IVR Phone System: What It Is + 4 Steps To Set It Up

Handling phone calls without a system can feel overwhelming. You’ve probably dealt with calls piling up, customers getting frustrated because they can’t reach the right person, or important messages slipping through the cracks. It’s stressful — for you, your team, and your customers.

That’s where an IVR phone system can help. It gives you a simple way to manage incoming calls, guide callers to the right person, and even answer common questions without involving your team.

In this guide, we’ll walk you through what an IVR phone system is and how you can set one up in just five easy steps.

What is IVR?

IVR, or interactive voice response, is an automated phone system that helps businesses manage incoming calls. When you call a company and hear a menu with options like “Press 1 for sales” or “Press 2 for support,” that’s IVR in action.

It’s designed to answer common questions, direct callers to the right person, or provide helpful information without needing a live agent. Some systems let you press numbers on your phone, while others allow you to speak your request out loud.

If you’ve ever called your bank or an airline, chances are you’ve used an IVR system before. It’s a common tool that makes customer service faster and more organized.

Tired of transferring calls manually? See how Talkroute’s IVR system makes call management easier.

How To Set Up Your IVR Phone System in 4 Easy Steps

Setting up an IVR phone system with Talkroute is easy. In here, we call it the “Call Menu”. You can follow these easy steps to get started:

Step 1: Log In to Your Talkroute Account

First, go to the Talkroute website and log in to your account. Once you’re in, look for the Manager section. This is where you can manage your settings and phone numbers.

Step 2: Go to the Virtual Phone Numbers Section

In the Manager section, find Virtual Phone Numbers. Click on it, and you’ll see a list of your phone numbers.

Next to the number you want to change, click the Edit button. This will open the settings for that phone number.

Step 3: Change Your Call Routing Settings

In the settings, find the option that says Choose Where to Route Incoming Calls.

Click the dropdown menu and select the Go to Call Menu. This tells Talkroute to send all incoming calls to your Call Menu.

Once you’ve done that, click Save & Close.

As soon as you save the changes, the Call Menu will automatically turn on. Any calls to that phone number will now go to your default menu options. These default options are included with your Talkroute account when you first set it up.

Step 4: Add Menu Options

The next step is adding your menu options. Menu options serve as a directory that helps callers reach specific departments or individuals in your organization.

With Talkroute, we give you 5 different menu options that send calls:

• To other phone numbers
• To an audio file
• To an audio file and forwarding phone numbers
• To Voicemail
• Back to the Call Menu

To start, click on Call Menu and then click Add New Menu Option to create a new option.

Forwarding Your Calls

After pressing Add New Menu Option, you will see the tab below. Select the desired option number (like “Press 1 for Sales”). Add a description (for example, “Sales Department”). Set Go to Users & Numbers in the Choose Where to Route Incoming Calls dropdown.

Pick the type of forwarding you prefer:

• Ring in Sequence means calls will ring one number at a time.
• Ring All means all numbers will ring at the same time.

Add the forwarding phone number(s) you want to use. Then click Save & Close.

After this, the new menu option will now display a route summary showing the destination of your calls.

Sending Calls to an Audio File

If you’d like callers to hear a recorded message (like business hours) when they select a menu option, click on Call Menu and select Add New Menu Option. Select the desired option number (for example, “Press 2 for Hours of Operation”). Add a description like “Hours of Operation.”

In the Choose Where to Route Incoming Calls dropdown, select Go to Other Destination.

Under What Audio File Should We Play?, select the recording you want callers to hear. Next, choose where to send callers after the audio plays. Click Save & Close, and you’re done.

Here’s what the menu option should look like after setup.

Play an Audio and Forward Calls

To play a recorded message before forwarding the call to a phone number, after clicking the Add New Menu Option button, select your desired option number (for example, “Press 3 for Reservations”). Add a description like “Reservations.”

From the Choose Where to Route Incoming Calls dropdown, select Go to Users & Numbers.

Pick either Ring in Sequence or Ring All, then add your forwarding phone number(s).

Then, click More Options and select the recording you want to play before the call is connected.

After clicking Save & Close, the menu option should show a route summary with the audio file and destination.

Route Calls to Voicemail

If you want callers to leave a voicemail when they select a menu option, here’s what you have to do.

