How VoIP Phone Systems Save You Money While Doing More for Your Business
Peace of Mind as a Service
A key to good business is good communication.
Whether you are starting a business or already planning to expand, communication has a direct effect on the productivity of the company.
Almost 80% of an employee’s time is spent on communication – oral and verbal. Choosing a phone system that would create solutions to support the needs of both the employees and the customers is a crucial part in maintaining the progress of your business.
Overview of Standard Phone Systems and VoIP Systems
Throughout the years, inventors have made improvements to how we communicate and different phone systems have evolved.
Early phones transmitted voice data mechanically. This was through pipes and other media. One of the known devices to do this was the tin can phone. Through numerous studies and experiments, the transmission of messages through electricity was achieved. After that came the development of telegraphs, and, with that, the infamous Alexander Graham Bell succeeded in developing the foundation of the telephone system we are familiar with today.
In the early years, telephone calls went through switchboards where they were manually directed to their receiver. As the years went on, the demand grew, and multiple lines were needed to handle the increasing number of phone calls. Companies considered installing business telephone systems separate lines per department, which was innovative but costly. It was then proposed to develop a better phone system.
Private Branch Exchange (PBX), or, put simply, a business-grade phone system, was developed by lawyers in 1960s in which there was a shift from manual attendants (human operators) to auto attendants. As computers developed, an addition to PBX called Time Division Multiplexing (TDM) appeared.
This system was connected to the Public Switch Telephone Network (PSTN) over Plain Old Telephone Service (POTS) lines. Businesses could add music or telephone lines by purchasing new boards and adding them to its existing cabinet. PBX managed calls between phones and even fax machines through a physical connection over copper wiring.
Then came the internet.
With the introduction of the internet, new possibilities emerged. Moving from calls that transmitted from one analogue phone to another, developers created a new means of phone calling through the internet’s data network. This is known as VoIP or Voice over Internet Protocol.
- easy calls management
- reduction of waiting time for customers
- online collection of agent data to supervise work performance
- recording of calls in case of customer disputes
- management of calls
- call routing to free agents, preventing long waiting times
- recording of calls in case there are customer claims
- management of calls in other locations through virtual extensions
- clear recording of calls to avoid the breaking of laws, to clear misunderstandings and to prevent confusion
VoIP is a modern way to make calls. It digitalises analogue audio sound and transmits it via the internet phone. Various industries could benefit from VoIP as it reduces the cost of communication, it is easy to manage and is innovative. Relevant industries are as follows:
VoIP is a widespread technology that could benefit a business regardless of its size. It is an investment that could be beneficial to your business. Studies have found that switching their communication system from standard to VoIP has significant positive effects .
In a case study in Taiwan, a company called Kagome showed how VoIP could support business improvement.
Kagome headquarters used a standard phone system and had difficulties in terms of internal communication as well as with site calls. They operated with phones that did not have stable, good-quality calls and communication failures occurred. Some employees opted to use their personal phones to get the calls made but this sometimes failed, and they had to leave messages.
The company decided to switch to VoIP. Major improvements were seen after the switch. It improved communication between employees and it demonstrated a reliable service and an efficiency that helped the business progress.
Having provided an overview of what VoIP is and what it can do, the next question is, how is it used?
Definition of VoIP Systems and How They Are Used
VoIP was launched in 1995.
It transformed calling from conventional telephones into online calls.
A VoIP system refers to a software-based technology in which analogue audio signals are turned into digital data that can be transmitted over the internet. It collects and transmits data through a broadband connection rather than through a PSTN, also known as a POTS. It allows users to access phone calls from a telephone, a computer or a smartphone anytime and anywhere.
Standard phone systems transmit data over a circuit-switched network. VoIP, however, converts audio signals to digital data that are packetised and transmitted as IP packets over a packet-switched network.
To get started with VoIP, entrepreneurs can either rent or purchase a VoIP phone system for small business through various VoIP providers or install the VoIP software on their devices.
