Which One Will Save You More Customers?

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ACD (automatic call distribution) and IVR (interactive voice response) are two different ways for call centers to handle inbound calls. ACD automatically routes incoming calls based on predefined rules — an IVR guides callers through pre-recorded menu options so they can route themselves.

In a perfect world, you're able to use both to optimize around the caller experience. If you have to pick one, though, ACD is the clear winner for customer retention.

While IVR systems are cheaper and can help free up your agents, it requires callers to take the initiative. Plus, nobody likes being stuck in a phone tree.

In addition to higher customer retention rates, there are several other reasons why ACD has the edge over IVR for call centers.

When was the last time you called a business with a problem and got your question answered from an automated menu? I'm assuming never. Or maybe almost never if you're lucky.

Customers aren't calling to find your address and they know that they can pay their bills online. The only reason they picked up the phone and dialed your number is because they want to speak to someone who can actually help them.

ACDs make this happen. IVRs, on the other hand, can frustrate your customers, and they tend to answer questions they aren't even asking.

ACD systems are faster and more efficient for call centers. This can help improve many of the key call center metrics you're tracking to measure success, including:

An IVR can negatively impact just about every metric unless you do everything perfectly. Even when done well, things like first call resolution, customer satisfaction, and average time in queue can still get worse.