With tremendous technological advancements and the resultant increase in internet capabilities, several companies are cutting the cord from legacy on-premise or landline phone systems. They’ve switched to VoIP phone systems.
The global VoIP services market is projected to be worth more than $278.53 billion by 2031.
But is the hype justified? Are VoIP phones secure and generate significant monetary savings? Can they be seamlessly integrated with your existing or future office technologies?
Before we answer these questions, let’s first understand what is VoIP and what does VoIP stand for.
What is VoIP?
Short for Voice over Internet Protocol, a VoIP phone is a powerful business tool that routes calls over the internet. There are two basic types of VoIP: home VoIP and business VoIP.
Home VoIP usually functions through a standalone service such as Skype, while business VoIP uses a cloud-based system hosted by a provider of your choosing.
The VoIP phone system has become a popular choice among businesses of all sizes thanks to its cost-effectiveness and countless useful features like voicemail, IVR, conference calls, and auto attendants.
A robust internet connection and a reliable VoIP provider are all you need to meet your company’s communication needs.
A VoIP phone offers great flexibility to remote workers as it can be accessed from any mobile device or computer via a business phone application. It has many other benefits over the traditional landline system.
How Does VoIP Work? The Technical Aspects
VoIP phone works by taking analog audio signals, like the kind you hear when you talk on the phone, and turning them into digital data that can be transmitted over the Internet.
This process requires something called an encoder. An encoder takes in audio signals and converts them into digital data.
Many different encoders are available on the market. Each has its advantages and disadvantages regarding quality and bandwidth requirements.
Once the analog signal has been encoded into digital data, it can be transmitted over the IP network using a technology called packet switching.
Packet switching breaks up your message – or call – into small chunks called packets. Each packet contains information about who sent it and where it should go next (among other things).
Packets are routed through a network based on their destination address, just like mail is routed through post offices around the world to reach its destination.
In layman’s terms, voice-over IP software works by converting your voice into a digital signal that travels over the internet. It can also be used to make video calls, send text messages and initiate other forms of communication.
If you’re calling a regular phone number, the signal is converted to a regular telephone signal before it reaches the destination.
Here’s how VoIP phones work when a call is made:
The VoIP phone connects to your LAN’s (Local Area Network) router or switch.
Once the phone number is dialled, the VoIP phone informs the VoIP providers to call the receiver.
After the call is established, data packets are exchanged via your VoIP phone.
These digital signals are then converted back to the audio you hear.
Gone are the days when you required costly, propriety equipment for using voice-over IP.
Built on open standards like Session Initiation Protocol (SIP), the VoIP phone system today offers full interoperability among several conference phones, VoIP apps, and desk phones.
What is a VoIP caller?
A VoIP caller is a person who makes calls using the internet instead of a traditional phone system. VoIP caller systems are gaining immense popularity among businesses due to their cost benefits, flexibility, and variety of features.
What is a VoIP number?
A VoIP number is the phone number assigned to you at the time of VoIP phone service installation. Similar to the landline system, it is a string of digits that must be dialled on a VoIP phone to place a call.
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5 Benefits of a VoIP for Businesses
There are numerous benefits of a business VoIP phone system. There’s a reason why the mobile VoIP market is expected to reach the $187 billion mark by 2027 – and why so many businesses are adopting this technology.
Here are some of the broader benefits of VoIP:
1. Quick and Simple Setup
A VoIP phone system takes only a few steps to set up. Unlike on-premise phones, it does not require copper wires or too much hardware to operate.
Once you purchase the subscription for a VoIP service, the onboarding and setup take a few minutes. And, if you are porting your phone number, masking will show the existing number in the outbound caller ID.
2. Scalable
Hassle-free scalability is another advantage of a cloud-based business phone line. Adding new team members is only a matter of giving them access to the VoIP software.
There is no need to install extensive hardware. The only equipment you need is a laptop or mobile phone and a good headset. You may expand your team at any time without any restrictions.
3. Lower Costs
Multi-line phones based on VoIP come at almost half the cost of the traditional business phone.
In fact, you get more features in a VoIP phone at a much lower cost. What’s more, you don’t have to pay for hardware installation and other equipment.
4. Business Continuity
Traditional multi-line phones are more prone to disruptions in business caused by unforeseen circumstances like natural disasters and accidents.
With a multi-line VoIP phone, you don’t have to worry about such disruptions in business.
In case of emergencies, you don’t need to completely shut your business down.
