What Is a Virtual Phone System and How Does it Work for Businesses?

The landline phone, which used to be a staple in offices worldwide, continues to be replaced with cloud-based communication solutions. The virtual business phone provides businesses of every size a portable way to communicate. In addition to reducing hardware and services costs, virtual phone systems help to support remote work.

Virtual business phone services continue to improve their technology with superior audio quality and automated response messaging systems. They also offer startups and multinational businesses an effective and streamlined way to communicate with both team members and customers. Let's take a closer look at virtual phone systems and ways that companies can benefit from a virtual business phone.

How does a virtual business phone work?

Virtual business phones are run via Voice over Internet Protocol (VoIP), which was developed in 1995 to help reduce long-distance and international calling costs. Audio is converted into a digital signal and then sent as data across an internet connection. VoIP allows you to call directly to mobile or landlines, as well as make computer-to-computer calls. The technology can be accessed on any phone, tablet, or computer that has the necessary software installed and has a reliable internet connection.

Benefits of a virtual phone system

Mobility

One of the main benefits of a virtual phone system is mobility. Because virtual business phones are software-based, you can work from anywhere there is a stable internet connection. Having this flexibility can lead to increased productivity, making virtual phone systems an ideal solution for businesses that utilize home agents or have a remote workforce.

Cost-effective

Cost is another factor that makes virtual business phone solutions a smart choice for businesses. These cloud-based systems often include free calling and features, such as unlimited text messaging. In addition to lower service costs than traditional phone providers, virtual business phone services also reduce setup and maintenance costs. There's no additional hardware required, and all equipment updates can be done in the cloud. With less physical equipment to worry about, you'll also save money on IT maintenance and support.

Better call management

Virtual phone systems also improve call management. These services allow you to screen incoming calls and redirect them to the appropriate agent or to a preprogrammed options menu. By being able to reroute calls, you can make sure that issues are handled in order of importance.

Scalability

As businesses grow, they need solutions in place that are scalable. Customer relationship management (CRM) is of growing importance, and virtual business phone service allows you and your team to handle requests efficiently from anywhere. It also allows you to use AI-powered services to field common customer issues.

How to choose a virtual phone system

When deciding which virtual business phone service to use, you should check that the provider offers unlimited calling and SMS messaging. The best system providers will also have advanced video conferencing options and offer enhanced features, such as personalized business greetings. If you work in large teams, check for collaboration features like team messaging.

Virtual phone systems provide businesses with secure and reliable communication solutions. If you're looking to reduce your phone costs and improve how your team manages calls, consider using a virtual business phone. Contact 8x8 today to learn more.