Are you on the fence about whether to invest in a VoIP phone system?

On the one hand, a VoIP phone solution seems like it could make your business competitive in an ever-changing business landscape. But at the same time, your current phone solution still works just fine.

So why switch?

In this article, we’re going to go over what a VoIP phone system is, how it works, how to choose a provider, and more.

Here is what we will go over in this guide:

First, let’s look at how traditional telephones work.

Until recently, any call you placed traveled to its intended recipient via physical copper wires connecting homes and businesses and/or via cell phone towers. This setup is known as the Public Switched Telephone Network (PSTN).

As you can imagine, setting up a business to operate on the PSTN can get expensive. Imagine setting up a dedicated telephone line with copper or fiber-optic wires for every employee. To combat these costs, businesses have the option to connect to the PSTN via private branch exchange (PBX).

A PBX allows the business to connect a hub to the PSTN and then allows employees to connect to the hub with their phone extensions.

So, now you’re probably wondering, what is VoIP, and how is it different?

When you place a call using a VoIP phone solution, your analog voice is converted into a digital signal and sent to the caller on the other end. And the endpoints of a VoIP call can vary; you can place calls on your cell phone, specific VoIP-enabled phone handsets, tablets, computers, or from a website.

Let’s get into some specifics as we look at exactly how VoIP works.

How does VoIP work?

When you place a call using a VoIP system, your analog voice is converted into digital data packets that are then sent across the internet to the intended recipient, reorganized into the correct order, and converted again as what the recipient hears on their end.

That’s right. That happens again and again throughout a VoIP call, and with the right VoIP provider and good internet service, you won’t be able to tell the difference between a VoIP call and a traditional call.

What are VoIP phone systems?

A VoIP phone system uses VoIP technology to provide users with an inexpensive, easy-to-install option for their telephony needs. In addition to phone calls, VoIP phone systems also provide users with many additional features (don't worry, there's a section on features coming up.)

VoIP phone software can integrate with other software applications for your business, like accounting tools, warehouse management programs, and CRM systems. Some VoIP phone solutions can also help you pare down the number of applications you use every day. Look for a service that offers messaging, video capabilities, analytics, and contact center options.

You'll be amazed at what programs you can integrate with your VoIP phone system or do away with entirely because the VoIP phone provider includes it in their service.

IP PBX

Like a traditional PBX, IP PBX systems use a central PBX system installed in a company to connect employees to the PSTN. However, in an IP PBX setup, the phones connecting to the PBX are VoIP-enabled devices, not traditional telephones. This helps companies save money while transitioning to a fully VoIP-enabled model.

An IP PBX phone solution may use a hybrid model that incorporates traditional and VoIP technologies, but most IP PBX solutions can use a full VoIP or cloud infrastructure.

Full VoIP

A complete VoIP solution means that from the get-go, you're committing to a completely VoIP setup, whether that means you're ditching your analog phone setup or you're starting from scratch. You most likely won't have expensive startup costs or installation with this option.

Cost

One of the biggest benefits of choosing VoIP over a traditional phone system is cost. Setting up a traditional phone system requires extensive onsite hardware installed by professionals. Setting up a VoIP phone system is much simpler. As soon as you sign up for an account, you can have your team connected and ready to go in one day.

Most VoIP providers will help you determine what special hardware you need (if you need it at all), and some will even provide you with a dedicated specialist to help you with the onboarding process. But if you want to do it alone, it’s completely doable.

Flexibility

Another benefit is the ability to use your phone number wherever you are in the world. If you’re traveling for a business trip, a VoIP number allows you to access and use your number from your mobile phone, your computer, or a web browser from the hotel computer.

Additionally, you can connect with a team member on a call and then switch to a chat if you need to. A VoIP solution gives you options for how you communicate on the go.

Reliability and quality

As long as you have a good internet connection, a VoIP phone system provider will give you clear, reliable audio with little to no latency or jitter. Most VoIP providers have global redundancy and architecture to ensure robust network availability.

