While many businesses still rely on traditional phone lines, an increasing amount are using Voice Over Internet Protocol (VoIP) systems to communicate due to their enhanced flexibility, powerful calling features, and favorable domestic and international calling rates. These are just some of the many VoIP benefits we're going to explore in this guide.
For example, businesses making international calls would rack up a huge phone bill using traditional phone lines. Since they make use of an internet connection, the best VoIP systems are also able to be used anywhere, helping to connect remote and hybrid teams.
The benefits of VoIP are so clear, that they're currently being used by almost a third of US businesses, according to the latest VoIP statistics. The shift is even more dramatic in wider society, with recent National Center for Health data revealing that a staggering 73% of adult Americans no longer have a landline in their home!
VoIP systems do have some minor drawbacks, but their benefits far outnumber their disadvantages, especially for modern businesses. If you haven’t explored VoIP’s rich features and advantages yet, then let’s take a closer look at why VoIP is essential for business today, and how to choose the right provider.
What Is VoIP? A Simple Definition
Voice Over Internet Protocol (VoIP) is a communication technology that enables you to make calls through the internet. When you compare VoIP vs landline phones, you see that while the latter relies on a physical network of copper wires, cloud-based VoIP systems can be used anywhere with a stable internet connections. They are also compatible with a wide range of other business systems like web conferencing and small business CRM software.
VoIP technology comes in two main forms: desk phones and softphones. VoIP desk phones are physical, traditional-looking phones that connect to VoIP software, and softphones are software applications that can run on multiple devices like mobile phones, tablets, desktop computers and laptops.
Benefits of VoIP: 10 Advantages for Your Business
Below, we explore 10 major advantages VoIP systems can bring to businesses in 2023.
1. Host Conference Calls
Traditional phone lines are pretty limited when it comes to conference calls and this may prove to be a problem for many business owners. When you use VoIP services you can include as many people as you want in your conference call, as long as your Internet speed is enough to transfer all the voice data. The VoIP technology is constantly being developed & improved, so all voice packets are compressed and transferred efficiently in order to improve connection and call quality.
2. Cut Your Costs
If you aren’t using VoIP at the moment, you're probably using traditional phone lines that have been around for decades. In this situation you end up paying for every minute spent talking over the phone, which means that your monthly bill can be very high, especially if you regularly make international calls. The situation with VoIP is completely different, and your costs will be cut significantly. Modern phone switchboards are cloud-based and far cheaper to run.
In order to take advantage of VoIP services you only need to have a high quality Internet connection, preferably ADSL. This way you’ll be able to enjoy excellent voice quality, call reliability and your monthly cost will be a fixed amount. According to statistics, small businesses that switch to VoIP reduce the cost of their local costs by up to 40%, and save up to 90% on international calls.
3. Bandwidth Utilization
Optimizing your VoIP plan according to your needs can be a bit tricky at first, but if your provider gives you detailed statistics about your monthly data usage, then the process will be much easier. What’s great about VoIP services is that you can see every tiny detail that can help you optimize inbound/outbound calling in order to get the best value for money.
4. Affordable Software & Hardware
VoIP completely eliminates the need for expensive phone lines, telephone sets and other underlying hardware that can boost the initial cost of your company’s communication to thousands of dollars.
Aside from VoIP software, all you need is a good internet connection, a computer, sound card, microphone and speakers or headphones – things that are pretty common for every office around the world. Most VoIP packages are very reasonable too, with prices ranging from around $10 to $30 per user, per month, depending on your businesses needs and circumstances.
Learn more about how much VoIP systems cost.
5. A Wide Range of Great Features
The features that come with VoIP services are much better than those offered by traditional phone lines. You’ll have more flexibility in terms of call management, as well as take advantage of extra perks such as voicemail, extra-virtual numbers, contact lists, caller IDs, etc. Here are some of the more specific perks that you’ll have the opportunity to enjoy when using VoIP solutions for your business:
VoIP Call Routing
If you often have to take important calls, then why risk missing them? Thanks to the “Find Me Call Routing” offered by most VoIP service providers, the caller will be transferred through several numbers before being sent to voicemail. For example, he’ll ring twice on your mobile phone, twice on your office phone and finally twice on your home phone before being sent to voicemail.
