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IVR vs Chatbot: Choosing the Right Automated Solution

Updated on
Jan 30, 20244 min read
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    Table of content

  • IVR: The Traditional Automated Solution
  • arrow
  • Chatbots: The Modern Automated Solution
  • Choosing the Right Solution for Your Business
  • Conclusion

You call a customer support helpline and are greeted by a robotic voice that asks you to press different numbers for various options. Frustrating, isn't it?

Now, picture another scenario where you message a company's online chat support and get an immediate response from a friendly and helpful chatbot. Which experience would you prefer? We bet it’s the second one. 

IVR (Interactive Voice Response) and chatbots are two popular automated solutions businesses use to assist customers.

In this blog post, we will compare IVR and chatbot to help you understand the right choice for your business.

So why wait? Let’s start with IVR then we will see chatbot.

IVR: The Traditional Automated Solution

IVR systems have been around for decades, and you've probably encountered them several times when calling customer support. These systems use voice recognition and touch-tone keypad inputs to interact with callers.

IVRs help businesses automate customer interactions by providing options for different services or departments through menu prompts. 

While IVR technology has its benefits, it also comes with a few drawbacks.


Source: Getvoip


Pros of IVR

  • Efficient Call Routing: IVRs can effectively route callers to the appropriate departments or agents, saving time and reducing the need for call transfers.
  • Lower Cost: IVRs can simultaneously handle a large volume of calls, decreasing the need for a large customer support team and saving business costs.
  • 24/7 Availability: IVRs can operate around the clock, allowing customers to access basic information or perform simple tasks anytime, even outside business hours.

Cons of IVR

  • Lack of Personalization: IVRs often need a more personal touch of human interaction, leaving customers feeling frustrated or unheard.
  • Limited Interactions: IVR interactions are usually limited to pre-recorded voice prompts or keypad selections, making handling complex or nuanced issues difficult.
  • Higher Abandonment Rates: IVRs can lead to higher call abandonment rates as customers may get frustrated with automated responses and choose to hang up.

In the battle of IVR vs Chatbot, we have covered all about IVR, and now it is time to see about chatbot.

Chatbots: The Modern Automated Solution

On the other hand, chatbots are AI-powered virtual assistants that communicate with users through instant messaging platforms or website chat windows.

These automated bots can understand and respond to user queries, provide information, and assist with various tasks. 

Chatbots have gained popularity recently due to their natural language processing capabilities and ability to mimic human-like conversations.

It has also come with some benefits and some drawbacks.

Pros of Chatbots

  • Personalized Conversations: Chatbots can engage in personalized conversations, making customers feel heard and understood, enhancing their overall experience.
  • Multichannel Support: Chatbots can be deployed across various channels, including websites, messaging apps, and social media platforms, providing omnichannel customer support.
  • 24/7 Availability: Like IVRs, chatbots are available round the clock, enabling customers to receive support or assistance anytime, boosting customer satisfaction.

And finding the right chatbot solution isn't that tough. Meet BotPenguin, the home of chatbot solutions. For every chatbot solution you can name, BotPenguin can do it, making omnichannel support look easy: 


BotPenguin Chatbot


Cons of Chatbots

  • Learning Curve: Developing and training chatbots requires technical expertise, making initial setup and maintenance efforts intensive and costly for businesses.
  • Language Limitations: Chatbots may need help understanding complex queries or nuances of human language, leading to inaccurate or irrelevant responses.
  • Dependency on Internet Connection: Chatbots require a stable Internet connection, which can be challenging in areas with poor network coverage.

We have covered all about IVR vs Chatbot, Now it's up to you to choose which is the right solution for you.

Suggested Reading:

Top 10 AI Chatbot Apps to Grow Your Business 2x

Choosing the Right Solution for Your Business

When deciding between IVR and chatbots, considering your business requirements and customer preferences is crucial. If your business handles a high volume of customer calls and needs efficient call routing, IVR might be the right choice.

However, if personalized conversations and multichannel support are important to you, investing in chatbots can empower your customer support efforts. 

Note it down: it's important to strike a complete balance between automation and human interaction to provide the best customer experience.


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While IVR systems have been a traditional choice for businesses, chatbots have emerged as a modern, more interactive alternative. 

By carefully evaluating the pros and cons of both solutions and aligning them with your business needs, you can make an informed decision that enhances your customer support strategy. 

So, whether you choose IVR or chatbots, prioritize customer satisfaction and provide a seamless experience for your valued customers.

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