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12 Benefits of VoIP for Small Businesses
The technology small businesses depend on can be the determining factor between extraordinary growth and utter unproductivity. Even within a category as commonplace as phone systems, the possibilities prevail.
Since the arrival of the first commercial VoIP (Voice over Internet Protocol) phone system in 1995, businesses have been gradually migrating from standard, landline-based phone systems to state-of-the-art, internet-based solutions.
A widely held misconception is that sophisticated communications technologies such as VoIP are only advantageous to large-scale businesses. In fact, small businesses – startups, in particular – can benefit tremendously from the increased freedom, adaptability, and cost reduction that an internet phone service can provide.
What is motivating more and more companies to pull the plug on their traditional phone systems and link up with VoIP? More importantly, is it the right course of action for your organization? Let’s dive in a bit deeper and find out!
What is VoIP & How Does It Work?
VoIP, short for Voice over Internet Protocol, allows users to make and receive phone calls using a broadband internet connection instead of a conventional or analog phone line. VoIP may not appear any different to its users than a standard analog system, but the way voices are transmitted to the person on the other side of the phone is totally different.
In traditional telephony, sound gets converted into electrical signals. These signals then get funneled through a network of phone lines. With VoIP, audio gets transformed into digital packets of information. Those data packets then get conveyed via the internet, where the signal is decoded on the other side and changed back into a voice.
This enables you to make and receive voice calls, instant messages, or video calls directly from a computer, a VoIP phone, or any other data-driven device.
Key Benefits of VoIP for Small Businesses
Small business owners are nothing if not ambitious. Executives of companies all shapes and sizes are seeking to boost customer ratings, trigger more leads and sales, increase profits, and make sure that clients have a favorable impression of their brand. VoIP provides numerous benefits that support these chief objectives:
1) Excellent Call Quality
Early VoIP technology was infamous for its weak call quality, frequently dropped calls, and lots of lag. Today, VoIP phone services have evolved in such a way that the person you’re calling, or the person calling you, can’t discern whether you’re using a VoIP or a traditional landline phone.
As long as you have a fast internet connection with sufficient bandwidth, you can expect VoIP voice and video calls to be crisp and crystal-clear, with no latency issues and no dropped calls. These days, VoIP calls are able to match or surpass the quality of traditional landline networks, even over long distances.
2) Multifunctionality
Along with making and receiving calls, modern VoIP systems also integrate a variety of other communication services such as instant messaging, teleconferencing, video conferencing, file sharing, screen sharing, voicemail, and faxes via email.
The call forwarding feature ensures that whenever a call comes in, it can be patched through to the appropriate person who is best able to handle it – even if that person is outside of the office. With VoIP, a call received on an office phone can be routed to an employee’s smartphone or other mobile device in the field.
Since calls can be directed to anyone, anywhere, at any time, customers and colleagues never have to resort to calling a separate number to get in touch with the desired party. VoIP users can set their status so coworkers know whether or not they’re available to take calls.
With traditional landline phone systems, a business has an allotted number of lines available to receive any incoming calls. When all lines are in use and a call comes in, the customer, colleague, or vendor gets a busy signal. Needless to say, this can be frustrating.
Since VoIP phone systems aren’t tied to a physical phone line, the business has an unlimited number of lines at their disposal. In short, callers will never get a busy signal and their phones will always be directed to a real, live person.
VoIP technology also equips users to review call logs and analyze metrics to better understand how customers are interacting with the business. Useful data such as call volume, average call-answer time, length of calls, behavioral trends, and performance of customer service agents can be collected and analyzed to identify any relevant patterns.
3) Flexibility
Conventional phone services impose certain constraints on employees. Businesses don’t always adhere to a 9-to-5 schedule in the office. As well, traditional phones typically link a single phone number to a specific telephone. Employees who are working from home, traveling, or meeting with customers can’t easily access their business phone numbers.
With a VoIP phone system, location is irrelevant. As long as employees have access to the internet and a computer or mobile device, they can call, text, and fax from their business numbers effortlessly. Once they’ve downloaded the app or logged in to the VoIP service provider’s web portal, workers can begin making and receiving calls and faxes on their business phone numbers from anywhere.
