Top 5 VoIP Benefits For Modern Businesses

Amid the dominance of mobile tech in modern communications, some of its predecessors still see widespread use today. One of these is Voice over Internet Protocol (VoIP), a type of communication dating back to the mid-1990s (though the concept existed as early as the early 1970s) that goes by several names – not least of which is “Internet telephony.”

Essentially, VoIP works like conventional landline communication (but with more features) but uses an Internet connection rather than an analogue phone line to connect and handle calls. By digitising phone signals, VoIP enables clearer two-way communication, from calls to video conferencing, without the need to install new analogue lines.

While they can be used at home, VoIP services are more prevalent among businesses due to their numerous benefits. Recent market data are bullish about the demand for VoIP in the coming years, with one estimate stating that the global value will breach the USD$500-billion mark by 2030. But why is that the case?

1. Lower Operational Costs

Keeping overheads to a minimum is virtually catnip for companies since lower costs boost revenue. Internet and phone fall under utility expenses due to their role in daily operations, which may not be as large as payroll or rent expenses but are still substantial. Regardless of where you’re cutting costs, every penny saved matters.

This is also why, as mentioned earlier, VoIP is more prevalent among businesses and other commercial entities. When all the phone needs is a reliable Internet connection, it doesn’t need dedicated phone lines running from the workplace to utility lines outside and back. With most workplaces connected to the Web, VoIP phones are essentially ready for use.

No drilling, no laying down metres of telephone wire, no interruptions on work.

Also, as this link explains, integrating various collaboration and communication tools in VoIP phones also saves on acquiring them separately. Apart from the usual features like caller ID and call recording, depending on the model, they can carry:

• Collaboration software (e.g., Microsoft Teams)
• Video conferencing support
• Interactive voice response
• Business phone numbers
• Online fax
• Instant messaging
• Call analytics
• Device integration via app

These are only some of the things VoIP phones can do, making work in the hectic modern workplace more manageable. Switch between different modes of communication on the fly using one piece of hardware instead of juggling multiple apps and open programs.

2. Increased Comms Security

No system is completely immune to attacks, and VoIP phone systems aren’t any different. As they rely on the Internet to manage calls, VoIP phone systems are susceptible to cyber-attacks, namely distributed denial-of-service (DDoS) attacks. In 2021, the U.K. was the target of a well-orchestrated DDoS attack that hit both private and public sectors’ VoIP networks.

Not that traditional phone systems are any less prone, perhaps not to hacking but other means like social engineering and wiretapping. Radios are also known to pick up conversations over these phones and vice-versa. This is especially the case for phones made before the Digital Enhanced Cordless Telecommunications standard was set in stone.

That said, VoIP has some security advantages over traditional phone lines, starting with call encryption. Unlike analogue lines, transmitting calls over the Internet involves breaking down voice data into gibberish. Even if cyber criminals manage to intercept some, it’ll be impossible to make sense of them without reconverting them into voice data.

There are two ways VoIP phones do this: Transport Layer Security (TLS) and Secure Real-Time Transport Protocol (SRTP). Here’s the difference between the two.

This explanation may seem like a bunch of jargon, but the long and short of it is that anyone trying to steal your VoIP data must get through two formidable encryption layers. That doesn’t include the active security the VoIP service provider performs, which typically uses military-grade security protocols.

As formidable as VoIP security seems, users still have to adopt best practices to reduce their risk of breaches and cyber-attacks. These practices are simple yet fall on forgetful minds, such as creating a strong but memorable password, conducting security audits regularly and applying updates as soon as they’re available.

3. Ideal for Remote Work

Remote work arrangements were almost unheard of until the start of the pandemic when it saw a modest rise in the number of such set-ups. However, that figure doubled by the time the World Health Organization formally declared the end of the health emergency in 2023. Despite resistance from some employers, remote work is here to stay.

That being the case, remote work poses challenges for office managers. Security is one thing, but equally pressing is collaboration and coordination. With the team working at various locations and on-site supervision impossible, managers are under pressure to ensure that every member is pulling their weight.

VoIP networks are ideal for remote work setups, though not just because they unify suites of collaboration tools or keep phone calls under tight guard. Despite having a dedicated phone, VoIP can operate from any compatible device like a laptop or smartphone.

This is called a softphone, a software-based VoIP system with as many capabilities and features as its phone-based counterparts. Businesses don’t have to procure VoIP phones for each employee; instead, they sign them up for an account with their preferred business VoIP provider.

Softphones aren’t only ideal for remote work. They can also benefit workplaces where many employees are out on the field most of the time, such as lawyers going to and from courthouses. Using softphone systems installed on their mobile devices, they can connect with the VoIP phone in the office and vice versa.

4. Better Customer Service

Businesses integrate third-party apps into their VoIP networks all the time, the most typical being customer relationship management (CRM) systems. In doing so, even a small team of CRM specialists can handle dozens of calls and address their complaints and concerns.

Before anything else, it pays to know what a CRM is and how it works. Without getting too technical, it collects information about a business’s clients or customers and studies its interaction with them. Accurate CRM results in quality customer service, the cornerstone of building trust for any brand.

While CRM software shares some functionalities with VoIP systems, one thing it can’t do alone is call. By integrating the two, users can find the right client or customer and review their profile while talking to them over the phone. After the call, the phone can store the call recording on the CRM database for future reference.

Using software on a VoIP phone may seem cumbersome, but as mentioned earlier, VoIP systems can also be installed on other devices. Whether you’re using a laptop or desktop PC, VoIP-integrated business tools add to said systems’ versatility.

5. Scales to Business Needs

Arguably the best for last is scalability, or the ability to adjust to changing demands without compromising the quality of service. Think of it like a structure made of concrete; despite its rigidity, it has allowances in place to let it expand or contract depending on the temperature. Without these, cracks will form much sooner.

According to business consulting firm McKinsey, approximately two-thirds of a business’s value is built when it scales to penetrate a target market. Start-ups especially need to be aware of this fact, seeing that the odds are initially stacked against them.

This is where certain IT solutions like VoIP systems shine for small businesses and start-ups. It’s typical for companies to scale up or down their operations at specific times of a business year to save on costs. VoIP technology makes this a breeze through:

• Adding new phone lines without adding new phones
• Offering certain features like auto attendant as add-ons
• Minimising downtime, especially during disasters
• Integrating compatible software with VoIP systems

Successful scaling requires making tough decisions. As versatile as a VoIP phone may be, chances are your business doesn’t need all its features. If your business needs certain features in the future, it’s better to get them when the need is most apparent.

Conclusion

Between lowering overhead costs and scaling to a business’s needs, VoIP technology is a must for modern business owners. Whether you opt for dedicated VoIP phones or VoIP software for home or office computers, these VoIP advantages and more are present in both platforms. Trust this system to help your brand grow in an environment where the future is uncertain.