An online dashboard is available for users to manage the system by organising their contacts, storing phone numbers and forwarding calls. The settings, adjustments and data people have stored will be backed up in the cloud. This feature of VoIP helps in the continuity of the business in case of expansion or relocation.
Unlike standard phone systems, VoIP does not use just one method of placing a call. It has four different ways that are commonly used today.
Use of an ATA
If you want to keep your traditional phone but want to use a VoIP system, you will need to use a device called an Analogue Telephone Adaptor (ATA). Traditional phones use RJ11 connectors while VoIP needs an RJ45 connector to transmit to the local area network (LAN). The ATA on a traditional phone will be used to connect it to a computer or the LAN. The ATA will serve as the analogue-to-digital converter. It will take the analogue audio signal from the phone and convert it into digital data for VoIP communication.
Another way to make a VoIP call is through IP phones. IP phones look like some traditional phones but instead of having RJ11 connectors, they have RJ45 ethernet connectors. They can be directly connected to a LAN. A Wi-Fi phone is a form of an IP phone, which uses digital signals to allow users to make a VoIP call from any Wi-Fi spot.
SIP phones allow you to do much more than an IP phone. IP phones offer person-to-person voice calls only, while SIP phones can also make video conference calls.
The easiest way to use a VoIP is through a computer. All you need is the right software, a microphone, speakers, a sound card and a good internet connection. Using VoIP, you will not need to pay for long-distance calls. You can install a client application or search for a web-based application.
Different applications that offer hosted VoIP are available in both Android and iOS marketplaces. You can get free access for your personal calls or a subscription for all of your devices, so you don’t miss any calls.
Save more with VoIP
VoIP services are not just simple and flexible to use; they also save costs. One of the best features of VoIP are the low call charges. You can save as much as 40% on domestic calls and up to 90% on international calls. If you want to make business calls within your organisation, it is completely free regardless of its location.
Depending on the service provider, VoIP system fees can cost anywhere between £10 per user, per month and £50 per user, per month.
Packages or plans are offered by VoIP system providers. You can select a package that is within your budget range and it allows you to choose to pay only for services that you need. You can pay for add-ons to your plan depending on your personal or business needs.
Aside from reductions in call expenditure, you can also save through avoiding purchases. Standard phone lines would need external equipment, cables, and cards for installation, which is an additional expense, but with VoIP as long as you have an internet connection, you are ready to go and make that call. Having VoIP does not have any equipment which means zero cost on maintenance. No need to worry about fixing hardware or recovering a broken wire.
Upgrades and updates of the systems are provided by the best voip phone service providers for free. No downtime with the service for the patches and upgrades is automatic.
Working with a VoIP Number
With VoIP, you can have your own customised phone number that is not assigned to a specific location, unlike regular phone numbers. Remote employees would still be able to answer calls regardless of their location. This feature of VoIP improves customer services by making sure callers are reached and missed calls are avoided.
VoIP phone numbers can be attached to multiple devices. Users can make a phone call with the same VoIP number through an IP phone, smartphone or computers.
With a VoIP number, business location transfers are not an issue. With a location independent number, the transfer of a phone service is hassle-free. There is no need to lose loyal customers because the old number will continue to function.
Difference VoIP Systems and Standard Phone Systems
Choosing the right phone system could greatly affect the flow of your business. Many things should be considered when deciding which telephony solution to use. These include cost, reliability, efficiency and functionality.
Small businesses and other larger scale businesses opt for either VoIP or standard, traditional phone systems. Standard phone systems may be outmoded compared to VoIP but they may also offer benefits suited to your business. As modern as VoIP projects to be, for some traditional business owners it may better benefit their business.
Both phone systems offer advantages, but which is best suited for your business? How different are VoIP systems compared to standard phone systems?
- VoIP works in almost the same manner as a standard phone system. You make a call and someone receives the call.
A standard phone system relies on analogue audio data on both ends of the call. However, in VoIP, it receives the analogue data then converts it to digital data to be transmitted through the internet.
