Voice calls are the foundation of any size business and communication is the lifeblood of daily operations of the organization.
You might have questioned the reliability of VoIP in companies. Or you have heard that VoIP tech is not secure and you had better maintain traditional landline telephones. The fact is that, even the majority of traditional landline telephone companies already incorporate the VoIP technology within their system to power their own phone service.
This technology might seem weird to you, and all the information that you have looked for on the internet may be confusing.
To ensure that you make the best out of VoIP, we have prepared this detailed guide to VoIP. Are you new to technology? Then do not fear. This guide will explain VoIP and why it is the best phone system your business needs.
What is VoIP?
Voice over Internet Protocol, VoIP, is the capability to place voice calls over the Internet rather than the copper landline telephone network. VoIP basically breaks down the voice signal into data packets which are then sent across the Internet network until they reach the intended recipient where they are once again changed back into voice signals.
This method has various benefits as compared to the traditional telephony system one of them being enhanced business connectivity.
VoIP is a rapidly growing and popular technology as many telephone companies all over the world have shifted their network to VoIP in recent years. Find out how businesses are using VoIP by clicking here.
How do VoIP business phones work?
VoIP technology encodes your voice into digital signals and divides it into smaller chunks (packets) and send them through the Internet.
When used with a business phone, here is how it works:
Step 1. Voice to Digital:
Making a call through a hosted VoIP system converts your voice to a digital signal when you make a call.
Step 2. Compression and Packet Generation:
The digital signal is subsequently compressed to take lesser size so that it can be transmitted easily. The compressed data is divided into small packets of information.
Step 3. Internet Transmission:
These packets are then transmitted across the Internet to the phone of the recipient after the signal has been bifurcated. This is where the data packets are combined again and decoded into analog voice signal.
Step 4. Voice Output:
The voice signal is decoded and played through the phone of the recipient.
Benefits of VoIP
VoIP advantages are more than basic voice connectivity. Some of their greatest advantages include cost-efficiency, scalability and flexibility, advanced features, mobility, and integration with other business software.
- Cost-effectiveness:
VoIP calls are generally cheaper than traditional phone calls, in long distance and international calls. They provide a cheap and easy way of communication by using the available Internet infrastructure rather than traditional telephone lines.
- Scalability and flexibility:
VoIP enables companies to expand or contract telephone lines in response to their dynamic needs with great ease. Moreover, the functions and features of the VoIP system are easy to adapt and scale to the business’s needs.
- Advanced features:
VoIP systems have extensive advanced features including voicemail, caller ID, conference calls, call transfer and IVR (Interactive Voice Response) that are typically not present or are offered at an upgraded fee in a traditional telephone system.
- Mobility:
VoIP enables its users to make as well as receive calls in any place that there is Internet connectivity be it through an IP phone, a computer, or even a mobile phone. It offers more flexibility and mobility to the remote workers or mobile workers.
- Connection with other applications:
Integration with other applications: VoIP systems may be easily incorporated with other business applications, including customer management systems (CRM), email, instant messaging, and collaboration, which enables the smoother and more effective VoIP communication.
Business features of VoIP
VoIP business features can be different, depending on a service provider and requirements of a particular company.
Nevertheless, the VoIP systems have some standard qualities that can be used in businesses, which include:
- Voice calls
VoIP allows voice communications over Internet with the protocols like SIP (Session Initiation Protocol) or H.323. These calls may be local calls, national calls or international calls and they are usually cheaper than the traditional calls.
- Video conferencing
VoIP systems usually come with an option of video conferencing and virtual meetings which means that employees can have face-to-face conversation irrespective of their location geographically. It promotes team work and communication within the distributed teams.
- Instant messaging
Certain VoIP applications integrate instant messaging application, which enables users to exchange text messages, share files and work collaboratively in real-time, during phone calls and video meetings.
- Voicemail
Voicemail services are usually incorporated in a VoIP system, thus users can access and handle voicemail messages via email or web interface. This makes it easier to manage messages and users never miss any vital communication.
- Caller ID
Caller ID is common with VoIP systems, where details of the caller, in terms of phone number or name appear on the screen of the recipient before they pick up the call. It assists the users in recognizing as well as prioritizing an incoming call.
- Call transfer
VoIP also enables users to easily redirect call to another user or department without dropping the communication. It will help in directing the calls to the appropriate person and ensure that the customers are attended to in the most effective manner.
- Interactive Voice Response (IVR)
VoIP systems can have custom IVR systems that can direct the caller through a series of options by voice command or by pressing keypad buttons. It enables automatic performance of daily functions and enhances performance.
- Business application integration
VoIP is integrated into other business applications including customer relationship management (CRM), email, and calendars. It enables users to get related information over the calls and improve productivity.
- Call recording
Certain VoIP systems can be used to record calls, either by training or regulation compliance and quality analysis. It serves as a useful guide in revising and enhancing communication with the customers and other employees.
