What is VoIP phone service? An introduction to VoIP services

There are hundreds, if not thousands, of VoIP phone service providers offering their services, but it is quite challenging to find the one that best fits your business. This guide will help you find what to look for when choosing a VoIP phone service provider in line with your budget and requirements.

Technological advancements in telephony have made business communications easier and way quicker. Now, you don’t have to rely on the old-school traditional lines to connect you to your consumers. You can reach out to them instantly by using cloud-based products that aren’t only cost-effective, but are also more reliable, inclusive, and effective.

Here’s what we’re going to take a look at:

What is VoIP?

How VoIP phone service works?

Benefits of VoIP

Essential VoIP Phone System Features

VoIP vs. Traditional landline

What to look for when choosing a VoIP phone service provider

What is VoIP?link to this section

VoIP stands for “Voice over Internet Protocol,” a technology that allows anybody to place phone calls using an internet connection. You can make these telephone calls via a variety of options, such as computers, VoIP phones, WebRTC-enabled browsers, and even through a smartphone!

VoIP technology has existed longer than you might think, with digital lines carrying telephone calls as early as the 70s. However, advancements in recent years have made VoIP a secure and more reliable option for communication.

Not only is the technology more future-proof than a standard landline, but the costs can actually be lower than those of traditional phone plans. So let’s take a closer look at VoIP services and how they can help you enhance business communications.

How VoIP phone service workslink to this section

Traditionally, phone calls are transmitted using physical copper wires connected to the public switched telephone network (analog method). VoIP solutions bypass this by transmitting phone calls using the internet. This is done by converting the audio information into digital signals and transporting them as data packets to their destination.

Data packets are transported through the internet using either RTP (Real-time Transport Protocol) or SRTP (Secure Real-time Transport Protocol).

In here lies the differencelink to this section

While some VoIP services may only allow phone calls in between their networks, others may allow you to call, via their services (using Wi-Fi or any other network connection), anyone who owns a phone number, be it a national, international, mobile, or local number.

Additionally, a number of phone services are only functional over a desktop or a dedicated phone for VoIP but there are some for which you can use the traditional phone (desk phone) with an adapter (VoIP).

Next, let’s explore what benefits VoIP has to offer.

Benefits of VoIPlink to this section

There are several benefits of VoIP. These include, but are not limited to:

• Cost-effectiveness
• Flexibility and scalability
• Advanced features
• Optimization for inbound calling

Let’s take a look at some of these advantages in more depth:

1. Cost-effectiveness
   
   One of the key advantages of VoIP is the lower cost. Since it uses your existing internet connection, you eliminate additional costs that come with the use of a dedicated landline. VoIP phone services help you communicate with your clients for lower than regular charges, almost always.
   There’s also no need to invest in the expensive hardware or wiring that an analog desk phone connection would require. VoIP phones are incredibly versatile and can often be used with your employees’ existing devices, such as iOS or Android cell phones. An existing PC or Mac can even be used as a softphone.
   Depending on your provider, long-distance and international calls can be made at little to no extra cost with a VoIP phone system. This means that businesses, such as yours, specifically running global operations can save significantly on international calling and conference calling.
   On top of all that, the maintenance and repair costs for VoIP tend to be a lot less than for a traditional phone system. Because there’s less equipment involved, there’s less to maintain.
   
2. Flexibility & scalability
   
   VoIP is incredibly flexible, and your service can often be built around precisely what you require and where you require it. Since phones aren’t physically connected to the PSTN, you can use VoIP anywhere as long as you’re connected to an internet connection.
   Your phone numbers can also be used on various devices. This makes the service perfect for businesses with employees who are required to travel a lot or work remotely.
   Not only that, but VoIP phone services can be scaled much more easily than a landline phone system. You can simply add or remove users as you require them. The only limit is your internet service; you can have as many voice calls running simultaneously as your bandwidth can handle.
   
3. Advanced features
   
   The success of any product that involves user experience at any level is dependent on the number of advanced features it offers.
   One of the best things about VoIP is the broad range of features it can be integrated with. You must ensure that the provider you're looking for offers the features you need.
   Features such as voicemail, automatic call routing, and even hold music can be easily incorporated into your system. This makes your business seem professional and prepared, only at a fraction of the cost of setting up these features with a landline system, without having to bear the cost of routers, modems, and other equipment.
   
4. Optimized for inbound call centers
   
   VoIP allows you to transfer calls quickly and effortlessly between different users and departments within your business without the need to install bulky PBX systems. It allows consumers to be connected with the right people as soon as necessary, reducing queues and improving customer support. This makes VoIP ideal for use in call centers.
   There is also a wide range of features that make the whole customer service experience more efficient for your customers and for your business. Email, instant messaging, call recordings, and more can all be integrated with VoIP, making the customer service experience seamless.
   Because VoIP features make life so much easier for remote workers, customer service teams can be reached wherever they are, anywhere across the globe. Additionally, call audio can be easily recorded to be accessed later. It can even be attached to an email and sent to customers so they can have a record of their conversation if they wish.
   By integrating VoIP with a contact center software, you can also add CRM integrations to help manage your customers' details. Having all the information you could ever need available in one place greatly increases efficiency and productivity.

