What is VoIP?

Introduction

Voice over Internet Protocol (VoIP) is revolutionizing the way we communicate by enabling phone calls through the internet rather than traditional telephone lines. But what exactly is VoIP, and why is it becoming so popular? In this blog, we’ll explore how VoIP works, its benefits, and why more businesses and individuals are making the switch to this cost-effective and flexible communication technology. Whether you’re new to the term or looking to understand its advantages, this guide will break it all down in simple terms. 

Let’s dive in!

What is VOIP?

VoIP stands for Voice over Internet Protocol, which is a technology that allows you to make phone calls over the internet rather than using traditional phone lines. Instead of relying on a landline or cellular network, VoIP converts your voice into digital signals that are transmitted over the internet. This method makes communication faster, more flexible, and often more affordable. VoIP can be used on various devices, including smartphones, computers, and VoIP-specific phones, making it an ideal solution for both personal and business communication needs.

How Does VOIP Work?

To put it in simple words, communication over the internet is achieved through a change in the format of the message (voice, audio, etc). For data to be transmitted over the internet, it needs to change its form. A voice call placed through the VoIP phone is broken down and converted into small packets. Each of these separate broken-down packets contains information that when assembled at the receiver destination again forms back into the original audio.

Packet switching is a technique that involves sending packets of data according to the most efficient route available at the time. VoIP uses packet switching. As opposed to traditional phone lines that use circuit switching, which involves establishing a line and keeping it reserved for that purpose, packet switching is done across various networks and does not need a pre-established route. It allows the following advantages – 

• Increased efficiency as the circuits are not reserved. They are used as and when they are needed. This also means that the network bandwidth is not wasted.
•  Decreased cost, as there is no need to set up a physical network. 
• Increased speed, as the best route for transmission, is determined and used to send the packets. 

VoIP Phones can be both hardware-based and software-based. What looks like a normal desktop phone, configured to send and receive calls over the internet is the hardware-based VoIP phone. Other devices such as mobile phones, computers, tablets, etc can also place calls over the internet if they have software that enables the same. These are software-based VoIP phones. So employees can make and attend calls from anywhere, even using their personal phones or computers. One can be sitting in their office or in a theatre and still attend calls. 

This is how it works: 

Step 1 – Your phone connects to your switch or router in your Local Area Network (LAN).

Step 2 -When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.

Step 3- Your VoIP service establishes the call and exchanges data packets from your IP phone.

Step 4 – Your VoIP phone converts these digital signals back into the sound you can hear.

VOIP Vs. Landlines

When deciding between VoIP and traditional landlines, it’s essential to understand how they differ in terms of cost, functionality, flexibility, and reliability. VoIP is a modern communication method that leverages the internet, while landlines rely on older, physical infrastructure. Below, we break down the key differences between the two in a simple table to help you choose the right option for your needs.

VoIP stands out for its flexibility, cost-effectiveness, and modern features, making it a top choice for businesses and individuals looking for a versatile communication tool. However, if you prioritize simplicity and reliability, especially in areas with unreliable internet, a traditional landline might still be the better option.

Why Should Businesses Use VOIP Phones?

Now that we’ve gained some understanding of what VoIP is and how it works, we can try and understand how it can be useful for businesses. 

There are many reasons why businesses should consider investing in VoIP Phone systems. Some of them are – 

Allows Multiple Calls At A Time 

One of the very important features of a VoIP system is that it makes communication a lot easier. It allows you to make multiple calls at the same time like conference and group calls. It also makes inter-department communication easier which in turn makes it easier for the customers to be connected to the desired department.

Affordability

Whether your VoIP system is hardware-based or software-based, a major advantage of it over the traditional phones is its affordability. Since in both cases calls are made over the internet, you need not bear the cost of the call rates of telephone service providers. You would be able to place calls at significantly lower rates or even free. Installation of the hardware or software-based VoIP system is also hassle-free and doesn’t cost a fortune. If you choose a cloud-based VoIP system there is no need to install any extra equipment or appoint employees to install and maintain it. Even hardware-based VoIP systems need only the VoIP phones that are then connected to the router with an ethernet cable.