VoIP phones or IP phones have the same keypad as standard phones. It has buttons for redial, hold, mute, voicemail and speaker phone. However, unlike standard phones, VoIP phones can conduct HD-quality calls based on the quality of the broadband connection the user has.
- VoIP allows the extension of your business phone to anywhere in the world and wherever you are located. You can choose your own business number, so you can use the same number regardless of how many times you relocate your business. This feature of VoIP allows continuity.
This feature simply cannot be achieved using a standard phone system. Standard phone systems use analogue lines, which mean that the caller and the receiver must stay in the phones’ installation location. Having to keep your number whenever you relocate would take time and cost money; this is what any business would like to avoid.
VoIP also allows businesses to launch work from home. Remote employees can easily communicate with a customer or an employee as long as he/she is connected to the system.
- One of the many benefits of VoIP is that the price is much cheaper than standard phone systems.
VoIP transmits audio signals through the internet, while standard phones are physically installed through cables and wires.
The cost of VoIP only includes internet access; no calls are charged per minute and the subscription fee costs almost half of that of standard phone systems. There are no extra charges for long distance calls.
With VoIP, you can also avoid the cost of having to install wires and purchase additional standard phone equipment of a standard.
- VoIP is cloud-based.
If unexpected incidents occur, you will never lose your data. All your configurations and adjustments in the settings, as well as your saved phone numbers, will be backed up in the cloud.
The management of calls can be done online. Several phones can be connected with no need for the troublesome wires that standard phones require. VoIP uses intelligent call routing that would direct a call to active users to avoid missed calls. Productivity would increase and you would have no frustrated customers. You can also customise your voicemail and on-hold music, store phone numbers and forward calls to other system users.
Since data is transmitted online, it is as susceptible to hackers as computers are if they have knowledge of the system. However, do not be discouraged! Service providers take care of your security. A trusted service provider will implement security measures to prevent unauthorised use of your data.
If you want a less intimidating idea of VoIP systems, then Wave is perfect for you.
Wave is a cloud phone system equipped with an all-in-one control panel making it easy to manage and configure. It’s a highly-recommended phone system for SMEs since it boasts of straightforward features designed for flexibility and scalability while also offering a la carte items allowing you to find a custom-fit solution.
Its control panel helps change configurations, users and setup in just a few seconds. You can manage any aspects of your system without any technical knowledge . It is easy to use and it consistently updates with new features and functionality.
- Installation and maintenance is much easier with VoIP than with standard phones.
Standard phones take time and a lot of money to install compared to VoIP. There are additional costs for extended lines and for more phones to be connected.
VoIP runs over the internet. If you have an internet connection, you are ready to take or make a VoIP call. You can use an ATA to use your existing standard phone to access features of VoIP, a SIP phone, an IP phone, your computer and even your mobile device. Connecting different devices is much easier as it is done online.
With Wave, personal support and technical engineering services are available at your convenience. Get set up in no time with the step-by-step support of UK-based experts.
- VoIP has better call quality compared to standard phones. Its design means it does not have the annoying static that standard phones sometimes have.
Wave uses the latest digital codecs from Opus, which provides an HD-quality call with little delay. It is engineered to not only lessen but also to completely remove the static you can hear when using standard phones.
VoIP System Requirements
By now, you have an idea of what VoIP is and what its features are. Now, let us see if your business is VoIP ready.
Unlike standard phones, VoIP does not require any cables or additional hardware to get connected. It only needs an internet connection; if you have that, you are good to go.
You need a stable internet connection with at least a bandwidth of 100kbps per device to experience a good VoIP call. The quality of service you want to get from your VoIP service should match that of your broadband connection.
VoIP offers a plug-and-play feature. Compared to standard phone systems, it offers handy installation and easy maintenance.
If you want to switch to VoIP, you can use your already available standard phone. You will need to buy an ATA to enable it to function over VoIP. Although it may not have all the features of VoIP, it will still work via the internet.
Aside from using ATA, you can use IP or SIP phones. These phones can be readily connected to the LAN but would need a VoIP service provider. Wave works with a range of Yealink devices with features best suited for your business.
