What Is A Virtual Phone System? And How Can It Help Your Business?

Businesses going digital continually seek innovative solutions to enhance productivity and improve customer service. One such solution that has gained considerable traction is the virtual phone system. 

A virtual phone system, also known as a cloud-based phone system, is an innovative telephony solution that enables users to make and receive calls over the Internet. 

But how exactly does a virtual phone system function, and how can it benefit your business? Continue reading to learn more!

Discussing How a Virtual Phone System Works

When you make a call through your virtual business phone service, your voice is converted into digital packets. These packets are sent online (like emails and instant messages) to your service provider, who forwards them to the recipient. 

Upon reaching their destination, these digital signals are converted back into voice signals so the receiver can hear your message.A bit lengthy, right? Well, it might seem so, but the process takes mere milliseconds. The only requirement is a reliable internet connection to  avoid any transmission delays.  

Virtual Phone Systems v.s Traditional Landlines – What Sets them Apart?

You probably use a PBX (Private Branch Exchange) if you’re not using a virtual phone system. A PBX is an analog-based phone system that was succeeded by virtual phone systems.  

That said, the significant difference between the two lies in their operation. Yes, they both offer telephony functionalities. But you’ll find that while the former requires wires, cables, and desk phones, the latter operates over the internet, eliminating the need for such hardware. This makes it a cost-effective alternative for small businesses. 

As long as users have stable internet access, they can use this technology across various devices such as mobile phones, desktops, and even ordinary desk phones.

This fundamental difference is what makes a virtual phone system ideal for businesses aiming to improve communication while cutting costs.

The Perks of a Virtual Phone System

Higher Scalability

Virtual telephony can help you scale your business from three to 300 agents. You don’t have to be at your desk phone as you and your team can work remotely. 

Saves Time

One of the core advantages of virtual cloud telephony is its speed and time-saving capability. Slow communication channels can lead to business losses, especially for systems reliant on third-party CPaaS (cloud platform as a solution).

Enhance Team Collaboration

Virtual business phone solutions offer quick text messaging, conferencing, and call routing features that result in effective team collaboration. Departments within an organization can connect seamlessly, making collaboration with remote employees easier.

Moreover, virtual phone system apps come with a live dashboard, giving you clear visibility into calls taken by your remote workforce. This allows you to monitor their performance effectively.

Affordable for Small Businesses

Virtual telephony comes with affordable hardware and software setups. The initial setup does not require extravagant infrastructure, expensive wiring, or switchboards. All you need is a set of headphones and a working internet browser for your employees.

By going virtual, you save on business operations and enjoy benefits like call forwarding, automatic call routing, auto-attendants, custom greetings, detailed call logs, and reasonable international call rates.  

Furthermore, setting up a virtual phone system is simple, easy, and convenient. It requires minimal equipment and any small business can adopt this system without any hassle.

Improve Business Productivity

Virtual phone systems enhance business productivity by integrating telephony and email into one center, saving agent time and improving customer experience.  

Robust Analytics and Reporting

These systems provide real-time analytics and reports on agent performance and contact center performance. Key data metrics will help you delve into strategic learning and extract high-value insight reports required to run a contact center.

24/7 Connectivity

With a virtual phone system, you can connect with people in different time zones, ensuring 24/7 engagement, communication, and connectivity.

Tips for Choosing a Virtual Phone System for Your Business

These tips should help you choose the best virtual phone system for your business should you intend to replace your existing one:

Consider Your Needs

You must consider all the different ways that a virtual phone system will be of use before choosing one. Do you need to make international calls? Do you need to know who is calling before answering?  

Try Before You Buy

Choose a company that offers free virtual phone system trials. This will allow you to test-drive the product before you make any commitment.

Evaluate the Cost

This might seem straightforward, but it’s worth mentioning nonetheless considering what might be at stake. You have to factor in the total cost of the virtual phone system. This includes installation, maintenance, and any additional features. 

Compare different providers to find a solution that offers the best value for your money.

Check the Provider’s Reputation

Look for online reviews and testimonials about the provider. A provider with positive reviews and a strong reputation will likely offer reliable service and good customer support.

Consider the Features

Virtual phone systems come with advanced features that distinguish them from traditional phone systems. Find out what features are included and how much access costs. Here are a few notable ones you can look for:

  • Call Queueing and Automated Callbacks: Business virtual phone systems help direct calls to the right agents. They efficiently manage call queues based on the customer issue and manage missed calls through automatic callback features.
  • HD Voice: Virtual phone systems use high-speed internet connections that allow users to make and receive calls in high-definition (HD) quality.
  • SMS Automation: Automated SMS services allow you to connect instantly with your clients or employee teams by sending instant messages on various platforms. 
  • Voicemail Drop: With voicemail drop, you can repurpose your best voicemails at scale. You can select a default message, create multiple voicemails, drop voicemails for both VoIP and bridge calls, and act immediately if a voicemail is dropped.

To Sum It Up

A virtual phone system can revolutionize your business communication, offering cost savings, flexibility, scalability, and a host of advanced features. Thus, by understanding your needs and carefully evaluating your options, you can find the right virtual phone system to propel your business to a future of seamless, efficient communication.

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