How Much Does IVR Software Cost in 2024?

What is Interactive Voice Response (IVR) Software and How Much Do They Cost?

The cost of IVR depends on how many lines your business wishes to open to customers and if you prefer an in-house or hosted IVR. One in-house line will cost around $1,600; one hosted line is much cheaper at $810 per line. Calculate your cost here:


Interactive Voice Response (IVR) software is a technology that allows a computer to interact with humans through the use of voice and DTMF tones input via a keypad. It’s commonly used in call centers and customer service operations to streamline communication. When considering IVR software for your business, there are several key aspects to consider, including cost, types, and features.

Types of IVR Software

  1. Inbound IVR Systems: Primarily used for handling incoming calls. They can provide callers with a menu system, route calls to the appropriate department, or provide automated responses to common queries.
  2. Outbound IVR Systems: These are used to make calls to clients for purposes like appointment reminders, customer surveys, or payment collections.
  3. Cloud-Based IVR: Hosted on a cloud platform, these systems are scalable and don’t require physical hardware or extensive setup.
  4. On-Premise IVR: These systems are installed on-site and require hardware and software installation. They offer more control over the system but require more maintenance.

Cost Factors

  1. Setup and Installation: On-premise systems usually have a higher initial setup and installation cost compared to cloud-based systems.
  2. Subscription Fees: Cloud-based IVR systems often operate on a subscription model, charging monthly or annually. The cost can vary based on features and the number of users.
  3. Customization and Integration: Customizing the IVR system to suit specific business needs or integrating it with existing systems (like CRM software) can add to the cost.
  4. Maintenance and Support: On-premise systems typically have higher maintenance costs, whereas cloud-based systems include maintenance in their subscription fees.
  5. Scalability: The ability to scale up or down can impact costs, especially for businesses with fluctuating call volumes.

Pricing Estimates

  • Cloud-Based IVR: Usually charged on a per-user or per-minute basis. Prices can range from as low as $20 per user per month to several hundred dollars, depending on the features.
  • On-Premise IVR: Involves a larger upfront investment which can range from a few thousand dollars to tens of thousands, plus ongoing maintenance costs.

Features to Consider

  • Voice Recognition: Advanced systems offer natural language processing for a more intuitive user experience.
  • Integration Capabilities: The ability to integrate with existing business systems (like CRM or ERP systems) is crucial for many organizations.
  • Customization: The ease of customizing call flows, greetings, and responses.
  • Reporting and Analytics: Useful for gaining insights into call patterns, customer behavior, and system performance.
  • Multi-Language Support: Important for businesses serving a diverse customer base.

Final Thoughts

When choosing an IVR system, it’s crucial to balance cost with the needs of your business. Smaller businesses might prefer the lower upfront costs of cloud-based systems, while larger enterprises may benefit from the control and customization offered by on-premise solutions. Always consider future scalability and the potential need for customization or integration with other business systems. It’s also advisable to request demos or trial periods from vendors to better understand the software’s capabilities and how it fits with your operational needs.


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Top 5 IVR Software Companies

Here are the top 5 IVR software companies, each with a brief description and two key advantages:

  1. Avaya: Avaya is a global leader in digital communication software, services, and devices. They offer a range of IVR solutions that are known for their reliability and scalability. Their IVR platform is highly customizable, allowing businesses to create tailored customer experiences. They also offer robust analytics and reporting tools to help businesses understand customer interactions and improve service efficiency.


    • Customization: Avaya’s IVR solutions offer extensive customization options, allowing businesses to tailor the system to their specific needs.
    • Scalability: Suitable for both small businesses and large enterprises, Avaya’s systems can scale to handle a high volume of calls.
  2. Cisco: Cisco is a multinational technology conglomerate that offers an array of communication and networking solutions, including powerful IVR systems. Their IVR technology integrates seamlessly with other Cisco collaboration tools, providing a comprehensive communication solution. Cisco’s IVR solutions are known for their high reliability and advanced security features.


    • Integration: Cisco IVR easily integrates with other Cisco tools, providing a cohesive communication system.
    • Security: Enhanced security features ensure that customer interactions and data are protected.
  3. Genesys: Genesys provides omnichannel customer experience and contact center solutions. Their IVR platform stands out for its AI-powered capabilities, offering more personalized and efficient customer interactions. Genesys IVR is designed to improve customer self-service and reduce the need for live agent intervention.


    • AI Integration: AI capabilities enable more personalized and efficient customer interactions.
    • Enhanced Self-Service: Reduces reliance on live agents by providing effective automated services.
  4. Nuance Communications: Specializing in AI and speech recognition, Nuance offers IVR solutions that focus on creating natural and intuitive customer experiences. Their technology is driven by advanced speech recognition and natural language understanding, making it easier for customers to navigate IVR menus.