If you do not want to purchase additional phones, you can use your mobile phones, laptop, and even your personal desktop. You just need to download an app to have calls via VoIP. Wave has a purpose-built app to make and receive calls to and from anywhere around the world.
The Advantage of Not Needing Additional Equipment for a VoIP system
Additional equipment means another expense.
A standard phone system would require external hardware and the installation of copper wiring.
A PBX phone system includes a cabinet or drawer for housing the system parts, a switchboard console for its operators, additional controllers for data processing, lines to connect PBX with PSTN, a power supply, and additional devices to enable voicemail and caller groups.
These are all additional expenses and are not needed when you use a VoIP system.
With VoIP, you can use any brand of mobile phone. You can even use your home phone if you are just starting your business and don’t want to purchase a new one. Mobile phones, laptops and desktops can all be connected to the VoIP system; this can be done by downloading the application your VoIP service provider gives you.
Call Costs With a VoIP System
Some businesses would need to connect with people of other countries. This would mean expensive call rates and additional fees if you were using a standard phone system.
With VoIP, you can conduct video conferences, take shared screen calls, send an SMS message, and make international calls without any additional expenses.
Saving Costs During Calamities
Calamities are disastrous and are most likely unexpected. It could occur for a short or long period of time and could greatly affect the flow of your business.
As long as your internet connection is not affected, you can continue your work with VoIP. Without the need to move equipment – for there is not a lot of equipment needed – you can launch a work-from-home programme with no disruption or down time. With your available devices connected to the VoIP system, you can make the calls you need for your business.
What to Look for in a VoIP Systems Provider
In selecting the VoIP phone system suited for your business, you must consider the following factors:
- How much is the initial cost and monthly cost of the system?
- Is the cost of the system package offered by the provider suitable for the features you need for your business?
- Is the cost of the VoIP system, offered by the provider, within the budget range of your business?
- Based on customer reviews, can you trust the service provider?
- Does the service provider have a good reputation in terms of service?
- Does the systems provider have technical support readily available to help you when you have inquiries regarding the system?
- Are the features offered by the service provider adequate for the needs of your company?
- Does the system offer consistent good service?
- Is the system disaster proof?
- Are the features of the system easy to use and manageable?
Finding the right provider all comes down to knowing what exactly your phone needs are. With Wave, you will be able to customize the features of your phone system allowing you to maximize every available feature.
Wave is a telephony solution for your business that could save you time, effort and money. It offers a flexible system that can be used by any device anywhere around the globe.
With Wave, all your data are safe and secure. It has security features that constantly update to prevent unauthorised use of data. The settings, data, and adjustments you make are backed up in the cloud. In case of expansion, relocation or even disasters, the risk of data loss is something you will never have to worry about ever again.
It is also a cost-effective solution that could help expand your business without bleeding your budget for operational expenditure. It does not need any expensive additional equipment usually required by PBX systems and the subscription fee is as low as £2 a month. Maintenance will not be a problem, for with Wave upgrades and updates are provided for free and you can also reach out to their 24/7 customer service.
Unlike landline services that have unstable and low quality calls, it offers high quality calls with no annoying static. It uses the latest digital codec from Opus to conduct HD calls with low delay wherever and whenever, as long as you have an internet connection.
Powered by Amazon Web Services (AWS), It is engineered to provide a platform that is almost disaster proof. It is resilient as it automatically scales to meet demand, regardless of how many people use it.
It can be set up very quickly. It has an integrated plug and play feature with supported phones. It also has around-the-clock support from our specialist UK-based team, which will help you step-by-step.
It lets you stay in control through its own control panel, which can help you to easily modify the aspects of your system to best suit the needs of your business.
Wave is for small businesses that need to deal with customers around their area or anywhere around the world. Wave is for large businesses with diversified geographic locations. It is for medium or large size organization that wants to reduce their phone bills.
To be the best, you need to have the best. Trusted by thousands, Wave is the best for your business.