The market size of the Interactive Voice Response (IVR) industry is expected to grow to USD 11.5 billion by the end of 2037. And, the need for efficient customer service has propelled this success.

Research suggests that 89% of customers will likely make repeat purchases with companies that offer excellent customer service.  And one of the key components of this efficiency is the integration of multi-level IVR systems into customer service processes.

Plivo’s suite of products offers businesses the tools they need to optimize and elevate their IVR systems. With Plivo’s real-time audio streaming, companies can move beyond traditional IVR setups and create dynamic, conversational, and personalized customer experiences.

This article will explore multi-level IVR systems, how they work, their implementation, benefits, and how you can go a step ahead of the traditional multi-level IVR systems with Plivo’s effective customer support solutions. 

What is Multi-Level IVR?

Multi-level Interactive Voice Response (IVR), also known as Auto Attendant, is an automated phone solution that guides callers through a structured self-service menu to connect them with the appropriate destination—be it an agent, queue, information, or action.

Unlike single-level IVR, which offers a straightforward menu with limited choices, a multi-level IVR allows for layered navigation. Each selection leads to submenus, offering more specific options to help callers find what they need.

Let’s say you have an e-commerce business. Here’s an example of how a Multi-level IVR would look like for your customers:

• Level 1: Welcome message with language preference selection (e.g., English, Spanish, etc.).
• Level 2: Primary menu options like browsing product categories, tracking an order, or connecting to customer support.
• Level 3: Specific options within each category, such as viewing discounts in a category, updating shipping information, or querying about product returns.

Structure and functionality of Multi-Level IVR

Imagine a telecom company using a Multi-Level IVR to streamline customer support. Here’s how it would work: the first menu asks users to choose between billing, technical support, or new plans, while a second level under "technical support" could identify whether the issue involves internet, mobile, or TV services. 

This layered approach lets you resolve most customer queries without call transfers. 

Key functionalities of Multi-Level IVR systems:

1. Manages incoming calls with multi-layered menus:

The multi-layered menu system organizes incoming calls by offering a series of hierarchical options. This ensures that callers can navigate through tailored choices, such as selecting their issue type or department, making the call-handling process smooth and efficient.

2. Routes calls to relevant agents or departments:

The system intelligently directs the call to the most appropriate agent or department based on the caller's menu selection. This eliminates confusion and ensures that customers reach the right point of contact quickly.

3. Reduces agents' workload by addressing routine queries:

The system can independently handle frequently asked questions, such as providing business hours, order tracking, or refund policies. Automating responses to these common inquiries allows agents to focus on more complex and critical customer issues, boosting overall productivity.

Benefits of Multi-Level IVR

Integrating a multi-level IVR system automates customer interactions, reduces operational costs, and significantly enhances customer service quality. Here’s how:

1. Empowers customer self-service:

Multi-level IVR lets customers resolve basic queries, such as checking order status or getting information about a product, without needing to wait for a live agent. This creates a more seamless experience and reduces frustration for customers who want quick answers.

2. Reduces customer service costs:

By automating repetitive tasks like FAQs or payment inquiries, businesses can save on staffing costs. The system handles a significant volume of inquiries, allowing human agents to focus on more complex customer issues.

3. Optimizes call routing:

Based on the customer's input, the IVR system efficiently directs calls to the most suitable department or agent. This ensures that customers are connected to someone capable of addressing their specific needs, saving time, and enhancing resolution efficiency.

4. Offers 24/7 availability:

Multi-level IVR operates round-the-clock, enabling businesses to assist customers even outside regular working hours. This feature is particularly valuable for global businesses catering to customers across multiple time zones.

5. Improves customer satisfaction:

Studies show that 70% of customers avoid brands with long wait times. Multi-level IVR minimizes wait times and offers faster resolutions, leading to higher customer satisfaction and loyalty. Customers value the convenience of resolving issues on their terms, anytime.

Also read: Use IVR to improve customer service.

Operational mechanics of Multi-Level IVR

A Multi-level IVR system works by intelligently guiding callers through a predefined call flow. Here’s how it operates:

1. Initial interaction:

• The IVR system welcomes the caller with an automated greeting.
• It then asks the caller to make a selection based on the presented options.

2. User input options:

Callers can interact with the system by either:

• Speaking their choices aloud (voice commands).
• Pressing specific keys on their keypad (keyed inputs).

3. Scripted call flow:

• Based on the caller's input, the system proceeds through a predefined sequence of prompts.
• Each step guides the caller closer to their intended destination, such as accessing information or connecting with a department.

4. Dynamic adjustments:

The IVR system can modify the call flow in real-time depending on:

• Time of Day: Adjusting options for business hours versus after-hours service.
• Call Volume: Prioritizing responses or providing alternatives during peak times.
• Caller History: Personalizing interactions using data from previous calls.

How to implement and customize multi-level IVRs?

A poorly designed Multi-level IVR system can frustrate customers rather than help them. Common pitfalls include irrelevant menu options, lengthy navigation paths, and difficulty in connecting with live agents. 

Avoid these challenges by following a structured implementation process:

1. Analyze the current IVR flow: Review if the existing system is efficient and meets customer needs. Gather feedback from stakeholders and customers to identify issues like slow routing or missing steps.
2. Design the IVR flow: Start by mapping out the most common customer journeys and defining clear objectives for each interaction. Ensure that options are concise and self-explanatory, and limit menu levels to avoid overwhelming users. Incorporate error handling for invalid inputs and provide quick access to a live agent when necessary. 
3. Create IVR transcripts: Write IVR scripts for various scenarios like greetings, options, and busy signals. Customize the tone and content based on your brand voice and target audience demographics.
4. Test the IVR flow: Run tests with external users to identify bottlenecks or areas of confusion and ensure the flow is intuitive and works smoothly.
5. Monitor and optimize: Use analytics to track performance and make necessary adjustments based on metrics like call abandonment or handling time to optimize your IVR system

Going beyond traditional customer service with Smart IVR 

Traditional multi-level IVRs have been a reliable solution for years, but customer expectations are evolving. Your customers don’t want to navigate through multiple menus to find the right option. They want a fast and simple option.

That’s why many forward-thinking businesses are upgrading to smart IVRs powered by AI voice agents that offer faster, more conversational customer experiences.

Why Are Smart IVRs the Game-Changer?

Smart IVRs let your customers skip the frustrating menu maze. Instead of “Press 1 for billing,” they can simply say, “I want to check my last payment.” Using AI, smart IVRs understand what customers need, respond naturally, and get them to the right place quickly—no guesswork or dead ends.

You can easily switch to smart IVRs with Plivo powered AI voice agents. By leveraging natural language processing (NLP), these voice bots understand customer intent and respond intelligently, eliminating the need for rigid menu navigation. 

They also integrate seamlessly with existing workflows and ensure smarter call routing, faster resolutions, and a modern customer experience that scales with your business. 

Here’s how smart IVRs with AI voice agents improve your customer interactions:

• Talk, don’t press: Plivo powered AI voice agents use Natural Language Processing (NLP) to understand and respond to what your customers are actually saying, not just what button they pressed.
• Smarter routing: Unlike multi-level IVRs, smart IVRs analyze caller data and preferences and dynamically adjust the call routing and response pathways, creating a tailored experience for every customer.
• Contextual awareness: AI-powered IVR tracks the history of previous interactions, to pick up any conversation where the customer left it to avoid unnecessary repetition.
• Data-driven operations: Smart IVR integrates with customer relationship management (CRM) systems and databases, to provide relevant, real-time information during the interaction.

Make the switch today with Plivo powered AI voice agents .

Traditional IVRs served their purpose, but it’s time to evolve. Plivo makes it easy to launch AI voice agents and create a smarter, more intuitive IVR experience that enhances your customer experience. 

Why Plivo?

• Superior voice infrastructure: To deliver get crisp call quality across 220+ countries 
• Low latency: Our PoPs are located in seven locations (California, Virginia, Frankfurt, Mumbai, Singapore, Sydney, São Paulo) across five continents. 
• High availability and uptime: With a redundant infrastructure across multiple geographies and at least three local carrier connections across countries, Zentrunk promises 99.99% uptime
• Full redundancy: Redundant links reroute traffic over backup networks in less than two seconds in case of backbone failover

With Plivo-powered AI voice agents, you can create smart IVRs that don’t only talk but empathize and engage with your customers. 

‍ Request a trial to Plivo today to get started.

Staying connected with your customers is crucial—and messaging is one of the most powerful ways to do that. Two of the most popular tools for reaching out are SMS (Short Message Service) and MMS (Multimedia Messaging Service). 

Both are tried-and-true options; 90% of people read a text message within the first 3 minutes. They each have their own unique strengths and are best suited for different situations. Whether you're sending a quick reminder or a promotional campaign, understanding when to use SMS vs MMS can make all the difference.

In this blog, we’ll explore the definitions, features, pros, cons, and use cases for both SMS and MMS. Plus, we’ll show you how to incorporate these services into your business communications with Plivo’s SMS API.

Overview of SMS and MMS

What is SMS?

SMS, or Short Message Service, is a text messaging service that allows users to send short text messages of up to 160 characters. This service is widely supported on all mobile devices. It does not require an internet connection, making it an ideal communication tool for businesses that need to reach customers quickly and reliably. 

SMS features

• Text-Only: SMS is limited to text-based messages, making it simple and straightforward.
• Cost-Effective: SMS is generally cheaper than MMS, as it uses less data.
• No internet required: SMS works on any mobile network and doesn’t require an internet connection.
• Universal compatibility: It’s supported across nearly all mobile devices, making it a go-to for businesses that want to reach a wide audience without worrying about device or platform compatibility.

What is MMS?

On the other hand, MMS, or Multimedia Messaging Service, is an enhanced version of SMS. It allows for multimedia content such as images, videos, audio files, and even longer text (more than 160 characters). 

MMS enables businesses to send richer, more engaging content, but it comes with different requirements compared to SMS, including internet connectivity. 

MMS features

• Multimedia support: MMS messages can include rich content such as images, videos, and audio files, allowing businesses to engage customers in more creative ways.
• Longer messages: Unlike SMS, MMS can accommodate longer text and media content, giving businesses more flexibility in their messaging.
• Requires Internet: Since MMS uses data to send multimedia content, a stable internet connection (either through mobile data or Wi-Fi) is necessary.
  

SMS vs. MMS: Key Differences

What are the pros and cons of SMS? 

Pros:

• Low-Cost: Since it is a text-only format, SMS is generally more affordable, making it an excellent choice for high-volume messaging such as reminders, alerts, and notifications.

To get a better understanding of the costs associated with SMS, check out this pricing table by Plivo CX. 

• High reliability: SMS has a reputation for being reliable. Messages are typically delivered quickly and are less prone to technical issues than other methods of communication.
• Universal support: SMS can be received on any mobile device, regardless of the operating system, so it has a broader reach compared to MMS.

Cons:

• Text-Only limitation: The 160-character limit restricts the content you can send. This is fine for quick alerts or transactional messages but isn’t ideal for sending detailed information or marketing materials.
• Lack of visual appeal: Since SMS is plain text, it doesn’t allow for the use of visual elements, which can make it less engaging than MMS for certain campaigns.

What are the pros and cons of MMS?

