Best VOIP Phone Service Providers
Buyer's Guide
Communication is an integral part of the success of any business. As working from home becomes increasingly common, it’s crucial to have a platform that keeps your employees and customers connected no matter where they are.
That’s why many companies are adopting VoIP phone services. Unlike traditional landlines that are confined to a specific location, VoIP phones work over the internet, allowing your employees to use them from anywhere. They’re also less costly than conventional phone service, with most having additional features, like web conferencing tools, to support collaboration.
Are you looking for a new business phone system to enhance your organization's communication? VoIP phone services might be right for you. In this buyer's guide, we'll go over key features and benefits, how it could help your business, and how to pick the best solution.
Executive Summary
- A VoIP phone service helps businesses streamline communication and achieve greater mobility at affordable prices.
- Key features include call routing, auto attendant, call analytics, video conferencing and hot desking.
- It can reduce costs, increase scalability and tighten up data security.
- Some recent industry-related trends include artificial intelligence, language recognition and 5G networks.
- Be sure to ask potential vendors any questions you have about the software before committing to a purchase.
- What Is a VoIP Phone Service?
- Deployment Methods
- Primary Benefits
- Implementation Goals
- Basic Features & Functionality
- Advanced Features & Functionality
- Current & Upcoming Trends
- Software Comparison Strategy
- Cost & Pricing Considerations
- The Most Popular VoIP Phone Service Providers
- Questions To Ask Yourself
- Questions To Ask Vendors
- Next Steps
- Product Comparisons
- Additional Resources
What Is a VoIP Phone Service?
A VoIP (Voice Over Internet Protocol) phone service is a communications technology that enables businesses to make and receive phone calls using a stable internet connection instead of a regular phone line.
VoIP services work by converting your voice into a digital signal and transmitting it over the internet. After a call connects, VoIP converts these packets back into analog signals so they’re received by the person you've called.
Some VoIP services allow you to only make phone calls to others using the same service. However, most services let you make local, international and long distance calls.
This service is cheaper than traditional telephone lines, allowing you to connect with people anywhere in the world using devices you already have. It also comes with functionalities that regular phones don’t usually have, like call recording, auto attendant, call parking and call forwarding.
Deployment Methods
There are two main deployment methods for a VoIP phone service: on-premise and cloud-based. Let’s look at the differences between the two.
On-Premise VoIP
- Auto Attendant Systems
- Call Tracking
- Cloud PBX
- Cloud Phone Systems
- Conference Calling
- Conference Call Services
- PBX Phone Systems
- Screen Sharing
- SIP Clients
- SIP Trunk Providers
- Small Business Phone Systems
- UCAAS Providers
- Virtual Phone Systems
- VoIP Phone Service Providers
- VoIP Phone Systems
- VoIP Softphones
- VoIP
An on-premise VoIP service is installed at your organization’s office, which means it’s typically managed and maintained by your company. However, some companies employ a third-party to handle maintenance for them. You’ll also have to cover hardware costs.
Cloud-Based VoIP
Using a cloud-based VoIP service means that the software and hardware are hosted, managed and maintained by the VoIP provider. Apart from the phones or endpoint devices themselves, everything is virtual.
Here are some points to consider to help you decide which method will work best for your business:
- Customization: On-premise VoIP services offer more customization options. They allow your employees to update the internal workings as and when required.
- Cost: Most cloud-based services charge a fixed monthly fee, making the cost of entry more affordable than it is for an on-premise service, which often involves a single, upfront fee as well as expenses related to hardware, maintenance and IT support.
- Scalability: Because a third party handles the operations and new users can be added as needed, a cloud-based system is more adaptable for a rapidly scaling business. An on-premise system is more challenging to scale, creating additional costs and putting the burden of updating the service on your staff.
- Security: Both types of services provide data security measures, but a cloud-based system typically has more built-in security features, along with security services provided by the vendor. An on-premise system relies on your IT staff to handle security.
Primary Benefits
1. Reduced Costs
Setting up a VoIP solution is much cheaper than managing an on-premise phone system. With a VoIP service, voice and video calls are generally free, and can be made using any web-connected device of your choice.
Although calls from a desktop or mobile phone to a landline are chargeable, charges are minimal compared to other options and don’t involve typical fees like long-distance and international calling. Most services charge you monthly, so you end up paying only for the features you need. You also get access to more features than a traditional phone service has, at no extra cost.
2. Greater Mobility
A recent report by McKinsey found that 35% of employees were offered remote work on a full-time basis. Working from home is on the rise, and businesses need tools that support the functioning of remote and hybrid workplaces.
Since VoIP works with any internet-connected device, your staff can remain productive and efficient no matter where they are, easily connecting with clients and colleagues worldwide.
