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Voice Over Ip: What It Is And Why Businesses Use It

admin by admin
May 18, 2022
in Business, Tech
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Voice Over Ip: What It Is And Why Businesses Use It
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As a business owner, you need to invest in product enhancements and the technology infrastructure that supports the services and experiences you provide to your customers.

Consumers and large enterprises are increasingly adopting VoIP and IP telephony. For many, Internet Protocol (IP) is both a means of data communication and a tool to simplify and streamline various applications.

Voice over IP (VoIP) has become the basis for advanced communication applications that change how companies do business.

Modern phones use the Internet to communicate instead of the underlying telephone network (circuit switching).

The main advantage is that they do not depend on telephone charges. Even if you want to call a country far away from where you live, VoIP calls are free unless you use a paid application.

VoIP is the protocol that makes these calls possible. It can be used for all types of connections, from home LANs to mobile data communications.

The following section details the key factors and reasons for implementing a VoIP system in your business.

Learn more about Voice over IP technology

VoIP stands for Voice over Internet Protocol and is an excellent option for managing business calls. It is a method of converting the voice of a call into digital data and transmitting it to other devices over a network.

Communication applications such as Skype, Telegram, and WhatsApp are often used for Voice over IP calls. Note that the same application is required on the cell phone of the user making and receiving the call. However, some companies offer customized services for making VoIP calls from landline phones. There are many advantages of Voice over IP in businesses, let’s discuss all of them 

1. A wide range of possibilities

There are many resources available in the VoIP telephony industry. For example, calls can be tracked in real-time and used to check call duration, direction, and call charges, as well as to create and manage extension calls. It can also record outgoing and incoming calls, and has features such as IVR, queuing, call transfer, and conferencing.

2. More affordable hardware and software

If you’re hesitant to use VoIP because you’re worried about spending a lot of money on the hardware and software you use, don’t worry. Most VoIP systems require little installation, and many can run on existing hardware.

In terms of hardware, if you want to use VoIP on your PC, you will need a sound card. This may already be installed on your PC, or you can use a headset, microphone, speakers, etc.

Other service providers may also require you to use a VoIP phone. These calls are not very expensive and, in some cases, can be provided by the VoIP provider for a small monthly fee.

3. Scalability

Your business may reach higher growth rates than expected or even sooner than expected. While it’s impossible to predict how many phones and extensions you’ll need shortly, VoIP allows you to create, delete and assign lines as required.

On the other hand, using traditional telephony requires careful planning, as there are likely to be unnecessary costs, such as ordering lines that are not in use.

4. The convenience of remote work

With VoIP, employees can now work from anywhere. Instead of building a new satellite office and paying rent and utilities, employees can work remotely using connected computers and IP phones. Outside staff can work from home, using the same software as the call center.

Similarly, you can do important business from anywhere in the world. VoIP allows smartphones to connect to Voice over IP providers via Wi-Fi hotspots without expensive roaming charges.

This aspect makes VoIP services more attractive during the coronavirus outbreak when COVID restrictions have forced most businesses to switch to remote work for most of 2020 and the foreseeable future. A VoIP phone system gives companies the ability to reach people from anywhere, which is impossible with analog phones.

5. Enhanced customer experience

VoIP platforms offer several solutions specifically designed to improve the customer experience. For example, business phone providers automatically provide a range of features to make the customer experience as pleasant as possible. 

  • These include “call queuing,” which organizes calls, and “call blocking,” allowing experienced staff to take calls when needed.
  • Most Voice over IP systems also offers self-service, allowing customers to use self-service before speaking to an agent. If there is no answer, the agent can use call forwarding to send the call to voice mail. 
  • These solutions allow your business to interact with customers quickly and efficiently. It is famous that people with shorter wait times are more satisfied and more likely to become repeat customers.

6. Improved security

Security is not always the first thing that comes to mind when choosing a cell phone. After all, it’s not apparent how hackers can break into a landline phone and listen in on conversations. In reality, however, this situation is not only unlikely but almost impossible to avoid. Landline phones cannot be encrypted, there is no VPN, and phone services do not have anti-virus software to detect intrusions.

On the other hand, VoIP phones have many of the security features of the digital world. For example, VoIP calls can be encrypted, making them more challenging to spy on. Voice over IP is attractive to businesses that need to comply with privacy regulations, as it offers options for protecting information that may be shared with customers or colleagues.

7. Improved communication

Studies show that up to 85% of calls get missed when customers first contact a company. Even if the call is recorded and returned, there is no guarantee that contact will be made. A “game of telephone” is played, and everyone loses time.

Voice over IP can eliminate the “phone game” and make it easier for customers to contact the company and for employees to reach their colleagues. It’s portable and can be used on any device, increasing the likelihood of a one-shot call and making it more comfortable for everyone.

8. The flexibility of the tool

VoIP gives organizations the ability to manage their networks more efficiently by choosing only the tools that best meet their needs.

  • Many carriers can offer customized unified communications packages that include multiple devices, such as messaging platforms, video conferencing capabilities, and telephony services. 
  • The advantage of these options is that you can choose one or more based on your daily activities. 
  • This flexibility also allows you to increase or decrease the number of active channels in your network at the touch of a button, allowing your business to grow smoothly.

The bottom line

Switching to Voice over IP can also reduce the cost of telecommunications services. With VoIP, long-distance and international calls are usually free, and the only price is the internet connection.

The introduction of VoIP does not mean that all employees must use IP telephony. The introduction of IP telephony by a VoIP provider can protect your investment in your existing phone system, even if you have an analog PBX in place.

Author Bio

Cecilia Lyman Robertson is a 44-year-old CEO who enjoys networking and Voice Over Internet Protocol Services. She has a post-graduate degree in business studies. 

Tags: Voice Over IpVoIPVoIP Phone
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