Pros:

• Rich content: MMS allows businesses to send images, videos, and audio, making it a great option for engaging customers with rich media content. It’s an ideal choice for businesses running product promotions, event invitations, or advertising campaigns.
• Longer messages: MMS can accommodate longer text messages, so it’s a good option for sending detailed information such as product descriptions, user guides, or promotional offers.

Cons:

• Higher cost: Because MMS uses more data and supports multimedia, it’s generally more expensive than SMS. This can add up if you’re sending large volumes of messages.
• Requires Internet connectivity: MMS requires a stable Internet connection, which can be a limitation for some users, particularly in areas with poor network coverage.
• Device compatibility: Not all mobile devices support MMS, so there may be issues with delivering messages to some users, particularly those with older phones.

When can you use SMS and MMS?

When to use SMS?

SMS is ideal for scenarios where you need to send quick, actionable messages. Some typical use cases include:

• Transactional messages: Order confirmations, shipping updates, and payment receipts are perfect examples of transactional SMS messages that can be automated and sent quickly to keep customers informed.
• Alerts and reminders: Businesses in healthcare, education, and service industries often use SMS to send reminders, appointment confirmations, and urgent alerts to customers or employees.
• Customer support: SMS can be used for simple customer support queries or updates, offering a quick and reliable way to engage with clients.
• SMS marketing: SMS marketing allows businesses to send personalized offers, promotions, and reminders directly to customers’ mobile phones. With high open rates and instant delivery, it’s an effective way to boost engagement and sales.

When to use MMS?

MMS is a better choice when you need to make your message stand out visually. 

Consider MMS for:

• Marketing campaigns: Whether you’re running seasonal promotions, launching new products, or hosting an event, MMS allows you to include visuals that can make your message more attractive and persuasive.
• Product demonstrations: Sending videos or images of a product in use can help enhance customer understanding and boost sales.
• Engaging communication: MMS is perfect for engaging your customers with interactive content, such as customer surveys or contests that require visual input.

How do SMS and MMS pricing compare?

• SMS: Typically cheaper than MMS, SMS is the go-to option for businesses that need to send messages in bulk. Since it’s just text, it uses minimal data, making it cost-effective.
• MMS: Because MMS includes rich media and often requires internet data, it tends to be more expensive. However, the additional cost is often justified when sending visually rich content or longer messages.

How are SMS and MMS used across various industries? 

SMS is a popular choice across a variety of industries due to its cost-effectiveness and reliability. Some practical applications include:

• E-commerce: SMS is widely used for order confirmations, delivery updates, and time-sensitive promotions.
• Healthcare: Reminder messages for appointments, prescriptions, or vaccinations are helpful for healthcare providers, and SMS offers a quick, no-frills way to reach patients.
• Finance: Banks and other financial institutions use SMS for transaction alerts, balance updates, and 2FA (two-factor authentication) for enhanced security.

MMS is best for businesses that rely heavily on visual appeal and need to engage their audience through multimedia. Practical applications include:

• E-commerce: Sending product images, promotional videos, or interactive content like discount coupons can drive sales and improve customer engagement.
• Event promotions: Companies organizing events can use MMS to send invitations with multimedia content, such as event flyers or teaser videos.
• Tourism & hospitality: Hotels or travel companies can send beautiful imagery of destinations or services to entice potential customers.

How do you choose between SMS and MMS for your business? 

Deciding between SMS and MMS depends on the type of message, your budget, and the experience you want to create for your audience. Let’s break it down:

Content-type

If your goal is to deliver quick, actionable updates or reminders, SMS is the ideal choice. It’s concise, text-based, and doesn’t rely on multimedia. However, if your message requires visuals or longer, more engaging content—such as product promotions, event invites, or tutorials—MMS is a better fit. Think of SMS as a straightforward memo, while MMS is your creative flyer.

Cost considerations

Budget is a key factor. SMS is more cost-effective, especially for high-volume campaigns like reminders or notifications. On the other hand, MMS is pricier due to the inclusion of media but delivers stronger visual appeal. Use SMS for routine messages and MMS for campaigns where visuals can significantly enhance impact.

User experience

Consider how your audience will receive and interact with your message. SMS is universal and works on all devices, making it reliable for a broad audience. MMS, while more engaging, requires internet access and may not display properly on older devices. If visuals or detailed content will improve the customer experience, MMS is worth the investment.

By aligning your choice with your communication goals, budget, and customer expectations, you can effectively leverage SMS and MMS to meet your business needs.

How Plivo’s SMS API can help your business

Plivo’s SMS API is designed to simplify and enhance communication with your customers. Here’s how it can benefit your business:

How SMS Can Benefit Your Business

Plivo’s SMS service can help businesses improve communication with their customers in many practical ways. Here’s how:

• Automate customer interactions: Send automated notifications like order confirmations, payment updates, and appointment reminders to save time and ensure timely messaging.
• Global reach, local presence: Communicate with customers in over 220 countries and customize your sender ID to appear local, helping build trust with your audience.
• Engaging content with MMS: Add images, videos, or GIFs to your messages to make them more visually engaging—perfect for marketing promotions or special offers.
• Track performance: Monitor message delivery and engagement in real time so you can adjust your approach and improve customer interaction.
• Two-way communication: Enable direct conversations with your customers through SMS, whether for surveys, feedback, or customer support.
• Scalable messaging: Whether you need to send a few messages or thousands, the service scales to your needs with reliable delivery.
• Compliance & security: Ensure messages meet regulatory requirements while keeping your customers' information safe and secure.
• Cost-Effective: With flexible, pay-as-you-go pricing, you only pay for what you use—offering an affordable solution for businesses of all sizes.
• Easy integration: Quickly set up with clear documentation, making it simple to integrate SMS into your business processes.

Start using Plivo’s SMS API today to streamline your communication and engage your audience through SMS or MMS—whichever best fits your business needs. Click here to book a free trial.

Passwords have long been the standard for digital security, but they come with risks like phishing and data breaches. Weak or reused passwords make us vulnerable to attacks, often putting both personal and company data at risk.

The solution? Passkeys. These are passwordless credentials that offer stronger security by eliminating many of these vulnerabilities. As businesses shift to passkeys, they get a safer, more convenient way to authenticate users, reducing the risks tied to traditional passwords.

By combining passkeys with OTP verification, you can create a multi-layered defense that significantly enhances security against online threats. While passkeys provide a seamless and secure method of authentication, OTPs act as a backup, adding an extra layer of protection in case of device changes or account recovery scenarios.

What is a passkey?

Passkeys are an advanced form of passwordless authentication that provides a more secure and user-friendly alternative to traditional passwords. They combine a browser API with an authentication device, such as your phone or computer, to generate unique credentials for each website or service you use. 

This means that a passkey created for one site can only be used on that specific site, offering an added layer of protection against phishing attacks and unauthorized access.

One of the key features of passkeys is their built-in multi-factor authentication. In addition to possessing the authentication device, you must also complete an action, such as scanning your fingerprint or entering a PIN. This dual verification ensures that even if a device is lost or stolen, bad actors cannot easily access your accounts.

Passkeys can also be synchronized across multiple devices through passkey managers, like those offered by Apple or Google. This makes it easy to sign into your accounts on different devices or recover access if you lose your original authentication device.

Passkeys' security and reliability are based on widely recognized standards developed by the W3C and FIDO Alliance, including WebAuthn and the Client to Authenticator Protocol (CTAP). These protocols make passkeys one of the most robust forms of authentication available today, ensuring that your online accounts remain secure and easy to access.

What technology goes behind passkeys?

Passkeys utilize public key cryptography, ensuring that the private portion of the credential is never shared with the website and no sensitive data is exchanged between the user’s device and the server.

To enable passkeys, an authenticator, such as a mobile device or password manager that supports this feature, generates a pair of cryptographic keys for each account. One key, the public key, is stored on the site where the account is created, while the private key remains securely stored on the authenticator. 

When logging into an account with a passkey, the authenticator and the website exchange data to confirm the user’s identity without transmitting any secret information that hackers could intercept.

Passkeys are generated using the WebAuthn API, a widely supported technology across modern browsers and operating systems. The software largely handles the underlying complexity, and the user is only required to approve the creation or use of the passkey. This approval can be granted through biometric checks like fingerprint scanning or facial recognition or by entering a local device PIN or password.

You can bind passkeys to a specific device or sync them across multiple devices. Device-bound passkeys are typically created on physical security keys, such as a YubiKey or a Titan Security Key, while synced passkeys are usually managed by a password manager.

How do passkeys authenticate?

1. Account creation with passkeys: To create an account with passkeys, you must use compatible devices and systems that support passwordless authentication. This typically includes devices with biometric capabilities (like fingerprint scanners or facial recognition) and software that supports passkey standards like WebAuthn. The process securely stores the user’s cryptographic keys, linking them to the account.

2. Secure login through biometrics or PIN: Once the account is set up, you can log in securely using the device’s built-in biometrics (such as fingerprint or facial recognition) or a PIN. This ensures that access is restricted to the authorized user, enhancing security by tying authentication to something unique to the user—whether that’s a biometric trait or a personal code.

3. Cross-Device functionality with synchronization: Passkeys also support cross-device functionality, allowing users to access their accounts seamlessly from multiple devices. Passkeys can be synchronized through passkey managers (like those built into Apple or Google’s systems), so users can easily log in from different devices and even recover access if they lose or switch their authenticator.

What are the security advantages of passkeys?

Passkeys offer several advantages over traditional passwords. While passwords rely on a shared secret—meaning the password is transmitted over the network to the server and needs to be stored there—this opens up the risk of attackers potentially accessing this sensitive information.

To exploit a passkey, an attacker would need access to:

• The physical device.
• The biometric data (e.g., fingerprint, facial recognition, or PIN) used to unlock the device.
• Close proximity to the device to use Bluetooth for authentication.
• If the device is lost or stolen, the thief cannot access the data without the proper biometric authentication.

Each passkey is uniquely generated using robust encryption algorithms, which:

• Eliminates the risk of weak passwords that are easily guessed.
• Prevents the common practice of reusing passwords across multiple sites, reducing the likelihood of an attacker gaining access to multiple accounts if one password is compromised..

What are some challenges that come with passkeys? 

While passkeys offer enhanced security, there are still some challenges and considerations to keep in mind.

Recovery and Device Loss

Losing a device with stored passkeys can lock users out of their accounts, as passkeys are tied to specific devices.

Adoption and Compatibility

Passkeys aren’t widely adopted yet, so some platforms still rely on traditional passwords. However, as more services integrate passkey support, this gap will close.

To ensure passkeys work seamlessly across various platforms, major tech companies like Apple, Google, and Microsoft have teamed up with the FIDO Alliance and the World Wide Web Consortium (W3C).

The FIDO Alliance has developed standardized protocols for passkey authentication, ensuring compatibility across devices and operating systems. This collaboration aims to create a secure, unified approach to authentication, eliminating the risks of relying on traditional passwords. Its goal is to create a more secure and user-friendly sign-in experience, which is why passkeys have become a key solution in the fight against online security threats.

Enhance account security with passkeys and Plivo’s SMS capabilities

Passkeys provide a seamless and secure method of passwordless authentication, but even the most advanced systems need reliable backup options.