- Scalability and flexibility
VoIP systems are very scalable and they adjust to growth of business promptly. Network administrators can also insert or delete lines and features when required without doing expensive modifications to the physical infrastructure.
- Security
Advanced VoIP security can be integrated into VoIP systems in order to secure business communications. It can comprise end to end encryption to secure the privacy of the calls, firewall to guard against unauthorized access into the network, user authentication so that only the authorized personnel can access the system, and fraud detection so as to prevent the hacker attacks.
- Unified Communications (UC)
VoIP systems may be part of unified communications solutions, whereby various communication tools are integrated into a centralized system. In addition to voice calls, video conferencing, and instant messaging, UC solutions may also include email, document collaboration, shared calendars, and project management tools. These solutions present integrated and inclusive communication experience to the employees which enhances productivity and cooperation within the company.
What does VoIP Cost?
As our researchers discovered, a hosted VoIP system will generally cost between 10 and 30 dollars per user, per month. You could also put in place an on-premises system that would normally cost you a onetime price of approximately 10,000 dollars. The hardware such as VoIP handsets or headsets could also be rented or owned.
Depending on the features, security and speed of the system in some cases the per user, per month expense may exceed 30 dollars.
How to understand You Require a VoIP Business Phone?
VoIP systems are extremely sophisticated technology to simplify communication. It equally has a lot of advantages when it comes to cost saving, efficiency, and productivity.
But does your company require it? The following assessment points will help you to know, if your business requires VoIP phone system:
- Business Size and Requirement
The initial stage of deciding what your company requires a VoIP phone is determining your requirements. Begin by reviewing your work volume, group capacity and prospective expansion requirements.
VoIP phones can be effective in case you deal with a distributed workforce or have to manage numerous locations or just require a unified platform where remote teams can interact. Unified connectivity and communicate across multiple devices and places.
VoIP offers small businesses an inexpensive low-level plan and larger organizations the opportunity to use the advanced features and capacity to accommodate more complex communication requirements.
- Budget Constraints
VoIP is the perfect solution in case you want to manage the communication expenses. The traditional phone systems are not only expensive to set up but also require continued maintenance as well as long-distance charges, which in some cases are prohibited.
VoIP systems on the other hand, require less initial capital outlay, have low hardware needs and subscription rates are competitive. They also incorporate features that are believed to be premium with conventional systems.
Therefore, in case you have a limited budget but require flexibility and quality communication a VoIP system may suit you.
- IT Systems and Skills
VoIP business phones need a working Internet connection and some amount of IT infrastructure to maintain the quality of calls. Provided that your company is already well-equipped with the Internet infrastructure and the possibility of getting the basic IT support, the integration of VoIP is typically uncomplicated. Also, the majority of VoIP providers include customer service to resolve technical problems.
But, when you have limited IT resources or an undependable Internet connection you may have to evaluate the need to invest further in order to support a VoIP solution.
- Required Features and Functionalities
When you require more features to improve and serve customers better, VoIP provides an all-in-one platform that ordinary phones lack.
The systems also come loaded with features such as intelligent IVR, voicemail to email, high definition video conferencing, CRM/ERP integrations among others.
Evaluating your communication needs, e.g., the necessity to improve collaboration within your team immensely, attend to customers more efficiently, or answer the phone more properly, can assist you in deciding whether the functionality of a VoIP office phone system corresponds to your expectations.
- Scalability Requirements
VoIP systems could cater to your business better than a traditional phone system because of their scalability, in case you have seasonal changes in demand or expect your business to grow.
VoIP phones, however, allow easy addition or removal of lines.
The agility that this brings is that you can now scale your communications architecture in real time and only pay for the capacity you need at any given point in time.
Final Thoughts
VoIP has ceased to be a technological improvement, but it is now a business requirement. It is less expensive, more flexible, and loaded with modern features to make you grow and remain competitive.
VoIP is a good starting point in case you are willing to enhance the communication methods of your business. When the right provider and tools are in place switching is easy and the results can be immediate.
FAQs
Q1. Why is VoIP better than traditional phone lines?
Some of the advantages of using VoIP include the reduced cost, the added features (video calls, video conferences), the capability to work anywhere as long as he/she has Internet access and can work with other communication systems.
Q2. What do I need to use VoIP?
In order to use VoIP, you must have a compatible device like an IP phone, a soft phone on your computer or an application on your smartphone. You should also have a good Internet connection.
Q3. What are the types of business phone systems?
On-premise and cloud-based are the two main categories of business phone systems, with cloud-based being the most popular one. The most common types of cloud phones include: VoIP, SIP Trunking, and Hosted PBX.
Q4. Can we make international calls using VoIP?
VoIP is the most preferred way of making international calls as it is less expensive as compared to the use of the traditional phone.
Q5. What is the way a business phone system works?
A business phone system operates through enabling VoIP communication which divides voice audio into small pieces of data that are transmitted to a destination through the Internet, where they recombine.
