Cloud IVR Explained: Features, Benefits & Top Providers

Every customer call is a chance to deliver fast support or resolve an issue. Long wait times and poor call handling can damage the customer experience and business performance. Traditional IVR systems tied to physical hardware are costly, hard to scale, and not ideal for remote support, which is essential for today's remote working scenarios.
A cloud-based IVR (Interactive Voice Response) solution provides intelligent call routing and is operated entirely in the cloud. A hosted IVR system quickly directs your call to the right department, reduces wait times, and delivers a smoother customer experience.
Highlights:
- Cloud-based IVR is a feature of a call center solution hosted over the internet that interacts with callers through voice or keypad inputs.
- Hosted IVR eliminates the need for on-premise hardware and offers excellent flexibility, scalability, and remote access.
- Unlike traditional IVR systems, cloud IVRs are offered as SaaS(Software as a Service) and easily integrate with CRMs and other tools.
- A cloud-based IVR solution reduces operational costs, enables staff to work remotely, offers self-service options, and increases overall productivity.
What is Cloud-based IVR?
Cloud-based IVR (Interactive Voice Response) is a phone system hosted online that lets businesses interact with callers through automated menus using voice commands or keypad inputs. Since it's hosted in the cloud, there's no need for physical hardware or a complex setup.
Cloud-based IVR is an essential feature of cloud telephony systems. Hosted IVRs are usually offered with a virtual phone system as a SaaS (Software as a Service) solution, allowing businesses to customize them according to their needs.
This type of IVR is affordable, quick to set up, and easy to scale. It works 24/7 and can be managed from anywhere. Many industries use it to handle more calls, save time, and give better service to customers.
How Does Cloud-based IVR Work?
Cloud-based IVR works by using internet-hosted software to manage incoming calls through automated voice menus. When a customer calls, the system answers with a pre-recorded or text-to-speech greeting. It then guides the caller through options using voice commands or keypad inputs (like "Press 1 for Sales, 2 for Support").
Customers can respond accordingly using their phone keypad or voice input. The system interprets these responses using DTMF(Dual-Tone Multi-Frequency) tones or speech recognition, then either routes the call to the appropriate department, provides recorded information, or offers alternatives like switching to text messaging.
Key Features of Cloud-based IVR
Cloud-based IVR offers features like automated call routing, speech recognition, text-to-speech, and 24/7 availability. It also supports easy integration with business tools, remote management, and real-time analytics for better call handling and customer experience.
The core features of both cloud-based and on-premise IVR systems are similar, as they serve the same purpose. However, cloud-based IVR solutions offer greater flexibility; features can be added or updated easily, whereas updating an on-premise IVR can be more complex and time-consuming.
Automated Call Routing
A cloud-based IVR system can automatically direct calls to the right department based on customers’ selections. It ensures efficient service delivery and reduces wait times.
Self-service Options
Self-Service Options allow callers to complete tasks on their own without speaking to a live agent. These tasks can include checking account balances, making payments, or booking appointments.
Callers interact with the system through voice prompts or keypad inputs. This reduces wait times and improves efficiency. Self-service options are available 24/7, helping customers get answers or complete routine actions at any time.
Customizable Call Flows
Cloud IVR solutions can be customized to create call flows that suit specific business needs, such as routing based on time of day, customer location, or interaction history.
Text-to-speech (TTS)
Hosted IVR automatically transforms written text into spoken audio. It supports multiple languages. Agents can customize the audio's tone, language, and voice while recording the voice message through the text.
Speech Recognition
Speech Recognition allows callers to choose their options verbally, enabling hands-free, natural language interaction. It routes calls by interpreting spoken input to direct calls to the right department or agent.
Effortlessly Manage High Volume of Inbound Calls with a Cloud-based IVR
Benefits of a Cloud-based IVR
Cloud-based IVR offers benefits like cost savings, scalability, and easy setup without the need for on-site hardware. It also improves customer experience by reducing wait times, enabling 24/7 availability, and providing quick self-service options.
- No Physical Hardware
Cloud-based IVR systems eliminate the need for a bulky hardware IVR system in your office. Everything is hosted in the cloud, reducing the need for maintenance and physical space. You won't have to buy new servers or hardware just to add new features. - Scalability
As call volume grows, businesses can easily scale the system to handle more calls without needing additional hardware or infrastructure. This flexibility allows companies to adjust their IVR system to meet changing demands, ensuring efficient service during peak times or periods of growth. - Cost savings
Cloud-based IVR systems help reduce costs related to on-premise infrastructure, maintenance, and upgrades whenever required. Additionally, automated self-service options decrease the volume of calls to the live agents. - Resolve issues faster
Since cloud IVR systems can quickly retrieve customer information and automate tasks, resulting in less time, improving customer satisfaction, and reducing call length. - Remote Work
The system is accessible from anywhere via the internet, enabling staff to work remotely. A virtual cloud phone system with a hosted IVR further supports remote work by eliminating the need for employees to be tied to a physical location.
Cloud IVR Vs. On-premise IVR: Key Differences
Cloud-based IVR is hosted online by a third-party provider, offers easy scalability and remote access with reduced upfront infrastructure costs. On the other hand, on-premises IVR is installed on local servers, giving the company full control and customization but with higher setup costs and maintenance needs.