You can shift to a remote working model in a hassle-free manner since you will only need the internet and the right devices to operate your VoIP phone system.
5. Round-the-Clock Support
You can offer round-the-clock support to your customers with a VoIP business phone.
You don’t have to be at the office at all times to take calls. Remote agents can take and/or make calls to customers, no matter where they are located.
A VoIP phone system will make it possible for them to carry out all their calling activities from the comfort of their homes or while on the go.
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20 Features of VoIP Phone Systems
VoIP business phone systems come with plenty of advanced features that add to their utility value, arming businesses with modern capabilities.
At large, the kind of features you get largely depends on what your vendor offers. (This is why it’s important to choose a good solution provider!)
In general, here are some of the key features you can expect from a business VoIP phone system:
1. Call Routing
Call routing is an important feature meant for managing incoming calls.
Simply put, it routes calls to individual agents or departments. When you receive multiple calls, intelligent call routing or automatic call distributor (ACD) leads callers to specific agents.
With on-premise multi-line phones, call transfer is the closest you can get to the call routing feature. And when all lines are busy, incoming callers will have no option but to wait for an agent to get free to attend to them.
![Call routing](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image.png?lossy=2&strip=1&webp=1)
![Call routing](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image.png?lossy=2&strip=1&webp=1)
2. Call Forwarding
In handling incoming calls, the call forwarding feature is also crucial. Agents can transfer calls to other phone lines and/or external devices.
There are 2 ways by which you can transfer calls to other agents:
- Cold Transfer: When agents transfer calls to other agents without informing them ahead or giving them details, it is called cold transfer.
- Warm Transfer: This is when one agent transfers a call to another agent along with transferring details about the call.
Also, with business phone lines, all the calls you receive after your business hours can be directed to agents’ phone numbers. Not a single call goes unanswered.
![Call forwarding](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-1.png?lossy=2&strip=1&webp=1)
![Call forwarding](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-1.png?lossy=2&strip=1&webp=1)
3. Business Phone Numbers
You can avail of local, toll-free, and mobile business phone numbers with VoIP-based business phones. These make it easier for customers to easily reach out to you.
If you want to build a local business presence in a strong target market, go for local business phone numbers. This way, you enjoy trust and ensure easy accessibility for customers.
![VoIP Business phone system](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image.gif?lossy=2&strip=1&webp=1)
![VoIP Business phone system](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image.gif?lossy=2&strip=1&webp=1)
4. Caller ID
When you go for a business phone service, go for the option that comes with inbound caller IDs. Since a multi-line VoIP phone lets you transfer calls to agents on other lines, an inbound caller ID helps agents carry out calls efficiently.
Let’s say a contact detail is already saved in your CRM, and your VoIP phone is connected to that CRM. Here, you’ll always have a context of which customer is calling and why.
5.Hot Desking
The hot desking feature allows your agent to log in from any device and have the same agent profile settings by default. It lets your agents use the extension number of the phones that are currently in use.
This feature is highly beneficial for companies having limited office space or for businesses that are largely dependent on remote workers.
6.Business Voicemail
Even with business phones, your support team is prone to be busy at some point in time. During these peak busy hours, customers should have the option to drop voicemails explaining their concerns.
Agents can listen to these voicemails and respond to them accordingly. With VoIP phone systems, you can also avail the option to receive voicemails via email.
It is important to have professional greetings for voicemail so that your customer does not leave without recording their message.
7.Advanced Call Routing Features
On a basic level, call routing enables you to distribute calls to different agents/departments.
A VoIP phone lets you take this a step further by providing the following functionalities:
![Advanced call routing](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-2.png?lossy=2&strip=1&webp=1)
![Advanced call routing](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-2.png?lossy=2&strip=1&webp=1)
I. Call Routing Criteria: You can set criteria for distributing calls to agents. So, you can route calls through round robin, ring in order, ring all members, and ring idle agents first criteria.
II. Forward Calls to External Numbers: Forward inbound calls to external mobile numbers or phone numbers during off-business hours or when you are on the move.
III. Forward Calls to Voicemails: When agents are unavailable, customers can drop voicemails with their name and contact details along with their query.
IV. Queue Call-back: This feature places unattended customers in a queue for a call-back once the agent gets free. Agents may refer to customers’ voicemails to understand their queries and then call them back.
8.Conference Calling
A business VoIP phone allows you to host conference meetings conveniently. All you need is an internet connection and a device to carry out conference calls.
You can create and manage virtual conference rooms where you can invite your customers. Allot conference pins to ensure security and privacy.
