What is VoIP and Does it Help My Business?

VoIP stands for Voice over Internet Protocol. It’s a technology that lets anyone make phone calls over an internet connection such as WhatsApp call, Facetime call, or Instagram call, etc. You have most definitely heard of it now! As broadband is becoming more and more popular, VoIP has become the number 1 choice for phone service for consumers and businesses. There is also a certain type of CRM system that incorporates VoIP systems called Operational CRM. If you’d like to read more about that here are 5 Types Of CRM Softwares. Let’s get into what you need to know about VoIP and how it can benefit your business.

What Are VoIP systems?

Most people nowadays enjoy using VoIP phone service instead of traditional phone lines because it offers many more capabilities than analog phones. And on the plus side, it’s less than half the cost. Why is VoIP phone service slightly better than analog phones? Well, VoIP phone service providers have powerful features that are not found in standard phone service. 

Here is an example, many businesses need phone service so they rely on specialized hardware known as a Private Branch Exchange (PBX). It connects internal phone extensions to the public telephone network. PBXs are generally quite expensive to set up and maintain. Whereas with VoIP, a provider can handle everything for you. All they do is plug your IP phone in, and that’s it.

How Do VoIP Systems Work?

So how does it work exactly? You probably haven’t heard of VoIP but you may have heard of an IP address, that’s your Internet Protocol address. An IP address is how computers and devices communicate with each other on the internet. These digital phones use your high-speed internet connection to be able to connect with each other. To break it down for you, here is how VoIP works in 4 simple steps:

1. Your phone connects to your switch or router in your Local Area Network (LAN).
2. When you dial a phone number, your IP phone tells your VoIP service provider to call the other party.
3. Your VoIP service establishes the call and exchanges data packets from your IP phone.
4. Your VoIP phone converts these digital signals back into the sound you can hear.

How Does VoIP Help My Business?

VoIP systems can be very helpful to businesses because it offers great features with high performance. Not only do you get everything you would expect from a calling service, such as video calling, messaging, and call routing, you also get high-tech features that improve the way your business operates. Here are a few ways VoIP can help businesses especially startups:

• It can improve your HR as voicemail services provided by VoIP can make it easy for employees to leave a message if they aren’t able to get you on the line.
• VoIP offers call screening tools as well as attendant services that can get calls routed to who they need to go to. You won’t have to worry about calls being lost.
• If your business involves making endless phone calls, with VoIP you don’t have to worry about hidden fees. You know what your prices will be upfront.
•  Staying in touch is important, and VoIP services can help connect everyone. By a conference call or a video conference, if your business has several different locations or even different floors, this is useful to stay connected.

Summary

To be extremely straightforward, yes, you should invest in a VoIP system. There are many benefits that come along with a VoIP system. Now more than ever switching from a traditional landline phone to VoIP is becoming a trend with businesses!