Plivo’s SMS capabilities add a strong layer of protection by enabling OTP-based verification for account recovery, device changes, or fallback authentication scenarios. This combination ensures a layered security model that reduces the risk of unauthorized access while improving user experience.

Why choose Plivo’s SMS for authentication:

• Seamless integration: Plivo’s developer-friendly APIs allow for quick and easy integration into your authentication workflows. With detailed documentation and sample code, you can get started in no time.
• Global reach with superior infrastructure: Plivo’s robust network spans over 220+ countries, ensuring OTPs are delivered quickly and reliably worldwide. 

📚 Something to note: Plivo promises 99.99% uptime so your users experience consistent performance wherever they are.

• Multi-channel flexibility: Provide users with options to receive OTPs via SMS, voice calls, or even WhatsApp, ensuring secure access regardless of their device or location.
• Cost-effective solutions: Transparent, pay-as-you-go pricing ensures businesses of all sizes can benefit from reliable OTP delivery without hidden costs.
• Advanced fraud prevention: Plivo’s Fraud Shield offers AI-driven protection against SMS pumping and other fraudulent activities, enhancing security while keeping costs in check.
• Zero compliance hurdles: Utilize pre-registered sender IDs and templates to simplify regulatory approvals and go live instantly in key markets like the US, UK, and India.
• Customizable workflows: Tailor OTP delivery with adjustable expiration times, retry logic, and other options to fit your specific security needs.

A layered approach to authentication

By combining passkey authentication with Plivo’s SMS-based OTP verification, you can offer a reliable fallback for users to recover accounts, authenticate new devices, or regain access when passkeys alone are insufficient.

This layered approach strengthens security, improves user trust, and ensures that authentication workflows remain seamless and secure.

Ready to enhance your authentication strategy? Contact us for a demo and discover how Plivo can help secure your users' accounts with reliable, global SMS authentication.

“Press 1 for Billing,” “Press 2 for Account Information” — you’ve probably heard this before, right?

That’s an interactive voice response (IVR) system, and it does a lot more than just guide callers through a menu. It’s often one of the very first brand impressions your customers receive. 

But why does it matter so much? Because your customers crave autonomy. In fact, research shows that over 80% of consumers want more self-service options, and many are calling for these solutions to be smarter.

A well-designed IVR doesn’t just route callers to the right department — it understands their needs and can even boost your team’s efficiency.

In this guide, we’ll explain IVR’s meaning, how it works, and tips to optimize it for a seamless customer experience. Let’s begin!

What is an IVR?

IVR is a telecommunication technology that automates customer interactions over the phone. It allows callers to access information, make requests, or complete tasks using voice commands or menu inputs — no live agent required.

The technology uses pre-recorded messages, speech recognition, and dynamic menus to guide callers to the information or service they need with ease. It's similar to a 24/7 virtual assistant that transforms how businesses manage customer interactions.

Here’s what an IVR can do:

• Automatically answer and route calls to the right department.
• Offer self-service options, like checking account balances or appointment scheduling.
• Collect caller data for smoother follow-ups.
• Integrate with databases to deliver personalized responses.

Think of IVR as your business’s first line of defense. It handles repetitive tasks while seamlessly forwarding complex issues to human agents based on factors like agent skills, call volume, or even time of day.

Industries like banking, healthcare, and customer support rely on IVR systems to:

• Improve accessibility with 24/7 availability.
• Reduce wait times for callers.
• Manage high call volumes.

How does IVR work?

IVR systems are versatile and can operate on both public switched telephone networks (PSTN) and voice over Internet Protocol (VoIP) networks.

At their core, IVR systems rely on a combination of components to function effectively:

• A Transmission Control Protocol/Internet Protocol (TCP/IP) network: Ensure connectivity to both the internet and internal intranet systems.
• Databases: Provide necessary data for IVR applications to deliver accurate and relevant responses.
• Web/application server: Host IVR software applications, typically written in VoiceXML. These applications can handle various tasks, such as managing contact centers, conducting outbound sales calls, or performing speech-to-text transcription.

From these components, three primary types of IVR systems are made:

Touch-tone replacement

This system uses keypad inputs to guide callers. For instance, a prompt might say, "Press 1 to check your account balance," and the caller responds by pressing the corresponding number on their keypad.

Directed dialog

With this approach, callers are guided through verbal prompts based on their inquiries. For example, the system might ask, "Are you calling to check your account balance or update your contact details?" The caller then responds with "Check my account balance."

Natural language

The most advanced type, this system leverages speech recognition to understand more complex user inputs. A prompt like, "How can I assist you today?" allows callers to reply conversationally, such as "I want to check my account balance" or "I’d like to update my email address."

Let’s understand an IVR call flow with a simple example.

A customer calls a healthcare provider to book an appointment. The IVR system greets them with a friendly message and offers language options for accessibility.

Next, it presents a menu of choices, such as scheduling an appointment, checking the status of test results, or connecting with a live representative. The customer can either press the corresponding number on their keypad or say the desired option aloud.

The IVR system processes the input and takes the appropriate action. This might include providing pre-recorded information about:

• Available appointment slots.
• Transferring the caller to a scheduling agent.
• Collecting additional details like the patient’s name and preferred time.

Benefits of IVR for businesses

The IVR market is thriving, with North America expected to drive 40% of its growth in the coming years. Here are six main benefits of IVR for businesses:

1. Reduces operational costs

IVR systems for businesses save money by handling routine inquiries, reducing the strain on customer service agents. In fact, next-gen IVR solutions have shown to cut live-agent calls by over 10%.

Plus, they enable 24/7 service without additional staffing costs.

For enterprises, a single IVR system handles call flows for multiple applications, simplifying operations. Customizing IVR menus for each use case enables businesses to scale efficiently while maintaining cost control.

2. Improves first contact response rate (FCR)

Well-designed IVR systems for businesses can handle many inquiries on the first call. Research shows IVR self-service reaches a 74% FCR rate, and customers often prefer it over IVRs that just pass them along to live agents.

This success comes from handling simple tasks like confirming orders, checking balances, or viewing status updates — no human intervention needed.

3. Enables call routing and triage

Studies show that 44% of boomers, 30% of millennials, and 24% of Gen Z shoppers are likely to switch to a competitor after a single negative experience. Instead of risking that churn, use an IVR system to prioritize your most valuable callers and move them straight to the front of the line.

With smart triage and call routing technology, you can:

• Give VIPs top priority so they never wait without reason.
• Direct customers to the right team or agent based on location, priority, sentiment, intent, or language.
• Quickly review which callers are in the queue and what they need.
• Trigger dynamic changes to call priority or routing destinations as customers enter the queue.
• Seamlessly connect callers to the first available agent to speed up resolutions.

4. Provides personalized support

63% of customers want an IVR experience that speaks directly to their unique needs, not just a generic menu. They’re looking for personalization beyond superficial marketing approaches. IVR can help by offering:

• Language options that make callers feel understood from the start.
• Custom greetings that acknowledge their history with your brand.
• Tailored promotions and product suggestions that suit their past purchases or inquiries.

5. Enhances workflows

High call volumes can strain call centers, especially during busy periods. An IVR system eases the workload on agents and streamlines operations. Here’s how:

• Offer voicemail or scheduled callbacks instead of long wait times.
• Direct callers to the appropriate team or specialist.
• Guide callers to your website or present additional options via a recorded message.
• Deliver immediate answers to common questions through pre-recorded messages.

6. Helps understand customer behavior

IVR interactions generate valuable data on caller preferences, common inquiries, and recurring pain points. Analyzing these insights informs strategic decisions, enabling you to refine your services and better meet customer expectations.

IVR use cases

IVR systems play an important role across many industries, serving multiple functions. Here are some of the most common applications of this technology:

Auto attendant

When someone calls your number, they hear a simple menu. For example:

• Press 1 for Sales.
• Press 2 for Support.
• Press 3 for Billing.

It’s fast, smooth, and eliminates the need for a human operator to manage incoming calls.

IVR covers after hours too. It can automatically handle voicemails, ensuring no call is ever missed. This means your team can follow up promptly, leaving a great impression.

The result?

• Reduced workload for live receptionists.
• A polished, professional experience for your customers.
• Every call is handled with care, no matter the time of day.

Payments and banking

Banks use IVR systems to help customers perform tasks like checking account balances, making payments, or reporting lost cards without waiting for a representative.

For instance, when you call Wells Fargo, you’re prompted to enter your account or card number. The system then offers personalized options, such as reviewing transactions or checking payment statuses.

Support surveys

IVR systems for businesses aren’t just for managing inbound calls; they’re equally effective for outbound campaigns. Businesses and organizations can use them to automate surveys and gather customer feedback.

For example, a healthcare provider may use an IVR technology to remind patients of upcoming appointments and ask about their recent experience with services.

Similarly, a telecom company might conduct automated surveys to measure customer satisfaction after resolving a support issue.

Lead assignment and routing

An IVR system makes it easier to qualify leads and connect inbound sales calls to the right sales representative. It asks targeted questions to understand the customer’s needs, budget, or preferred products.

For example, an automotive dealership can use the IVR to route inquiries about new cars to a sales team specializing in that area, while calls about financing options are directed to a financing expert.

Key considerations for choosing an IVR solution

Choosing the right IVR solution for your business is a critical decision. Here are the key factors to focus on:

Customizable call flows

A customizable call flow lets you design personalized IVR experiences tailored to your customers’ needs. With this feature, you can create workflows that guide callers through specific communication channels based on their preferences.

Efficient call routing

The best IVR systems for businesses offer intelligent call routing capabilities. They can direct calls based on customer relationship management (CRM) data or predefined criteria to ensure each caller reaches the right agent.

Speech recognition and DTMF support

An effective IVR system should offer robust speech recognition and dual-tone multi-frequency (DTMF) capabilities. This allows customers to interact with the menu by speaking or pressing buttons, making the process intuitive and accessible for everyone.

Seamless integration

Look for an IVR system that integrates easily with your business tools — like payment processors, workforce management software, and CRM platforms. These integrations ensure the IVR has all the information needed to handle tasks without a hitch.

Comprehensive analytics

Strong call insights and reporting features let you track patterns and identify common customer queries. Use this data to make informed decisions, improve your service, and address recurring issues effectively.

Best practices to implement an IVR system

Here are five IVR best practices that help improve productivity and provide a great customer experience:

Keep the IVR menu simple

A successful IVR self-service system should be simple and user-friendly. Long and complicated menus can frustrate callers, leading to hang-ups.

Stick to a main menu with five options or fewer, while ensuring all essential needs are covered. Always provide a clear path to connect with a support representative if needed.

As an example, look at this IVR menu:

"Welcome to Zenith Tech Solutions:

• For technical support, press 1.
• For billing inquiries, press 2.
• To speak with a sales representative, press 3.
• To reach the HR department, press 4.
• To speak to an operator, press 0."

This menu is clear, relevant, and ensures that customers can reach a human representative when necessary.

Use audio streaming for customer insights

Audio streaming integrated with AI-based tools helps businesses:

• Deliver smarter voice-based services.
• Analyze conversations for deeper insights.
• Enhance user interaction.