3. Increased Scalability
It's not easy to predict how many phone lines you'll need, especially if you're a rapidly growing company. Having a scalable communication solution takes the headache out of hiring new employees, forming more teams and establishing new offices in different locations.
Most VoIP solutions don't involve fees to add or remove users. They also don’t require much hardware, especially because VoIP softphones can be enabled on most common devices. If an employee leaves the company, you can easily reassign or remove their line.
4. Usability
A VoIP service is easy to integrate into any workplace because the platform is so user-friendly. Employees don’t face steep learning curves and can access the software through devices they already use every day.
5. Better Security
Many VoIP services come with built-in tools like end-to-end encryption, endpoint security and two-factor authentication to keep communications secure. Some service providers even let you check your call logs in real time, so you can catch suspicious activity as it happens.
Implementation Goals
| Goal 1 Facilitate Business Continuity |
Continue uninterrupted communications with team members, vendors, stakeholders and clients no matter where you’re located. You can even stay in touch during a power outage, since VoIP providers have multiple servers operating simultaneously. |
|---|---|
| Goal 2 Boost Customer Satisfaction |
Leverage automated communication tools to improve response times and query resolution for customers. Call monitoring and call analytics provide valuable insight into customer experiences and behavior, so you can make more informed decisions. |
| Goal 3 Establish International Presence |
Make international calls at affordable rates. Create local phone numbers for different regions across the globe, wherever your clients are located. |
| Goal 4 Reduce IT Involvement |
Minimize your dependency on IT staff and time spent onboarding new employees. IT staff provided by your service provider can remotely assist users, fix any technical issues that come up and ensure your data is secure. |
Basic Features & Functionality
| Call Routing | Route calls strategically and send each caller to the most appropriate agent available at any given time. This ensures that customers can speak with the best agents for their problems, reducing call abandonment rates and hold times. Some of the most common call routing setups are round-robin, uniform, regular and simultaneous. Companies can choose their routing strategy based on what they need. |
|---|---|
| Auto Attendant | Automatically transfer calls to a specific agent or department by allowing callers to choose options from a pre-recorded voice menu. Enable callers to answer simple questions with predefined responses set by your company, so they can resolve basic questions on their own or be routed to the best agent to assist them. According to Salesforce, 83% of customers expect to engage with an agent immediately when they contact a company. An auto attendant helps field customer calls when your agents can’t. |
| Call Analytics | Collect data and generate real-time reports for detailed insight into customer and employee experiences, to help promote a more consistent quality of service across different departments. Common analytics include call duration, sentiment analysis, caller location and number of calls. |
| Call Forwarding | Route calls to employee mobile phones or other assigned devices, or to a voicemail inbox, reducing missed calls. Employees don’t have to be tied to a desk in order to be reached. |
| Custom Music On Hold | Sometimes callers have to wait for long periods before their calls are answered. Playing music for them during hold times helps make the experience pleasant, encouraging them to stay on the line, and gives your company a more professional image. |
| Call Recording | Record calls and save them in the cloud for future reference to access anytime. Recordings are useful for detailed record-keeping, training, security and legal purposes. Modify, condense and share the transcripts of these recordings as needed. Managers can monitor staff performance by listening to recordings at random to ensure employees are following company procedures. |
| Video Conferencing | Use web-based communication tools to provide a face-to-face experience to employees even while they’re working remotely. Tools like file-sharing, group messaging and screen-sharing supplement video calls and make it easier to collaborate. |
| Call Parking | Put an active call on hold, and allow any other phone extension to pick up and take over. This is beneficial for situations where an employee wants to join a phone call from a separate office, or a manager needs to intervene in a difficult conversation. |
Advanced Features & Functionality
| Hot Desking | Companies that make and receive large volumes of calls daily may not have the resources to provide unique phone lines to each individual agent. This functionality allows agents to work on a rotating system, and maintain unique user accounts or extensions on the same line. |
|---|---|
| Store Locator Service | When customers call the central line of a business that has multiple stores, this feature uses their zip code to automatically determine what their local store would be and connects them to it. |
| E911 | In the event of an emergency, a VoIP service can automatically provide emergency dispatchers with call-back number and location information. |
Current & Upcoming Trends
Since VoIP launched in 1995, the technology has undergone tremendous changes which continue even to today. Let’s take a look at some of the current trends in VoIP phone service.
Language Recognition
A growing number of organizations are employing the language recognition feature in VoIP platforms. It combines machine learning and AI to automatically detect and adapt to what language customers are using, helping businesses communicate better with clients across the world.
5G Networks
With faster connectivity than ever, 5G networks enables businesses to have super-fast browsing speeds and better broadband connectivity, improving response times.