Monitoring conference call activity also becomes possible with a multi-line office phone based on the cloud. You have the option to review meetings through call recordings, notes, etc.
![Conference calling: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-3.png?lossy=2&strip=1&webp=1)
![Conference calling: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-3.png?lossy=2&strip=1&webp=1)
9.Number Porting
Shifting to a new VoIP phone system? Keep the conversation flowing with the number porting feature. With this feature, you can keep your existing number by porting it from the old provider to your new VoIP phone system.
This saves you from the hassle of updating your customers about the new number. Instead, they can continue to contact you via the same old number that they’ve grown fond of.
10. Call Monitoring
Call monitoring in VoIP business phones allows you to assess and guide your agents during calls. Every customer call is crucial. At times, agents may need their managers’ guidance to handle customers.
Multi-line VoIP phone systems let managers monitor customer calls in real-time. Call monitoring happens at three levels:
- Listening: Managers may hop on to live calls between customers and agents without either party knowing.
- Whispering: This functionality allows managers to join an ongoing call between agents and customers and whisper instructions or guide agents. The customer is not aware of the presence of the manager.
- Barging: Managers can also jump on customer calls and speak directly with the customer.
![VoIP Call monitoring](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-4.png?lossy=2&strip=1&webp=1)
![VoIP Call monitoring](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-4.png?lossy=2&strip=1&webp=1)
11. Instant Messaging
In today’s modern world of online scrolling, many customers, especially millennials and GenZers, are more comfortable with messaging apps than phone calls. Apps like Snapchat, Messenger, and Slack are their all-time favorites.
To help you keep up with the digital trend, many VoIP phone systems offer an instant messaging feature. Using the IM feature is a smart way to reach customers who dump phone calls and emails.
12.Multi-level IVR
IVR (or interactive voice response) serves as an important feature of the multi-line phone. Callers can connect with the right department with the help of an auto-attendant and touch-tone feature.
The auto-attendant provides instructions to callers on the extension numbers for reaching different departments/agents.
The touch-tone feature allows callers to press digits to carry out different actions.
With the multi-level IVR, you can assign a single IVR to multiple numbers. You can also configure multiple IVRs with a single number and enable relevant call-forwarding actions.
13.SMS Features
A VoIP business phone system isn’t just limited to calling. You get access to SMS functionalities, as well. You can send and receive texts and multimedia messages (MMS) from customers.
JustCall’s VoIP phone system has nifty SMS features such as:
I. SMS Automation and Workflows: Send texts automatically when a certain condition is met, such as sending follow-up texts after a sales call.
II. Bulk SMS: Roll out mass text campaigns to be sent out to your customers.
III. SMS Bots: Send automated responses to customers’ texts.
![SMS features: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-5.png?lossy=2&strip=1&webp=1)
![SMS features: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-5.png?lossy=2&strip=1&webp=1)
14. Softphones
Imagine if you could receive and make calls from any device you wish to. That’s exactly what a VoIP softphone can help you with.
All you need to do is just install the application on your tablet, desktop, and notebook. All these devices will then be linked to your VoIP phone system.
This feature not only optimizes your workflow but also provides excellent flexibility in handling calls.
15.Business Tool Integrations
A large and small business VoIP solution also allows you to connect your phone with multiple business tools.
So, all your CRM, helpdesk, and other software data is automatically synced with your phone. This ensures higher convenience.
Agents don’t have to constantly go back and forth between the phone and the CRM. Once they complete a call, all the important details are saved automatically in the CRM.
You can also make calls or send texts directly from the CRM with click-to-call/text buttons.
![VoIP Business tool integration](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-6.png?lossy=2&strip=1&webp=1)
![VoIP Business tool integration](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-6.png?lossy=2&strip=1&webp=1)
16. Website Click-to-Call
VoIP phone lines offer a click-to-call feature for your website visitors. When browsing your website, visitors can simply hit the click-to-call button and get in touch with you.
This makes your business easily accessible. There’s no need for customers to memorize your contact number and enter it into the auto dialer for calling.
Website click-to-call reduces these frictions and creates a one-step action.
17.Music on Hold
Long wait times are a nightmare for any customer. An unpleasant customer experience can do more harm to your business than you can think of.
The best way out here is to build harmony by uploading and playing audio files. After all, what can be better than music to entertain customers while they’re waiting for a response?
18.Call Recording
VoIP phone call recording is a functionality that lets you keep track of your agents.
