What is a Virtual Phone System? (And How Does It Work?)

Business by  Mashum Mollah 21 July 2020 Last Updated Date: 02 May 2023

Virtual Phone System

Just like any other conventional phone system, a virtual phone system controls every call intended for your business. However, since it is an internet-based system, it takes full advantage of the latest technologies compared to traditional office-based phone devices that require expensive equipment and hardware.

Also known as a VoIP system or a cloud-based phone system, this technology conveys your calls over the Internet instead of the traditional phone lines.

How Does a Virtual Phone System Work?

It would be better if you learn a few things first before exploring how a virtual phone system works. Since each virtual phone service has different or additional virtual components, more or less, you would encounter certain virtual communication terminologies that might confuse your part. Let’s take a look at some of them.

VoIP (Voice over Internet Protocol)

  • VoIP is a telephony technology that allows voice signals to transmit over the Internet. By saying this, it means that VoIP utilizes the Internet instead of the traditional phone lines.

To make it simpler to understand, VoIP is a technology that allows you to make or receive incoming calls using the data connection.

Virtual Phone Numbers

  • Virtual phone numbers are numbers that are not tied up to a single phone line alone. Integrating a virtual phone number to your business communication plan is one of the best solutions to avoid mixing up your personal and business calls.

Virtual phone numbers also effectively allow you to build a business presence that is necessary for your customers and clients to develop loyalty and trust.

Cloud PBX (Private Branch Exchange)

  • In its simplest term, Cloud PBX is a virtual communication technology that provides you a dependable and secure phone system for your business through the Internet.

It works by connecting all your communication devices to your virtual phone system Internet connection. Cloud PBX is so reliable because if one server goes down accidentally, there are others to support. This is done to avoid downtime.

VoIP, virtual phone numbers, and Cloud PBX work together and as a result, provide businesses with a virtual phone system that permits end-users to make calls regardless of their locations. This also allows them to appropriately route inbound calls to the right individual or department.

A virtual phone system works alongside a virtual phone number that provides your callers with a professional kind of greeting. It will then ask them what help they need, and properly route the calls to the appropriate person or department without any amount of interruption.

One of the best things with a virtual phone system is that you can choose to answer the call using your desk phone or divert the call to your mobile phone, laptop, or landline. Regardless of the communication device, you use to answer calls, your callers would not notice any difference on their part.

Another significant feature that a virtual phone system has is the ability to transcribe the calls for you and then send them through your email. This kind of feature is not possible with a traditional phone line service.

Advantages of a Virtual Phone System

There are many types of business phone services that you can choose from. So it is worth knowing the benefits that you can get from a virtual phone system. Let’s elaborate on them.

  • Easy setup – compared to the traditional wired phone system, a virtual phone system is so much easier to set up.

With the traditional wired connection, you have to wait for an engineer to install the hardware and connections – causing interruptions to your employees’ work since they need to wait until the installation is finished.

With a virtual phone system, there is no need for those kinds of scenarios because all the installation is done by your virtual phone service provider. And the only thing that you’ll probably be doing is to follow the instructions that they will send to you on how to use your virtual phone system.

  • Much lower cost – traditional phone service offers basic packages and you’ll receive exactly the basics. It means that no other important features are added without you adding an extra cost to your phone bills.

If you would observe call centers as an example, it would cost a massive amount to maintain such hundreds of agents working inside and using hundreds of communication devices as well.

But with a virtual phone system, you can cut that cost massively, inclusive of significant features that are of importance such as:

  1. Auto-attendants with customized greetings that provide information to your callers without human intervention. To learn more, read more here.
  2. Routing of calls to direct your customers to the available agent/employee.
  3. Call forwarding to the right department or individual.
  4. Caller ID.
  5. Call recording for future training purposes and marketing/advertising campaign analysis.
  6. Low international call rates.
  • Flexibility – the integration of a virtual phone system into your business allows you and your employees to have the freedom of answering important calls anywhere. Let’s say someone calls you beyond office hours, you can still answer the call even if you’re already at home.

This is one of the significant features of a virtual number associated with your virtual phone system. So there would be no missing important calls from your valued clients. On the other hand, your clients will see you as a professional and dependable businessman. This would certainly earn their trust and loyalty.

  • Fewer travel expenses – Instead of meeting a client or prospective customer outside your region or state, simply make a call to them. With a virtual phone system, you can utilize the efficiency of toll-free numbers. Or if you want to build your brand image outside your area, then a virtual phone number with the local area code on your target region or state will do the job, without hurting your pocket.
  • Ability to work from anywhere in the world – remote work option is one of the key advantages of having a virtual phone system. You and your staff are now able to place and receive calls and text messages anywhere using your business phone number.

Communication is one of the most significant factors in business. That is why communicating with your customers as if you are still in the office is very crucial. There are times that high-profile clients will call you beyond your working hours. Instead of waiting for their calls at your office while painstakingly sitting at your chair, you or your staff can answer their calls even if you are already gone from your business office.

Final Words

Virtual phone systems are designed technologically to meet business communication needs nowadays. All of its value-added features and benefits are made possible with the best communication experience while scaling up your business.

Don’t forget that one of your goals is to stay connected with your customers at all times. Combining a virtual phone system, such as with Hottelecom to your business life will give you a better chance of boosting your ROI.

Gone are the days of using a wired telephone system. In this digital world, a cloud-based virtual phone system is the way forward to grow and expand your business.

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Mashum Mollah

Mashum Mollah is an entrepreneur, founder and CEO at Viacon, a digital marketing agency that drive visibility, engagement, and proven results. He blogs at thedailynotes.com/.

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