Plivo’s Audio Streaming capabilities detect emotions like frustration or satisfaction during a call. If it senses an issue, the system can instantly adjust its response or transfer the customer to a live agent for a more personalized touch.

With Plivo, you can also build AI voice agents to handle common queries instantly, making customer service faster and more efficient.

Additionally, Plivo’s integrations enable real-time transcription to convert conversations into text seamlessly. Need multilingual support? Plivo connects with live translation tools, making it effortless to communicate during meetings or conferences in any language.

Optimize call queues

Waiting can be frustrating, but honesty and transparency can make the experience more bearable for customers. In fact, a survey found that 47.84% of customers feel estimates and updates significantly improve their waiting experience.

One way to handle this is by implementing an IVR solution with a callback feature. This prevents long hold times and helps customers continue their day while waiting for a response.

Another approach is to use IVR to handle low-priority calls and reduce average handling time (AHT). Directing callers to pre-recorded messages with helpful information can solve their problems efficiently.

For example, Plivo’s PreAnswer feature allows businesses to play custom caller tunes or automated messages after a call is transferred but before it's answered. It can be used in various ways.

For instance, if your team is frequently answering the same question, you could use this feature to play a pre-recorded message with an answer to this query.

If the caller gets the information they need, they can disconnect satisfied, letting your team handle more complex tasks.

Implement personalization

76% of consumers say personalized communication is a major factor when considering a brand. Plus, 78% are more likely to repurchase when they feel the content speaks directly to them.

This applies to your IVR system, too. Connecting your IVR to customer data facilitates customized experiences that make every interaction feel personal.

So, when a customer calls your helpline after recently booking a travel package. Instead of a generic greeting, they hear, “Hello, Sarah! We see you’ve recently booked a trip to Paris. Are you calling about your travel itinerary, or do you need assistance with something else?”

It’s about showing you understand what they care about. A personalized IVR system makes customers feel valued and turns routine calls into meaningful conversations.

Monitor and adjust regularly

Once your IVR system is up and running smoothly, it’s tempting to leave it as is. But businesses evolve, and so do their needs. Departments shift, processes change, and some may no longer exist.

To keep your IVR effective, regularly review and update your menus. Ensure they align with your current business structure and customer needs.

Don’t stop there — update greetings, hold messages, announcements, and any other pre-recorded messaging. These small changes ensure your IVR stays relevant and provides a seamless customer experience.

Improve your customer service with Plivo’s smart IVR

The world is rapidly shifting towards AI, and your customer support should too. Traditional IVR systems with rigid menus just aren't cutting it anymore. 

Smart IVR takes things to the next level by using artificial intelligence, contextual awareness, and data-driven insights to deliver more intuitive and personalized caller experiences.

Plivo is here to help you make that transition effortlessly. Our Smart IVR uses AI voice agents and advanced audio streaming to transform your traditional IVR into a smarter, more efficient system. 

This means faster interactions, reduced agent burnout, and happier customers — all while streamlining your operations.

On top of that, Plivo offers powerful features such as:

• AI-Powered functionality: Let customers speak naturally instead of pressing buttons. Our integration with Large Language Model (LLM), Speech-to-Text (STT), and Text-to-Speech (TTS) providers makes launching voice bots a breeze.
• Automated support: Handle routine inquiries automatically, freeing your team to tackle more complex issues.
• Crystal-clear audio: Deliver high-quality audio across 220+ countries and territories, ensuring smooth and professional conversations.
• Enhanced customer insights: Gain valuable data from interactions to refine your services and meet customer demands effectively.
• Fully customizable menus: Design multi-level menus tailored to your business needs, complete with personalized greetings using pre-recorded audio or text-to-speech technology.
• Easy setup: Simple APIs and XML integration allow you to quickly create and manage custom IVR workflows without hassle.
• Smart call routing: Direct calls based on input, agent skills, or even business hours, ensuring customers are always connected to the right person.
• Outbound IVR support: Custom menus for outbound campaigns like surveys or voting make engagement effortless. 

Plivo’s IVR system isn’t just a tool; it’s a way to enhance your customer service and streamline operations. Ready to elevate your communication? Contact us today to learn more!

There are over 8.58 billion mobile subscriptions worldwide, making text messaging a game changer for how businesses connect with customers. Short Message Service (SMS) has long been a reliable and universally compatible choice for communication. Rich Communication Services (RCS), on the other hand, introduces advanced capabilities like rich media, read receipts, and branded messages that transform interactions.

While SMS boasts a massive user base of 9.3 billion subscribers, RCS has grown to 1.2 billion users, sparking a heated debate: RCS vs. SMS.

Engaging Android phone users through RCS chats or relying on SMS for a broad reach both offer unique advantages.

When businesses compare RCS and SMS, the key differences often include interactivity, compatibility, and cost. In this blog, we’ll explore SMS and RCS's features, business use cases, strengths, and limitations to help you find the right balance to meet business goals.

SMS: The standard since day one

SMS is a communication protocol that allows users to send short, text-only messages between mobile devices. It relies on cellular networks and not on an internet connection.

Therefore, it has been the backbone of mobile text communication for decades, as it virtually works with all mobile devices, including basic phones.

Are SMS and iMessage the same?

No, SMS and iMessage are not the same.

iMessage offers interactive features and allows multimedia-rich content sharing between two iOS devices. SMS only sends short, text-based messages between all mobile devices.

RCS: The new feature-rich customer engagement stream

RCS is an upgraded messaging protocol that relies on Wi-Fi or cellular data. It delivers an interactive experience with support for high-resolution multimedia, group chats, and other advanced features.

Are RCS and iMessage the same?

No, while they share similar features, RCS and iMessage differ.

iMessage is exclusive to Apple devices, while RCS is a universal protocol supported by various messaging apps on compatible devices.

RCS vs. SMS comparison

Let's explore the key differences between RCS and SMS for businesses evaluating their messaging strategies and deciding which option is best for them.

SMS vs. RCS messaging for businesses

SMS remains a cornerstone of business communication due to its universal compatibility with mobile devices and reliance on a cellular network. 

Industries across the globe leverage SMS for fast, real-time connections—none more critical than emergency response services. 

For example: Flight Vector, a dispatch solution provider for emergency medical services, revolutionized operations by adopting SMS through Plivo’s SMS API.

• The Challenge: Outdated pagers and unreliable email systems slowed emergency communications. Blocked messages or delivery uncertainty posed life-or-death risks.
• The Solution: Plivo’s SMS API delivered real-time confirmations, ensuring every critical alert reached the intended recipient.
• The Results:some text
  • Over 460,000 SMS messages sent monthly without issues.
  • Streamlined communication between dispatch centers, crews, and pilots.
  • Real-time GPS updates for helicopter landing sites, improving response times and decision-making.

Flight Vector CEO Scot Cromer summed it up: “SMS is the future. If you don’t provide a texting solution, you’re going to be left behind.”

A 2022 survey showed a 75% increase in SMS usage due to its cost-effectiveness and ability to deliver messages even in low-network areas for critical alerts, notifications, and two-factor authentication​ (2FA).

RCS, on the other hand, provides businesses with interactive ways to connect with customers. Businesses are still realizing its potential — RCS adoption statistics suggest a 62% increase with 1.2 billion users. The growth comes with increasing RCS support from platforms like Google Messages and Apple.

Projections suggest an additional 900 million active users in the next two years​.

Here’s a possible outlook for the mobile market in the coming years.

RCS: Use cases and advantages

Now that you’ve read about SMS's advantages and use cases, let’s focus on the benefits and potential use cases of RCS for business communication.

Deliver unforgettable customer experience

A Harvard Business Review survey noted RCS features provide richness in over-the-top (OTT) messaging with the universality of SMS.

Studies show that 90% of rich media messages are opened within 15 minutes, which increases customer engagement by up to 45 seconds per interaction. With RCS messages, businesses can engage users through:

• High-quality images, video messages, and GIFs.
• Delivery receipts and read receipts for transparency.
• Video calling capabilities for real-time interactions.
• Suggested replies and actions for seamless engagement.
• Location sharing to simplify navigation.
• In-message payment options for quick transactions.
• QR codes and sender verification for enhanced trust.

Harvard’s survey respondents emphasized the importance of these capabilities, with 81% highlighting the value of verified sender information.

Get verified for more trust

70% of consumers express concerns about the data security risks of brand texts. This is where RCS messaging’s most impactful features come into play — sender information verification.

Verification builds trust and helps brands avoid being flagged as spam. A verification authority, such as a mobile network operator (MNO), chatbot platform provider, or other specialized entity, can authenticate brands using RCS text messages.

Once verified, your brand’s logo, name, and status badge (e.g., a checkmark) will appear at the top of the conversation within the messaging app. Verified senders can confidently deliver messages to foster credibility and secure interactions across RCS-supported devices.

Merge RCS and OTT to develop better content

RCS is a powerful protocol that can complement existing communication channels like OTT to build trust and boost engagement.

Industries like healthcare and hospitality can leverage OTT for RCS communications to manage appointments, send reminders, and provide live support. For example, a hospital can use an interactive button to prompt patients to “schedule now” and book appointments directly through text.

Plivo’s WhatsApp Business API makes it easy for users to deploy WhatsApp for customer engagement with a low-cost solution. You can share rich media, including images, videos, documents, customized call-to-action (CTA) buttons, etc.

Also read: Quick Onboarding Guide to Get Started with the WhatsApp API

Get more conversions by utilizing customer data

With RCS features, businesses can showcase multiple products in a single message using image carousels, media cards, and GIFs. These chat features enhance the shopping experience when paired with CTA buttons that direct customers to checkout.

When RCS messaging becomes a tool in your omnichannel strategy, you can leverage customer data from sales, marketing, and operations to deliver personalized experiences.

Integrate RCS messages with your existing systems and channels and send engaging, media-rich promos to captivate audiences and drive conversions.

SMS: Use cases and advantages

Here is a list of SMS use cases and advantages that drive the trend. 

Win trust with a personal connection

According to the Validity 2023 report, 19% of consumers prefer receiving updates via text messages, surpassing social media (16%), app notifications (6%), and direct mail (6%). This highlights the trust and reliability associated with SMS.

Additionally, SMS goes straight to the native messaging app. A direct connection to your customer’s mobile device makes communication much more personal than other channels. When recipients get a direct ping in the notification bar, they often read the text within seconds.

Businesses must implement effective SMS opt-in and opt-out mechanisms to ensure compliance and build customer trust.

Get an unbeatable return on your investment

SMS marketing is a standout performer for CFOs seeking measurable financial impact.  It offers a cost-effective strategy for businesses of all sizes with almost 100% open rates, 45% response rates, and an unmatched return on investment (ROI) of $21-$40 for every $1 spent.

SMS is an ideal channel for time-sensitive communications, from flash sales to urgent updates. SMS short codes for high-volume messaging enable faster, more efficient customer engagement for events like Black Friday, during which SMS marketing has been shown to deliver an impressive ROI of up to 7433%.

To secure and seamlessly implement SMS for critical notifications like authentication, businesses can integrate Plivo with Okta for SMS verification.

Pro Tip: Combine SMS's universal reach with RCS's interactive features to watch your engagement metrics go through the roof.

 Here’s a quick comparison table for engagement metrics for RCS vs SMS.

