Analog phone lines are on their way out. Traditional phone lines have served us well, but times have changed. Today’s businesses need agile, flexible, scalable solutions.

Virtual phone numbers are satisfying this need head-on by making it super easy to dial and answer calls over the internet using local area codes, toll-free, or vanity numbers.

Virtual phone numbers that come with internet-based telephone services offer business owners flexible calling and communications options that allow them to make and take outbound and inbound work calls from wherever they are—whether that’s in the office, on the road, in a cafe, or working from home.

Wondering whether you should invest in a virtual number for your company’s operations? We’re here to help you learn everything you need to know about virtual phone lines and numbers, including:

What is a virtual phone number?

How does a virtual number work?

What’s the difference between virtual and traditional phone numbers?

Virtual phone line features

Are virtual phone numbers safe?

How can I get a virtual phone number?

FAQs

A virtual phone number (sometimes also called a virtual phone line) is a telephone number that’s not associated with a specific device or piece of hardware. Instead, it’s linked to an online account made accessible to users with service providers just like 8x8.

Because a virtual phone number doesn’t require you to have physical phone lines or desk phones, you can make and receive calls with a data or Wi-Fi connection using devices that can connect to the internet (such as computers and smartphones). Beyond that, the experience is mostly the same.

What makes virtual phone numbers different is how they work.

As we’ve mentioned before, a virtual phone number works independently of hardware (like a fixed telephone line or SIM card). This is largely thanks to VoIP (Voice over Internet Protocol) technology, which makes it possible for us to transmit voice signals over an internet connection with little to no need for traditional hardware.

These days, most of us are already using VoIP. Any application that lets you make phone calls or send SMS text messages using Wi-Fi, data, or broadband internet connection is supported by Voice over IP. That part is easy enough to understand.

But what does it actually mean when we say that VoIP lets you make calls over the web?

It’s super clever stuff.

When you make a call using this technology, your voice signals are digitized and condensed into data packets. These packets are transmitted over the online network to the recipient device, where it’ll be decoded so your recipient can hear your voice in real-time.

Modern VoIP codecs have become so sophisticated that they can now provide amazing call quality using very little data. And it’s through developments like this in telephony that virtual phone numbers became prevalent.

Benefits of VoIP

Many businesses find that VoIP—and by extension the virtual numbers—provide them with tons of additional benefits they don’t get with legacy systems. VoIP is affordable, flexible, and scalable in a way that regular phone lines simply can’t be. Let’s take a look at some of the top benefits below.

It can be used on multiple devices

VoIP can be used across as many devices as you like. You’ll be able to access your virtual phone number from your mobile phone, laptop, and desktop computer. That means you’ll never have to be desk-bound again.

Simply take calls wherever you are. There’s no need to have a separate personal and business cellphone anymore. You’ll be able to access your business number and your personal number on your personal phone without compromising your privacy or professionalism. This is because you’ll have a designated business ID for taking business calls.

It’s cheaper

Another big benefit is the cost. Switching to virtual calling can save businesses a lot of money in the long run. This is because your service provider is responsible for managing and maintaining your system. All you have to do is pay a set monthly fee.

For businesses, that means no more implementation, hardware, and maintenance costs. Plus, with the flexibility to allow employees to work from anywhere, many organizations can also save on rent by downsizing their physical office spaces, and save on technology costs by encouraging employees to use their preferred devices.

Access global talent

With employees able to work from anywhere, VoIP allows businesses to harness the best talent from all over the world.

By making long-distance working options affordable, efficient, and effective, you’ll no longer be limited to hiring people from your local area. Instead, you can source the most talented and skilled employees who can work from their own location. Even better, VoIP vendors like 8x8 allow you to continue using your favorite business communications tools thanks to robust integrations with other platforms like Microsoft Teams.

Measure performance

Using a VoIP-based phone system with a virtual phone number makes it much easier to measure performance—especially in a sales or marketing setting. Many service providers include great metrics and performance management features, which will allow you to monitor everything from call capacity to lead generation. This gives you the ability to do things like running targeted market tests to assess your marketing campaigns.

As one of the best business communications solutions providers in the industry, 8x8 comes with comprehensive quality management features that help companies expedite knowledge sharing and achieve better outcomes. A simple search function allows agents to find critical data in a click, and quality management features like call recording help managers monitor performance and train teams.

The key difference between virtual and traditional landline numbers is the way they’re managed and installed as part of a telephone system. A traditional phone system is installed by your local phone company, which sets up the wire-based phone line to your particular address. That means an analog phone line is physically bound to a location.

When you invest in business VoIP, on the other hand, you’re not restricting your phone service to one physical location. You can use and access it from anywhere with an active internet connection over broadband, Wi-Fi or a 3G/4G (or 5G) data connection. This makes the virtual numbers that come with services like this more flexible than their traditional counterparts.

Essentially when someone dials a traditional phone number to call you for work, the call will only come through to one landline desk phone at your office. But with a virtual phone number, you can have things set up so the call can reach you on other devices like your smartphone, tablet, or laptop. This can work through the following ways:

• The call to the virtual number is forwarded to another number or phone line that you own (like your home’s landline phone or your cellphone)
• The call to the virtual phone number will be received on the device of your choice through software designed by your service provider (for example, the 8x8 Work app for mobile and desktop)

Virtual phone lines offer all the features of direct inward calling and outbound calling you can expect from a traditional phone line, and much more.

Signing up with a VoIP provider that serves organizations means you can look forward to having features like business phone system options, voicemail, call routing, call queues, and call forwarding. Most virtual phone providers even throw in auto attendants to help manage incoming phone calls automatically.