When teams have the capacity to work in a flexible and cooperative environment and perform their duties successfully from wherever they are, it leads to greater productivity and business performance.
4) Security
VoIP technology is a significantly more secure channel of communication when compared with traditional analog and landline phone systems. Systematic encryption protocols offer end-to-end encryption and fend off any unwelcome data breaches – something you can’t count on with a traditional landline connection.
Phone system security is a major concern for businesses – especially smaller enterprises – as demand for personally identifiable information (PII) has never been greater. Most VoIP service providers employ dedicated professionals to track the platform’s security and validate that all security updates are installed without delay to keep confidential information and customer data protected.
Remote work can pose additional security concerns for businesses. Ensuring that data stays secure, even as employees access that data from a distance and from a number of different devices, can be challenging. VoIP phone services can help alleviate these concerns, at least as it pertains to telecommunications, since providers routinely perform robust security practices.
5) Accessibility
As previously mentioned, VoIP phone systems allow you to make and receive calls from a myriad of devices, including smartphones, as long as you have internet access. This is incredibly beneficial for today’s scattered workforce, as it affords employers a larger talent pool while continuing to minimize overhead.
While the number of remote workers has skyrocketed in the U.S. in recent years, small businesses aren’t always able to make use of this model – procuring additional equipment for home offices and extra phone expenses simply render it impossible.
VoIP technology clears the way for smooth, efficient telecommuting, enabling employees to touch base and collaborate with colleagues, employers, and clients in a variety of practical ways. Remote workers don’t have to resort to using their personal cell phones and phone numbers to make business calls. Instead, they can use the VoIP numbers exclusively assigned to each worker, in conjunction with your business’s intranet, to make calls from your organization, regardless of where they happen to be located.
6) Automated Assistance
Not all small businesses can manage hiring a dedicated employee to field incoming phone calls. An automated assistance (or auto-attendant) feature – built into many VoIP systems – can be programmed to answer simple, frequently asked questions such as locations, regular and holiday operating hours, and other important announcements.
In essence, the auto-attendant feature acts as a virtual receptionist and primary point of contact, escalating and routing incoming calls to the appropriate parties. This helps streamline the customer service experience for both employees and clients.
7) Call Recording Service
VoIP phone systems are capable of recording incoming and outgoing phone and video calls. This is beneficial for a number of reasons. Not only are you and your colleagues able to play back important calls to guarantee that critical messages aren’t missed, you can also archive them for future reference.
In addition, many industries such as healthcare and finance are also subject to compliance constraints, meaning that calls are required to be recorded and maintained. You can use recordings to train new employees, set loftier standards for customer service, and make sure that representatives are measuring up to these standards.
Recorded calls might also come in handy in the event that a customer lodges a complaint against a staff member, or if a customer should mistreat one of your employees.
8) Increased Productivity
Have you ever played “phone tag” with a client, coworker, or vendor? You know the drill: you call them, get their voicemail, they call you back, get your voicemail, and ultimately nothing gets done. This leads to frustration for all parties involved, missed sales opportunities, and can even hamper your organization’s ability to grow.
With VoIP, you can configure phone numbers to ring on multiple devices before forwarding to a voicemail, which helps resolve the phone tag problem and can greatly improve productivity.
By merging team and customer communications into a singular interface, VoIP helps simplify workflows by cutting down on delays and errors. When everybody is on the same page, effective communication is easier to achieve across the board.
9) Cost Effectiveness
Many providers offer unlimited local calls; however, making long-distance calls is also cheaper with VoIP than with traditional telephony. Since VoIP virtual phone numbers aren’t bound to a physical landline phone, your customers and colleagues can call you at the local rate instead of the higher international rate. Your virtual phone number will appear to be within the recipient’s local exchange, even though it isn’t.
When using a VoIP service provider, calls between PCs are essentially free. While calls from PCs to landlines can incur charges, the rates are considerably less expensive when compared to conventional landlines or cell phones.
Teleconferencing and video-conferencing make it unnecessary for employees in the field to return to the office to attend a meeting or address important matters with colleagues. This, in turn, conserves your budget by eliminating unnecessary travel expenses, whether by company car or plane.
