Best Business Phone Systems
Buyer's Guide
No company wants to miss out on business opportunities or valuable clients due to poor communication. Regardless of what industry you’re in, communication is the backbone of any successful business. The right business phone system can streamline and support these essential connections, helping you succeed.
By tracking and handling all inbound and outbound contact, business phone systems ensure you never miss an important call or message from a partner or customer. In addition to the functionality of traditional telephony, these systems have other advanced features to support your operations, like automated transcription, extensive call records and unbeatable call quality.
If you’re looking for a better way to communicate, you’ve come to the right place. In this buyer’s guide, we’ll go over the benefits and features of business phone systems, industry trends to look out for and tips for how to pick the best system for your business.
Executive Summary
- Business phone systems help companies to streamline the overall communication workflow.
- Some key features include call recording, ring groups, voicemail and instant messaging.
- Key trends in the business phone systems industry include UCaaS, 5G adoption and AI.
- Make sure you ask the vendor any questions you might have about the system before committing to a purchase.
- What Are Business Phone Systems?
- Deployment Methods
- Benefits
- Implementation Goals
- Basic Features & Functionality
- Advanced Features to Consider
- Current & Upcoming Trends
- Software Comparison Strategy
- Cost & Pricing Considerations
- The Best Business Phone Systems
- Questions To Ask Yourself
- Questions To Ask Vendors
- Next Steps
- Product Comparisons
- Additional Resources
What Are Business Phone Systems?
A business phone system is a communication solution designed for business environments. In contrast to residential telephony, business phone systems include multiple interconnected telephones, often with multiple lines themselves, that can manage high call volumes.
Building on the capabilities of traditional telephony, modern-day business phone systems allow you to communicate using video, text and other mediums in addition to calls. Cloud technology makes these systems even more accessible to businesses, requiring little more than a stable internet connection to set up and use. This has become especially popular in the age of remote and global workplaces.
Types of Business Phone Systems
There are three basic types of business phone systems: KSU, PBX and VoIP. These systems differ from one another in terms of features, and each of them has a hosted and non-hosted version.
Key System Units
KSU systems can only accommodate a limited number of phone lines; hence, it’s used by companies with a maximum of 40 employees. Similar in many ways to a home telephone system, KSU has all the basic features and is easy to use. However, it lacks portability and flexibility.
If you plan to scale your business, it’s better to opt for PBX or VoIP phone systems. There’s also another variation to this system called KSU-less. While KSU-less is more portable and flexible, it isn’t sold commercially and only allows up to 10 phone operators.
Private Branch Exchange
PBX systems operate with programmable switching devices that allow automatic call routing. It’s more advanced than KSU, handling a higher volume of calls and operators, and can even run without electricity in the event of an outage.
Though it’s usually an in-house phone system, companies can also opt for mobile PBX systems that allow employees to use mobile phones as additional extensions.
Voice over Internet Protocol (VoIP)
- Auto Attendant Systems
- Auto Dialer
- Automatic Call Distribution
- Business Phone Service Providers
- Call Center Scripting
- Call Center
- Call Monitoring
- Call Recording
- Call Tracking
- Cloud PBX
- Cloud Phone Systems
- Computer Telephony Integration
- Conference Call Services
- Conference Calling
- IVR Systems
- PBX Phone
- Predictive Dialer
- Screen Sharing
- SIP Clients
- SIP Trunk Providers
- Small Business Phone
- UCAAS Providers
- Video Conferencing
- Virtual Phone Systems
- VoIP Phone Service Providers
- VoIP Phone Systems
- VoIP Softphones
- VoIP
VoIP systems are the most advanced modern telephony technology, the fastest-growing type of phone system in the U.S. They make and receive calls using the internet, enabling employees to communicate with clients or colleagues all over the world. This is especially advantageous for companies that operate in multiple locations and cater to a global customer base.
Cloud-based technologies
In addition to the three main types outlined above, some modern business phone systems fall into an emerging software category. Though VoIP is the gold-standard for digital telecommunications, cloud-based technologies, like virtual phone systems, make far-reaching, affordable contact solutions accessible to almost any organization.
While they aren’t always as advanced as full-fledged VoIP systems, cloud-based and virtual phone systems use the same basic mechanism to make and receive calls — they work over the internet, with some even using VoIP. What they lack in sophistication, they make up for in accessibility, as many virtual phone systems are extremely low-cost, even free to use.
Deployment Methods
There are two typical deployment methods for business phone systems — on-premise and cloud-based.
On-premise systems are systems you have in-house, in your building or office. Companies purchase their own equipment and usually need to employ a dedicated IT staff to oversee system maintenance and updates.
Cloud-based systems, on the other hand, don’t need in-house infrastructure to work. Calls are handled over the internet, so the only equipment you need are the endpoint devices, like desk phones or computers, to make and receive calls. The vendor is usually responsible for maintenance and updates.
