Business communication can be quite expensive. According to Vonage, a basic landline phone system stripped of its installation and maintenance fees can cost $10 – $40 per line. With installation and maintenance included, this figure quickly jumps to over $4,500. Not to mention, a single, local phone call costs 2.5 – 10 cents per minute while international calls can easily soar above $1.40 per minute.
With these exorbitant rates, it’s clear why businesses turn to VoIP (voice over internet protocol) solutions. Not only are VoIP systems significantly cheaper, but also convenient as they tap into the power of broadband internet for local and international business communication. In this article, we highlighted five benefits of a VoIP system in elevating business communication and collaboration.
Key Takeaways
- VoIP systems offer a comprehensive suite of office communication tools equipped with computers, cable modems, phone adapters, an internet connection, and a cloud dashboard that stores important contacts and conversations.
- From a strategic business perspective, VoIP systems offer greater scalability unbound by the geographical limitations of a traditional landline. VoIP phone systems are far safer; information is sent over the internet in encrypted data packets, rather than through the public switched telephone network, which is not encrypted.
- Unlike landline phone systems that heavily depend on desk telephones for communication, VoIP systems can be used with desk phones, desktop and laptop computers, and smartphones. As such, VoIP systems can deliver a comprehensive communication solution for business use cases.
Benefits of VoIP
The wide-scale adoption of VoIP systems owes its popularity to several positive attributes and impact on business operations. These include:
1. Cost Savings Opportunities and Good Value for Money
Since VoIP systems use the internet to make and receive calls, businesses can see long-term cost savings made possible by lower rates for domestic and international calls. To start with, VoIP systems don’t inherently demand investments in new hardware; instead, you can use existing internet-capable devices to get started.
Should you opt for a complete on-premise VoIP system, your new setup would include:
- A high-speed internet package
- VoIP headsets
- IP phones
- VoIP router
- Softphones
Hosted VoIP solutions offer much more savings opportunities compared to an on-premise VoIP system. A hosted VoIP system is set up and managed by your IT support company in Boston, hence minimal up-front hardware costs (if any). Your provider also assumes maintenance and support costs, meaning less hassle for your in-house team.
In contrast, traditional landlines have only seen a rise in charges and taxes, while providers hike their fees. The cost of infrastructure and maintenance can swell over time, and with no additional features, this traditional setup becomes unattractive for business use.
Thankfully, switching providers doesn’t add significantly to your expenses; many VoIP providers allow users to port their existing phone numbers and carve out unnecessary expenses in new toll-free phone numbers.
2. VoIP Solutions Are Essential for Growth and Scalability
Your growing business will experience growing communication needs. So, then, the question becomes how to address these needs without breaking the bank. Traditional phone systems no longer meet these needs, more so if your business is constantly tested by fluctuating communication needs.
With a VoIP solution, you can easily add or reduce your phone lines to deliver better customer service between peak and off-peak seasons. Adapting to such fluctuations becomes easier with a software-based VoIP system that integrates with internet-capable devices (desktop computers, laptops, smartphones, and tablets).
Besides, VoIP systems integrate seamlessly with other communication tools, such as video conferencing and instant messaging apps, into a unified communication platform that cuts costs and improves efficiency. For these reasons, VoIP solutions see wide-scale adoption across, small and medium-sized businesses to large enterprises.
3. Streamlined Communication and Enhanced Collaboration with Remote Teams
If there’s one valuable lesson that small businesses drew from the great reset, it’s that the remote work culture is here to stay. Virtual offices are here to stay, and equipping your remote staff with the right communication tools is essential to success. Setting up a VoIP system for communicating with overseas teams and clients streamlines cross-border collaboration, unhindered by geological obstacles.
We’re more connected than ever, and that means extending the same in-house communication capabilities to your remote team players. If your clients are located across different states or outside the US, leveraging VoIP technology allows you to route important calls and messages to the recipient’s location and time zone without spending a fortune. Thankfully, setting up your VoIP system only takes a couple of minutes.