Do not worry about algorithms

Marketing on platforms like Google and social media often means playing with ever-changing algorithms that dictate content visibility.

Google's ranking criteria frequently change with core updates, while shifting social media algorithms can impact organic reach, forcing brands to rely more on paid promotions. These constant shifts create endless frustration and uncertainty for marketers.

On the other hand, SMS marketing offers a stable and reliable alternative.

Unlike search engines or social media, algorithms don’t control SMS content reach. Every SMS message lands directly in the recipient's inbox, giving you full control over communications without fighting for visibility or adapting to shifting guidelines.

Deliver messages with more impact

Human attention spans are shrinking, and SMS marketing can address this. Unlike long emails or intrusive calls, SMS delivers concise, high-impact messages that grab attention instantly.

SMS open rate is three times better than email marketing (37.3%), and the response rate is 9.3 times greater than cold calls (4.8%).

It drives this high engagement with a direct, to-the-point approach, ensuring readers focus on the message and the call to action without distractions.

Which media and devices support RCS and SMS?

SMS remains universally supported on all cellular devices connected to a network, ensuring reliability even without data connectivity.

RCS was initially available only on Android phones through Google Messages. However, RCS business messaging (RBM) was added to iOS 18.1. Now, iOS supports RCS for iPhone users for person-to-person (P2P) messaging in select markets.

While a global rollout is pending, this integration improves messaging between Android and Apple devices. Users can check and enable RCS messaging in their app’s chat features settings.

Find a solution no matter your messaging strategy

Choosing the right messaging protocol depends on your goals and audience. Consider the following when comparing RCS vs. SMS:

Choose RCS when:

• Visual appeal matters: It provides visually engaging messages with rich media like images, videos, and GIFs, perfect for campaigns prioritizing aesthetics.
• Interactivity is key: Features like buttons, suggested actions, and forms allow better audience interaction for engagement and conversion rates.
• Enhanced branding is a priority: Custom branding with logos and colors can deliver a consistent and professional brand presence.

Choose SMS when:

• Wider reach is necessary: Given that all mobile phones, even older or less advanced devices, support it.
• Immediate and direct communication is vital: SMS gets delivered instantly, making them ideal for time-sensitive updates like promotions or alerts.
• Budget constraints exist: Carrier plans often include SMS without additional costs.

A hybrid approach combining SMS and RCS offers the best results for most businesses. However, it’s important to note that RCS adoption is limited due to its data network reliance, device compatibility, and higher costs.

On the other hand, SMS still has an edge in business communication as it offers universal compatibility, cost efficiency, and dependability across all devices. SMS notification services are the best choice for small to medium-business solutions where budgets are often a restraint.

Get started with Plivo’s SMS API

No matter your goals, the right messaging solution can drive success in conversational commerce. 

SMS not only supports customer communication but also plays a vital role in secure and seamless authentication processes. Whether you're managing account verifications, login security, or two-factor authentication, SMS offers unmatched flexibility, enabling businesses to scale operations during peak demands without incurring significant costs or logistical challenges.

Plivo bridges this need with its Verify API, delivering reliable and cost-effective authentication. Designed for effortless integration and maximum reliability, Verify API ensures:

• Zero authentication costs
• Free Fraud Shield for enhanced security
• No regulatory complications
• Reduced technical support overhead

Coupled with Plivo’s easy-to-integrate SMS API, businesses can deliver impactful messages while managing authentication at scale — all without hesitation or hidden fees.

Plivo provides a complete messaging solution with support for both RCS and SMS, all tailored to your business needs. Contact us to get started today!

As of 2024, 82% of consumers would rather chat with a bot than wait for a customer service agent. This indicates that chatbots are transforming customer service, making them a must-have tool for businesses everywhere.

Conversational AI platforms are taking customer service further, offering smarter, more human-like interactions that improve marketing and customer engagement.

While “chatbots” and “conversational AI” may seem interchangeable, they differ significantly in scope, functionality, and use cases.

Chatbot vs. conversational AI: How do these two solutions compare, and which suits your business needs? Read on.

What is a chatbot?

A chatbot is a computer program designed to respond to customer queries. When a customer tries to initiate contact through your website or another communication channel, a chatbot will identify and resolve the customer's query.

It can also initiate a conversation with an opening sentence such as ‘How can I help you today?’. The user then has a set of pre-defined answers to choose from and carry the conversation forward.

Conventionally, a chatbot works on if-this-then-that logic. So it gives straightforward answers to queries.

There are three primary types of chatbots:

Rule-based

These chatbots operate based on predefined rules and scripts. This means they can only respond to specific inputs or keywords. Think of a basic FAQs support chatbot that answers commonly asked questions about the store’s business hours, product return/cancellation policies, etc.

AI-based

AI chatbots for business, on the other hand, use natural language processing (NLP) and machine learning (ML). They understand and respond to complex queries in a human-like, context-aware manner.

For example, Google Assistant is an AI-based chatbot that handles varying tasks from appointment reminders to answering general knowledge questions.

Hybrid

These chatbots combine the strengths of both rule-based and AI-based systems. They follow pre-defined rules to answer basic queries but can also use AI for more complex, contextual conversations.

Businesses can configure a hybrid chatbot across communication channels like live chat, messaging apps (WhatsApp, Messenger, etc.), and in-app messaging. Given the hybrid model, these chatbots are more versatile than the other two. Several industries can integrate them into their communication systems.

Businesses can also create AI chatbots for automation by integrating conversational AI, given it’s developed on a scalable platform.

What is conversational AI technology?

Conversational AI technology provides more advanced and dynamic solutions to customer queries.

While conventional chatbots follow scripted responses, conversational AI technology consists of NLP, ML, and automatic speech recognition (ASR) to carry out human-like conversations. Here’s their function explained:

• NLP: Helps the system understand and interpret human language and nuances such as tone, intent, and context.
• ML: Supports AI self-learning with past customer interactions and behavior.
• ASR: Converts spoken words into text so that you can integrate voice-based interactions in conversational AI systems.

Normal chatbots handle FAQs, while conversational AI adapts to user preferences and makes conversations based on their input.

For instance, Plivo-powered AI voice agents use conversational AI to provide real-time customer service. They can act as a personal shopping assistant for customers, automate routine financial transactions, break language barriers in customer support or learning, and even provide personalized health assessments to patients.

Chatbot vs. conversational AI chatbots at a glance

Here’s a table stating the differences between a chatbot and conversational AI.

Use cases for chatbot vs. conversation AI in customer service

Chatbots aren’t just a passing trend. In fact, Gartner states that chatbots will become the primary customer support channel by 2027. However, how can you include them in your existing communication systems? Let’s explore.

Use cases for chatbot

Here’s a quick rundown of the specific use cases for chatbots.

Appointment scheduling

Chatbots streamline appointment scheduling by automating the process. They let customers book, reschedule, or cancel appointments 24/7, eliminating the need for staff intervention.

They can also send reminders, reducing no-shows and ensuring a positive experience for businesses and customers.

Order status updates

Updating customers about order statutes from confirming orders to tracking shipments, can chip away a big chunk of your agents’ time. In contrast, chatbots instantly respond to customer inquiries like “Where is my order?” or “What’s the estimated delivery time for x product?”.

Customers don’t need to wait for an agent to answer these queries, which significantly improves satisfaction rates while saving time and resources.

Answer FAQs

An IBM report states that chatbots can resolve up to 80% of routine customer inquiries. Imagine the time this saves up on your resources. With chatbots, customers get the answers they need without waiting 48 hours for an email response because of a holiday or an agent's unavailability.

It can handle frequently asked questions like inquiries about product features, order-related updates, shipping updates, refund/return requests, etc.

Loan applications, payments, and billing assistance

While e-commerce and healthcare have picked up on integrating chatbots into their customer service, the banking sector is no exception.

Chatbots can help users with payment due dates, loan application updates, and billing breakdowns. Simply create a bank interactive voice response (IVR) menu, and integrate it into voice-enabled bots to make customer support easier. It’ll automate routine queries and reduce operational costs.

Customer feedback collection

Businesses go out of their way to solicit customer feedback. While you can use the rule-based bots to ask customer feedback questions, take it a notch up with conversational AI. The bot then sends a feedback form to the customer after an item is sold or a task is performed.

For example, you may use it to ask users about:

• Their experience with the product.
• The delivery process.
• If the product/item met their expectations, etc.
• How they would like the product/shopping experience to be better.

Use cases for chatbots with conversational AI

You can integrate conversational AI and build on previous use cases of basic chatbots to move beyond scripted responses. However, let’s explore specific conversational AI use cases that can benefit business operations.

Personalised product recommendations

Conversational AI platforms have access to customer data, including their browsing history, purchase behavior, etc. These bots use the data and recommendation algorithms to suggest specific or complementary products.

So a generic customer query about a mobile phone narrows down to a specific model that fits their budget.

From discovery to checkout, these bots can handle the entire funnel. Use it to help customers compare products, suggest similar products, and apply discounts or upselling based on previous purchases.

Text-based bots are sufficient for a target audience that prefers texting over speaking. However, voice-enabled bots provide more convenience and feel more personalized to customers. Plus, launching context-aware voice bots is simpler than you think. 

For instance, Plivo-powered voice agents integrate easily with any speech-to-text (STT), large language model (LLM) or text-to-speech provider of your choice to get started.

You can learn all about AI voice bots and their use cases in this guide.

Intelligent IVR systems

Say a customer chats with the bot and the bot transfers the call to the right agent for a nuanced response. What happens during the time between the transfer and when the agent picks it up? Typically, customers hear music or are provided with a waiting number.

However, you can maximize IVR menu efficiency with pre-answers. Create multilevel IVR menus with audio or text for prompts. Specify exactly what happens after a call is transferred before it's picked up to add value to the customer journey.

For example, if a call is transferred to a department frequently asked the same questions, you can record answers to those common queries and play them for the caller while they wait. This reduces call drops and provides information to customers upfront.

Multilingual support

Language barriers can significantly hurt your customer support strategy. The best chatbots for customer service are designed to be customer-friendly, meaning they understand and respond in the same language as the caller.

Conversational AI bots solve this by instantly switching between languages and providing personalized, native-like assistance, removing the need for multiple agents or long wait times.

Dynamic query resolution

Complex questions often lead to frustration with standard chatbots. AI-powered bots analyze the intent behind queries, offering precise solutions instead of generic responses, saving time and reducing escalation rates.

Since the bots understand the sentiment behind the words, they offer solutions after analyzing the tone of the conversation. While text-based input works well for sentiment analysis, voice-enabled bots can achieve similar insights by transcribing voice inputs into text for deeper customer analytics.

Advanced after-sales support

After-sales support issues including troubleshooting or warranty claims often take too long. AI bots streamline this process by guiding customers step-by-step, scheduling follow-ups, or handing unresolved cases to human agents without delays.

Fraud detection and prevention

Suspicious activity can compromise customer accounts.

AI bots monitor patterns, flag risks, and trigger security protocols like verification requests or account freezes, keeping customer data and transactions safe in real time.

Along with these, winning back abandoned carts, offering discounts and offers, streamlining the help desk or ticketing system, etc. are some of the top AI sales bot use cases.

Chatbot vs. conversational AI: What the future holds

Artificial intelligence in customer service is just the beginning.