Custom Hold Music
Another great feature that many businesses take advantage of is “Music on Hold”. Waiting for your call to be answered can be very tedious and boring, so why not spice up this process with some music? Modern VoIP systems allow you to add unique & relaxing melodies to every caller put on hold.
6. Effective Communication Amongst Remote Workers
Unlike landline phones, VoIP system allows employees to work anywhere with a stable internet connection. This flexibility makes the technology the perfect pick for businesses managing remote and hybrid teams. Aside from basic calling functions, most VoIP systems also offer versatile collaboration features like document sharing and task management, giving workers multiple ways to communicate and relay information.
VoIP systems create data driven insights in real-time too, enabling managers to monitor worker productivity from afar. This helps businesses overcome productivity roadblocks much more easily than if they relied on less tech-savvy legacy phone systems.
7. Business Scalability
If your business is hoping to expand in the future, VoIP systems are perfectly equipped with scaling alongside your business. Most providers offer modular, customizable packages that can be adjusted to meet your specific needs. Moreover, if your team expand and you require different services in the future, you can also upgrade to plan with a greater selection of features and more generous user limits.
This gives VoIP softphones a huge advantage over landline phone systems for growing businesses, as it's more costly to expand hardware devices and there may be a limit on how many phone cables your premises is able to install.
8. Voice Quality
While landlines offer slightly superior call quality to VoIP systems, there's almost nothing in it. VoIP voice quality is dependent on the strength of your internet connection, so as long as you network is reliable you'll have nothing to worry about.
Some VoIP providers are better than others when it comes to this aspect though, so if it's crystal clear sound quality you're after we would recommend choosing a leading system like RingCentral or GoTo Connect.
9. Portability
Another key advantage of VoIP systems is their flexibility. Compared to landline hard phones that are restricted to one specific location, VoIP technology is completely portable, because it's able to be used on a range of business devices.
This allows employees to transport the technology anywhere they choose, be it the office, home, or another flexible working location. Not only is this a clear boon for remote and hybrid teams, it's also a win for workers that travel a lot and carry out business meetings from multiple locations.
10. Security
As cyberattacks like data breaches and malware become more commonplace, security it becoming a top priority for businesses looking to evade threats. While the internet is more prone to security risks than landlines, VoIP services can be just as secure as legacy systems, as long as you choose a provider with adequate security measures.
For instance, most VoIP provider deploy a number of security mechanisms such as multi-factor authentication, user-permissions, and call encryption. If you're looking to go the extra mile, we'd recommend providers like Google Voice and 8×8, as they offer advanced safeguards like strict password rules and compliance certifications. By choosing a secure provider, you're able to reap the benefits of VoIP systems while having complete peace of mind.
Check out our full guide to VoIP security to learn more.
How to Choose a VoIP Provider For Your Business
If you're looking to sample the advantages of VoIP yourself, there's an abundance of quality providers to choose from. However, here are some considerations to make before you commit to a service:
- What is my budget? VoIP systems are much more affordable than legacy systems, but some are more cost-effective than others. Before moving forwards with a solution, make sure it compliments your businesses budget. Don't just consider monthly prices too. Look out for hidden costs, start-up fees and installation costs, to get a complete overview of how much it could cost your businesses.
- How large is my team? Different VoIP plans will have different user limits. So, you'll will need to select plans conducive to the size of your business. What's more, if your team is likely to expand over time, we also recommended opting for scalable packages and those with strong onboarding and training features.
- What VoIP capabilities do I need? While most VoIP providers offer similar capabilities, feature sets will vary with each system. For instance, while some may prioritize in-bound communication features like call queue and ring groups, others may offer stronger collaboration tools. Work backwards by establishing what features your business require before choose a provider that reflects these needs.
- Do I require hardware? VoIP softphones won't suffice for all businesses. If your business handles large call volumes and requires superior call quality, it may be a better idea to opt for one of the best VoIP hard phones. For remaining businesses – especially those with flexible policies – VoIP softphone apps will likely be a better fit.