10 Compelling Benefits of a VoIP Phone System
Updated: Apr 12, 2020
What is VoIP?
VoIP (Voice over Internet Protocol) provides phone service over the internet. VoIP is also referred to as Hosted VoIP, Business VoIP, Cloud Phone System, and an assortment of different terms with similar meanings. With continual technological advantages in today’s Internet-driven society, VoIP phone systems are in high demand. A VoIP phone system is powered by dedicated fiber or a broadband internet connection; therefore, it does not rely on traditional copper phone lines. A VoIP or cloud phone provider handles all of the hardware and services remotely in geographically distributed locations or data centers. In previous years, system upgrades to your hardware was costly, but with a VoIP System all upgrades occur automatically.
How does VoIP work?
Remember dial up internet? Me too. VoIP was first introduced when internet speeds and bandwidth were low. And guess what? It didn't work that well. The proliferation of VoIP really began when Internet Service Providers started offering low-cost, high-speed internet that it requires to operate reliably.
VoIP works by taking your analog voice signal and converting it to a digital voice signal. It then compresses it and off it goes on your high-speed internet connection. Your VoIP provider receives this voice signal and is able to connect it to other telephone networks such as the PSTN (Public Switch Telephone Network).
Users will acquire more functionality, features, and dependability when shifting to a VoIP phone system. We’ve collected the biggest advantages of a VoIP phone system and formulated it into an easy to read list.
Advantages of a VoIP Phone System
1. Cost-effective
VoIP phone systems use your existing internet connection to make phone calls. Therefore, the days where you need multiple phone lines are over! In today’s ever-changing economy and global market, switching to a VoIP phone system will prove to be cost-effective for your business. With VoIP, your main costs are your monthly charges from your ISP and licensing fees with your cloud phone provider. Making a call over traditional phone lines can be very expensive. By switching to a VoIP phone system, you are using the internet to relay call data which makes a long-distance call cheaper overall. Traditional phone lines charge for each minute of call time, therefore switching to a VoIP phone system will instantly save your business money.
With VoIP, your cloud phone provider should be maintaining all software and hardware upgrades within their infrastructure. Upgrades to a traditional phone system may involve additional fees and could even require a change in hardware which results in a much bigger spend every time you need a new feature or want to be current on your system release.
If you’re coming from an existing VoIP system, you can save money by reusing your existing phones and moving your service to a new provider.
2. Features
VoIP systems offer an extensive number of features that can improve operational proficiency. For example, voicemails can be forwarded to emails or text, the use of a mobile app, instant messaging and more. For those customers who prefer texting over making a phone call, a VoIP phone system has them covered. By sending notifications to customers via business SMS, you have the ability to keep up with your busy life, while managing your business as well. VoIP phone systems allow for an option to use mobile apps and softphones to transfer calls and check voicemails. Therefore, a desk phone becomes less valuable during your busy day, but does not negatively interfere with the needs of your customers by not using one.
Advanced features like call recording, advanced statistics, reporting, conference services, video conferencing, instant message, and real-time call center monitoring, are available with traditional telephone services, but can be cost prohibitive especially for small businesses.
Using a VoIP phone system provides the most advanced features on the device of your choice.