Before you start looking for a VoIP provider, look at your organization to nail down some details about your business. Having an idea of what you're working with will ultimately help you make the right decision.

How many employees do you have? Do they all work from the office, or do you operate a remote or hybrid model? Knowing this and having concrete models will help you choose a provider that caters to onsite or remote work.

Do you have a legacy traditional phone system? An IP PBX setup may be your best bet to transition to VoIP, so look for a provider that can help you transition smoothly. Do you host a lot of conferences? Make sure your provider offers robust conferencing capabilities with lots of options.

Finally, determine what services you want from a VoIP provider:

• VoIP only: These providers will give you basic phone functionality but little to no additional features.
• VoIP with cloud-based PBX: These providers offer VoIP and cloud-based PBX to meet the needs of larger businesses that need more call management features than basic VoIP providers offer.
• Unified communications VoIP: These providers offer VoIP telephony services as part of a UCaaS (unified communications as a service) setup that usually includes video, team messaging, conferencing, and more all in one platform.

VoIP service features to look for

So now that you have an idea of what VoIP is and how it works, let's look at some of the extra features you can get with a VoIP phone system. Keep in mind not all VoIP phone systems will have the same features. It's important to do your research and pick a VoIP phone provider that gives you the most at the best price.

We’ll touch on choosing a VoIP provider later in this article, but for now, here are some of the features you can look for:

• Call recordings: Save important incoming calls for training purposes or for your own records.
• Visual voicemail: Have voicemail transcripts delivered to your email.
• Hold music: Select music or promotions for callers while they’re on hold or set up the option to leave a callback number. Music on hold for your customers is a great way to connect and spread important information.
• Caller ID, Blocking, and Do Not Disturb: See who’s calling you and block your own number from outgoing calls, or turn on Do Not Disturb so you can send calls to voicemail when you’re not working.
• Call waiting and parking: Put calls into a waiting area where any line can pick it up with call parking or use call waiting to answer a call while on a call.
• Call monitoring: Helps managers and supervisors evaluate calls to identify training issues or jump on calls that need assistance.
• Call queues: Ensures a better customer experience by routing callers to the right person the first time, reducing wait times.
• Auto attendant: Set up professional greetings for your business and have an automated menu that allows callers to choose their own options. It will make calling easier for your customers and free up your employees for more important tasks.

And those are only some of the benefits. But you can see now just how different VoIP features are in comparison to traditional phone systems.

What is needed for a VoIP phone system?

While a VoIP phone solution is easy to set up, there are a few things to consider before switching your entire telephony system over.

First, check your wi-fi. Without a strong network connection, your business VoIP phone system won't be able to perform at its best. If you have a lot of traffic on your network and limited bandwidth, consider freeing space up by dedicating a network for your VoIP service. If your network is weak overall, look into switching providers and make sure to ask potential area network providers about your VoIP service needs.

Next, consider any equipment you might need. Will you be purchasing headsets for your entire team? Or just customer service? There are several types of VoIP phones you can buy, including

• Desk IP phones: The desk phone you're probably most familiar with, this office phone typically has a screen, a set of buttons and controls, and connects to your computer or an ethernet connection.
• Wireless phones: Hands-free or cordless headsets that allow you to receive and place voice calls without being tied to your desk.
• Conference phones: These phones are set up expressly with conference calling in mind. These phones have multiple lines so that you can have conferencing calls and, depending on your business phone service provider, video conferencing calls.
• USB phones: These phones plug directly into your USB ports, and they're often used in conjunction with softphones.
• Softphones: Phones that are accessed through an app so you can use a virtual VoIP number on a cell phone or computer in any location.

Can I use a VoIP phone as a regular phone?

Yes! They can make and receive calls, ring when a call is coming in, and dial, just like a traditional phone. And you can even turn your analog phones into VoIP phones by purchasing a VoIP adaptor. Or, just use your mobile device for all of your VoIP business needs with your provider’s mobile app.