Scalability

With VoIP, as your business grows it’s easy for you to add new lines for your employees. You can also eliminate existing lines as you downsize without having to bear any additional costs. Traditional phones would have required new lines with new cabling, with VoIP one can set up additional lines with a few clicks on their online dashboard.

Mobility

VoIP provides one with ease to attend calls from anywhere they like. You don’t have to be chained to a desk to make and receive calls. With a VoIP system installed on your phone, tablet, or laptop you can take your work anywhere. It also makes it easy for businesses to allow for remote work for their employees. ( As we have seen the shift to remote work during the pandemic). It is surely the future of work.

Easy Integration

VoIP can integrate with other business tools, such as CRM systems, email, or customer support software. This allows for smoother workflows and enhances the overall customer service experience.

Improved Call Quality

With the right internet connection, VoIP offers high-definition voice clarity, making communication crystal clear. Gone are the days of poor-quality landline calls that are hard to hear.

Reporting and Metrics 

Using Landline telephones for business communications limits you from understanding the call metrics. With VoIP, one can easily track important metrics such as total call time, average handle time, hold time, etc. 

These will help you to understand how you can handle calls better. Customer experience can be significantly improved once you are able to measure your performance. 

VOIP for Business – Use Cases

VoIP technology has revolutionized the way businesses communicate, offering flexibility and advanced features that support a wide range of business needs. Here are some common use cases where VoIP can add significant value:

Remote and Hybrid Teams

With more businesses adopting remote and hybrid work models, VoIP is the perfect solution to keep teams connected. Employees can make and receive calls from anywhere using their smartphones, laptops, or VoIP-enabled devices, ensuring seamless communication no matter where they are.

Call Centers and Customer Support

VoIP is ideal for call centers and customer service teams due to its ability to handle high call volumes, provide automated call routing, and integrate with CRM systems. Features like call recording, analytics, and real-time call monitoring help improve service quality and customer satisfaction.

International Business Operations

Companies with global offices or clients often face high communication costs. VoIP eliminates these barriers by providing low-cost or free international calls. This makes it easier for businesses to maintain constant communication across borders without the financial strain.

Startups and Small Businesses

VoIP offers startups and small businesses a cost-effective solution for professional communication. With features like auto-attendants, voicemail-to-email, and conference calling, small teams can present themselves like larger enterprises, all while keeping expenses low.

Multi-location Companies

Businesses with multiple office locations benefit from VoIP’s ability to unify communication across all sites. Whether it’s branch offices, retail stores, or franchises, VoIP ensures all locations are connected under one system, improving internal communication and collaboration.

Mobile Sales Teams

Sales teams on the go can use VoIP to stay connected with prospects and clients. By using their smartphones or laptops, they can make business calls, hold virtual meetings, and access voicemail while traveling, ensuring they never miss an opportunity.

Conference Calls and Virtual Meetings

VoIP makes it easy to host virtual meetings and conference calls with clients, teams, or partners, regardless of location. With call conferencing features, businesses can collaborate more effectively and save time and costs associated with in-person meetings.

VoIP isn’t just a phone system—it’s a tool that empowers businesses to communicate smarter, reduce costs, and stay connected in today’s fast-paced, remote-friendly world. Whether you’re running a small business, a multinational company, or a growing startup, VoIP provides the flexibility and functionality you need to thrive.

Features To Look For In A Business VOIP Phone

When selecting a VoIP phone system for your business, it’s essential to choose a solution that meets your specific needs and enhances communication efficiency. Here are some key features to look for in a business VoIP phone:

Automated Assistant

This assistant will help route incoming calls to the respective departments. Interactive Voice Response or IVR, allows for the execution of this feature. IVR comes with features like customizable greetings or the ability to route to multiple numbers.

Call Forwarding

This feature allows for unanswered calls to be automatically transferred to an available extension or phone number. It ensures that no customer call is left unanswered. 

