Hosted PBX vs. SIP Trunking: Which Is Right for You?

February 27, 2024 9 min read

Jeremiah Zerby

Jeremiah Zerby

You want to connect your business phone system to the cloud and enjoy the benefits of VoIP. One of the first questions that comes up: should I go with hosted PBX or SIP trunking?

When making calls over the internet instead of the traditional phone lines, you need a setup that serves your company’s needs now and accommodates future growth. 

Hosted PBX is a cloud-based phone system solution entirely handled by a hosted PBX service provider. All the equipment, maintenance, and features are managed offsite. 

SIP trunking connects your existing on-premise PBX hardware to the internet via a SIP trunking service provider.

In this guide, we’ll explore both solutions, assess their pros and cons, and help you determine the best fit for your business — whether it’s adopting a hosted PBX system or integrating SIP trunks with your existing equipment.

What Is a Hosted PBX?

A hosted private branch exchange (PBX) is a telephone system that’s managed completely off-site by a third-party service provider. It connects directly to the public switched telephone network (PSTN) over the internet.

In other words, a company that implements a hosted PBX solution doesn’t have to invest in, own, or maintain any physical infrastructure, equipment, or software in-house to have a reliable business phone system.

A hosted PBX system delivers key telephone services without costly equipment. End users connect VoIP phones to the cloud-based platform managed by the provider. 

You may also come across virtual PBX, cloud PBX, cloud phone system, or hosted VoIP as other names for hosted PBX. These all refer to phone systems delivered over the internet by an external provider rather than run locally.

At a technical level, hosted PBXs use Voice over Internet Protocol (VoIP) technology and Session Initiation Protocol (SIP) to route calls. SIP is a signaling protocol that allows communication sessions, like voice calls, to be managed across IP networks.

The hosted PBX provider houses and manages all the necessary SIP servers on their end. This eliminates the need for a company to invest in its own on-premise PBX hardware. 

The quality and reliability of the communications system, however, depends on the network.

Benefits of a hosted PBX system

Hosted PBX is deployed quickly and easily, often within a day. Because it’s provided by an Internet Telephony Service Provider (ITSP), all you need to start using VoIP communications with a hosted PBX are IP phones or softphones and a stable internet connection.

With hosted PBX, there’s no need for a physical on-premises PBX system and hardware. You’ll never have to worry about maintenance costs, PBX software, and hardware upgrades, or service downtime.

Diagram showing a VoIP business phone system

Hosted PBX offers many of the same benefits that standard VoIP phone services provide, such as:

Additionally, hosted PBX delivers these critical business phone system features without the high setup costs of new on-premise hardware or continued equipment replacement/upgrades. This offers businesses significant cost savings and management efficiency.

Small businesses can implement a fully functional PBX phone system easily and affordably through a cloud service provider. You’ll eliminate the complexity and expenses of maintaining an on-site PBX solution.

Drawbacks

Like any business phone service, hosted PBX isn’t without its challenges. Here are some common downsides and pitfalls you’ll come across.

What Is SIP Trunking?

SIP trunking is a VoIP service that connects your existing on-premise PBX phone system to the internet via a SIP provider. It enables you to leverage your company’s existing hardware PBX investment already installed and managed on-site by your IT staff.

For a more resilient system less reliant on internet uptime, many organizations deploy SIP trunking alongside an existing on-premise PBX. 

SIP trunking ports PBX phone calls onto the IP network via a primary rate interface (PRI). This achieves voice-over IP cost efficiency, feature enhancements, and long-distance savings.

A SIP trunk acts as a virtual phone line, allowing calls to be routed over the internet rather than a conventional PSTN line.

SIP trunking offers greater versatility, as SIP trunks can carry not only voice calls but also video, email, SMS, and other communication data all on the same line. You don’t need additional lines otherwise required to access the internet or send faxes.

Unlike hosted PBX solutions where a third-party provider houses all the necessary equipment offsite, SIP trunking requires that your business already has an IP-PBX phone system onsite that can interface with SIP trunks or a VoIP gateway to connect your existing traditional PBX system to a SIP provider.

This will depend on your current business phone system setup.