Looking ahead, conversational AI is set to expand beyond traditional customer support. It will take on roles as virtual healthcare assistants for patients, personal tutors, and investment advisors, and even offer even more personalized recommendations in entertainment and retail.

As AI continues to leverage more user data, companies will face increased pressure to ensure compliance with data privacy regulations like the General Data Protection Regulation (EU) and California Consumer Privacy Act (CCPA).

The future of conversational AI will require businesses to prioritize safeguarding user data — such as clearly disclosing when a bot is interacting rather than a human agent. To keep up with these demands, conversational AI systems will be designed with built-in compliance features to meet evolving privacy standards.

Ultimately, natural language processing in AI promises more sophisticated, smart, and intuitive communication systems.

Chatbot vs. conversational AI chatbot: Which to choose when?

The decision between a chatbot and a conversational AI chatbot hinges on your business needs and the complexity of customer interactions.

For small and medium-sized enterprises (SMEs) that want to handle routine queries efficiently, chatbots are a great choice. They excel as triage systems, routing simple inquiries to the right channels and saving valuable time for your team.

Before implementing it, ask: How will your business benefit from automating basic customer concerns?

Whether it’s saving time, freeing up agents for more complex tasks, or helping with customer acquisition, understand the potential impact on your business goals.

Conversational AI chatbots, however, are ideal for more nuanced customer service needs. They’re particularly useful when you require multilingual support, the ability to handle multiple intents in a single conversation, or context-aware solutions.

Use chatbots for automation at the top of the funnel for initial contact, lead capture, or general inquiries. As customers move down the funnel, integrate conversational AI for detailed product inquiries, after-sales support, and nurturing client relationships.

Take the first step to automation with Plivo’s Voice API

For many SMEs, diving straight into conversational AI can feel like a big leap. Hence, if you’re looking for a solution that doesn’t require hefty investments, Plivo’s Voice API is the perfect starting point. 

Plivo's Voice API easily integrates with your choice of speech-to-text, text-to-speech, and language model providers to build smart IVR systems. With smart IVR capabilities, you can automate routine tasks, direct calls to the right agents, and save valuable time for you and your customers. 

In addition, Plivo’s Voice API supports straightforward integration with leading AI providers, including OpenAI’s speech models. Using our simple integration endpoints, you can test the language model’s ability to transcribe voice to text before deploying your IVR system. The setup is easy, requires minimal technical expertise, and adapts effortlessly to your evolving needs.

For example, you can build an IVR to automate common queries like checking account balances or updating personal information, allowing your agents to focus on more complex issues.  Plus, its voice API supports key features like call forwarding, global conference calling, and call recording for in-depth analytics, providing high-quality services that meet customers’ needs.

Plivo’s reliable coverage in over 220 countries and territories, 99.99% uptime guarantee, and less than 2-second call rerouting in case of failovers amplify all these benefits.

Start simple, and scale smart. Contact us to build an integrated and intuitive communication system.

Delivering great customer experiences requires quick responses, personalized interactions, and communication through the customer’s preferred channels.  Yet, managing high call volumes, addressing complex requests, and meeting ever-growing expectations can make this a significant challenge.

Modern contact center technologies can bridge this gap with tools that streamline operations, improve customer communication, and empower contact centers to meet customer expectations.

In this blog post, we’ll explore the top 12 contact center technologies transforming customer interactions and how they can benefit your business.

1.VoIP

A Voice over Internet Protocol (VoIP) system lets businesses make and receive phone calls over the Internet, removing the need for outdated landlines, desk phones, mobile devices, and computers. However, the benefits of switching from legacy landline systems to VoIP go beyond cost savings and improved call quality.

A reliable VoIP system:

• Eliminates the need for desk phones and outdated systems.
• Offers add-ons like two-factor authentication (2FA) to verify callers and reduce fraud calls, smart interactive voice response (IVR) scripts for streamlined self-service, and call routing to connect customers with the right agents.
• Minimizes dropped calls and ensures crystal-clear communication.

If your contact center manages a high volume of customer inquiries, use a reliable VoIP system to ensure consistent communication and reduce call drops. Apply best practices to improve implementation and achieve better communication outcomes.

2.CRM integration

A Customer Relationship Management (CRM) system houses detailed information about previous customer interactions, their preferences, purchase history, and more. When you integrate this rich data into your contact center, agents get a comprehensive view of each customer to provide highly personalized assistance.

With this data readily available, agents can quickly identify previous issues or anticipate future needs, leading to faster resolutions and a better overall customer experience.

3.Call recording

You can capture customer interactions with call recording tools and gain valuable insights from them. For example, if customers frequently complain about a specific product, the tool captures this feedback. You can then use this data to improve the product’s quality, determine whether the issue is with marketing or product design, and train your staff accordingly.

Moreover, you don’t need to worry about customer data privacy as these tools encrypt the recordings.

To further improve customer experience, opt for an automated call transcription feature tool. Transcribing calls improves customer insights with more accurate analysis, helping you identify trends and address issues more effectively.

Analyze call recordings alongside contact center performance metrics and agent productivity tools to pinpoint areas for improving agent training or call-handling strategies.

4.Call queuing

Customers dislike waiting, however, call queuing systems make the experience more manageable. They inform customers of their expected wait times, play custom messages, and offer callback options. It’s one of the most effective contact center technology trends, especially when managing a surge of customer calls.

Such transparency reduces caller frustration and improves agent productivity. Some cloud-based contact centers also have automated callbacks, allowing customers to hang up without losing their spot in the queue.

You can even customize queues with maximum wait times and personalized messages or music with providers like Plivo. It further optimizes your call queuing strategy with insights into average wait times, dropped calls, and peak hours.

5.Smart IVR systems

An IVR is one of the most important self-service options in contact centers, helping manage customer requests efficiently while enhancing service quality. It routes customers to the appropriate agent based on input or responds to queries given there's a script for that particular use case.

However, smart IVR systems don't require traditional training. They use machine learning to process customer interactions and provide context-based resolutions. 

The system captures the customer's audio input and an AI bot analyzes and processes the request, generates a context-aware response, and delivers it in real-time to the customer. 

They provide dynamic routing, proactive customer engagement, speech recognition, real-time transcription, and call analysis to create a more intuitive customer support experience. 

You can use IVR systems to:

• Accept payments securely.
• Localize services with multiple language options.
• Route calls effectively based on customer input or intent through voice prompts or keypad input.
• Conduct surveys and gather feedback.
• Assign and prioritize inbound leads for sales calls to the right agents.
• Confirm customer availability for service or delivery dispatch through automated calls.

Pro tip: You can build a smart IVR using Plivo-powered AI voice agents to enhance your customer experience. 

6.Automatic Call Distributor (ACD)

Automatic call distribution systems intelligently route users to the right agents, making it an important part of contact center automation. This ensures that customers are connected with the right agents at all times.

The system routes works based on:

• Skill-based routing: Routes callers to agents with particular skills or training based on their needs
• Time-of-day routing: Routes calls to agents depending on their time zone.
• Priority-based routine: Routes callers with urgent issues to the top of the queue.

ACD eliminates the need for manual call forwarding or transferring, reducing wait times and improving overall customer experience.

7.Chatbots

The adoption of artificial intelligence (AI) in contact centers is on the rise, and AI-powered customer service chatbots are leading the charge. These virtual assistants for contact centers handle routine customer queries without the need for live agents, significantly reducing agent workload. They serve as round-the-clock virtual agents who are ever-ready to field queries, convert leads, and reduce customer support costs by up to 30%.

Use it to perform straight-forward tasks such as:

• Scheduling appointments.
• Answering FAQs.
• Taking meal orders.
• Offering discounts and offers.
• Identifying promising leads.
• Streamlining helpdesk operations and ticketing systems.

If a chatbot fails to answer a query, it will transfer the call to an agent for a more contextual response.

8.Omnichannel customer service 

The best customer experience comes from consistent support across multiple channels like SMS, voice, video, and live chat. Omnichannel customer service empowers agents to engage with customers across these various channels, providing a cohesive experience. They can easily transition between channels or even manage multiple channels at once.

Without integrated contact center channels, agents may have to switch between different platforms to review past interactions. This leads to repetitive questions, frustrated customers, and a negative impact on the experience.

9.Call analytics

Real-time and historical call analytics provide insights into performance metrics like call quality, resolution times, and call drops. AI in contact centers can even interpret the tone and emotions behind customer interactions — whether frustration, satisfaction, or confusion — and personalize responses accordingly.

Plivo provides an in-depth analysis of potential issues, both reported by users and identified through system checks. This data helps improve agent training and streamline contact center operations.

10.Cloud-based solutions

Cloud-based contact center software solutions ensure high availability, automatic updates, and integration with CRM, agents' productivity tools, and other customer experience tools. They also facilitate remote working as long as there's a stable internet connection.

Many cloud solutions complement your existing system rather than replace it outright.

For example, you could improve your current infrastructure by integrating channels like live chat, SMS, or video calls into your traditional phone systems.

11.Conversational AI

Conversational AI is transforming how contact centers operate.

A survey in the 2024 State of the Contact Center Report found that 30.4% of users said 'Yes' and 69.6% said 'Maybe' when asked if they’re considering using AI tools to improve contact center operations.

Launching context-aware voice bots that mimic human interactions ensures natural conversation flow by detecting speech onset and end. These AI-powered chatbots preserve the emotional nuances and tone of the customer, giving agents more access to deeper customer insights.

12.Sentiment analysis

Sentiment analysis empowers contact centers to gauge customer intent and recommend actions in real-time to meet their needs.

Say you’re a retail contact center receiving a call from a customer frustrated about a delayed delivery. The system integrates audio streaming via WebSocket, AI-driven transcription, and sentiment analysis to capture audio and transcribe it in real-time

AI tools analyze the conversation and detect frustration in the customer’s tone, tagging it as negative sentiment. The system then alerts the agent in real-time, prompting them to prioritize empathy and offer an immediate solution, like expedited shipping or a discount.

This proactive approach not only boosts call quality assurance but also improves overall customer satisfaction.

Future of contact centers

Conversational AI will be the key driver of customer service in the next decade.

Chatbots are already moving from straightforward query resolution to contextual resolutions. It’s clear that as AI evolves, its focus will shift from reactive problem-solving to proactive engagement. It’ll predict customer behavior, anticipate issues, and provide solutions in real-time.

However, there’s a flip side to this.

With AI addressing routine queries, support agents will handle complex and emotionally charged situations. This requires specialized training in empathy and creative problem-solving, areas AI cannot replicate.

Data privacy is another key concern. AI systems must comply with strict regulations like the General Data Protection Regulation (EU) and the California Consumer Privacy Act (CCPA). Businesses must develop robust data governance policies and provide employee training to guarantee compliance and customer trust.

As AI brings efficiency and scalability, human empathy remains vital. The future of contact centers lies in a hybrid model where AI improves, not replaces, human agents, encouraging valuable and meaningful connections.

Integrate these call center technologies with Plivo

To deliver a standout customer experience, you need to understand your customers' needs and meet them where they are. Plivo's Voice API is the perfect start to this. It lays the foundation for advanced, intelligent communication systems — empowering contact centers to operate more efficiently.