The setup you choose depends on what suits your needs best. If you’re looking for a dependable, flexible, user-friendly system to help a mostly remote staff communicate, you should probably opt for a cloud-based system. If your team works in a dedicated office space and you want more control over your system, you might prefer an on-premise option.
Primary Benefits
The right business phone system can benefit your business in many ways. Let’s go over some of the main benefits.
Lower Costs
Eliminate the costs involved with expensive hardware, complex instruments, wires and long-distance carriers. You can access and enjoy advanced features that are far more affordable and capable than traditional phone systems.
Better Security
Using a private phone may put your private data at risk. Employees using their own devices could compromise the security of your clients’ information and your own proprietary data.
A cloud business phone system ensures that your personal contact information is secure and confidential, with built-in security features to prevent data leakage and exposure.
Scalability
Add extra phone lines, extensions and more advanced features as and when you need them. Quickly install new phones to keep up with growing staff and minimize workflow disruption. A cloud phone system has the added benefit of reduced communication downtime due to timely updates and maintenance.
Better Communication
Manage your calls from pin to plane, including where and when you receive them. Interact with clients flexibly using multiple channels and networks and easily share documents and information even while you’re on the go.
Expert recommendations and analysis on the top Business Phone Systems
Implementation Goals
| Goal 1 Decrease Pressure On Employees | Use call routing, voicemail and call queues. Employees save time without undergoing advanced training since most business phone vendors provide sufficient technical guidance and support. Your staff members can concentrate on other work while features like auto attendant help them handle and manage calls. |
|---|---|
| Goal 2 Improve Internal And External Communication | Set up direct phone lines for employees in different departments, facilitating better internal communication. Customers get quicker responses due to increased employee availability and multiple communication channels. |
| Goal 3 Ensure Business Continuity | Remain available 24/7 for clients, especially for businesses in multiple time zones. Improve accessibility and use call routing, call transferring and auto attendant to ensure customers and partners receive help promptly. |
| Goal 4 Better Reporting Capabilities | Track calls and use analysis tools to strategically adjust practices. Record information such as customer concerns, call times, the percentage of abandoned calls and other crucial metrics. Make staff changes, discover problem areas and devise ways to enhance customer satisfaction. |
Expert recommendations and analysis on the top Business Phone Systems
Basic Features & Functionality
| Call Recording | Record calls and save them in the cloud. Allow employees to use important conversations for training purposes. Keep records for quality assurance and legal needs. |
|---|---|
| Ring Groups | Ring groups allow you to combine phone extensions, so the assigned devices ring together when there is an incoming call. It’s a way to improve call routing and distribution across departments in an organization. |
| Call Forwarding | Allow employees to automatically divert callers to a new number or another number. It also allows employees to retain their old numbers, causing less confusion among clients or colleagues. |
| Hold Music | Fill the silence with music or recorded audio whenever a caller is put on hold to make callers wait longer. You can add work hours, events, promotions, and more in the recording to keep callers entertained and informed. This helps increase retention rates and can influence the caller's attitude to some extent. |
| Voicemail | It's not always possible to pick up a call. Voicemail allows callers to leave a message so employees can get back to them. Employees can also access voicemail messages to identify customer concerns or for training purposes. Most systems transcribe these audio messages and send them to your email, allowing you to read and respond to them quickly. |
| Caller ID | Customers may not accept calls if they don't recognize the number. Caller ID helps ensure the people you call see your company’s name so they’re more inclined to pick up. According to a report by Hiya, 32% of respondents said that adding ID to calls made them more likely to answer them. |
| Conference Calls | Conduct video or voice meetings with multiple employees across different locations, facilitating better collaboration and communication. |
| Instant Messaging | Respond instantly to customer queries with an integrated messaging platform, reducing wait times. Send SMS messages without the need for a cellular network. |
| Call Routing | Place callers in a queue based on predefined criteria and route them to a specific team or individual. Some of the key criteria include agent availability, language preferences, call volume and agent expertise. |
| Auto Attendant | A friendly AI greets callers, asks them which department they’re seeking and connects them. This feature routes and organizes incoming calls, saving time spent on manual call distribution. |
Expert recommendations and analysis on the top Business Phone Systems
Advanced Features & Functionality
| Unified Communications as a Service (UCaaS) | Unified communications as a service integrates and unifies various communication methods and devices, supporting phone calls, video conferencing, instant messaging, emails, SMS, fax, voicemail and more. |
|---|---|
| Real-time Analytics | View calls as they happen and manage call flow, boost sales and get more information on leads. Divert calls to available employees, reducing the time spent by callers waiting in the queue. |
Current & Upcoming Trends
The business phone systems industry is constantly evolving. Here’s an overview of the latest trends and changes to watch.
Hosted VoIP
An increasing number of companies are moving towards hosted VoIP services as they’re more affordable and require less maintenance. SMBs and large companies alike are looking at adopting VoIP services to scale their infrastructure and meet increasing demands.