4. VoIP Provides Access to a Broad Selection of Tools in One Compact Solution
Customer reach via popular marketing channels is essential for building customer partnerships. In support of these objectives, VoIP brings an essential arsenal of tools that can streamline communication even further. These include:
- Call holding and queuing for priority support calls.
- Call flipping, allowing lower-level support to escalate technical issues to the right higher-level personnel.
- Video conferencing for multimedia communication with remote teams and clients.
- Livechat, enabling quick response to stubborn IT issues.
- Custom integrations with popular CRM and analytics tools.
An Interactive Voice Response aids in call transfers, so you don’t have to overload your support team with reception duties. The centralized management of communication channels provided by VoIP simplifies administration and reduces the complexity of maintaining separate systems. Combined, these features add to a positive customer experience.
5. VoIP Systems Help Ensure Business Continuity
A disoriented communication system is the last thing anyone wants in a disaster. VoIP solutions often feature a selection of business continuity features on multiple levels. Because it’s powered by the internet, employees can stay connected to the VoIP phone system from anywhere, ensuring continuous communication even during a disaster.
And because cloud VoIP systems (or hosted VoIP systems) are developed and distributed by experienced providers, many often feature built-in disaster recovery features that allow for quick and easy restoration of communication services, contacts, and conversations in the event of natural disasters or system failures. In essence, VoIP systems are more reliable than traditional phone systems and are preferred for business continuity applications.
The Downsides of VoIP
While Voice over Internet Protocol phone solutions prove far more cost-effective and efficient compared to their landline counterparts, there are several disadvantages associated with using the internet for calling:
- VoIP systems are, unfortunately, vulnerable to security challenges on multiple fronts. Call interception and voice phishing are examples of security challenges you need to brace for when switching to a VoIP system. Fortunately, reliable providers offer high-level end-to-end encryption for their service. Get in touch with your provider to evaluate their implemented security features.
- A shaky internet connection will render important conversations unintelligible. Worse, no internet renders VoIP systems unusable. In cases where poor internet dominates the area, a traditional phone system is your best pick.
Regardless, the thought of maintaining two separate phone systems for a small business may be impractical, considering the costs involved.
Conclusion
VoIP’s benefits in cost savings, streamlined communication, and enhanced business flexibility render the technology a worthy solution for your strategic business needs. Not sure where to begin? Get your free consultation and start reaping the benefits for your business today!
Frequently Asked Questions
How does VoIP technology impact network security and data privacy for business communication?
VoIP technology, like every other technology, can be prone to network security issues, from call vishing to Denial-Of-Service (DoS) attacks that bring the network grinding to a halt. Proper cybersecurity awareness training must be provided to all users of the network; implementing firewalls, encryption, and regular security updates can further fortify your security strategy, protect your sensitive information, and uphold the integrity of your network.
Can VoIP systems integrate with existing business software and applications?
VoIP systems can integrate with existing business software and applications. Frequently used SaaS applications and CRM tools can be integrated seamlessly with VoIP technology, providing a more efficient and cohesive experience for your remote teams and customers.
What kind of training and support is typically required for employees to transition to VoIP communication?
Comprehensive training and ongoing support are required when transitioning to VoIP communication. Before the migration, consult your VoIP provider regarding proper training for employees in using the new system, troubleshooting common issues, and support to maximize its value for your business.
What are the potential regulatory and compliance considerations when switching to VoIP for business communication?
Compliance with industry regulations should be a top priority when switching to VoIP for business communication. Depending on your industry, you’ll need to ensure that your phone system does not violate the NIST SP 800-171 guidelines (for defense contractors), the HIPAA Act (for healthcare institutions), the Sarbanes-Oxley Act (for finance institutions), and the specific service fees and charges as highlighted by the Federal Communications Commission (for VoIP providers).
How does VoIP technology handle emergency calls and ensure reliable communication during power outages or network disruptions?
During power outages or network disruptions, VoIP technology handles emergency calls by utilizing backup power sources (e.g. backup batteries, generators, and Uninterruptible Power Supplies (UPS)) and automatic failover to reroute calls to alternative devices.