    • Advanced Speech Recognition: Offers a more natural interaction for users, improving the overall experience.
    • Natural Language Understanding: Helps in accurately deciphering customer intents, leading to more efficient call routing.
  5. Interactive Intelligence (now part of Genesys): Initially a separate entity known for its innovative IVR and contact center solutions, Interactive Intelligence was acquired by Genesys. They brought to the table a robust set of features, including cloud-based IVR options, comprehensive reporting tools, and a strong focus on customer engagement.


    • Cloud-based Solutions: Offers flexibility and scalability with their cloud-based IVR options.
    • Comprehensive Reporting: Helps businesses gain valuable insights into customer interactions and system performance.

Each of these companies provides unique strengths in their IVR offerings, making them leaders in the industry. When selecting an IVR solution, consider these advantages in the context of your specific business needs and customer interaction goals.


What to Look For In an Interactive Voice Response System:

Buyers Guide For BusinessYour interactive voice response system should find the right mix of effective and easy customer service with your business’s budget. IVRs that feature professionally recorded greetings, nuanced service options, and other enhancements can be more expensive but worthwhile in some markets, while more affordable and streamlined services are more than sufficient for many businesses.

Test out your service before signing up, and make sure your experience isn’t a frustrating one. See what options your interactive voice response system has when it comes to forwarding calls to live-answered phones or voicemail services, and keep this capability in line with customer expectations.

Finally, make sure your vendor provides frequent and flexible technical service options and system upgrades.

Other Features to Consider: ANI (automatic number identification) CTI (Computer Telephony Integration), Autodialer, Case & Contact Management, Call Recording, Real-Time Reporting, PBX (Private Branch Exchange), Toll-Free Number Provisioning, Call Conferencing.

IVR System Sample Costs

Below are a few examples of prices for Interactive Voice Response Software which will give you an idea of how much you will pay for your purchase.

  • Small Business IVR Software average starting cost of $1,030 to $1,499 per line
  • Four Line in-house IVR System typically cost $5,890 to $7,009 For Small Businesses
  • 4 Lined Hosted IVR System typically cost for $752 to $906 per line

IVR technology can help reduce call center costs, improve customer experience, and streamline business processes. The article should discuss the benefits of using IVR software, its features, potential applications, and how it can be customized to fit specific needs.


Automating Business Processes with IVR Software Solutions

Interactive Voice Response (IVR) software is a powerful tool for customer service operations. By leveraging automated voice recognition technology, businesses can interact with customers in an efficient and cost-effective manner. IVR solutions can streamline business processes and help organizations achieve greater productivity.

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Using IVR software, businesses can quickly provide information to customers, as well as collect details from them. By allowing customers to interact with the system in their own time, IVR solutions can reduce the need for live call agents, thus reducing overall call center costs and improving customer satisfaction. Furthermore, since most IVR systems are highly customizable, organizations can adjust the features to best suit their needs.

Benefits of IVR Solutions

IVR solutions offer many advantages to businesses. Here are some of the features and benefits that can be achieved through the use of an IVR system:

  • Automation – Customers no longer need to wait on hold for a customer service representative. With automated prompts, customers can quickly get the information they need at any time.
  • Cost Savings – By automating customer service operations, businesses can reduce their call center costs and increase their productivity.
  • Improved Customer Experience – With automated voice recognition technology, customers can get the help they need in a more efficient manner. Furthermore, IVR systems can be used to provide personalized experiences for customers.
  • Flexibility – IVR solutions can be customized to fit the specific needs of an organization. From creating custom prompts and messages to setting up personal profiles for each customer, businesses can tailor their IVR system to best meet their requirements.

Potential Applications of IVR Solutions

IVR solutions are used in a variety of industries for different purposes. Here are some potential applications for IVR software:

  • Banking – Banks can use IVR solutions to offer automated services such as balance inquires, account transfers, and deposits.
  • Healthcare – Healthcare organizations can use IVR solutions to provide patients with information about their health insurance plans, appointment availability, and medication information.
  • Retail – Retailers can use IVR solutions to provide customers with automated shopping assistance and product recommendations.
  • Government – Government agencies can use IVR solutions to provide citizens with information on government services, licenses, and permits.

IVR software is a cost-effective and efficient way for businesses to interact with customers. With its customizable features, organizations can tailor their IVR system to best meet their needs. Automating customer service operations with an IVR solution is a great way to improve customer experience, reduce call center costs, and streamline business processes.

By leveraging the power of automated voice recognition technology, businesses can reap the many benefits of IVR solutions.

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