Benefits of SIP trunking

Without SIP in place, your business communications rely on separate infrastructures for voice and data. This fragmented system struggles with call volumes and leaves you vulnerable to outages.

With SIP trunking, communication becomes more reliable and resilient through consolidation, including:

SIP Trunking Diagram

If you already have a hardware PBX, migrating to SIP trunking is easy and enhances your telephony capabilities. You’ll enjoy more features, cost savings, and improved business continuity compared to conventional analog or digital phone lines.

Drawbacks

What are some common challenges with SIP trunking?

Hosted PBX vs. SIP Trunking: Key Differences

Let’s look at each of the main differentiators between these two options.

hosted pbx vs sip trunking

1. Initial costs

Hosted PBX requires a lower upfront investment since the service provider houses all the necessary PBX equipment offsite. 

You simply need to purchase IP phones and ensure you have a solid internet connection. Any routers/switches are fairly inexpensive.

SIP trunking allows you to leverage the value from existing on-premise PBX investments. However, there may be some upgrade costs associated with making a hardware PBX IP-enabled or adding a VoIP gateway to connect an analog system to SIP trunks. 

These upgrades can range from $500-$2,000 depending on your setup.

2. Ongoing fees

Hosted PBX providers typically charge per user line, often with unlimited calling plans ranging from $15-$50 per phone line per month. You’ll pay for the number of lines/concurrent calls needed. Extra fees may apply for add-ons.

SIP trunking also charges per user monthly, with standard fees in the range of $20-$50 per month per person. However, minute bundles, number of channels supported, service tiers, and additional features impact ongoing fees.

3. Maintenance and management

With a hosted VoIP solution, the service provider handles all server, software, and phone system maintenance offsite. You manage basic user adds/changes through an easy admin portal without needing deep technical skills.

For SIP trunking with an on-premise PBX, your own IT staff is responsible for the continued maintenance of PBX hardware and software, installing any updates, ensuring security policies are applied, and troubleshooting any issues. This requires dedicated in-house expertise.

4. Geographical flexibility

A hosted PBX enables employees to access phone system features remotely as long as they have an internet connection. They can use softphones, web phones, and mobile apps. It’s ideal for staff that work from home or travel frequently. 

VoIP phone services can use multi-node registrations close to employee locations to optimize call quality and reliability.

SIP trunking also supports remote and mobile workers through near-unlimited connectivity. Your VoIP provider can equip home office workers with a dedicated line tied to their work phone number and extension.

Flexibility depends somewhat on licensing rules and functionality extensions of the PBX platforms.

5. Call quality

For hosted PBX, call quality depends on the internet connection since all traffic goes over the public internet. An outage or congested bandwidth degrades audio and reliability so you need to assess the number of concurrent calls expected.

SIP trunking uses private IP network connections for clearer, more secure call audio. 

Dedicated lines prevent congestion issues. It works well for high call volumes across a larger employee base. On-premise PBX also creates localized call control separate from other network applications.

6. Scalability

Hosted PBX is ideal for smaller businesses that have limited plans for business growth or expansion to multiple locations. Scalability is restricted based on available internet bandwidth as all calls route online.

SIP trunking readily accommodates larger companies that frequently hire new staff. It also supports businesses with existing or plans to spread operations over multiple geographical sites.

7. Security

With hosted solutions, security levels rely heavily on the specific policies and protections put in place by your chosen service provider at their offsite data centers. You have less visibility and control compared to an on-premise system.

For SIP trunking with on-premise equipment, you configure security rules and policies directly on your own PBX system. This provides more robust security, uptime guarantees, and dedicated connectivity unaffected by other network traffic.

Should You Choose Hosted PBX or SIP Trunking?

When deciding between a hosted PBX solution or SIP trunking, there are several key factors to consider:

FeatureHosted PBXSIP Trunking
DeploymentCloud-based; no on-premise hardware requiredTypically requires an on-premise IP PBX system or phone system
FeaturesYour IT team manages the phone system plus SIP trunksProvides call connectivity. More limited built-in features, dependent on phone system capabilities.
Cost StructureMonthly per-user fee plus usage chargesMonthly per-channel or per-trunk charges only
IT ManagementManaged by hosted PBX providerScales by adding SIP trunks, require phone system capacity management
ScalabilityEasily scalable up and down as business needs changeScales by adding SIP trunks, requires phone system capacity management

👉 When to choose hosted PBX

Hosted PBX is best suited for:

👉 When to choose SIP trunking

SIP trunking makes more sense for:

The right solution depends on your budget, features needs, growth plans, and IT capabilities. 