In the Menu Option, select the desired option number (for example, “Press 4 for Voicemail”). Add a description like “Voicemail.” Set the Choose Where to Route Incoming Calls dropdown to Go to Other Destination as well.

Next, open the Where Do You Want to Send Callers? dropdown and choose Go to Voicemail Box. After that, click Save & Close.

After that, the new option should look like this.

Repeat Call Menu

If you want to let callers hear the menu again, you can add an option like “Press 5 to repeat the menu.”

To do this, choose the option number you want, like “Press 5 to Repeat Menu,” and add a description such as “Repeat Menu.” Set Choose Where to Route Incoming Calls to Go to Other Destination as well.

In the Where Do You Want to Send Callers? dropdown, go ahead and choose Go to a Menu.

After that, in the Which Menu? dropdown, just pick Call Menu.

Once you press Save & Close, your new menu option should look like this.

No more dropped calls or endless transfers. Watch how Talkroute’s IVR makes managing calls simple.

What IVR Phone Systems Offer Your Business

An IVR phone system can make handling calls much easier for you and your team. Here’s how it can help:

Saves You Time

An IVR system can take care of common questions, like your business hours, payment details, or appointment scheduling. Instead of answering these calls yourself, your IVR system can guide callers to the right information instantly.

This means your team spends less time handling routine calls and can focus on tasks that need more attention. By reducing the call volume your staff has to manage, an IVR system helps you stay organized and productive.

Improves Customer Experience

Nobody likes being put on hold or transferred multiple times. With an IVR system, callers can easily select the option that fits their needs and get connected to the right person faster. This makes the experience smoother for your customers and saves them from frustration.

An IVR system also provides clear instructions, so callers always know what steps to take next. This organized process makes a big difference when it comes to keeping your customers happy.

Reduces Missed Calls

Missed calls can mean lost business. An IVR system helps reduce this risk by routing calls to the correct department or available staff member. If your team is busy, the IVR can provide important information or send the caller to voicemail — ensuring no inquiry goes unanswered.

By guiding callers efficiently, an IVR system helps you capture more opportunities and improve customer satisfaction.

Gives Your Business a Professional Image

First impressions matter, and your phone system is often the first point of contact for new customers. A well-structured IVR menu shows callers that your business is organized and professional.

Instead of reaching a busy signal or hearing endless ringing, they’ll be welcomed with clear instructions and easy-to-follow options. This leaves a positive impression and helps build trust with your customers.

Works 24/7

Your business may close at night, but your IVR system can keep working around the clock, like an after hours phone service.

Even when your team is unavailable, callers can still access helpful information, leave messages, or get directed to emergency contacts if needed. This makes your business more accessible and allows you to stay responsive even after hours.

Tips for Setting Up an IVR Phone System

Setting up an IVR phone system can make managing calls easier, but getting it right is key. Here are our tips to create a system that’s clear, helpful, and easy for your customers to use.

Keep Your Menu Simple

Offering too many options can confuse callers and cause frustration. Focus on 3–5 clear choices that address your most common inquiries. For example, you might include options for sales, support, or billing.

If you need to offer more options, consider adding a second menu level to keep the first one short and clear. A simple menu helps callers get the information they need faster, improving their overall experience.

Use Clear and Natural Language

Your IVR prompts should feel natural and easy to understand. Avoid robotic language or complicated terms that might confuse callers. Instead, write your prompts the way you’d speak to someone in person.

For example, instead of saying, “For account-related inquiries, press 1,” try “Press 1 if you have questions about your account.” Using clear and simple language makes it easier for callers to follow instructions without frustration.

Prioritize the Most Common Requests

Think about the most common reasons people call your business and place those options at the beginning of your IVR menu. If most callers are asking about your business hours, payments, or appointments, those should be listed first.

Prioritizing popular options saves your customers time and prevents them from having to listen through less relevant choices before finding what they need.

Offer an Option to Speak to a Person

Even with a well-designed IVR menu, some callers will prefer to speak with a real person. Offering a “Press 0 for an agent” option provides a quick way for those customers to connect with someone directly.

This is especially helpful if a caller’s request doesn’t match one of your listed options. By giving people this choice, you can improve customer satisfaction and avoid frustrating experiences.