Essential VoIP phone system featureslink to this section

One of the great things about Voice over IP phone systems is that there is a variety of helpful features that can complement the service according to the usage. Here are some of the essential features you’d like to look for when choosing a VoIP phone system:

• Auto attendant
• Call recording
• Voicemail transcription
• Call monitoring
• Call encryption and security
• The XCaaS

Let’s look at each feature in more detail:

Auto attendantlink to this section

Auto attendant functionality is an excellent feature that can help dramatically reduce call waiting times, and improve the overall customer service experience.

Incoming callers are presented with self-service options, allowing them to choose which department they wish to be connected to, depending on their query. This helps reduce the amount of time spent transferring calls.

Call recordinglink to this section

The ability to record outgoing and incoming calls can have many benefits. You can play calls back to other members of your team for a second point of view on a problem, provide customers with a copy of their call if they require it, or even use them for training purposes.

It’s important to make sure call recordings are stored in a secure location so that only authorized personnel can access them. Calls can be stored on a desktop or in the cloud so they can be accessed remotely for those working from home.

A virtual office dashboard can give you easy access to your recordings, which can be replayed, reviewed, deleted, or distributed as necessary. These can take the form of a desktop app or even a mobile app.

Voicemail & voicemail transcriptionlink to this section

The ability to access saved voicemails from anywhere means that messages can be picked up anywhere, at any time. This is great for businesses that have remote customer service agents using mobile devices.

Some VoIP services provide an option to transcribe voicemails as well, allowing users to view voicemails as written records. These written voicemails can then be sent as text messages or via email.

Call monitoringlink to this section

Call monitoring allows office managers to observe calls. A whisper function also allows the observer to give information to their employee, without the other party being able to hear them. These features can be incredibly helpful in contact center environments. They can help with training new agents or offering support on difficult calls by giving managers the ability to assist agents in real time.

Call encryption & securitylink to this section

As with all areas of a business, security should be a consideration when choosing a VoIP business phone system. Calls with customers can often carry sensitive information, such as addresses, government numbers, or credit card details. This means that every effort should be made to ensure calls are secure and any recordings made are safely stored.

Call logs can be reviewed to scan for suspicious activity, while passwords and two-factor authentication can help ensure only desired parties have access to your VoIP system.

When choosing a business VoIP provider, make sure to review not just the features they offer on their information sheet or website, but also what’s included in their service level agreement. When it comes to security for business VoIP, you need to be vigilant about what your provider can or cannot deliver so you won’t run into any risks in the future.

The XCaaS advantage (eXperience Communications as a Service)link to this section

eXperience communications as a service (XCaaS) integrates multiple experiences, such as the employee experience and the customer experience into one end-to-end communication platform. From instant messaging, SMS, team chats, and video calls/meetings to the business phone and contact center now accessible via a single platform, XCaaS allows for improved efficiency and increased productivity across all VoIP services.

To be more specific, XCaaS isn’t exactly a VoIP feature. Rather, VoIP services are usually packaged with a more comprehensive XCaaS platform that gives you access to multiple communication channels spanning across the customer and employee experience instead of just one. However, you can still opt for just voice if that’s all your team needs.

It has all of the features you require plus some more. Let’s have a look at some of those:

• Combined elements of UCaaS (Unified communications as a service) and CCaaS (Contact center as a service)
• Video meetings with up to 500 participants
• A 360-degree view of both, customers and employees
• Real-time cross-platform insights
• Performance analytics
• Integrations

With unified communications as a service (UCaaS), you can have a bundle of essential features without having to download a separate app for each of them. With Contact Center as a service, you can utilize the software that is directly offered by your provider. A combination of both, as in VoIP with XCaaS, helps you enjoy scalability and functionality, introduce pro-creativity, create accountability and improve connectivity, all while generating greater ROI.

VoIP, under the umbrella of XCaaS, is an excellent option for enterprises and companies who are looking to grow their business exponentially. Each of the features, such as unlimited calling, are designed to positively complement your business in unprecedented ways.

VoIP vs. traditional landlinelink to this section

To help you gain a clearer perspective, we will compare both of these services against the following verticals:

1. Dependability
2. Costs
3. Accessibility
4. Audio quality

Dependability

VoIP phone services utilize the internet connection to function, whereas traditional phone lines carry signals over copper wires. Therefore, naturally, VoIP phone services offer more coverage and quicker connectivity when compared with landlines, which are only functional over geographical regions.