Call Hold and Transfer

This feature will allow you to place a caller on hold or transfer to a different department or extension as needed. 

Call Recording 

So call recording is a VoIP module that allows workers to record calls for training and reference purposes. 

Call Pop 

Call pop is a feature that shows information about the incoming caller on the agents’ screen. Basic information such as name and phone number will be included along with other useful information. 

Voicemail

The voicemail feature allows callers to leave a voice message when their call goes unanswered. With Emitrr, these voice messages can also be transcripted and turned into text messages.

Call Routing

Call routing directs calls to a specific department according to the caller’s need. This is usually done by using the inputs dialed in by the user at the IVR to help map to the required department. Call routing reduces call hold time and thus improves customer satisfaction scores. There are different methods to call routing. These are: Round Robin, Regular, Simultaneous, and Weighted.

Call Notify

Call notify is setting up agent alerts for whenever a call is received. These alerts can be in the form of email or text messages. They help ensure that no call is missed and the agent is aware of the incoming call.

Call Queue

This is a very important feature for organizations that receive a lot of inbound calls. Call queue puts the callers into a queue based on when they called. These callers in the queue are usually welcomed with pre-recorded messages or on-hold music. Call queueing allows for proper distribution of calls

IVR

This stands for Interactive Voice Response. IVR allows callers to interact with an organization’s voice menu. By choosing options that are most suitable to the caller,  they will be able to resolve their queries quicker.

How To Choose The Right VOIP Provider For Business?

Choosing the right VoIP provider for your business is essential for optimizing communication and improving operational efficiency. With various providers available, here are unique factors to consider to ensure you select the best fit for your needs:

Evaluate Your Current Infrastructure

• Assess Existing Technology: Consider the technology and hardware you currently use. Ensure that the VoIP provider is compatible with your existing equipment, such as routers and phones, to minimize additional costs and disruptions during the transition.
• Internet Bandwidth: Review your current internet bandwidth to determine if it can support VoIP services. A stable and fast internet connection is crucial for maintaining call quality.

Understand Your Business Model

• Nature of Business: Different businesses have different communication needs. For instance, a customer service-driven business may require advanced call routing features, while a startup might prioritize cost-effectiveness. Understanding your business model helps you select a provider that aligns with your objectives.
• Work Environment: Consider whether your employees work on-site, remotely, or in hybrid environments. Some VoIP providers specialize in solutions tailored for remote teams, which could enhance flexibility and connectivity.

Research Provider Reputation and Experience

• Industry Experience: Look for providers with a solid track record and experience in your industry. A provider familiar with your specific needs can offer tailored solutions and support.
• Case Studies and Testimonials: Review case studies or testimonials from businesses similar to yours to understand how the provider has met their needs. This can give you insights into their service quality and reliability.

Examine the Onboarding Process

• Ease of Setup: Investigate how straightforward the onboarding process is for new customers. A provider that offers dedicated support during setup can significantly reduce the transition period and help avoid potential pitfalls.
• Training Resources: Look for providers that offer comprehensive training resources or workshops for your team. Well-trained employees can maximize the use of the VoIP system and improve overall productivity.

Inquire About Service Level Agreements (SLAs)

• Performance Metrics: Review the provider’s SLAs to understand their performance commitments regarding uptime, call quality, and support response times. This ensures you know what to expect and helps hold the provider accountable.
• Remedies for Service Issues: Understand the remedies provided by the provider in case they fail to meet SLA commitments. This can be important for protecting your business from potential service disruptions.

Consider Future-Proofing

• Emerging Technologies: Choose a provider that actively invests in developing and integrating new technologies. This commitment to innovation can ensure your VoIP system remains up-to-date and capable of meeting future business demands.
• Adaptability to Trends: Assess the provider’s ability to adapt to market trends, such as increased demand for call conferencing or remote collaboration tools. A flexible provider can help you stay competitive as communication needs evolve.