Test Your IVR Regularly

An IVR system that doesn’t work properly can create serious problems for your business. Menu options may become outdated, connections can fail, or prompts might be confusing. Regular testing helps you catch these issues early.

Ask your team members or friends to call your IVR system as if they were customers. Pay attention to how clear the instructions are, whether the system routes calls correctly, and how easy it is to reach a live agent if needed.

Update Your Menu as Needed

Your business may change over time, and your IVR system should reflect that. If your hours change, you add new services, or customers start asking new questions, be sure to update your IVR menu accordingly.

Keeping your system up to date helps you provide accurate information and prevents confusion for your callers. Regular updates also show customers that your business is organized and responsive to their needs.

Recommended reading:

8 Major Benefits of Using Automatic Call Distribution

Best Call Forwarding Service for Business: Top Choices Reviewed

Simplify Managing Customer Calls With Talkroute’s IVR System

Talkroute helps businesses manage incoming calls by automatically greeting and guiding callers to the right team member or department.

With customizable menu options, callers can quickly connect to sales, support, or any other area of your business without waiting on hold. This streamlined process improves customer satisfaction and keeps your communication organized.

Customizable Menus

Talkroute’s customizable menus allow you to create personalized call flows that reflect your business structure. Whether you need options for sales, support, or billing, you can build a professional and organized system that helps callers find the right person quickly.

By offering clear menu choices, you reduce confusion and improve customer satisfaction.

Flexible Routing Options

Talkroute gives you flexible call routing tools to manage incoming calls effectively. You can direct calls to mobile phones, landlines, desktop users, or voicemail boxes based on your business needs.

This flexibility helps ensure calls are answered promptly, whether your team is in the office, working remotely, or balancing different shifts.

Submenus for Added Control

For businesses with multiple departments, locations, or language preferences, Talkroute’s submenu feature provides added convenience. Submenus allow you to organize your call menu with additional layers, giving callers clear options to choose from.

This is especially useful for businesses that need to offer bilingual support, location-based routing, or after-hours instructions.

Automated Messages

Talkroute’s automated message feature allows you to share important information with callers without the need for live staff. You can set up messages that provide details like business hours, company updates, or answers to common questions.

Automated messages reduce the need for your team to answer repetitive inquiries while giving callers access to the information they need.

Dial-By-Name Directories

For businesses with larger teams, Talkroute’s dial-by-name directory makes it easy for callers to reach the right person. Instead of relying on operators or long wait times, callers can simply type the name or extension of the person they need.

This feature saves time and improves customer satisfaction by connecting callers to their intended contacts faster.

Smarter call routing is one click away. Try Talkroute’s IVR system free for 7 days!

FAQs About IVR Phone

What is an IVR for phones?

An interactive voice response (IVR) system is a type of technology that helps businesses manage incoming calls. It uses pre-recorded messages and voice recognition to guide callers through an IVR menu. Callers can respond using their voice or by pressing keys on their phone.

IVR systems are designed to improve customer satisfaction by allowing callers to access information or route calls to the right department without needing a live agent.

Some advanced IVR platforms feature voice recognition powered by natural language processing (NLP), providing a more conversational self-service experience.

What is the difference between a call center and IVR?

A call center is a team of agents who handle customer calls, while an interactive voice response system is a tool that helps manage those calls. IVR technology automates parts of the call flow by directing inbound calls based on customer choices.

Call centers often rely on IVR software to reduce wait times, improve call routing, and manage high call volumes during busy business hours.

What is the IVR phone number?

An IVR phone number is simply the number customers dial to reach a business’s interactive voice response system. When callers dial this number, they are greeted with pre-recorded messages that guide them through the IVR menu.

The system may ask for information such as account details or the reason for calling to help route calls to the correct department.

What is the difference between IVR and VoIP?

IVR technology and VoIP serve different purposes, but they can work together. IVR systems manage incoming calls by offering options through an IVR menu and helping route calls efficiently. VoIP, or Voice over Internet Protocol, is a method of making phone calls over the internet instead of traditional phone lines.

While IVR solutions focus on managing customer calls through automated menus and call routing, VoIP focuses on transmitting voice data over the internet to improve communication quality and reduce costs. Many contact centers use both IVR software and VoIP systems to improve their overall phone service.