With call recording, you can assess your agents’ calls and point out where there is scope for improvement. This contributes to improved customer satisfaction.
![Call recording: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-7.png?lossy=2&strip=1&webp=1)
![Call recording: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-7.png?lossy=2&strip=1&webp=1)
19.Sales Dialer
Sales dialer is software that automates the dialing process. This means agents don’t need to manually dial every contact.
You can also use a predictive dialer that dials multiple contacts at the same time. It then connects you with the first contact that answers.
It ensures that agents are only connected to contacts that answer without encountering any abandoned calls.
![Sales dialer: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-1.gif?lossy=2&strip=1&webp=1)
![Sales dialer: VoIP features](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-1.gif?lossy=2&strip=1&webp=1)
20. Call Analytics
You can access a comprehensive call analytics dashboard that comes as a part of the VoIP phone system.
This is where you can view all your agents’ call activities at one glance. All the important success metrics and KPIs can be viewed here.
![VoIP analytics](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-8.png?lossy=2&strip=1&webp=1)
![VoIP analytics](https://b3118084.smushcdn.com/3118084/wp-content/uploads/2022/04/image-8.png?lossy=2&strip=1&webp=1)
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On-Premise vs. VoIP Multi-Line Phone Systems
There are two ways to set up a phone system for business: On-premise multi-line phones and multi-line VoIP phones.
On-Premise Phone System
An on-premise phone system is physically installed in a building.
To operate it, you will need multiple phones connected by wiring infrastructure that carries signals. Typically, a single landline device will support two-line phones by paying for an extra line to the provider.
Another type is the Private Branch Exchange or PBX, which carries multiple phone lines through landlines or trunks. It comes with features such as call forwarding, holding calls, voicemails, and speakerphones.
With on-premise business phones, your callers will hear busy signals if all of your lines are attending to other calls. A better alternative, in this case, is the VoIP business phone system.
VoIP Multi-Line Phone System
As mentioned earlier, a VoIP business phone system uses the internet to carry out phone calls. All voice signals are converted into digital signals over the internet, and a VoIP server connects calls to other phone networks.
Bypassing legacy phones, VoIP phones are wireless and can be accessed via multiple devices, including mobile phones, desktops, and laptops. You can also use VoIP-based SIP (Session Initiation Protocol) desk phones.
Unlike a legacy phone system, there is extensive scope for scalability with a VoIP multi-line phone system. It also costs less than on-premise phones and comes with a range of advanced features.
5 Reasons Why You Need a VoIP System for Your Business
VoIP is becoming immensely popular due to the many key benefits of using it over a legacy phone system.
It’s no surprise that the global VoIP market size was valued at over $40 billion in 2022 and is estimated to have a compound annual growth rate (CAGR) of 10% from 2023 to 2032.
Here’s why you should consider getting a VoIP business phone system:
1.Cost Effectiveness
An effective VoIP phone system can lower your phone bills by more than 60%, increasing your cost savings. While the average cost of a landline is around $50 per month per line, a VoIP system costs around $15 to $30 per month per user.
The total cost varies based on the chosen features and services. But you can rest assured that you’re going to get a good deal.
2. Flexibility
As VoIP phones don’t require any technical setting-up, they can accommodate several locations. VoIP systems are mobile and offer great flexibility to remote workers.
An employee’s cell phone, home phone, and desk phone can have the same numbers. This enables them to access their work line from any location.
Plus, shifting locations or offices is so much easier with a VoIP phone system that is not tied to any landlines.
3. Advanced Features
With VoIP, you can have access to premium features like call queues, auto attendants, and call recording. It takes your business collaboration and communication to the next level with its conference calling feature.
The best part is that your voicemails can be transcribed and sent to you via email, which removes a lot of unnecessary burdens off of your shoulders.
4. Enhanced Productivity
Given the ease of use of VoIP phone systems and the variety of features offered, it is safe to say that VoIP equips your business to work smarter. The logistical benefits have helped several companies to have an edge over their competitors.
As VoIP is hosted over a broadband connection, it uses IP technology to look for potential security threats and encrypts calls to enhance security.
5. HD Voice
When it comes to calling quality, there’s a huge difference between VoIP phone systems and landlines. VoIP phones offer amazing audio clarity that can never be experienced through landlines.
The high-quality sound and clarity ensure that the audio isn’t fuzzy or muffled.
Don’t Rush – A Few Things to Know About VoIP
Even with all its powerful features and numerous benefits, it’s important you’re aware of the other side of the coin as well.
