What is a Business VoIP Phone System?

What is a Business VoIP Phone System?

• OnMay 31, 2022
• Filed underLearning

Business VoIP phone systems are becoming a popular go-to solution for small businesses. VoIP technologyaddresses yourbusiness's communication needsand gives you an advantage over your competitors.

VoIP was once an alternative to the tried and tested but costly and outdated on-premise phone systems. Today, it is a dependable communication solution for every business, no matter the size. Whether it's a budding business with several employees or a large organization with an internal call center, the advantages of VoIP phone systems are unmatched.

But what is a business VoIP phone system, and how is it a better solution for the modern workplace than traditional phone systems? Read on to find out.

What is a Business VoIP Phone System?

A business VoIP(Voice over Internet Protocol) phone system is a technology that allows users to make and receive calls over the internet instead of the regular phone lines. It converts voice into digital signals and then sends it over the internet. The signal is then converted back into sound on the recipient side, which you hear through the speaker.

VoIP eliminates the need for copper wires and expensive hardware. You only need a VoIP-enabled device and a stable internet connection to make calls. Consequently, employees can work and collaborate remotely, and you can manage your business on the go.

How Does a VoIP Phone System Work?

The VoIP system converts your voice into data packets transmitted to your business phone provider over the internet when you make a call. The service provider then routes the voice data packets to the recipient. The process happens in a split second, and call quality rivals traditional phone calls.

A typical VoIP setup involves a SIP service (which is the VoIP service provider), a VoIP-enabled phone, and broadband internet. Since the system runs on the internet, your data is hosted on the cloud. Thus, there's no need for space-consuming on-premise storage systems. An online dashboard helps you manage your VoIP system. You can manage contacts, track calls, add extensions, etc.

Related:VoIP-Based Office Telephone Systems: Pros and Cons

Traditional PBX Systems

Traditional PBX systems are conventional landline phones and work differently from VoIP systems.

Landline telephones use the circuit switching method to connect calls. They send signals from one phone to another through a series of connected physical switch boxes via copper wires.

ThePublic Switched Telephone Network (PSTN)has been used for more than 100 years and has remained unchanged. Calls are fast and reliable, but the system is not the most efficient. Additionally, maintenance can be expensive and time-consuming.

Advantages of VoIP Over Traditional Business Phone Systems

Reduce Phone Costs

Cost savings is one of the significant advantages of switching to VoIP. With a traditional phone system, phone expenses are substantial. From the initial setup costs to buying the required hardware, monthly phone bills, and per-line expenses, these expenses soon add up to a large amount.

Plus, you'll require regular maintenance. Also, if you want to add advanced features like call queuing or if the system breaks, you'll need to hire an IT expert to handle it. With a VoIP system, you only pay for your subscription. You don't need to buy additional hardware, and the system is hosted in the cloud.

VoIP is cost-effective, and businesses can add new lines without hardware upgrades.

Improve Portability and Flexibility

VoIP affords you the flexibility that a traditional system cannot. Because calls are connected through the internet, you can make and receive calls from anywhere as long as you have a stable internet connection. You don't need to be in the office or sitting at your desk to receive calls. Unlike landlines that are 'glued' to your desk, you can take calls while traveling domestically and internationally.

Enjoy Excellent Call Quality

Increased internet speeds and advances inIP telephonyhave helped improve the quality of VoIP calls. Gone are the days of dropped calls and weak signals. With decently-fast internet, you'll enjoy excellent call quality. Plus, VoIP doesn't require a lot of bandwidth. At least 500kbps upload speed and less than 70ms ping are enough for quality calls.

However, your bandwidth depends on your call volume and the number of workers making concurrent calls. If they are high, consider increasing your bandwidth for a better connection.

Monitor Your Business With Caller Insight Analytics

Customers call your business with different queries and issues. Tracking these calls can help you identify what your customers want and how to structure your services accordingly.

Business VoIP phone systems come with features that enable you totrack specific metrics. With these insights, you can monitor your business, keep up with changes in your industry, improve your services, make better decisions, and grow your business.

Other ways these insights can help you grow your business include:

• Identify which keywords are leading to more conversions
• Know how your marketing campaigns/ads are performing
• Detect issues that are affecting conversion rates
• Inform decisions for scheduling ads
• Identify demographics to target

Improve the Productivity of Your Remote Team

Geographical limitations can harm your business if teams don't find an effective way to communicate. With a VoIP phone system, remote teams can collaborate efficiently with each other and the office. Employees in different regions and offices will have an easy time with team projects regardless of location.

VoIP provides you with all the tools you need at a fraction of the cost. It makes remote working effortless and a normal part of the business, whether you want to send quick texts or hold video conference meetings.

Related:The Top 10 Benefits of an Internet Business Phone System

Enjoy Advanced Phone System Features

A business VoIP system comes with many advanced features to ensure you get the most out of your phone system.

These features include:

• Video conferencing
• Live receptionist
• Auto-attendant
• Call transfer
• Call forwarding
• Hold music
• Voicemail to email
• Call waiting, etc

Create a Big First Impression

First impressions matter when customers call you. Will they receive a welcome message? What about hold music as they wait to be transferred to the correct department? Whether a startup or a large company, a VoIP phone system will make your business appear like a large organization. You'll seem more professional and established.

SIP Trunking for PBX Phone Systems

Sometimes, the cost of replacing traditional hardware in all the offices can make a company prefer a hybrid phone system. If you already have your PBX and want the scalability and flexibility of a cloud system,SIP trunkingcan be your solution. It is a hybrid system that allows you to eliminate redundancy.

SIP trunks receive calls from the VoIP provider and are funneled into PBX hardware on the premises. They act as an intermediary between your PBX phone system and the service provider, allowing you to upgrade your PBX to an internet-powered system.

Can I Use My Existing Phone With VoIP?

Is your existing phone internet-enabled?

If yes, then you can use it. You can use different devices with VoIP, such as computers, tablets, smartphones, andVoIP phones, as long as they can connect to the internet. If your phone is analog, you'll need a VoIP telephone adapter supported by your phone service. However, it's more desirable to use a VoIP phone as it's designed.

Streamline Your Communication With a Business VoIP Phone System

A VoIP phone system's portability and cost-saving advantages are worth investing in for businesses of any size. You also access a wide range of advanced features that traditional approaches don't offer.

Partnering with a reliable provider ensures a pleasant experience and a dependable setup.

Phone.comoffers an enterprise phone system without the cost and complexity. No more using a personal phone number for business or implementation headaches. With more than 50 standard features, you can streamline your business communication.Choose a packageand take your business to the next level in just minutes.