Assess both options considering long-term goals, resources, and total cost of ownership. With planning, either can enable communication success.

Here are some pros and cons to take note of.

SystemProsCons
Hosted PBXSimple setup and management through a provider portal
Scales easily by adding hosted seats
More robust built-in mobility features
No on-premise hardware to maintain
Monthly per-user fees higher than SIP trunks
Call quality relies on internet connectivity
Less customizable than SIP trunking
SIP TrunkingOnly pay for Trunk capacity required
Leverages existing PBX investment
Highly customizable and integrates with the tech stack
Call quality based on the internal network
Requires on-premise PBX investment
IT resources needed to manage trunks
Scaling means adding PBX capacity
Disaster recovery requires redundancy

Start By Choosing the Right VoIP Provider

When deciding between a hosted PBX and SIP trunking, businesses must carefully evaluate their unique needs and priorities. 

However, choosing a flexible, feature-rich Unified Communications as a Service (UCaaS) provider like Nextiva lets businesses reap the benefits of both technologies in one seamless platform. 

Nextiva offers a reliable, cloud phone system with a broad array of communication and collaboration tools to connect distributed workforces.

With unlimited calling plans, intelligent call routing features, and built-in disaster recovery, Nextiva empowers productivity while simplifying IT management. 

Nextiva also provides tailored solutions for businesses seeking SIP trunking with no disruption to your existing service.

Imagine an efficient and empowered customer support team on one side and happy customers on the other. This is exactly what a feature-rich IP-based system will bring you. 

Sounds like what you’re looking for?

Get in touch with our team so that your communications setup can scale with you.

ABOUT THE AUTHOR

Jeremiah Zerby

Jeremiah Zerby is a marketing specialist at Nextiva. He spent three years on the front lines of technical support, troubleshooting internet and VoIP topics. He moved forward into the technical writing and content creation space. He’s helped set up hundreds of businesses and advised thousands of people with their cloud communications.

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What Is PRI? The TLDR on Primary Rate Interface

February 27, 2024 11 min read

Alex Doan

Alex Doan

Remember those clunky old PBX phone systems that businesses used to rely on? The ones that looked like they were built in the late 1960s and sounded like it? Connecting those relics to the analog phone network was no easy task.

The solution back in the day was an interface called PRI, which is short for Primary Rate Interface. PRI allowed companies to transmit up to 23 calls simultaneously over a single T1 line. 

This was a big step up from previous options that required separate lines for each call.

For a period of time, PRI was the definitive way for businesses to set up their phone systems — often called trunks, for years.

Then, Voice over Internet Protocol (VoIP) changed everything.

While PRI is now considered legacy technology, it still has some niche use cases for companies running vintage equipment. In this post, we’ll dive into the history of PRI, how it works, and why VoIP made it obsolete for most modern business phone systems.

We’ll also cover VoIP and other alternatives later in the article.

What Is PRI?

PRI stands for Primary Rate Interface. It’s a type of digital telephone line that connects business telephone systems to the public switched telephone network (PSTN).

PRI carries multiple voice and data transmissions between two physical locations. It uses the Integrated Services Digital Network (ISDN) protocol to provide digital connectivity rather than analog landlines. 

Business phone systems that need to support high volumes of concurrent calls and reliable voice/data services, like call centers, offices, hotels, and hospitals primarily use PRI.

With a PRI, businesses benefit from increased call capacity, fast data transmission, integrated voice or data, and lower cost compared to multiple analog lines.

Features of a PRI Line

To better understand how a PRI actually works, let’s first look at some of its key features:

How PRI Works

The PRI circuit — the actual cable that physically connects your telecom system — is available in two flavors: T1 and E1.