So, before you invest in a business VoIP service, it is recommended that you get a thorough understanding of the security and reliability factors of this technology.
Here are two important things you should know:
1. Security of the Communication
Since VoIP enables a call over the internet, your system might be vulnerable to hackers.
As soon as a business VoIP is set up, cybercriminals can take over your phone lines. They can record your conversations and see what you’re up to.
Also, hackers can access your communication line and use your minutes or offer them to someone else. If this happens and someone else is using your line to make international calls, it can add a hefty sum to your billing.
Solution:
To make sure that your system is protected against cyberattacks, you can converse with a customer service rep of the VoIP provider you have signed up for.
Ask them about the security measures they have in place; make sure those measures are sufficient.
2. Don’t Get Rid of All Landlines
Using a VoIP provider for your business that has a server in several locations, complete network redundancy, and a service level agreement will ensure a reliable service for your organization.
However, it does not entirely eliminate the possibility of you experiencing any issues on your end.
Let’s say the power goes out or, for instance, if the internet connection is facing some hindrance – what will happen then? Your VoIP phone system may go down instantly.
Solution:
To avoid such instances, the best business VoIP services allow you to have a backup strategy.
In the case of power failure or the internet shutdown, business VoIP can automatically transfer all your calls to analog telephone lines that you have previously rendered.
This enables your business to constantly remain up and running. So, it is recommended to keep at least one landline as the backup in power outages and allied calamities situations.
How to Set Up a VoIP Business Phone Line?
Contrary to the common perception, getting started with a VoIP business phone line is very straightforward. And with the right vendor by your side, things become even simpler.
Here are the basic steps involved in setting up a VoIP business phone line:
Step I: Select a Business Phone Service
Look for a reliable multi-line VoIP phone service provider. Perhaps a good criterion can be the availability of relevant multi-line phone features such as intelligent call routing, SMS, call forwarding, multi-level IVR, and so on.
You can look at neutral review platforms such as G2 or Trustradius to select a reliable vendor.
Recommended Read: Small business phone system buying guide
Step II: Get Business Phone Number(s)
Next, get a phone number for your business that your customers will use to contact you. You may opt for a local, toll-free, or mobile phone number. If you already have existing numbers, you can port them to VoIP.
Step III: Add Team Members
Now, you can bring team members on board the VoIP phone system. This will allow you to route incoming phone calls to them.
Step IV: Start Making and Receiving Calls
You’re all set to deliver and take calls from customers. You can use the multiple VoIP phone features to distribute calls, allow them to drop voicemails, or transfer calls to agents.
How Much Does VoIP Cost?
The cost of a VoIP phone system is relatively cheaper when compared to a legacy landline phone system.
The average cost of a VoIP system typically ranges between $100 and $500 per extension. However, this will vary depending on the features and the plan you choose.
Companies with around 35 phone users can easily save over $1,200 per month when moving to VoIP.
Here’s detailed information on VoIP costs:
- Initial charges: $0-$50/line
- Device charges: $100-$600/ IP phone
- Monthly charges: $25-$45/line
- International phone call charges: $0.01/ minute
- Fees and taxes: Depends on your country, state, and city.
How to Choose a VoIP Provider?
With several VoIP providers claiming to offer the best VoIP plans and services, deciding the right one for your business can be challenging. Here are important things to consider while choosing the best VoIP service provider:
- Suitable Package: Determine your business needs and make a list of the required functions and services. Once you’re sure about the number of users and the required features, compare the packages of different providers and choose the one that best fits your needs.
- Opt for Managed Service Providers (MSP): Though VoIP phones are easy to install, you will require an experienced provider to ensure a seamless transition. Especially for large-sized firms where several VoIP systems are to be installed, the services of an IT professional or MSP become paramount.
Want to Try JustCall? (You’ll Love It!)
JustCall is one of the leading VoIP providers, trusted by 6,000+ businesses around the world. Our VoIP software is built robustly to fit any and every voice-over IP need.
The VoIP phone system packs cutting-edge features that empower sales and customer support teams in organizations to scale, score more wins, and achieve the desired outcomes.
Tap on our VoIP service and take confident strides toward a customer-driven unified communication strategy that stands your brand out and apart in the crowd of competitors.
Our team ensures you experience the power of the next-gen VoIP gateway and start making/receiving calls in just a matter of minutes.
Click here to sign up and get started with JustCall instantly. Or you can even schedule your free demo to learn more about our VoIP software and how it can help your sales and customer support teams.