It easily integrates into your CRM and Business Intelligence (BI) tools to create a unified system. This ensures every interaction is backed by customer history and insights. Moreover, smart IVR scripts are among the best customer self-service options in contact centers.

Rely on Plivo to take care of routine queries like bill payments, appointment scheduling, or order tracking. You can automate these queries and free agents to focus on complex, high-value issues.

Plivo also offers real-time call analytics. You get detailed insights into performance metrics such as average resolution time, call quality, and sentiment analysis. This way, you can identify peak call times, optimize staffing, and address service bottlenecks proactively.

These benefits stem from Plivo's commitment to ensuring reliable connectivity, low latency, and exceptional call quality across 220+ countries and territories. Plivo’s seven global points of presence guarantee 99.99% uptime, crystal-clear 16kHz voice quality, and rapid rerouting in under 2 seconds during failovers.

Ready to take your contact center to the next level? Start by integrating Plivo’s Voice API and progressively incorporate these contact center technologies to drive automation.

Contact us to create a smarter, more efficient, and customer-centric contact center.

Text messaging is a highly effective tool for businesses, with SMS boasting a 98% global delivery rate. This reliability makes it ideal for reaching customers quickly and consistently. 

However, managing high volumes of customer communications manually can be challenging for businesses. An SMS gateway makes it possible for a broader range of devices and applications to communicate with each other.

Whether you want to launch a marketing campaign, send automated alerts, or engage in two-way conversations with customers, an SMS gateway simplifies the process.

Using SMS gateway services, you can send a message from your computer to a phone (or vice versa).

In this guide, we’ll dive into how SMS gateway providers work, the different applications of SMS gateway services, and how you can choose the right provider for your business’ needs.

So, let’s begin!

What is an SMS gateway?

An SMS gateway is a technology that allows software applications or computers to send text messages to mobile phones. Often, messages sent from a computer are not in a format that’s compatible with SMS. In such cases, SMS gateways serve as translators, converting the message into a format that mobile devices can understand.

The main job of an SMS gateway is to ensure the message is compatible with mobile networks. Businesses use SMS gateways to send bulk text messages to customers directly from a computer or software platform.

Interestingly, SMS gateway services can also work in reverse, allowing mobile users to send messages back to computers.

While previously SMS gateways were offered as physical hardware with SIM cards and embedded radios, businesses and consumers no longer need hardware-based solutions today. Instead, they use cloud-based systems that seamlessly translate and transmit messages.

These advancements are powered by SMS APIs, which allow messages to be delivered to specific devices at the right time, without the need for physical hardware.

How does SMS gateway technology work?

Here’s a simple step-by-step breakdown of how modern SMS gateway services operate:

1. Create the message: Compose your text message within your business application.
2. Send via API: The message is sent to the SMS gateway through an SMS API.
3. Convert the message: The gateway uses protocols like HTTP or SMPP (Short Message Peer-to-Peer) to format the message for mobile networks. Protocols like SMPP play a key role in the smooth operation of SMS gateways. They enable fast and reliable communication between the gateway and mobile carriers, ensuring your messages reach their destination promptly — even during high-volume campaigns.
4. Route the message: The gateway forwards the message to the appropriate telecom carrier.
5. Deliver the message: The telecom carrier ensures the text reaches the recipient’s phone.
6. Confirm delivery: The SMS gateway receives a delivery report from the carrier and relays it back to your application, confirming the message was received.

Imagine you’re running SMS marketing campaigns and want to send a promotional text to all your customers. Your audience is spread across the U.S., using different carriers like AT&T, Verizon, or T-Mobile. 

Instead of dealing with each network separately, an SMS gateway simplifies the process. You connect once, and the gateway handles the rest — distributing your message to everyone at the same time, no matter which network they’re on.

Types of SMS gateways

When it comes to SMS marketing campaigns, two types of SMS gateways are most commonly used:

Email to SMSThis type of gateway converts email messages into SMS format, ensuring they meet the technical requirements for mobile delivery. It’s a two-way system, allowing businesses to send text messages to email inboxes and receive replies in return.

Web to SMSFrequently used by application-to-person SMS platforms, this gateway connects mobile phones with web applications. It enables businesses to send both SMS and MMS messages directly from a web application to recipients’ mobile devices. Web to SMS gateways are more feature-rich than other options, offering enhanced flexibility and functionality.

Applications of SMS gateways

SMS gateways have a wide range of applications for businesses and organizations, enabling them to communicate quickly and effectively with their customers. Here are some use cases:

Marketing campaigns

SMS marketing is a powerful tool for businesses to connect directly with their customers. It allows you to send promotional messages, special offers, and important updates right to your customers' mobile phones.

According to the 2023 Mobile Consumer Trends Report, SMS is a preferred communication channel for 52% of customers, making SMS an essential part of any marketing strategy.

A great example of effective SMS marketing is GoCheckin, an app developed by Fastboy Marketing.

GoCheckin helps beauty salons send appointment reminders and promotional messages to their clients. Fastboy uses Plivo as their communication platform and SMS gateway provider to efficiently handle high SMS volumes, ensuring seamless message delivery.

This switch made it easier for Fastboy to send texts without requiring customers to download an app.

Customer engagement

Text message gateways boost customer engagement by enabling businesses to send timely and personalized alerts and notifications.

Common use cases:

Appointment reminders

Appointment reminders are a highly effective way to engage customers and reduce no-shows.

Once you integrate an SMS API into your existing systems, when a trigger event occurs, for example, an appointment reminder, the system will communicate with the SMS gateway. The gateway then processes and sends the message to the customer's mobile network within seconds.

For example, a dental clinic could automatically send reminders to patients a day before their appointments, increasing the likelihood of attendance.

Customer feedback requests

SMS gateways make it easy for businesses to request feedback after a purchase or service interaction.

For instance, a restaurant might send a text asking customers to rate their dining experience. This provides valuable insights to help businesses improve.

Notifications and alerts

Automated notifications and account alerts keep customers informed and build trust. SMS is particularly effective for delivering quick and reliable updates about orders, security alerts, or account changes.

Businesses like ecommerce platforms use SMS to keep customers updated at every stage of their order process.

For instance, Luxer One, a California-based company that provides secure package lockers for residential properties, uses SMS to send package delivery notifications. 

Previously relying on email, they found many residents overlooked or missed their emails, leading to uncollected packages and dissatisfaction. By switching to SMS, Luxer One achieved over 99% consistent delivery, improving customer satisfaction and the package pickup experience.

Similarly, Deckers, a footwear giant, uses SMS to keep customers informed about their order and delivery statuses.

After placing an order, customers receive real-time shipment updates via text until the package arrives. This transparency reduced track-package inquiries by 15–20% annually, significantly enhancing the overall customer experience.

Why should businesses use SMS gateways?

Effective communication is essential for businesses to engage customers, streamline operations, and improve efficiency. SMS gateways offer a reliable solution for sending text messages between businesses and their audiences.

Here are some benefits:

Reliability and speed

80.5% of consumers read SMS messages within five minutes of receiving a notification. This ensures that time-sensitive information, such as appointment reminders or transaction alerts, reaches recipients quickly.

Efficient bulk SMS messaging

Bulk SMS gateways leverage the SMPP protocol, enabling businesses to send large volumes of messages simultaneously without compromising speed or delivery rates.

This is particularly valuable for marketing campaigns, promotions, and mass notifications. For example, during major sales events, businesses can instantly reach thousands of customers, driving both engagement and sales.

Global reach with multilingual support

In today’s global market, businesses must communicate effectively across regions and languages. Some SMS gateway providers like Plivo enable international messaging to 220+ countries and territories while supporting localization features for various languages and cultural nuances. This helps businesses expand and connect with a diverse customer base.

Personalized and automated messaging

SMS gateway services provide other features for personalizing messages and automating communication. Personalization increases engagement by addressing customers by name and tailoring messages to their preferences. 

Automation allows businesses to schedule messages, trigger responses, and manage follow-ups efficiently, reducing the need for manual effort.

Cost-effectiveness compared to other communication channels

Marketing your products or services can get expensive fast, and there’s no guarantee your efforts will hit the right audience. 

That’s where an SMS API and SMS gateway come in.

They let you reach thousands of interested people quickly and at a fraction of what traditional marketing methods cost. It’s an efficient, cost-effective way to promote your business and make sure your message lands where it matters most.

How to choose the right SMS gateway provider 

Most business texting platforms act as SMS gateway providers by leveraging cloud-based technology, enabling companies to send texts directly from a computer. 

Choosing the right provider, however, is key to ensuring your SMS strategy works seamlessly. Here’s what to look for:

Coverage and international reach

Not all platforms deliver texts to every international number. Ensure your provider can reach the countries and numbers you need.

For example, Plivo uses test nodes in multiple countries to optimize delivery, ensuring fast and reliable messaging to 220+ countries and territories.

Moreover, Plivo’s built-in GSM Unicode character set lets your users communicate in any language, including Chinese, Japanese, and Arabic, and with symbols and emojis.

API availability and integrations

The right SMS gateway service should offer easy-to-use APIs and integrations with your existing systems. This makes adding SMS functionality to your workflows effortless.

Pricing and cost structure

Understand the platform’s cost structure, including message fees and any additional charges. For instance, Plivo offers competitive pay-as-you-go pricing.

Delivery speed and throughput

Fast message delivery is critical, especially when handling high volumes. Choose an SMS gateway that guarantees quick delivery without delays. Plivo, for example, dynamically manages message priority and expiry, handling message queueing for you.

Security and data privacy

Your provider must secure your data and that of your customers. Plivo, for instance, offers robust protections, including SOC 2 Type 2 and PCI DSS Level 1 certifications, with HIPAA compliance available for Enterprise users. Plivo is also GDPR compliant.

Experience the benefits of SMS gateways with Plivo

When selecting an SMS gateway for mass communication, it’s essential to choose a trusted cloud platform known for reliability, security, and ease of use. Here’s why Plivo is a top choice for businesses:

• Global connectivity: Plivo enables instant messaging to customers worldwide through a network of premium carriers.
• Advanced features: Manage sender IDs, support special characters for better readability, and access detailed analytics to optimize campaigns in real time.
• Seamless integration: Plivo’s SMS API integrates effortlessly with popular tools like Zapier, simplifying workflows.
• High reliability: Plivo is built on a strong, reliable infrastructure designed to handle anything you throw at it. With fault-tolerant systems and high availability, it guarantees 99.99% uptime for all its global carrier connections.
• Competitive pricing: Pay only for what you use with transparent and affordable rates. Plivo offers volume discounts for committed usage, enabling greater savings as your messaging requirements expand.
• 24/7 customer support: Plivo offers a range of support plans to meet any organization’s needs, from a free basic plan to a 24/7 premium support option. No matter your plan, you’ll have access to its team of experienced support engineers. Premium support plan users, however, get prioritized responses to their queries within a guaranteed timeframe, depending on the priority of the issue.
• ‍Global compliance: Non-compliance with regional security protocols increases the risk of hefty fines and puts your reputation at risk. Plivo’s SMS gateway and API adhere to security best practices, including 2FA, to help protect your communications.

Ready to streamline your communication? Contact us today to learn how Plivo can help take your business messaging to the next level.

