The Voice over IP (internet protocol) phone system, or VoIP for short, has been around for a while and currently, there are a lot of services that are offering such a system globally. While fairly simple technologically, it is a huge boost for commerce everywhere.

There are several key features for Voice over IP, which other phone connections don’t have:

  1. Local phone number
  2. Unlimited global calls
  3. Native CRM integration

Slightly paradoxically, these are all features you don’t want to have on your private phone due to security concerns.

But, if you are using a VoIP phone, the restrictions become the benefits and all you are left with are much lower costs. This is especially seen for small businesses as well as companies that offer services planet-wide.

What is Voice over IP Phone System, or VoIP?

In the simplest terms, VoIP is a phone over the internet. Instead of using your landline or mobile tower connections, you will be using the internet to call people. And, unlike Skype or Zoom, they will receive their call on their regular line and don’t need to be online.

Such a service can come in their own device, often called a VoIP phone, but most smartphones and all computers can be made into VoIP phones as well. It is a very simple matter of installing the right app with a networking capability.

But, if you have a dedicated phone you might enjoy some of the benefits of those devices without encumbering your company desktops.

Additionally, because you are connecting over the internet to a dialing center near the person you are calling, you will appear on the screen as a local number. This byproduct of the system has huge advantages for marketing and sales.

How does VoIP Work?

Digital dialing centers are now all over the world. Most landline and mobile operators have a large section of phones open for business purposes. VoIP operators contract these numbers and offer them to their clients.

When you call a number, you will be connecting over the internet to that local center that is near your customer or client. The center will then dial that person’s number and establish a call.

To simplify, you are speaking with a server over a Skype-like connection, and they are transferring that over a landline to who you want to speak with.

Advantages of Using VoIP Phones

For those who use phone calls for business purposes, VoIP calls can be substantially cheaper than any other type of calling. This is especially the case if you plan on offering your services globally or remotely.

Also, you will be paying a flat rate and not per call, making it easy to reduce costs by scale. The only thing you should worry about then is making full use of the line you are paying for.

Additionally, there is native CRM integration, which is also beneficial for companies and small businesses. This way your database can track who you called and even record the call without you needing to do extra work.

Finally, there is the aforementioned benefit of having your number appear as local. Many customers don’t want to answer calls with strange prefixes and for good reason. But with a local call, you will have better chances of reaching a lead or connecting with a potential client.

Don’t Misuse the Benefits

There are some companies who used the relative anonymity and masked appearance of VoIP calls to spam sales pitches to people who haven’t in any way registered for the service. This might sound enticing but will place you under a class-action lawsuit that is often conducted.

VoIP phones don’t ensure anonymity against legal action and the provider will give your records if given a court order. Make sure to conduct your business honestly and not misuse the benefits this service will provide you.

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