Unified Communications as a Service (UCaaS)
UCaaS adoption is on the rise, allowing businesses to set up large, multi-channel communication infrastructure at a more affordable price point than traditional models. Hybrid and remote workplaces have only increased its popularity because of how well it supports distributed workforces.
5G Adoption
The 5G adoption increases communication speeds and improves response rates. Its superior bandwidth and reliable connectivity make it an essential upgrade for any business that wants to stay competitive.
AI
An increasing number of businesses are leveraging AI for personalization and customer service purposes, with 52% of companies accelerating adoption due to the COVID-19 pandemic. AI not only helps intelligently route and organize calls for optimal service, but also gives companies unprecedented insight into their customers’ preferences and needs with data analytics.
Expert recommendations and analysis on the top Business Phone Systems
Software Comparison Strategy
With so many business phone systems on the market, it can be difficult to decide which solution is actually best for your organization.
Start by considering what your business needs. Ask yourself some basic questions. Where does your current communication fall short? What do you hope the software will address?
Once you’ve compiled a few potential options, don’t forget to research your 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 product, so you can see how the system functions in your business before you commit.
Cost & Pricing Considerations
Investing in a new communication system is a significant step for any company. Many factors can affect the total cost. A standard analog phone system is a cheaper option than a hosted PBX or VoIP service, but the difference in functionality is massive.
Make sure to consider all potential costs, including hardware, installation, platform charges, SIP Trunking/ISDN charges, probable subscription charges and other expenses.
You can always start with a more affordable package or basic version before updating to a more advanced system. Sometimes, a basic program is all you need to meet your communication needs. Just because something is more expensive doesn’t mean it’s more suitable for your business. You don’t want to pay for advanced features you won’t use.
Other factors that might affect cost include:
- Number of phones
- Business size
- Features
- Customer service and support
- Upgrades
Expert recommendations and analysis on the top Business Phone Systems
The Best Business Phone Systems
Now that you know what business phone systems can do, how do you decide which product is the best choice for your business? We’ve listed some of the top systems on the market. Check out our picks below!
8x8
8x8 is a cloud-based solution best suited for small and medium-sized businesses. You can use a variety of devices, including laptops, desktops and mobile phones, to chat, video call, text, call or share files through the platform. It facilitates collaboration between employees, agents and clients regardless of location.
Viewing call recording details on the dashboard. Source
RingCentral
RingCentral is a cloud-based communication platform suitable for businesses of all sizes. It offers features like team messaging, unlimited internet fax, call recording, call forwarding, document sharing, visual voicemail and HD voice. The platform easily integrates with Microsoft Dynamics, Zendesk and Oracle CX Sales Cloud.
Analyzing usage behaviors and patterns. Source
MiCloud Connect
MiCloud Connect is a cloud-based communication solution that offers conferencing tools. Its key features include call routing, screen sharing, audio and video conferencing, and chats. The platform integrates with applications like ATS, CRM and ERP. It allows employees to work together regardless of their location.
Viewing and analyzing call details. Source
Nextiva
Nextiva is a VoIP platform that provides essential call management tools. It unifies all communication channels, like voice, video, SMS and chat, in one place. The solution offers 24/7 customer support, auto attendants, online faxing and toll-free numbers. It also provides users with an administration portal to view ongoing tasks with status updates in real time.
Setting up and using customized dashboards. Source
Vonage
A cloud-based communication solution, Vonage is best-suited for small and mid-sized companies. The software unifies messaging, video conferencing and other applications on a single platform for easy collaboration and communication.
Managing team messaging channels for better collaboration. Source
Expert recommendations and analysis on the top Business Phone Systems
Questions To Ask Yourself
Use these questions as a starting point for internal conversations:
- What challenges is my business currently facing, and how can business phone systems help solve them?
- What type of package or subscription will be best for my organization?
- What is my budget?
- What features of this software will be most helpful to me?
- How will this software enhance my business operations and increase efficiency, productivity and sales?
Questions To Ask Vendors
Use these questions as a starting point for conversations with vendors about the vendor and the software:
About the Software
- Which platforms does the software support?
- Will the software be beneficial for all the teams in my organization?
- Does it run smoothly, and is the interface easy to understand?
- What are the different subscription plans or packages to subscribe to?
- Do less expensive programs offered have certain limitations? If yes, what are they?
About the Vendor
- How many years of experience do you have in this industry?
- How many companies have successfully employed this software?
- What support and training do you provide?
- What company sizes do you typically work with?
- How long does onboarding take?
Expert recommendations and analysis on the top Business Phone Systems
Next Steps
The right business phone system can improve communication, team collaboration, build a professional image for your company and enhance your mobility. While selecting the right product isn’t always an easy task, we hope this guide has given you a solid starting point for your search.
If you need more help, check out our comparison report to see how top industry leaders stack up. Good luck!
Product Comparisons
Additional Resources
Top 10 Business Phone Systems Leaders by Analyst Rating (of 172 products)
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