The main difference between the two PRI circuits has a lot to do with geographical location, though there are some technological differences to be aware of:

E1T1
Used in Europe and AustraliaUsed in North America and Asia
Provides 64 Kpbs for data transmissionProvides 64 Kpbs for data transmission
Transmit and receive a rate of 2.048 MbpsTransmit and receive rate of 1.544 Mbps
Physically contains two pairs of copper wiresPhysically contains two pairs of copper wires
32 total channels24 total channels
30 channels used for voice, data, video23 channels used for voice, data, video
2 channels are used for signaling1 channel used for signaling

PRI allows for direct inward dialing (DID), meaning someone from outside the company can dial an employee’s direct number and reach them directly. A company can have many individual direct phone numbers for employees, while only needing a limited number of physical phone circuits. 

For example, a single PRI circuit with 23 available channels could potentially support up to 50 employees with direct numbers. This works because it’s unlikely all employees will be on calls at the same time.

As a company grows, additional PRI circuits can be added to expand capacity. 

So if the initial PRI circuit is fully utilized with 23 simultaneous calls, a second PRI can be added to double the capacity to 46 calls. This modular expandability makes PRI scalable and cost-effective compared to legacy analog phone systems.

PRI provides an efficient and flexible digital telephone solution for businesses. 

The shared channels enable many employees to direct numbers while minimizing the physical circuits required. Capacity can be easily expanded as needed by adding supplemental PRI circuits.

Benefits of PRI

PRI offers substantial benefits. Let’s look at some reasons why many businesses still use this tech.

Drawbacks of PRI Systems

Up until the 1990s, most business phone systems relied on legacy PBX equipment. While functional, these aging PBX systems were clunky, limited, and difficult to connect to the analog telephone network. 

This is where the PRI came in. 

For years, PRI was the go-to solution for companies needing to connect their antiquated PBX systems to the PSTN. 

But, technology marches on. VoIP emerged in the 2000s as a disruptive force in telecommunications, and PRI began to show its age. Why? 

Alternatives To PRI

There’s no denying primary rate interface technology changed the way businesses could communicate with customers 30+ years ago. But since that time, advances in telecommunications technology have shined a pretty bright light on some of PRI’s shortcomings.

Businesses are looking for alternatives to PRI. There are several options out there, but not every option is a good fit for every business. 

Here’s a look at some key PRI alternatives to consider.

1. Analog POTS lines

POTS is Plain Old Telephone Service. It’s the old-school phone line that connected every house and business. 

Your grandparents had one. Your parents had one. You might even have POTS at your house. In the residential space, POTS is often referred to as a landline or a PSTN.

POTS provides service through a single analog circuit connecting the service provider and the user. 

A POTS supports one communication at a time. This means a single phone call renders the line unavailable for anything else, like a fax or modem internet access.

At one point in history, analog POTS lines were the way people communicated by phone. And it could still work as a solution for a small business today if phone traffic is minimal.

POTS is generally reliable, but the technology has reached its apex. As other communications systems develop, POTS is slowly disappearing from the scene.

POTS networking

2. SIP trunking

Session Initiation Protocol (SIP) is the method of transmitting voice communication over a data network. A Voice over IP call is an example of a SIP session.

SIP trunking is sort of like a POTS. But, with SIP trunking no phone lines run all over the place. Instead, the ‘lines’ are virtual because the phone system is connected to the service provider through your network (your internet connection).

In the past, SIP trunks have been frequently used as a replacement for POTS or PRI systems. Depending on your business size, it’s still a viable option.

3. Hosted VoIP

Today, businesses of all sizes are moving to a hosted VoIP solution

A hosted VoIP — also known as a hosted PBX — simply means everything is hosted off-site. The provider hosts the service, deals with the servers and software, and handles maintenance, updates, and troubleshooting.

The service provider manages all of the backend work (whether it be calls, chats, video conferences, etc.) and routes them to the business’s existing phone system.

The big advantage of a host VoIP system over PRI is apparent. 

The business itself doesn’t have to worry about expensive equipment, installing and maintaining a big server, or upgrading to the latest software. These things are taken care of by the service provider, saving the business a lot of money, manpower, and headaches.

