routing impacts your company image, it’s one of the most important pieces of running a successful call center. Do it well and callers will appreciate it whether they realize it or not. Do it wrong and they’ll walk away notably frustrated. As such, you should have the ability to customize the way your ACD routes calls to
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