With an ever-increasing number of exclusively remote employees, teleconferencing and video-conferencing are able to further reduce costs related to recruiting, retraining, and office space.
Preparing and installing traditional phone lines within a facility can be a costly undertaking, whereas setting up and managing a VoIP system is substantially cheaper. A cloud-based VoIP phone service involves a meager upfront investment in terms of network infrastructure, hardware, and equipment.
Since VoIP subscription fees typically encompass continuing maintenance and any software upgrades, you won’t need to hire additional IT staff to keep your communications system up and running. Your VoIP vendor will automatically install updates and patches to assure that you have access to the latest features.
10) Simplicity
Compared with traditional phone lines, which can be difficult to implement and maintain, VoIP systems are fairly simple to install, configure, and support – even for individuals who aren’t especially tech-savvy.
Certain VoIP software solutions and web browser options can make managing the system even more hassle-free, specifically when adding new users. Web portals make adding, shifting, and modifying systems configurations easier and more accessible.
Nowadays, people have become accustomed to using digital, web-based products that they can try out and master quickly. Since VoIP systems utilize modern software and user-friendly interfaces, managers can train on these systems much more quickly than they could with manual setups. Eliminating the need for physical phones and ongoing maintenance allows managers to focus on developing their teams, rather than addressing troubleshooting questions from bewildered employees.
With no physical hardware required or telephone cables to install, your whole office can be fully operational with VoIP phone services in 24 hours or less. In doing so, your team can freely communicate via physical SIP phones (in other words, you can use your IP network to make calls instead of over telephone lines) or with any device, including smartphones, laptops, and tablets, by downloading the app of the VoIP service provider.
11) Scalability
With conventional landline systems, it’s difficult to determine how many phone lines you’re going to need – particularly when you’re still growing as an organization. When you add more personnel, additional offices, or create new departments, you’re going to need to ensure that your communications system is continuously up to date.
VoIP systems are designed to conveniently scale up or scale down to meet your specific needs. You simply add a new line whenever you add a new staff member. When an employee leaves the company or transfers, it’s just as easy to reassign the existing line or remove it entirely. Adding or removing a number within a VoIP phone system requires little more than a few clicks of the mouse.
There are certain businesses whose products or services are often consumed only during specific periods during the year, such as tax preparation services, call centers, specialty holiday retailers, and florists. While phones are relatively quiet most of the year, when business picks up it can get very busy. This is why many of these companies plan in advance by getting extra phone capacity in the event that it’s needed. While being prepared is important, paying for extra phones that would otherwise be idle most of the year is not a wise investment.
A cloud-based VoIP phone system allows these seasonal businesses to add more lines during peak season to accommodate the increased demand, and return back to normal service during the off-season. Since the business is able to customize its service package as needed, they only have to pay for the bandwidth they need and use – and nothing more. This helps organizations better control expenses and, ultimately, improve their profit margins.
12) Competitive Advantage
It’s no secret that huge corporations dominate the market in many fields these days. In order for small-to-medium-size businesses to compete effectively with larger, more high-profile organizations, they must be able to do whatever it takes to stand out in a crowded field. Simply coming across as being a “big fish in a small pond” can make all the difference to your bottom line. One major way to gain an advantage is by leveraging cutting-edge technological advances, such as VoIP systems.
With voice over IP, your small business can connect with prospective clients at little to no financial cost to the company, communicate with colleagues and clients over long distances, and project an air of professionalism in the way you present yourself. A warm welcome greeting with department selections, call forwarding, and voicemail-to-email features can not only help simplify inbound inquiries but also create the appearance of being a larger, more established organization than you currently are.
When smaller businesses can enjoy the same features and benefits of an enterprise-level phone system in an economical package, they are better positioned to succeed in today’s market climate.
Conclusion
While it’s clear that businesses of all shapes and sizes can reap the benefits that VoIP has to offer, small businesses can enjoy some of the biggest advantages relative to the size of their enterprise.
The IT professionals at DataGroup Technologies, Inc. (DTI) are well-versed in VoIP technology, and are fully equipped to set up your business– regardless of its size – with a state-of-the-art, cloud-based VoIP phone system that will advance your technological capabilities like never before! Give us a call today at 252.329.1382 to schedule a consultation with our VoIP experts!