Hosted VoIP System - Diagram

Hosted VoIP vs. PRI vs. SIP Trunking

Let’s take a closer look at the most popular telecommunications solutions on the market today: VoIP, PRI, and SIP trunking. How do the three stack up? 

FeaturePRISIP TrunkingHosted VoIP
Functionality Traditional digital phone lines to carrier’s PSTNUses SIP protocol for voice calls over internetCloud-based phone system hosted offsite by a provider
Number of simultaneous callsUp to 23VariableVariable
ScalabilityLimitedScalableScalable
FlexibilityLimitedFlexibleFlexible
CostTypically more expensive than SIP trunking or hosted VoIPUses SIP protocol for voice calls over the internetCan be less expensive than PRI, but may vary depending on usage
Equipment & maintenanceRequires on-site legacy PBX system and hardware and maintenanceCan reduce PRI/PSTN line costs by sending calls over the internetNo on-site equipment required.

Hardware is minimal, just IP phones needed

💰Startup costs

It’s doubtful you’ll find any phone system that doesn’t require some sort of upfront investment. The amount of this investment varies widely depending on the system you choose.

The cost of PRI, SIP trunking, and hosted VoIP varies based on the number of lines needed, the amount of usage, and the features required. SIP trunking and hosted VoIP are typically less expensive than PRI.

Switching to VoIP saves costs

💸 Ongoing costs

The upfront investment isn’t the only cost associated with a phone system. Ongoing costs, whether monthly service fees or maintenance, can quickly impact your ROI.

🔌 Connectivity

Different telecommunications solutions require different kinds of hardware and software. Each system’s connection differs.

🎛 Backup and redundancy

Think of backup and redundancy as ‘what happens in a disaster’. Whether it’s something simple like a power outage or something catastrophic like a tornado, businesses require a system that can support their needs during a disaster.

VoIP service providers also plan for disasters or downtime by setting up multiple host sites. If one site is down, service and hosting can easily be rolled to another site.

📊 Business continuity

Business doesn’t stop just because the power goes out or you’re in the middle of a snowstorm. 

📈 Flexibility and upscaling

Planning for the future growth of a company is imperative when selecting a phone system. The solution should not only fit the business’s current needs but also its forecasted goals and future needs. 

The ability to scale a phone system quickly and easily is important.

☎️ Call quality

The cheapest, most flexible phone system doesn’t matter if the quality of phone calls is terrible. Because of the differences in technology, call quality and service can vary a great deal among the various phone solutions.

Network Jitter - Illustration showing what's happening

How To Choose the Right Business Phone System

PRI makes the most sense for businesses with a large volume of concurrent voice calls that need dedicated, reliable connectivity to the PSTN. However, PRI is becoming less relevant in today’s internet-driven communication environment. 

As carriers transition the PSTN to all IP networks, legacy PRI may eventually be discontinued. Many businesses are switching to VoIP phone systems that don’t require PRI. VoIP calls use broadband internet, which is cheaper and more flexible.

A SIP trunk also has advantages over PRI, especially for the ease of scalability and call quality. Installing a SIP trunk is pretty easy (depending on your current PBX), and your business won’t be burdened with a ton of phone wires. 

Though there’s a hefty upfront cost, SIP trunking might be a good option for some businesses to consider.

Better still is the hosted VoIP system. Cost, ease of deployment, scalability, and disaster recovery are all excellent with this solution. It’s simple to manage — getting started is simple, and ongoing management is a breeze. 

You don’t need to be an IT professional to set up new users or make changes. Everything is usually done through a simple online dashboard.

Make sure to compare the features, capabilities, and costs of PRI, SIP trunking, and hosted VoIP solutions to determine which option is the best fit for your specific business needs and environment. 

Think about call volume, existing infrastructure, IT capabilities, disaster recovery needs, and initial versus ongoing costs. Selecting the right business phone system is a key technology decision that should align with your overall communication strategy and budget.

Simplify Your Communication Infrastructure

A leader in cloud phone systems, Nextiva offers one of the most advanced business communication platforms. Our suite of products can take your company’s connectivity to the next level.

Nextiva’s VoIP phone system connects employees and customers from anywhere. With our ultra-reliable phone service, you’ll never miss an important customer communication.