Costs

Maintenance costs of landline systems are significantly higher than those of VoIP services. Because landlines require a system of equipment to operate, they cost more. Whereas, you can use VoIP services at much cheaper rates as all that is required is a working internet connection, freeing you from the hassle of system maintenance.

Accessibility

A modern-day business can no longer function at its fullest under the limitations associated with tools and products that don’t offer flexibility, like landlines. VoIP enables your employees to immediately access their work and dashboard, and connect with consumers effectively from anywhere, anytime.

Audio quality

One of the most important advantages of using VoIP phone services over traditional phone lines is better audio quality. Your team might encounter noisy connections and unnecessary lags when using landlines, which can be quite annoying. With quality VoIP phone services and a good internet connection, you’d never have to worry about poor audio quality.

What to look for when choosing a VoIP phone service providerlink to this section

There are several factors that you should keep in mind when considering the various service providers for VoIP that offer services. To find out which one is right for you, cross-match these aspects with the service you are considering:

• Pricing
• Functionality
• Features
• Integrations
• Customer support
• Quality of Service

Pricinglink to this section

Have a clear idea of what you can afford to spend on your VoIP service, and factor in the cost of the services you are receiving. Some plans may be better value for money than others.

Functionalitylink to this section

Consider a product coming from a VoIP phone service provider that promises improved functionality over your existing product and is more than just a new addition to your fleet of software and toll-free numbers.

Featureslink to this section

When considering features for your new VoIP system, you need to ask yourselves a number of questions:

1. How many people will be using the service?
2. Is the service compatible with your mode of work?
3. Will it add to efficiency and improve productivity?
4. Is this specific feature indispensable to the growth of your business?
5. Will the feature make communicating easier?
6. Have your consumers/ employees specifically asked for a feature to be added?

Integrationslink to this section

When you want to dial in for success, you need to procure a VoIP phone service that is flexible and adaptable with integrations so that you can have a holistic view of metrics and your agents can perform seamlessly.

Customer supportlink to this section

It is a must to consider how much technical support is offered by your provider, and when they are accessible. Do they offer live chat or give satisfactory support?

Quality of servicelink to this section

Different features may be offered by different VoIP service providers, and at different price points. Which do you need, and which can you manage without?

Role of pricinglink to this section

As you’d expect, the cost of VoIP can vary greatly depending on the provider and the features they're offering. The good news is that the prices will almost always present a great saving over a traditional, on-premises landline system.

Many providers will offer various bundles on different price plans, so business owners can choose a cost-effective plan that involves them only paying for their business needs.

8x8 has carefully designed packages that are all-inclusive and serve the best of your demands cost-effectively.

Here is a simple table for 8x8’s business phone product series and their features:

FAQslink to this section

Is a VoIP business phone system suitable for my company?

VoIP is suitable for companies of any size or industry. In case your company requires employees to work remotely or if your organization is multinational, VoIP services can be indispensable to ensure smooth and efficient communications.

It's also helpful if you’re looking to expand your business in the near future and want a communication system that is easily scalable and future-proof.

Just remember that VoIP is reliant on the internet, so a high-speed internet connection is recommended, as you want to minimize your risk of outages.

Will I have to change my equipment or my phone number?

Some existing handsets can be compatible with VoIP technology, but not all. It’s worth checking if your current infrastructure can adapt to the change as part of your research when considering making the shift.

The good news is that most VoIP providers will allow you to keep your existing phone numbers, even business phone numbers, which will help with continuity for your business. The added benefit is that with VoIP, you will be able to use these numbers from anywhere.

What’s the quality of VoIP calls like?

Since VoIP uses an internet connection to transmit audio, call quality relies on the strength of your internet connection. If you have a weak connection or if you don’t have enough bandwidth, VoIP calls might stutter or get choppy.

Still, the internet requirements for VoIP aren’t that intensive, and you’re likely to experience far fewer issues with VoIP than with an analog phone service that’s more susceptible to interference.

Time to make the switch to VoIPlink to this section

Now that you’re a little more familiar with VoIP, it’s time to consider getting in touch with VoIP service providers and seeing what they can offer you. With a large variety of calling features available, you must choose a provider and package that offers exactly what you need.

Remember, you don’t need a lot of fancy equipment to get started; your existing mobile phones and laptops should have everything you need to get started with VoIP. As long as you have a stable internet connection, you’re ready to go.

If you’re considering taking the plunge with VoIP, why not take a look at what 8x8 can offer your business?

• Safe and secure - Certified to the most rigorous compliance standards.
• Global reliability - Backed by the first platform-wide 99.99% uptime SLA.
• Advanced features - The XCaaS advantage offers a complete contact center suite, team chat, analytics, call forwarding, call blocking, and so much more.
• Cost-effective - Pricing plans that offer the best value for money.

Ready to use VoIP Phone services?

Talk to 8x8 Sales now!