Consider a hosted business VoIP provider

A hosted VoIP service covers all the heavy lifting associated with VoIP telephony, so you don't have to. That means you choose a subscription plan, sign up, and get started. Your hosted VoIP provider will cover all the software and hardware maintenance costs.

The VoIP provider will handle data, privacy, and security. You won't have to worry about maintaining servers or getting them back online. The VoIP provider handles all of that for you. All you have to worry about is any equipment, like phones or headsets, and your network connection is good.

Hosted VoIP is great for small and large businesses alike as it keeps costs down while still offering lots of features. You can get an enterprise-level phone system without having a costly server onsite.

Once you've nailed down what you need (or want) from a provider, you can start looking around for the best service.

Ask friends and colleagues if they have any recommendations or prior experience with a VoIP provider. This is a great way to get first-hand accounts of how services work and if they'll be compatible with your business. Additionally, you can read reviews from websites to narrow your choices down.

Create a spreadsheet to track your research. Seeing all of the providers' information in one place can help you narrow down your choice. Jot down information like cost, subscription tiers, features, max and minimum seat requirements—anything that's important to you.

Pay attention to factors like:

1. Support functionality: Is there 24/7 customer support? Do they offer onboarding assistance?
2. Reliability: Do they have a dependable setup and minimal downtime?
3. Flexibility: Can you easily grow with the provider as your company grows? If you need to scale down, is it easy to do so?

Will international calling cost more with a VoIP phone service?

No! Because VoIP service providers use the internet to send and receive calls, pricing for international calls is often included in your plan with no additional charges. Whereas, if you were calling from a landline phone long distance, you would be charged fees based on the country and call length.

Can I set up a call center or contact center with a VoIP telephone system?

Yes! VoIP was made for call and contact center setups. While this service will be dependent on which provider you choose, a good business VoIP phone service will have everything you need to set up a fully functioning call or contact center. You won’t incur any additional fees to set up call forwarding, call recording, or call routing.

What are SIP and SIP trunking, and do I need to worry about it?

SIP stands for session initiation protocol, and it’s one of the building blocks of VoIP technology. SIP is how each voice over IP call is started, as it establishes the connection between two devices over the internet. SIP trunking is a way for businesses with an existing PBX system to easily transition to a VoIP business phone service.

I run a small business with only a few employees, is VoIP right for me?

Yes, definitely. You most likely don’t have any existing on-premise telephone system, but even if you do, switching a small team to VoIP is painless. Small businesses can really benefit from a VoIP business phone system that offers advanced features like conference calling, toll-free numbers, video conferencing, faxing, SMS and text messaging, and superior call quality.

What are VoIP gateways?

A VoIP gateway is a piece of hardware that helps businesses transition from traditional analog phone lines to a VoIP telephone service. In a nutshell, VoIP gateways convert VoIP calls for transmission through analog phone lines and analog phone calls to data packets for VoIP transmission. It does a lot of hard work, so you don’t have to.

How much does VoIP cost?

VoIP business communication plans are generally priced in tiers so that it’s affordable for small businesses and all-encompassing for large enterprises. Here’s a general price breakdown of what you can expect to pay:

We’ve covered a lot of material. We’ve gone over:

1. What VoIP is and how it works
2. Different types of VoIP phone systems
3. The benefits of choosing a VoIP phone system
4. VoIP phone features
5. What you need to get started with a VoIP phone system
6. How to look for and choose a VoIP provider

You have everything you need to make a solid decision about VoIP phones. Whether you’re just looking to upgrade your phone system or you want to go all in on a unified communications setup, you can now make an informed decision and choose the best provider for your business. Remember, in the end, you want to choose a provider that’s going to elevate your business and make your life easier. If you’re ready to switch to a VoIP phone system, get in touch with our sales agents and request a demo today.