If you prefer SIP trunking, Nextiva has you covered there too. Our all-inclusive SIP trunking pricing means no surprises or per-minute charges. You get exceptional service at a transparent cost.

Experience the difference world-class business communication can make. Reach out to learn more about Nextiva’s products. Even if you’re not sure what you need, contact us! Our experts would love to discuss your business needs and how Nextiva can help.

Scale up with a VoIP phone system

See how Nextiva helps you deliver the best customer communication.

ABOUT THE AUTHOR

Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

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7 Best Telzio Alternatives & Competitors To Check Out

February 23, 2024 7 min read

Alex Doan

Alex Doan

Not all cloud-based phone systems offer the same features, pricing, support, and capabilities. Telzio is another phone service you need to examine further to see if it fits your team well.  

As your company grows, your use of a business phone system will evolve. For instance, your current solution might not support automated workflows or allow you to instantly set up a call center

It’s time for a change. 

We’ll help you find a better Telzio alternative, and we’ll show you a comparison of how its top competitors can better meet your business needs. 

Why Customers Look for an Alternative to Telzio

Telzio has its strong points, but there are a few things that encourage business phone users to look for other alternatives, including the following: 

Cost and flexibility concerns

For phone calls, Telzio charges you per minute. Businesses with high call volumes incur huge, unexpected costs, making it challenging to benefit from the service. Telzio’s pricing model may not suit all business types, nudging professionals to find alternatives that align with set budgets. 

As of January 2024, Telzio offers two plan options: Bundled Minutes and Committed Use. For local numbers, the Bundled Minutes plan is $50 per month (1,000 minutes) with extra costs for additional numbers and added services. The company offers more flexibility with the Committed Use plan. However, the minimum commitment is $250 with per-minute pricing for local, toll-free, and international numbers. 

The Telzio phone system carries a significant cost as your usage increases. 

Functionality needs

Compared to other Voice over Internet Protocol (VoIP) providers, Telzio lacks decent messaging support and the ability to use a physical fax machine alongside a cloud fax option.

VoIP features

User reviews suggest these issues have disappointed some users and left them with limited communication options. 

Telzio could be a reasonable choice for your business’s standard phone service, but if you’re seeking a more comprehensive solution, consider other phone systems. 

Mobile app improvements

Although the company has improved, many users felt Telzio’s mobile application was weak. Per reviews, some users prefer desktop applications over Telzio’s web-based calling system. 

When using the mobile app, a few users experienced technical issues like lag in call connections and occasional connection problems, impacting customer experience. Telzio has responded to such reviews and is making the required improvements in the new version of the application.

Telzio analytics dashboard

What Are the Strengths of Telzio? 

Although per-minute pricing costs rise for businesses with high call volumes, startups and some small businesses with lower call volumes find pay-per-minute pricing to be beneficial. 

However, in the long run, professionals might find such pricing to be cost prohibitive. Some users feel there are a few upsides of the Telzio software, including the following: 

User-friendly interface

Telzio comes with a simple interface for both the administrator and the user, making usage easier and potentially reducing setup time. 

Some professionals appreciate the layout of the web application. Administrators like the control panel, and the UI allows easy changes. 

Customizable call flows and accessibility

Telzio users can effectively manage call flows and direct calls to the proper team members. The software encourages global usage by providing direct inward dialing numbers in several countries.

Top 7 Alternatives to Telzio

Below are a few alternatives you can consider if you’re looking to add a better VoIP phone system or cloud call center solution to your company. 

1. Nextiva

Nextiva’s VoIP phone service offers superior call quality with an impressive uptime of 99.999%. It includes unlimited calling in the U.S. and Canada with a user-friendly and reliable mobile app. The phone system perfectly caters to medium-sized businesses’ needs. 

Small and medium-sized businesses can benefit from Nextiva’s unified communication as a service (UCaaS) platform that facilitates team collaboration and provides insights into call analytics. 

Nextiva cloud PBX

Below are some of Nextiva’s highly rated features.

You can access advanced features like interactive voice response, business call forwarding, voicemail transcription, call recording, and more. 

Nextiva offers a free trial, and below are some notable details about its pricing. 

