What Is VoIP and How can it Improve our Business Communications?

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The need for businesses to have good communications has never been higher. While communications needs have increased, the need to streamline services and operate as cost-effectively as possible has also become more important. VoIP phone service is one solution that is being relied on more and more to help businesses save money and improve the way they communicate.

What Is VoIP?

VoIP stands for Voice over Internet Protocol, and is used to describe a phone connection that takes place online. It consists of one or more compatible phones, a Private Branch Exchange (PBX) server, and occasionally a VoIP gateway. These devices enable an analog phone signal to be converted into digital signals that can then be transmitted over the Internet.  A user’s VoIP phone registers with the PBX server and asks it to make a connection whenever that person wishes to make a phone call. Alternately, a VoIP gateway may make the connection when using a traditional telephone service provider.

Greater Flexibility

A VoIP phone is plugged directly into a network, and can therefore be taken with you wherever you go. This is a major advantage if you regularly travel on business or work remotely. Your clients will never know you are out of the office, yet you will never miss a phone call. There is no need to set up an “out of office” voice message or check your voicemail several times each day in order to keep up with communications.

Integrates with Software

Another distinct benefit of VoIP is its ability to integrate with Customer Relationship Management (CRM) software in order to improve the way you interact with customers. This type of service will allow you to take calls directly without having to reach out and answer the telephone. You will receive notifications directly on your screen, providing you with information that will help you better serve your customers. In the event you are unable to take a call, the logging feature will capture the relevant information so you never have to write things down.

Cost Savings

The biggest benefit a VoIP phone offers is the ability to save money. Cost savings are possible because you are using only a single network to carry your voice and your data. When using a hosted PBX service, you can also eliminate the need for an in-house server and the related equipment fees. Adding features such as additional phone lines is also inexpensive, and can be done through your existing web browser. More than 99% of all users save money by switching to VoIP-in fact, some are able to reduce their costs by as much as 75%.

With VoIP, you are able to enjoy the same quality and features that you are accustomed to with your traditional telephone line, while at the same time saving money. VoIP can easily adapt to the ever-changing needs of your business in a way that landline service cannot, making it the perfect choice for large and small companies alike.