IVR is the automated phone menu that asks callers to press a number or say what they need.
It helps with simple calls but frustrates people when overused.
Mixing automation with real people gives the best caller experience.
When customers call your business, their first few seconds on the phone matter more than you might think. They want two things:
To be answered quickly
To get help without being messed around
That’s where IVR often comes in. IVR stands for Interactive Voice Response. It’s the automated voice that answers a phone call and asks callers to choose options like:
“Press 1 for sales. Press 2 for support. Press 3 to speak to someone.”
You’ve almost certainly used IVR yourself. Sometimes it helps. Sometimes it drives you mad.
In this guide, we’ll explain what IVR is, how it works, why businesses use it, and when it’s better to involve real people instead – in clear, everyday language.
What is IVR?
IVR (Interactive Voice Response) is an automated phone system that answers calls and gives callers a short menu of choices.
Instead of a person picking up, the system:
plays a recorded message
asks the caller to press a number or say what they need
then sends the call to the right place
For example:
“Press 1 to book an appointment. Press 2 to chase an invoice. Press 3 to speak to a person.”
IVR is often used by businesses that get lots of calls asking similar things.
How does IVR work?
Here’s what happens in simple terms:
Someone calls your business
A recorded voice answers the phone
The caller hears a few options
They press a button or say what they want
The call goes to the right person, or plays a message
That’s it.
Some newer IVR systems let callers talk instead of pressing buttons, but it’s still the same idea: the system decides what happens next before a human gets involved.
Why do businesses use IVR?
Businesses usually add IVR because it saves time and helps manage calls.
The main benefits of IVR include:
It answers calls straight away – no ringing, no missed calls
It handles simple questions – things like opening hours or directions
It helps during busy times – when lots of people call at once
It keeps costs down – fewer calls need to be handled by staff
Why do customers get annoyed with IVR?
You’ll know this feeling if you’ve ever shouted “speak to a real person” at your phone.
too many options
messages that go on too long
no clear way to reach a human
being forced to repeat yourself
How to use IVR properly
If you’re going to use IVR, keep it simple:
Limit choices to two or three
Put the most common option first
Always offer a way to speak to a person
Use normal, friendly language
Is IVR right for your business?
IVR can work well if:
you get lots of similar calls
your team is small and busy
you need to manage calls outside working hours
IVR vs real people answering the phone
IVR sorts calls. People help customers.
At Moneypenny, we make sure calls are answered by friendly, professional people — so customers feel looked after, not pushed through a system.
The best phone systems don’t feel like systems at all. They just feel like someone helpful answering the phone.
Frequently asked questions
What does IVR actually mean?
IVR stands for Interactive Voice Response. It’s the automated phone system that answers calls and asks callers to press a number or say what they need before sending the call to the right place.
Is IVR the same as an answering service?
No. IVR uses recorded messages and menus, while an answering service involves real people answering calls, listening to callers and helping them directly.
Do customers like IVR?
Customers are usually fine with IVR when it’s short and helpful. They tend to dislike it when menus are long, confusing, or make it hard to speak to a real person.
Can IVR replace a receptionist?
IVR can help sort calls or share basic information, but it can’t listen, reassure callers or handle complex situations in the way a trained receptionist can.
How does Moneypenny approach call answering?
Moneypenny focuses on making every call feel human. We combine smart technology with friendly, professional people so callers feel listened to, not pushed through a system.
