VOIP: Everything You Need to Know

VOIP is an increasingly popular part of the contact centre tech stack, but how exactly does it work? Our guide is ready to show you what it is and how it can benefit your business.

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If you’re considering implementing Voice over Internet Protocol (VoIP) technology in your business, you’re not alone. Many businesses have recently made the switch from traditional landlines to VoIP because of the benefits of digitalised voice transmission.

If you’re still relying on a landline for your inbound and outbound calls, you may be wondering how VoIP could improve your customer service. To help you decide whether VoIP is worth cutting the cord of your landline for, we’ve put together this handy guide including everything from the benefits to the migration process. Whether you’re new to the term or ready to start the search for your perfect VoIP provider, we have all the information you need right here.

What is VoIP?

Put simply, Voice over Internet Protocol – or VoIP as it’s more commonly known – is a type of communication technology which allows us to make phone calls using devices connected to the Internet, such as mobile phones and computers. VoIP has made its way into everyday life, and It’s very likely that you already use VoIP at home via applications like WhatsApp, Facebook Messenger, and Skype.

VoIP explanation

Where the traditional phone line relies on wires or optical fibres, VoIP shares messages over an Internet Protocol (IP) network. This essentially means using the Internet to send the data rather than transmitting it via physical cables. VoIP technology is rapidly evolving and telecoms providers around the world are increasingly moving their landline customers to VoIP because of the compelling business benefits. For instance, BT will switch off its ISDN and PSTN services (the landline technology they use) in the UK by 2025 with over two million businesses expected to be affected.

While the change to this technology might seem like a big leap from the traditional landline, the rapid development of VoIP systems means it can benefit businesses even more than ever.

How does VoIP work?

VoIP phone call

Understanding how VoIP technology works can ensure your team is well-placed to use its features to enhance customer service output. The first thing to note is that each Internet-enabled device has an IP address which allows data to be sent back and forth between the devices via the IP address. For example, a telephone can be connected to broadband through a DSL router or VoIP-enabled cable modem.

The process of taking a phone call would then look like this:

  1. Voice conversion: The VoIP application digitalises the audio signal.
  2. Data transmission: The numerous data packets that make up a phone call are transmitted via the Internet.
  3. Data decryption: Once the data arrives at the target destination, it can be converted back into voice.

What are the Differences between VoIP and Traditional Phones?

There are a few notable differences between VoIP and traditional phones. Firstly, the most obvious thing setting the two communication tools apart is that a traditional phone doesn’t use the Internet and typically requires little power to function. Instead, it relies on copper wires to feed the connection. VoIP systems require a strong and stable Internet connection and varying amounts of power depending on how many agents will be relying on the system at one time in one place.

Call quality can also vary depending on broadband speeds for VoIP and network connection for a landline phone. Generally speaking, though, the call quality experienced with VoIP is often far better than its traditional counterpart because the technology is far more advanced.

The cost is also a mention-worthy difference since many businesses might assume that the newer the tech, the more costly it’ll be. In reality, many landline services are more expensive to set up and maintain than VoIP. This is because it requires less hardware and has a much simpler installation process.

The number of features available with VoIP systems is also far greater than a standard landline phone. While a landline is limited unless you fork out for upgrades, VoIP offers caller ID display, call diverting, digital encryption, voicemail services and conference calling among many others.

For those switching from landline to VoIP, security can be a big worry. But while it’s true that this technology can be more susceptible to cyber-attacks and data breaches than a landline, this shouldn’t be an issue if your system has private firewalls, and your provider follows the correct security protocols.

What are the Advantages of VoIP?

Why are so many businesses switching to VoIP from traditional telephony? Here are the main advantages that are likely to sway their decisions.

Cost-effective

VoIP has proven itself to be significantly more cost-effective than traditional telephony, especially when it comes to handling a high volume of calls or long-distance communication. It allows businesses to spend less on customer service without compromising on call quality or customer care – although you might have an initial cost setback if your internet connection can’t support your call volume and it needs to be upgraded.

Scalability

The scalability of VoIP also makes it an attractive option for growth–focused businesses. Due to the cloud technology utilised by VOIP, you can easily increase your throughput without requiring additional hardware or phone lines, and without reducing your call quality. This holds especially true for international calls which can be made anywhere in the world with minimal setup.

Simple Configuration

VoIP-enabled software is available to buy, but this isn’t necessary. It’s entirely possible to migrate to VoIP without purchasing specialist hardware. Instead, your team can continue to use their existing computer devices, making for a smooth transition to the new technology.

Advanced Business Features

From conference call set-up to auto dialling, VoIP has plenty of advanced business features that can boost general operations. The additional features allow your team to streamline processes, create better customer experiences and continually improve your customer service offering.

Flexibility

Agents can take calls from anywhere, allowing for the possibility of remote contact centre employees. And at a time when flexibility is a priority for many businesses, having this available is a major bonus. Flexibility improves your ability to provide customer support quickly and efficiently, while also meaning that your agents don’t need to be stuck at their desks to take inbound calls.

What are the Disadvantages of VoIP?

Since VoIP relies on a good internet connection, this could cause problems with call quality if the internet speeds are slow or tend to cut out. However, a quick audit of your internet connection before moving to VoIP can eliminate this issue. If you find that your internet speeds are on the slower side but still want to switch to VoIP, it’s worth searching for a better internet provider with higher speeds and increased bandwidth.