Longer wait times, high call volumes, and language barriers in call centers often frustrate customers. Complex interactive voice response (IVR) menus only add to the problem, leading to customer dissatisfaction. That’s why companies are adopting smarter self-service solutions like artificial intelligence (AI) voice agents. In fact, experts predict the voice bot market will reach $98.2 billion by 2027, showing a clear trend toward smarter solutions to improving customer experience.

AI voice agents technology combines Natural Language Processing (NLP), machine learning, and voice recognition to transform customer interactions. It provides quicker, more efficient service and improves the overall customer experience.

In this guide, we'll explore what AI voice agents are, their key features, practical use cases, and tips on how to implement a voice agent in your business.

What is an AI voice agent?

An AI voice agent is a two-way conversational tool that communicates with the customer. It automates inbound and outbound calls without human intervention and transfers calls to a human agent when needed.

The biggest advantage? Callers can navigate an IVR by speaking naturally, without listening to long, complex menus or pressing numbers on a keypad.

Popular AI voice agent examples include Apple's Siri, Google Assistant, and Amazon's Alexa. These tools simplify interactions, provide instant answers, and automate tasks. In contrast, advanced bots like IBM’s Watson Assistant and Microsoft’s Cortana handle customer support, sales inquiries, and internal communications.

Types of AI voice agents

Here’s a breakdown of the four main types of AI voice agents and how they can benefit your business:

Rule-based AI voice agent

Rule-based voice agent use predefined sets of questions and rules to offer answers or perform tasks. Such voice agents handle routine tasks and customer FAQs. They answer all queries that fall under the if-this-then-that logic.

For example, an e-commerce site using a bot to guide customers in checking their order status or a banking site handling routine inquiries like balance checks, bill payments, transaction histories, etc.

AI-assisted voice agent

AI-assisted voice agents use machine learning and natural language to interpret conversations so they can analyze the context and grasp what the speaker means. This makes them far more capable and user-friendly than the conventional, rule-based voice agents.

Let’s suppose a user asks Alexa, 'What's the weather tomorrow?' and then follows up with, 'How about next week?' it remembers the context. This adaptability means customers don’t have to repeat themselves, creating a more contextual customer experience.

Conversational AI voice agent

Conversational voice agents make conversations using natural language. They’re more nuanced than AI-assisted voice agents as they can handle complex conversations using everyday language to create more personalized interactions.

Google Duplex, and IBM Watson Assistant, are examples of conversational voice agents. They can make phone calls, make reservations, and handle natural conversations with a human-like tone.

Voice-activated voice agent

These bots use voice commands to answer practical questions and perform routine tasks. They are more flexible than personal voice agents that adapt to speakers and perform customized tasks.

Such bots serve as digital assistants to AI-assisted bots like Siri.

How does an AI voice agent improve customer engagement?

A customer calling your sales team wants to feel valued and understood. An AI voice agent does that. It puts the customer at the center, creating a better experience and driving business benefits as a result. Let’s understand it with a few use cases. 

Use case: Get a quick update on order status, 24/7

Assuming the AI voice agent is integrated into your CRM, it greets the customer by name. Instead of navigating through a branched IVR to get their order status, the customer can simply say ‘order status’ and the voice bot pulls out the order details from the CRM and gives the user a real-time update within seconds.

Sheraz Ali, the Founder of HARO Links Builder states that their voice agent managed over 30% of customer interactions in one of their company projects and drastically reduced wait times.

“It also improved our response efficiency and led to a 20% increase in customer satisfaction scores and a reduction in operational costs within three months.” 

Benefits:

• Decreased waiting time.
• Limited IVR menu navigation.
• No human intervention is required.
• Quick response times.
• Reduced business costs.
• Tangible increase in customer satisfaction.

Use case: Improve language learning for students 

A language learning platform uses a voice agent to provide real-time translations and personalized tutoring. So the voice agent instantly supports students in any subject by translating and clarifying complex terms in their preferred language.

Benefits:

• Reduced requirement for multilingual staff.
• Increases inclusivity as the bot answers in the user’s preferred language.
• Language barriers are removed.

Use case: Improve patient outcomes in healthcare

It's easy to miss appointments or forget to deliver prescriptions to the patient’s home timely. A healthcare service can employ a voice agent to deliver personalized care and offer preliminary health assessments, medication reminders, and easy appointment scheduling, all according to the individual patient's needs.

Benefits: 

• Saves time by streamlining appointment bookings.
• Ensures medication adherence with timely reminders.
• Reduces workload for healthcare providers with automated support.

Use case: Streamline routine financial services 

Once integrated with the banking system, the voice agent automates routine financial tasks, provides instant account information, processes transactions, and delivers personalized financial advice around the clock.

Benefits:

• 24/7 access to financial services without wait times.
• Improves customer experience with quick, accurate responses.
• Automates routine tasks, freeing up staff for complex queries.
• Provides personalized advice to improve financial decision-making.

Use case: Get personal shopping assistance  

An e-commerce platform can use a voice agent to assist customers with product selection, provide personalized recommendations, and automate the sales process from start to finish.

Benefits:

• Delivers a personalized shopping experience 24/7.
• Boosts sales with customized recommendations.
• Reduces cart abandonment by guiding customers to checkout.
• Improves customer satisfaction with fast, accurate service.

Features of an AI voice agent

To understand why voice agents are so effective, let’s look at the key features that improve the overall customer service experience while streamlining business operations.

The best voice agents for businesses come equipped with:

Natural language understanding (NLU)

An AI voice agent understands user queries by converting speech into text using AI and NLP. It then forms an appropriate response and converts it back into speech using text-to-speech (TTS) technology. This ability to understand and respond in natural, conversational language sets AI voice agents apart from traditional IVR systems, which rely on rigid, menu-based responses.

Personalization capabilities

Customers want quick, personalized responses to their queries, unlike complex IVR systems that frustrate them with lengthy menus. An AI voice agent offers contextual conversations, adapting to the user’s intent. It detects speech cues, skips irrelevant interactions, and also transfers calls to the right agent.

Hence, when comparing voice agents to IVRs, the bot's ability to offer personalized interactions like a human outshines communication systems that follow even the best IVR practices.

Multi-language support

AI voice agents break down language barriers, supporting multiple languages to provide a more inclusive and accessible customer experience. Businesses can easily connect with diverse customer bases across the globe.

For instance, Plivo supports speech recognition in 27 languages and their regional variants. 

{{cta-style-1}}

Integration with other platforms and services

AI voice agents easily integrate with platforms like customer relationship management (CRM) systems, Enterprise resource planning (ERP) tools, and ticketing software. They access and update customer data in real time to ensure accuracy.

These bots also pull relevant details, automate follow-up actions, and sync with communication channels like email or chat. This creates a personalized and consistent customer experience across all touchpoints.

Benefits of voice agents

Let’s now look at the benefits of AI voice agents.  

Enhanced user experience

Many businesses have concerns over the quality of a voice agent for customer service. However, a voice agent answers queries quickly regardless of the time of the day. Speedy, reliable answers are important to providing excellent service, making voice agents an invaluable tool for businesses looking to improve customer satisfaction.

Additionally, businesses can:

• Handle routine queries and common tasks faster than human agents.
• Remove the need for users to navigate complex IVR menus.
• Manage high-volume calls without errors.

Better cost efficiency

An AI voice agent doesn’t just save time, it also saves money. It boosts user satisfaction and reduces support times by automating repetitive queries. This frees up staff for higher-value tasks, and interacting with customers after hours has improved lead conversion.

The direct benefits to businesses are:

• Reduces the need for a larger customer support team.
• Allows human agents to focus on complex, high-value inquiries.
• Engages users outside business hours to boost marketing return on investment (ROI).
• Lowers training costs and minimizes the risk of providing incorrect information.

Accessibility for users with disabilities

With over one billion people living with disabilities worldwide, voice agents make services more inclusive. They enable hands-free, accessible interactions, allowing customers with visual, motor, or cognitive impairments to engage with the business easily. This not only improves customer satisfaction but also broadens the company’s reach to a more diverse audience.

Data collection and analysis for improved services

Voice agents don’t just serve customers — they also gather insights. Use this data to analyze data and improve services, personalize marketing efforts, and make more informed business decisions.

24/7 availability

Unlike human agents, voice agents are always accessible. They ensure customers get help whenever they need it, contributing to a more consistent and reliable customer experience.

Future of AI voice technology

As IBM's data engineer, Chris Hay puts it, "We're entering an era where every mom-and-pop shop can have the same level of customer service as an enterprise." This statement captures the transformative potential of voice recognition technology.

AI voice chat applications benefit businesses of all sizes by delivering top-tier customer experiences. Tech giants are already paving the way. Microsoft has updated its Copilot AI with advanced voice capabilities, allowing it to handle complex queries with natural language reasoning, while Meta has introduced voice AI to its messaging apps.

AI voice assistants will move beyond smartphones, integrating into wearable devices like the recently unveiled Meta Orion augmented reality glasses. For businesses handling sensitive client relationships, this could mean smarter, empathetic bots that mirror the tone and approach of a human assistant.

Key upcoming trends:

• Hyper-personalization: Customized voices and targeted recommendations.
• Advanced problem-solving: Managing complex queries using natural language.
• Real-time analytics: Analyzing customer tone for deeper insights.

Yet, challenges remain. Arvind Rongala, the founder of a skill-management solution provider, shares, “There are still issues, especially with data privacy and ensuring interactions are human-like. In addition to resolving problems with bias in training data and regulatory compliance, businesses must strike a balance between automation and personalization. For example, adhering to GDPR regarding the storage of voice data can be challenging, but doing so is essential to fostering trust.”

Ultimately, businesses need to prioritize data security, explore multi-device integration options, and develop stronger contextual understanding for natural interactions.

Launch an AI voice agent with Plivo

Any scaling business needs a voice agent that's easy to integrate, globally accessible, and cost-effective without sacrificing quality.

Plivo checks all these boxes, offering seamless integration, seven global points of presence for low-latency interactions, and competitive rates starting at just $0.003 per minute. It's ideal for businesses willing to scale while keeping operational costs in check.

In fact, Plivo can reduce operational costs by up to 40%.

Moreover, its commitment to reliability is backed by a 99.99% uptime guarantee, with failover capabilities that switch within two seconds if any disruptions occur.

You can launch voice agents with Plivo using just a few lines of code.

• Log in to your OpenAI Account: Secure your API key and RealTime API access.
• Log in to your Plivo Account: Sign up and get a voice-enabled number.

With integration options for leading speech-to-text (STT) and TTS providers like Deepgram and ElevenLabs, you can launch AI voice agents in multiple regions, including India, using local numbers.

Use Plivo-powered voice agents for: 

• Personal shopping assistance: Offer personalized recommendations, go through product selections, and close sales. 
• Healthcare automation: Improve patient outcomes with medication reminders, and appointment scheduling, and offer preliminary health assessments.
• Inclusivity in education: Break language barriers in learning with real-time translations and personalized tutoring across multiple subjects.
• Routine financial services automation: Provide instant account information, personalized financial advice, transaction processing status, etc. to customers.

With a 24/7 AI voice agent, your business can handle these tasks around the clock, ensuring that customers are never left waiting. Want to improve customer experience with Plivo? Contact us today.