How IVR Failures Undermine Customer Experience (And How To Fix It)

Forbes

16-06-2025

Liam Dunne is the Co-founder and CEO of Klearcom, a global leader in customer call path testing & real-time contact center optimization.
In today's world, where everyone is looking for convenience and customer loyalty is more fragile than ever, one bad interaction can quickly sever the bond between a brand and its customer. And the interactive voice response (IVR) system—the first point of contact in so many customer journeys—is the most common culprit? When these systems fail, the consequences can be spectacular.
Imagine a loyal customer calling in to sort out a billing issue. They navigate through a complicated IVR system, get stuck in endless menu loops and eventually hit a dead end. Frustrated, they hang up, never wanting to deal with that brand or that situation again.
This isn't an unusual scenario. According to an Accenture survey, 87% of customers said they'd avoid a company after just one poor experience. And the financial fallout isn't pretty either. Research suggests that businesses lose about $262 per customer each year due to ineffective IVR systems.
At Klearcom, I've seen the damage firsthand. For example, back in April 2022, we spotted a major issue with a client's IVR system. Christmas messages were still being played months after the holiday season had passed! Then, in late 2022, during a trial with a global services provider, one of their emergency lines was down, causing customers to get a "We're sorry, but this number is not in service" message. These types of failures, if left unchecked, could easily drive customers away.
Historically, businesses have relied on customer feedback to identify and fix service failures, but that's no longer enough. Customers now expect brands to anticipate and fix issues before they even notice. In today's competitive landscape, businesses must ensure their IVR systems run smoothly in real time, especially in emerging markets where service standards might not be established.
When you're operating globally, it's essential to have a clear understanding of service standards across regions. Ask yourself, "What's our benchmark in each country?" and "Are we meeting a consistent service standard worldwide?" Failing to measure and address these benchmarks can lead to silent brand killers. You might not notice the flaws, but your customers will, and their dissatisfaction will quietly chip away at your brand loyalty.
These days, businesses can no longer hide behind excuses. Customers expect top-notch service, and they don't care about your internal challenges. At Klearcom, for example, we caught an error for a global pharmaceutical client where their compliance line was incorrectly telling customers they were unavailable to take calls. While we quickly resolved it, sustained error could have likely caused further, possibly irreparable damage.
As Gen Z and younger generations rise through the ranks, they're bringing with them a new standard of speed and efficiency. Outdated service models won't cut it anymore, and customers won't hesitate to move on if they're not getting the service they expect.
In industries where products and services are increasingly similar, customer experience becomes the key differentiator. For example, in the telecom industry, two companies can offer nearly identical plans at the same price. However, the provider with a seamless, frustration-free experience will have the edge. A well-run IVR doesn't just solve problems; it shows your commitment to customer satisfaction.
Every time a customer interacts with your IVR, it's an opportunity to reinforce your brand's values. Gone are the days of just trying to get customers off the phone as quickly as possible. Today, businesses can use IVR and contact center interactions to communicate their brand's culture and ethos, turning a simple call into a memorable experience.
To do this effectively, organizations should start by aligning their customer service training with their brand value, whether this means emphasizing empathy, transparency or innovation. They should also audit their IVR scripts and contact center messaging regularly to ensure the language reflects the brand's tone of voice.
Workshops can also help departments collaborate on reinforcing brand identity through support touchpoints. Even something as small as the music or hold messages used can subtly convey brand personality. We can all hum along to our favorite hold music!
Most importantly, leaders must champion brand consistency as a strategic priority, reinforcing it in performance reviews, onboarding and CX metrics.
As industries mature, many products and services start to look and feel the same. The big advantages that once set companies apart, like price, quality or features, are becoming less noticeable. But there's still a powerful way to stand out: how you interact with your customers.
Businesses need to reorganize the importance of IVR systems in driving customer retention and shaping brand perception. By proactively addressing IVR failures, setting global service benchmarks and integrating your brand identity into every customer interaction, you can turn your IVR system into a customer loyalty machine, rather than a silent brand killer.
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