How VoIP can Transform your Business

As our world becomes more and more reliant on technology, many businesses today are utilizing new technologies to stay on the forefront of their industry's market. Since communications are critical in staying in touch with consumers, a VoIP phone system is something that your business can use to stay current while offering an edge on your competitors.

How VoIP Works
VoIP works by packaging phone call data into "packets" and sending them over the Internet. Traditional public switched telephone networks (PTSN) use copper lines to transmit information from line-to-line. Using this service saves money since it charges by megabits used instead of by call location and call times. This is particularly useful if your business receives in and outbound calls nationally or worldwide. With VoIP phone systems, your business won't be charged extra for these types of calls which is a great way to save money in a tough economy.

Enhanced Features
In addition, VoIP service can provide an inexpensive way to have your incoming business calls routed to a central location and then transferred from there to the corresponding department without any geographical limits. Not only will this save your business money but allow an increased level of customer care in providing what your customer needs.

VoIP service also offers many features for free that PTSN networks charge for. This includes call forwarding and conference calling to name a couple. These free services can create new ways for your business to communicate and can increase your company's productivity and efficiency.

A core benefit of a VoIP system is the system integration of customer relationship management software and other communication mediums. Employees have the ability to switch from video conferencing to email to voice. In addition, the seamless integration of a CRM system allows employees to see critical customer data to prepare for the calls coming in. This ensures proper handling of consumer issues and prevents them from turning into big problems.

Potential Drawbacks
While an IP phone system is a great choice for many businesses, it does have some drawbacks to keep in mind. Since the network uses the Internet, there is the threat of viruses or attacks on the system. While this is rare, it is something to consider for your purchase decision.

In addition, a VoIP system will increase the demands on your company's Internet network. Your provider will ask questions about the amount of calls made and received to ensure you have enough bandwidth to handle the increased demand on your network by utilizing VoIP service. If your network cannot handle the additional usage, the network could crash or have other quality issues.

When considering a voice over IP phone system for your business, keep in mind the features that can give your business a competitive edge. The expense will be well worth it when you drive in additional customers or provide a level of service over your competitors. Companies today need to stand out to survive and using a service to integrate your business effectively can keep your business profitable even during rough times.


Cyndi Lundeberg is a writer based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.