Mobile VoIP
With mobility becoming an increasing demand in remote and hybrid workplaces, mobile phone manufacturers are creating devices that are fully compatible with VoIP functionality.
Artificial Intelligence
Artificial Intelligence has progressed to become one of the most revolutionary industry trends. It allows you to serve your customers more strategically than ever. Features like automated sorting tools can route calls and prioritize messages based on urgency, while digital voice assistants and real-time sentiment analysis allow you to gauge your customers’ needs before the conversation even begins.
Software Comparison Strategy
While many VoIP phone services have similar features, it can be overwhelming to decide which solution is actually best for your business.
Start by considering what your business needs. What are you hoping the solution will help you achieve? How can you make the transition easy for your employees and customers? It’s also important to think about where your current communication falls short, and how a VoIP phone service could help fill the gaps.
If you need help with this step, try using our requirements template to narrow down what you’re looking for.
Since VoIP is a technology that functions over the internet, another point you should consider is data security. Though most solutions offer some kind of security measures, you might want to prioritize options that come with high-level encryption.
It’s also important to research potential vendors. You can check online reviews, read industry guides and ask colleagues for their recommendations. Some vendors may even offer a free trial of their software, so you can see how your employees do with the program before committing.
Cost and Pricing Considerations
Each VoIP service provider’s pricing will vary, but there are a few main factors that affect the cost of a VoIP phone service:
- Number of users: While most cloud-based VoIP services can be scaled easily, some providers may charge per user, or may have different pricing tiers for larger organizations.
- Subscription model: Most cloud-based providers charge monthly or annually for service, while on-premise solutions typically involve a one-time, upfront fee.
- Minutes: Though most VoIP services offer unlimited talk time, some may charge by the minute, or offer different pricing plans for different amounts of service time per month.
- Additional features: Many VoIP programs come with a comprehensive suite of communication tools, but some features, like video conferencing, may be considered add-ons that cost a little more than the base plan.
- Hardware: You don’t necessarily need to invest in hardware to use a VoIP service, but, if you want your employees to have dedicated devices to ensure consistent call quality, you may want to invest in equipment like headsets and compatible phones or other endpoint devices.
The Most Popular VoIP Phone Service Providers
Jumpstart your software selection process with this list of the most popular VoIP phone services in the market.
RingCentral
RingCentral is a VoIP solution for businesses of all sizes. It offers features like team messaging, auto-recording, intelligent routing, custom greetings and high-definition video calling through any device. It integrates with Zendesk, Microsoft Dynamics and Oracle CX Sales Cloud.
Analyzing overall call history. Source
Vonage
A cloud-based communication solution, Vonage is best-suited for small and mid-sized companies. It allows businesses to enable VoIP phone service with virtually any web-connected device, making it easy to communicate with employees and clients via text, video and phone.
Using the team messaging channel. Source
8x8
8x8 is a VoIP communications service that offers features like auto attendant, call distribution, video calling, three-way calling and visual voicemail. It easily integrates with Salesforce, Microsoft Teams and ServiceNow. The solution combines video conferencing and messaging functionalities to improve collaboration.
Analyzing in-depth call details. Source
Nextiva
Nextiva is a cloud communications platform suitable for all business sizes. The solution offers features like team chat, call screening, call park, conference bridge, voicemail, caller ID and call analytics.
Integrating the solution with Outlook People. Source
Dialpad
Dialpad is a cloud communication platform that offers VoIP technology to businesses. It's best suited for small organizations. The solution provides features like auto attendant, toll-free numbers, voicemail transcription, messaging and more.
Attending calls on the Dialpad app. Source
Questions To Ask Yourself
To get a better understanding of your company’s requirements, ask yourself these guiding questions:
- What’s our budget?
- What features do we need the most?
- How many employees will use the software?
- Will our employees need training to use the software?
- Why do we need a VoIP service?
- What problems can this software help us solve?
Questions To Ask Vendors
Here are a few questions to ask potential vendors to help you learn more about the software and vendor:
About the Software
- How does your software benefit companies in my industry?
- How do you ensure data security?
- Is the solution scalable?
- Is the software customizable to specific business needs?
- Can I keep my current phone numbers after updating the software?
- Is this compatible with our existing software?
About the Vendor
- What company sizes do you typically work with?
- Are your services geographically distributed?
- Do you provide 24/7 technical support?
- How many years of industry expertise do you have?
- How long does onboarding typically take for your product?
- Are there any hidden expenses?
Next Steps
VoIP phone service is a convenient option for businesses, making business communication easy to manage no matter who you’re trying to reach or where you’re calling from.
Picking the right service may feel daunting, but we hope this buyer’s guide has helped narrow down your options. If you need further help, you can check out our free comparison report to compare top software leaders side by side. Good luck!
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