How VoIP Can Revolutionize Small Businesses

If you have an older phone system, it’s probably just that: a basic phone system. However, if you’re ready to move beyond basic, it’s time to look into VoIP.

VoIP phone systems can transform your business, improving customer service and supporting remote workers. If you’re ready to revolutionize your business with VoIP, keep reading to learn more.

The Evolution Of Business Phone Systems

To understand how modern business phone systems work, we first have to look at traditional phone systems.

Old phone systems, known as landlines or Plain Old Telephone Service, rely on copper wires to make and receive calls. These copper wires are placed underground and run from houses and businesses to central offices.

When you speak into a phone, the sound waves are converted into an electric analog signal. This signal goes through switches (also known as a telephone exchange or central office). The signals are then routed to the other caller, where the analog signal is converted back into sound waves.

While this sounds like pretty cool technology, the truth is that it’s pretty outdated. A more modern solution is Voice over Internet Protocol (or simply, VoIP).

VoIP (also known as cloud-based phone systems) doesn’t require the old copper wiring of the past. Instead, this technology uses an internet connection to make and receive calls.

When you use a VoIP phone service, the sound waves of your voice are broken into data packets. These data packets travel through a high-speed internet connection to your provider, which routes the packets to where they need to go (the other caller). Before reaching the other caller, the data packets are reassembled back into analog sound waves, and the caller hears your voice.

This updated technology offers many benefits, which is why old-school telephone systems are becoming obsolete.

Why Are Traditional Phone Systems Becoming Obsolete?

Traditional phone systems are becoming obsolete simply because VoIP has made it possible to provide reliable phone service loaded with features without the expensive infrastructure required for traditional landline service.

These old systems are expensive and difficult to maintain. These costs are passed down to the consumer, resulting in higher bills for basic phone service that’s prone to dropping calls.

The Federal Communications Commission announced the retirement of copper wire telephone service, and in 2019, no longer required telecommunications providers to maintain this outdated infrastructure.

While not all carriers have made the switch, many have started or have announced plans to discontinue POTS in the near future.

VoIP VS Traditional Phone Systems

Still not convinced that VoIP is that different from Plain Old Telephone Service? Here’s a quick look at some of the major differences between the two systems.

How VoIP Can Transform Business Phone Systems

VoIP makes it possible to completely transform your business phone system into a powerful communications hub, whether you have a few employees in a single office or a larger business with multiple locations. Here’s how.

VoIP Helps Overcome Challenges Of Outdated Phone Systems

The problems with outdated phone systems are rectified with VoIP systems. As long as you have a stable internet connection, you’ll be able to make and receive clear calls without static, echoes, and other interference. Dropped calls will also be a thing of the past.

The mobility of VoIP means that you or your employees are no longer stuck behind a desk, as you can take your calls from nearly any device.

And if you need to scale or your system isn’t working right? No problem. You don’t have to wait days for a technician to come get your system up and running.

You also won’t have to worry about having bulky equipment installed on the premises or have to put your phones only where there’s an available phone jack. The flexibility of VoIP truly helps you create a custom system that works for your business.

VoIP Is The Future Of International Communications

If you do business overseas, VoIP is a must-have for your company. One of the main benefits is that international calling is often far more cost-efficient with VoIP systems.

If that doesn’t have you sold, the overall dependability, improved call quality, and advanced features that allow you to communicate beyond a simple phone call are also benefits you’ll find with VoIP.

VoIP Helps Reduce Businesses’ Carbon Footprints

VoIP isn’t just better for your business — it’s better for the environment, too.

VoIP is more energy efficient, which is good for the environment AND for your monthly energy bills. It also doesn’t require the infrastructure of POTS, so you can scale your system as needed without impacting the environment.

It can even help reduce emissions from vehicles, as you can hold virtual meetings and communicate with staff without requiring them to drive in to the office.

VoIP Is Great For Remote Work

VoIP is extremely versatile, making it a great option for remote work.

While you can outfit your office with VoIP phones (or even use your old analog phones with adapters), you can also download your VoIP provider’s app on smartphones, laptops, and desktop computers. This makes it easy for employees to keep in contact, in or out of the office.

VoIP Can Help Businesses Improve Customer Service

VoIP has features that can help improve customer service, which is something you won’t find with your old phone service.

This includes things like call barging and call whispering, which allows a supervisor to step in or coach an employee who’s struggling during a phone call. Auto-attendants and interactive voice response (IVR) are also great tools that can route callers to the right team member.

Call analytics and reports can also be used to determine where your team is falling short, so changes can be made as needed.

VoIP Can Help Improve Productivity

VoIP has many automations that can let your employees focus on more important tasks. The aforementioned IVR and auto-attendants can route calls (no human employees required).

Training tools can help simplify phone system training and is great for supervisors to identify and correct problems from the start. The mobility of VoIP allows employees to move around, go out in the field, or work remotely without the risk of missing important calls from customers.

Should Your Business Switch To VoIP?

After perusing this post, you should have a better understanding of VoIP and how it can improve communications within your business. This leads to the question, should your business switch to VoIP?

In our expert opinion, YES! Unless you’re stuck in a contract with your current telecommunications carrier (and don’t want to get hit with a hefty early termination fee), there’s really no reason not to make the switch. Here’s why:

• No expensive upfront costs
• No expensive, bulky hardware required
• Sign up and have service on the same day
• Lower monthly bills
• Access to features not available through your outdated phone system
• Set up employees (whether you have 3 or 300) quickly and easily

Old phone infrastructure is also becoming obsolete and will likely be completely phased out in the near future. Instead of waiting until you have to change your service, get a head start by exploring your options now. Start with our list of the best VoIP phone systems to find the right service for your business. Good luck!