Another potential downside to VoIP is that during a power outage, you’re at risk of losing communication with customers. But since this scenario would also impact a landline call, it’s an issue you’re likely to have already dealt with. Investing in a backup power generator can help in this case, but again, it’s good to check with your internet provider how often their services go down each year so you can get a better idea of whether to switch or not.

Full use of the tech will also need to wait until the necessary team members are trained on how to use it. Luckily, most VoIP technology is straightforward to understand, so it shouldn’t take too long for your customer service team to get used to it. It’s also worth factoring in how much time and resources will be needed during the migration stage since this could affect operations in the short term.

Key Features of VoIP Systems

VoIP technology is developing rapidly, as we’ve mentioned. As it develops, more and more features are added to its repertoire. Here are some of the main features of these systems and an explanation of how each one works.

Advanced Call Management

VoIP systems offer advanced call management which helps your agents prioritise, hold, route, or block incoming calls. This gives your customer service team more control over workloads and minimises customer frustrations because of long wait times or call queues.

Anonymous Call Rejection

Not all inbound calls are from genuine customers requiring support, but without VoIP, it’s difficult to tell the difference between a real customer and a crank caller at first glance. These ingenuine calls can take up valuable time in your contact centre, but thankfully they can easily be avoided with VoIP technology. The anonymous call rejection feature prevents anonymous phone numbers or blocked caller IDs from placing an inbound call to your business. Plus, the caller ID display feature available can help agents see who is calling.

Call Forwarding

Regardless of where your teams are, call forwarding means you’ll never leave an important call unanswered. Instead, calls received can be routed to other operators in the contact centre, mobile devices and other designated devices. This way, your team benefits from the flexibility of being able to receive calls from anywhere, while your customers benefit from their issues and concerns being resolved quickly and with increased efficiency.

Call Queuing

Whether you experience large call volumes once in a blue moon or on a regular basis, call queuing can make a huge difference to your contact centre efficiency. This feature allows your team to access automatic call distribution for inbound calls, alongside creating improved workload organisation and staff delegation. Customers can then benefit from reduced waiting times and the team can get through a backlog of calls easily.

Call Recording

VoIP also allows your team to record calls and gain full visibility into this aspect of your customer service. The recordings can be monitored regularly to find out if the call quality is meeting your standards, alongside checking the effectiveness of your agents’ techniques. This can give you a clear understanding of skill weaknesses in the team that could be bumped up with tailored coaching and training.

What do you Need to Set up VoIP?

Before a business can even think about VoIP migration, a few considerations must be made. We’ve listed these below:

Hardware

Will you continue to use the current hardware, or will you need to purchase specialist VoIP-enabled hardware? Investing in new hardware is recommended if your call centre team handle a large volume of calls.

Internet connection

A strong and stable Internet connection must be established for VoIP to work as intended. If you discover that yours is weak, it might be worth upgrading or switching providers.

Software

Choosing the correct VoIP provider is an important step. Think about the security features and support you’ll need before picking the software.

How Complicated is the Migration to VoIP?

Choosing the right partner who will provide a seamless migration with minimal downtime is essential. You may need to allow for a limited–service period whilst you move your number from your existing provider into your new solution, however, the disruption to your customer service output can be kept to a minimum by establishing close communication between your business and the VoIP provider.

It’s often sensible to remain cautious when it comes to planning the move, but even conservative estimates can place a VOIP migration at between 1-4 weeks allowing you to move at a good pace.

How do you Make a Call Using VoIP?

Making a call using VoIP is straightforward, but it can take time for your team to get used to the change in software and hardware. But luckily, any device with an internet connection can be used. Some traditional software might require an adapter, so it’s worth checking with your provider what you’ll need.

Generally, the phone will connect to the switch or router in your Local Area Network (LAN). When you dial a phone number, your IP phone tells your VoIP service provider to connect to the other party. The service should then establish the call and exchange data packets from your phone’s IP, which are then converted into digital signals that become sound.

Is VoIP Right for Your Business?

Now that you’re ready to get started, it’s worth asking yourself these five key questions:

  • What kind of phone do you want your team to use? Would you prefer VoIP-enabled hardware or a headset plugged into the agent’s computer? In some cases, you might be able to use the hardware and devices you currently have to facilitate VoIP, which means the business can save a considerable amount of money during migration.
  • What kind of platform do you need? A good partner will integrate VoIP as part of your overall solution rather than as a bolt–on option.
  • Think about the mix of inbound and outbound calls your team is currently handling. How can call-backs and IVRs be used to maximise both self-serve and minimise inbound pressure at key points in your journey?
  • Where does telephony via VoIP fit into your omnichannel approach? VoIP gives you a great opportunity to increase efficiency by dovetailing with digital channels.
  • Do you have virtual offices or remote representatives operating from different locations? VoIP allows for seamless contact from anywhere, making teams more efficient than ever.
is VoIP right for you

Answering these questions should give you everything you need to start, but sometimes it can be helpful to talk them through. For more information, book a call with us and see our VOIP technology in action.

We hope this guide can help your business weigh up the pros and cons of switching from a landline telephone to VoIP communication technology for your contact centre. 

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