Let’s look at these in a little more detail.

Business phone system options

Virtual calling is a great option for a lot of businesses. You can easily take incoming calls through inward dialing and make outgoing calls to your team, clients, and customers. You’ll be able to maintain a professional presence with a unique caller ID or choose to conceal your caller ID if you want or need to.

This is perfect for remote and hybrid teams.

Instead of requiring your employees to install a desk-based office phone at home, they can simply use their existing cell phone to make and take business calls. Even better, you’ll be able to set business hours for your virtual phone number. Plus, customers won’t be able to see your staff’s private number—even if they’re using their mobile phones for work.

Voicemail

With a virtual number, voicemail is a breeze. Most VoIP and virtual phone system providers will offer this as a standard feature. With 8x8, for example, it’s super easy to set up voicemail capability. Simply log into your account and, on the Voicemail Settings, click the “+” button to edit your settings. You can even set up voicemail-to-email notifications so that you never miss a message.

Call forwarding & routing

Virtual phone numbers also make it easy to set up call forwarding rules so you can forward calls to other people and/or departments with a cloud PBX control panel. You can even adjust the system so calls will go to voicemail outside of office hours. You should be able to set up and personalize call forwarding rules for your business using your online dashboard.

Call transfers work just like they would when you use regular telephone numbers. You’ll be able to route calls directly to a specific phone, person, voicemail inbox, or department.

Auto attendants

One of the most exciting features to come with phone lines for business is the auto-attendant functionality. An auto attendant feature allows businesses to greet incoming callers with a simple and intuitive automated menu and custom greetings.

Instead of hiring an in-house receptionist to route all of your calls, the auto attendant will save you time and money by connecting callers to the right person the first time around through a basic phone menu—eliminating the need to manually route calls.

While auto attendants can be available with both more traditional and virtual business phone solutions, highly-customizable versions of this capability are typically part of the most basic commercial phone service packages.

Virtual phone numbers are a really safe way to make calls. In fact, in some cases, a virtual number might even offer more protection than your old analog phone line. It all depends on the security protocols put in place by your chosen service provider.

For example, 8x8 ensures user data is kept secure from end to end. Its cloud platform also conforms to the most stringent security specifications, including FCC, NIST, FISMA, and HIPAA compliance regulations

That being said, virtual phone numbers can be used by other people for phone scams that can get them access to your system.

To avoid this, it’s important to set secure passwords for your virtual phone systems and follow cybersecurity best practices, including conducting regular system updates, installing antivirus software, and (if necessary) investing in an enterprise-level VPN service.

If all you want is a basic number you can use with any device are many free virtual phone number providers you can explore. Solutions like this can be sufficient for small businesses. But as your business grows there are more robust (but still affordable) services that can cater to its evolving needs.

To get a virtual phone number, you’ll first need to choose a service provider based on your business needs.

Virtual phone number providers

Business communications solutions providers like 8x8 offer virtual phone numbers as part of their product suites. New and prospective users can get a feel for the service by signing up before deciding on the cloud-based phone plan that’s right for them.

There are so many virtual phone service providers to choose from, so it’s best to do a bit of research first. Things to consider include budget, scalability, the number of phone numbers you need, provisions such as porting for existing phone numbers, and the type of telephone number you want.

Types of phone numbers include:

• Local phone numbers
• Toll-free numbers
• Vanity numbers

Features vary, too. For example, 8x8’s small business phone system package features include voice and video meeting capabilities from one unified mobile app, alongside unlimited calling, auto attendant capabilities, intelligent call routing, voicemail, hold music, and more.

FAQs

Do virtual phone numbers really work with cell phones?

Yes, virtual phone numbers can really work with cell phones and other internet-enabled mobile devices like tablets, as well as on laptops or PCs using softphones and VoIP phone PBX systems.

Even if you have an old-school cellular phone that can’t connect to the internet, you can have your system set up so that calls made to the virtual phone number are routed to that device. Making calls using the virtual number under this setup is trickier, though—in most cases, you’ll need to dial a number that lets you access your virtual phone system from that old phone.

Can I use a virtual number for my business phone number?

Yes, you can get a virtual business phone number as part of your service. VoIP is ideal for business calling because it provides scalability, flexibility, and a much more unified experience for customers and employees.

Is virtual better than a traditional phone number?

Virtual numbers have many benefits over traditional landline phone numbers. As we’ve previously mentioned, these benefits include:

• Cost-savings
• Scalability
• The ability to use a VoIP number on any device

All this makes it easier for teams to work away from their desks, and for companies to access a broader pool of talent, as well as save time and money, now and in future.

A good service provider also tends to provide features that allow departments to accurately monitor call center performance and quality, with call recording features.

Can you have toll-free virtual phone numbers?

Yes. Virtual phone numbers can come in the three main types of telephone numbers:

1. Local (has an area code prefix that’s location-specific—best for establishing a local presence and taking local calls)
2. Toll-free (is identified with a prefix that’s not location-specific like 800, 888, 877, etc. —places no charge on the person making the call)
3. Vanity (numbers that include a relevant business term, eg., 1-800-FINANCE)

Can you trace a virtual phone number?

In a lot of cases, it is possible to trace an unknown virtual phone number online via reverse phone number lookup websites or through a caller ID or IP address.

Virtual phone numbers, as part of cloud phone systems, are transforming the ways businesses structure themselves. They do this by facilitating effective transitions to more flexible working models that allow a larger section of the workforce to work away from the office.

Virtual phone numbers are also much more scalable, flexible, and accessible. With the possibility of cost savings and improved workflows, there’s no reason not to switch to VoIP and virtual phone systems.