VoIP, short of voice over internet protocol is a technology protocol through which voice and multimedia data is transmitted via the internet. Instead of using copper wires or cell towers, your voice calls are digitised into packets and transferred over the internet. Virtually every business greatly benefits by implementing this sophisticated communication technology. To make and receive calls, one needs a VoIP enabled phone system or some app installed on your computer and smartphone.
What is VoIP?
VoIP, short of voice over internet protocol is a technology protocol through which voice and multimedia data is transmitted via the internet. Instead of using copper wires or cell towers, your voice calls are digitised into packets and transferred over the internet. Virtually every business greatly benefits by implementing this sophisticated communication technology. To make and receive calls, one needs a VoIP enabled phone system or some app installed on your computer and smartphone. If you have ever come across services like Skype, zoom etc., you are already familiar with the basics of VoIP.
The predecessors of VoIP are traditional PBX phone systems. VoIP technology is a massive leap from the traditional phone system. Unlike the traditional ways, VoIP doesn't use physical switches or Ethernet cables. However, PBX systems transmit via copper lines that are connected to Public Switched Telephone Network. Another system, IP-PBX is the closest that a traditional phone can get to a VoIP system.
Benefits of Using VoIP provider
In this article, we have compiled some of the most important advantages of VoIP into a clear, concise and easy-to-consume list for our users.
If using VoIP, businesses can cut costs in several ways. It helps in lowering long-distance fees because the transmission of data is through the internet instead of using the outdated copper wire system of PSTN. This makes a long-distance call similar to sending an email. This cuts off the long-distance fee up to 40% thus, leading to a cost-saving business. According to a report by tech.co, businesses that utilize international calling through VoIP can cut their long-distance charges by 90%.
Traditional phone systems have a lot of hardware equipment to function properly. This can add up extra costs of installation to your phone billing system, increasing a major burden on a business's financial system. However, VoIP systems have no such lengthy equipment requirements. Even the equipment requirements can turn zero if one opts for a hosted VoIP. When including hardware, the maintenance problem comes along with it. Maintaining and repairing that equipment can be really expensive, even more in case of not having a certified phone. All these maintenance costs are cut short when using VoIP. In some cases, these costs depend upon the provider. Thus, companies using VoIP can relax as they don’t have to worry about such expenses.
As VoIP can be used on any communication device having an internet connection, a whole new world opens for businesses. Now, employees and bosses are no longer confined to offices or restricted to their premises with the traditional phone system. Instead, because of VoIP one can be anywhere and connect with his clients just like they can while being in the office. This mobility that VoIP provides is a total game-changer in the business world, specifically for small businesses. This way one can manage employees working from home, travelling or being in the different parts of the country.
Even if you have a team in the office, managing phone functionality outside the office can improve internal as well as external communication. This way whenever an employee is unavailable, instead of reaching their phone or leaving a voicemail on their desk phone you can easily dial their business line. Employees can avoid throwing their work-life balance and turn off notifications or even reply with automated messages about their availability.
A growing business requires more employees. To accommodate all those employees from a communication point of view can be a bit of a hassle. When businesses use traditional phone systems, adding a new phone for every new employee can be a burden on the financial system. With each new phone, comes new and to install that phone you will require an expensive visit from a technician. The technician will add a line and reconfigure your entire system. All these things are going to cost a lot and thus, it becomes difficult to manage these expenses. But when using VoIP, companies can just call their provider and can add a line within minutes. This makes VoIP scalable and a better choice.
As we have already discussed how VoIP has no extra requirements. This makes it much easier to use instead of the traditional phone system. Companies that use VoIP don’t require techs or IT companies to customize or update their phones. VoIP systems come with either a desktop or a mobile application that has a comprehensive dashboard. This functions as a control panel. By using this, you can easily customise your outgoing messages, update your phone tree, revise office hours, set up call distribution rules and even alternate your music. These and many more other options are given in the case of using VoIP.
Conferencing is simplified considerably when it comes to VoIP as there’s no need for dedicated phone lines. Traditional phone systems also provide the option of conferencing but there are additional charges. Every time you want to host multiple callers you’ll have to pay for each when you are conferencing. However, in the case of VoIP systems, these features are typically native. All the costs are built into the already lower price of VoIP system that one pays at the time of installation. This way conferencing is better and cost-effective in case of a voice over IP system. The option of video conferencing is also available in the VoIP system.
Being tethered to a phone line can hinder productivity. Not only that but if you are a productivity expert and want to improve your workflows then watching your employees get up and leave the room to speak to each other or dial extensions to get voicemail or wait idly for the other person can be tiresome. This can’t improve the workflow instead will decrease effectiveness. VoIP systems can help one in getting rid of all these problems. It can equip you with team chat and other messaging features which can allow you to skip endless phone calls and frustrating idle time. This way you can send your message or engage in a chat without having to leave your workspace.
Traditional phone systems have no competition with VoIP’s advanced functionality. Landline systems not only have fewer features instead they come with a hefty price. All VoIP systems do not have similar features but the ones specifically designed for business have the following features:
Each of these features has value for a business; perhaps the biggest benefit of VoIP is implementing these features in a way that helps businesses in becoming more professional.
As we have discussed, VoIP has many benefits in the business field. What’s noticeable is that VoIP can be virtually considered to be free of drawbacks. Many businesses around the world are embracing this powerful technology and realizing the competitive advantages it provides. If you want to know more about VoIP or get to know how it benefits your business, visit eFone.ca