Interactive Voice Response (IVR) is an automated telephony system that enables callers to interact with a company’s services through pre-recorded voice prompts and menu options. It works by greeting callers, presenting choices such as "Press 1 for Sales" or "Press 2 for Support," and processing their input via keypad or voice commands. Based on the input, the IVR either provides information, performs automated tasks like balance checks or order tracking, or routes the call to the appropriate department. It improves call routing efficiency, and reducing operational costs.