Gather Feedback from Team Members

• Involve Your Team: Solicit input from team members who will be using the VoIP system daily. Their perspectives can help identify specific features or capabilities that are essential for their workflows.
• Pilot Testing: Consider conducting a pilot test with a few team members to evaluate the provider’s system in action. This hands-on experience can reveal potential issues or advantages that may not be apparent from a standard demo.

Check for Free Trials or Demos

• Utilize Trials: Many VoIP providers offer free trials or demos, allowing you to explore their services before committing. Take advantage of this opportunity to assess the usability and functionality of the system in a real-world context.
• Evaluate Performance: During the trial, pay attention to call quality, ease of use, and available features. This firsthand experience will be invaluable in determining whether the provider meets your business needs.

By considering these unique factors, you can make a more informed decision when selecting a VoIP provider that aligns with your business needs and supports your goals for effective communication and growth.

How To Set Up Your VOIP Phone For Business?

Setting up a VoIP phone system for your business is straightforward and can significantly improve communication. Here’s a simplified guide to help you get started:

Choose a VoIP Provider

Research and select a reliable VoIP service provider that meets your business needs.

Gather Equipment

VoIP Phone: Get VoIP phones or use softphone applications on computers or mobile devices.

Router: Ensure you have a good router to handle internet traffic.

Connect to the Internet

Make sure your internet connection is fast enough (at least 100 kbps per call) and connect your VoIP phone directly to the router with an Ethernet cable for the best performance.

Power Up

Plug in your VoIP phone to a power source, or use Power over Ethernet (PoE) if supported.

Configure Your Phone

Access the phone’s settings using the manual provided by the manufacturer.

Enter the setup details from your VoIP provider (like SIP username and password).

Set Up Features

Configure voicemail and explore additional features like call forwarding and conference calling.

Test the System

Make test calls to check the call quality and ensure everything is working correctly.

Train Your Team

Provide a brief training session for your team to familiarize them with using the VoIP system effectively.

How Emitrr Is The Best VOIP Provider For Your Business?

Emitrr excels in providing a robust, user-friendly platform that meets the needs of modern businesses. Here’s why Emitrr distinguishes itself from other desktop phone apps:

Great Uptime

Emitrr guarantees an impressive 99.99% uptime, ensuring that your calls are consistently clear and uninterrupted. With such reliability, you can enhance the customer experience, leading to improved acquisition and retention rates.

Easy to Use

One of Emitrr’s standout features is its ease of use. The software is straightforward to set up, and your team can start utilizing its features with minimal training. Should you encounter any issues, the support team is readily available to assist you.

Seamless Integration with Existing Tools

Emitrr integrates seamlessly with over 1,000 software applications, allowing you to streamline your workflows effortlessly. Setting up these integrations is simple and can often be done independently. However, if you require assistance, the support team is just a call away.

Reduced Missed Calls

With features like auto-attendant, missed call text back, voicemail transcription, and after-hours communication, Emitrr helps eliminate missed calls. By ensuring that every call is attended to, you’re not just improving customer service; you’re also seizing every business opportunity.

Round-the-Clock Support

Emitrr offers comprehensive support through various channels, including phone, chat, email, and live representatives. The live chat feature allows you to receive real-time answers to your questions, ensuring that your workflow remains uninterrupted.

Manage All Phone Needs on a Single Platform

Emitrr simplifies communication by allowing you to handle all customer calls and information from a single dashboard. You can easily add users, teams, and locations while scaling your business. The platform also supports advanced call routing, IVR menu setup, and call quality monitoring through analytics.

Easy Accessibility from Any Desktop

Unlike traditional phone systems, Emitrr offers accessibility from any device. Enjoy advanced features like text message automation, web chat, secure text messaging, SMS scheduling, and voicemail transcription, making your communication strategy versatile and efficient.

FAQs

Conclusion

VoIP technology is revolutionizing communication by offering an affordable and flexible alternative to traditional phone systems. With features like clear voice calls and easy integration, it’s a smart choice for both businesses and individuals. Embrace VoIP to enhance your communication experience, save costs, and stay connected from anywhere. 
Make the switch today, book a demo with Emitrr to see VOIP in action