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What are VoIP Systems, How do They Work, and Why They Can Help Your Company Operate More Efficiently

Without utilizing the power of technology, no modern business will be able to stay competitive in today’s market. Tech helps with everything from cost-saving to time-saving. And when you consider that a VoIP system can help you save as much as 50% on communication expenses, it’s clear why it’s on many companies’ priority lists.

Is investing in VoIP how you need to upgrade your operations this year? 

VoIP Systems Defined

It’s worth researching VoIP providers and services in your area to improve your business activities. But first, understand what these systems do in order to ask vendors the right questions during the quoting and vetting process. 

What is a VoIP System?

VoIP is an acronym for ‘Voice over Internet Protocol.’ This is technology you can use instead of traditional analog phone systems. It enables users to make voice calls via a broadband internet connection. 

How Does a VoIP System Work?

With a VoIP system, you have devices that are similar to standard landline phones and can receive and make telephone calls, but they also have additional features. The system can help manage phone calls, such as transferring an incoming call from reception to another team member. 

Instead of using copper lines to transmit audio signals, a VoIP system changes your voice signals into digital information. The system can then send this via your internet connection.

Note that a VoIP system doesn’t use your mobile network but your broadband connection. 

Ways VoIP Helps Companies Improve Efficiency

Cost Savings

Any money you can save is good news for a business and switching from a traditional system to a VoIP system creates multiple options for saving on monthly expenses:

  • Save on hardware costs compared to standard PBX systems. 
  • Paying data costs is much cheaper than using a circuit-switched telephone system. You won’t need to pay for individual lines anymore. Compared to a copper line-based system, you’ll be saving money on every call you make. 
  • Often, maintenance and repairs form part of a service agreement with a VoIP provider instead of you incurring maintenance expenses whenever something breaks. 

Empower Your Mobile Workforce

A VoIP system is much more relevant to the modern work environment where mobile working has become increasingly popular. With a VoIP system, it’s easy to onboard a worker who is working remotely since all that’s necessary is a business mobile that’s given access to your VoIP and broadband network. Thanks to this infrastructure, workers can communicate from almost anywhere.

Easier, More Affordable Conference Calling

When multiple individuals need to have a conference call, with VoIP, it’s easier to schedule these meetings since callers can connect from anywhere. This is simple to set up since conference calling is usually a standard feature on VoIP systems.

Remember, with a traditional phone system, conference calls are possible, but you’ll pay more for the services. Therefore, this is another example of VoIP enabling better efficiency without causing high expenses.

Simplifies Scaling and Office Moves 

With a traditional copper phone line, a number is often associated with a specific address. Therefore, if you should move your company to new offices, you may no longer be able to use your original contact number for your business. This can hurt your brand if your clients aren’t aware of your move and your new number. They may even assume you’re no longer in business, which could lead to a loss in sales or tarnishing of your reputation. 

With a VoIP system, you can obtain a company contact number to use no matter where you’re situated. This is good news for small businesses that expand and need to move to larger buildings. There’s no risk of losing contact with clientele.

In terms of efficiency, you’ll spend less time trying to ensure your target audience knows how to get hold of you. You can simply focus on setting up, continuing normal operations, and maintaining productivity.

An additional bonus is that a VoIP phone number, unlike a standard phone number, doesn’t indicate which area you’re located in. This prevents people from making the assumption that your brand only operates in a certain state, city, or town. You may get more phone inquiries from outside your immediate community.

Easier, Efficient Call Management

Helping you manage incoming calls is another way VoIP systems empower companies to save money AND improve efficiency. With traditional phone systems, you’ll need someone to answer the phone and direct the call. In contrast, VoIP systems offer automated processes thanks to virtual assistants. 

A virtual assistant with a customized directory of options will direct calls automatically based on the selection the caller makes. This lowers the number of callers not getting through or waiting long before the call is attended to.

Furthermore, thanks to this technology you can save money on salaries since you don’t need a receptionist manning the phones all day. Alternatively, you can utilize a secretary’s time much better when she doesn’t have to field calls while performing other duties. 

Final Thoughts

Today’s market is filled with technology that promises companies more efficiency, higher productivity, and cost savings. It can be difficult to identify which gadgets and tech are worth investing in, but no company will go wrong when considering VoIP as part of their communication resources.