Features | Cloud IVR | On-premise IVR |
Deployment | It is hosted on remote servers. | It is installed on physical hardware. |
Costs | Primarily hosted services are subscription-based (pay-per-use). | It requires high upfront costs. |
Scalabitlity | It is highly scalable, flexible. | Updates and upgrades are limited. |
Maintainance | The third-party service provider manages all the hardware. | The companies themselves manage all the hardware. |
Integration | Cloud IVR is flexible for available integrations. | Integration with other systems is usually complex and time-consuming. |
Accessibility | Accessible from anywhere via the internet, allowing remote work for employees. | Limited to on-premises access. Staff must be present on-site. |
Security | The host company manages all the security concerns. | The company handles the security itself. |
Top 5 Cloud-based IVR Phone Systems
Calilio, Twilio, Aircall, Nextiva, and RingCentral are some of the top cloud-based IVR phone systems. These systems help automate call routing and organize calls in your call center, improving efficiency and customer service.
1. Calilio
Calilio offers one of the best cloud-based IVR systems for businesses of all sizes. It's designed to enhance customer experience through call management and automation. It offers customizable greetings and IVR menus, allowing businesses to tailor the caller experience with keypad inputs. With 24/7 customer support, Calilio ensures that customers can get assistance anytime, anywhere.
Key Features:
- Automatic call distribution
- Customizable call menus
- Customizable pre-recorded or text-to-speech greetings
- 24/7 customer support
- Real-time analytics
- Live call monitoring
- Call recording
- CRM integration
- AI-powered call reports
2. Twilio
Twilio is one of the top-tier providers for IVR systems. Its programmable voice API and speech recognition features give businesses many customizable options. Twilio’s AI virtual agent and IVR minimize human intervention, facilitating call management during peak times.
Key Features:
- Call Analytics
- AI-agents
- SIP Trunking
- Speech Recognitions
- Pay-per-use model
3. Aircall
Aircall is a cloud-based phone system and customer engagement platform for sales and support teams, particularly SMBs. Its intelligent IVR enables personalized call flows with text-to-speech, language selection, and custom audio files. The visual IVR editor allows quick setup of dynamic menus and time-based routing for efficient peak hour management.
Key features:
- Customizable call routing
- Call whispering
- CRM integrations
- AI-generated call summaries
- Dynamic visual editor
4. Nextiva
Nextiva’s IVR system is integrated into its unified communications platform, aimed at enhancing call flows and customer interactions. It offers customizable IVR menus, advanced call routing, and supports multi-channel communication like SMS and video chat.
Key Features:
- Unified communication platforms
- Advanced call analytics and reporting
- Conversational ai
- Custom IVR menus
- Multichannel communication
5. RingCentral
RingCentral is a top-tier provider of cloud-based communication solutions, including an AI-powered all-in-one business phone system for businesses of all sizes. Multi-level IVR menu options allow for creating dynamic call flows.
Key Features:
- Analytics and Reporting
- Voice calls
- Video conferencing
- Cloud Integration
Things to Consider When Choosing a Cloud-based IVR Phone System
If you are looking for an IVR system for your call center, here are some key factors to consider before selecting one.
- Compatibility: Ensure the IVR system integrates smoothly with your existing call center software and call routing processes. Compatible systems reduce integration issues and ensure smoother day-to-day operations.
- Pricing: Choose a solution that fits your budget. Compare costs across vendors to find the best value for your business. The price of cloud phone solutions, including IVR, from Calilio starts at $15 per month.
- User experience: The system should have a simple yet intuitive interface. It should be easy to use for agents to ensure a smooth experience.
- Easy Setup: Look for a platform that is easy to deploy and configure, minimizing setup time and disruption. A smooth setup process minimizes downtime and helps your team get started faster.
- 24/7 Customer Support: Your IVR service provider should offer 24/7 support. Issues can arise at any time, and if help isn’t available when needed, it can frustrate both your customers and support agents, potentially harming the overall service experience.
Conclusion
Cloud IVR systems offer businesses a flexible solution for enhancing customer service. They improve efficiency through automated call routing, self-service options, and easy integration with other tools, resulting in better customer experiences and reduced operational costs.
Frequently Asked Questions
What company has the best IVR?
The best IVR solution depends on your business needs. Companies like Calilio, Twilio, RingCentral, and Aircall are highly rated for their features, scalability, and integrations.
What is IVR, and how does it work?
Interactive Voice Response (IVR) interacts with callers through pre-recorded voice or keypad inputs. The system presents menu options using pre-recorded audio, and once the customer makes a selection, the call is routed to the appropriate department based on their choice.
What is IVR in AWS?
IVR in AWS typically refers to a cloud-based IVR solution hosted using Amazon Web Services. AWS provides tools and APIs that allow businesses to build custom IVR systems.
What is the difference between call routing and IVR?
Call routing is the process of directing calls to the concerned department or agent. IVR is the automated system that allows callers to interact with the system using voice or keypad input, usually guiding them through self-service options before passing to a live agent.
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