  • Essential plan costs $18.95 per user per month. 
  • Professional plan costs $22.95 per user per month
  • Enterprise plan costs $32.95 per user per month. 

Nextiva’s pricing varies based on the number of users and term length. The intelligent cloud contact center platform’s pricing is available in detail.

The best hosted PBX for teams.

The modern PBX has arrived. See how support and sales teams scale faster.

2. Grasshopper

Grasshopper is a phone system for small businesses and solopreneurs. It offers virtual phone numbers with flexibility and ease of use. The software lets you separate work and personal conversations while allowing you to route incoming calls. 

grasshopper phone service

Below are some features of the Grasshopper phone system

Grasshopper is available only in the U.S. and Canada. It may not be suitable for businesses that operate globally or have plans to expand internationally. 

3. Aircall

Aircall provides a hosted call center with decent audio quality. Its user-friendly interface comes with a variety of features, including recording and tagging calls and integrations with CRM software. 

Aircall

Below are some features of Aircall. 

Users appreciate Aircall’s ease of use and UI, but some encounter issues with call quality and the platform’s ability to integrate with their homegrown CRM software. 

4. Ooma

Ooma’s phone service comes with a variety of features, including call blocking, virtual receptionist, and voicemail forwarding. The company offers a mobile app, and you can integrate the software with Google Workspace and Salesforce.

Source: GetVoIP

Below are some features of Ooma. 

Many users say positive things about Ooma’s technology, features, and pricing. However, there are concerns about weaker security, authentication, and limited customization options on the admin portal. 

Related: Ooma Business Pricing: Is it Worth it?

5. CloudTalk

CloudTalk lets businesses integrate with CRM, record calls, and route inbound omnichannel calls. The platform lets you manage calls and view analytics for easy reporting on past and present data.

CloudTalk

Below are some features of CloudTalk.

CloudTalk users find lightweight telephony with easy integration useful. They feel the software has responsive customer support and reasonable pricing. On the other hand, some users might face limitations in the mobile app and in the interface’s intuitiveness. 

6. GoTo Connect

GoTo Connect lets users customize call flows, record conversations, and get detailed insight into customers’ or prospects’ discussions with the team. Although its reputation is decent in the market, users feel it has limited features compared to competitors. 

gotoconnect phone service

Below are some features of GoTo Connect. 

While GoTo Connect’s online portal may be confusing for some and may not provide 24/7 support, many users feel GoTo Connect is reliable, easy to use, and a value-for-money product. 

7. 8×8

8×8 offers VoIP service to businesses of various sizes. It’s a reliable service provider with a unified communication platform and extensive feature set, helping companies manage local and international calls, toll-free numbers, SMS, and other communication in one place. 

8x8-phone-system-screenshot

Below are some features of 8×8. 

The 8×8 interface and setup process may be a bit complicated, but many users appreciate the platform’s flexibility, reliability, and scalability. 

The Verdict? Nextiva Wins

Nextiva’s reliability, variety of features, pricing, and user-friendliness make it the top alternative to Telzio for business phone systems.  

Small business and enterprise organizations get an all-in-one business communication tool without breaking their budgets. Its predictable pricing, vast feature set, and friendly 24/7 support (on every plan) tip the scale in its favor. 

📈 Case Study: DirectBuy Scaled Its Customer Experience with Nextiva

The best hosted PBX for teams.

The modern PBX has arrived. See how support and sales teams scale faster.

ABOUT THE AUTHOR

Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

Posts from this author

Broadvoice is a cloud-based VoIP service for small and mid-sized businesses. Its offerings include unified communications as a service (UCaaS) and cloud PBX. 

But Broadvoice might not be the best cloud contact center solution for some businesses despite its features. If this is the case for your company, you need to know what options exist on the market and how they stack up against each other to help you choose the right Broadvoice alternative.  

What Are Some of Broadvoice’s Strengths?

Let’s look at some things users love about Broadvoice. 

Cloud PBX services 

The b-hive Communicator is Broadvoice’s cloud PBX application. It’s an all-in-one software solution with many features, including online faxing, voicemail, softphones, and remote office capabilities. 

After logging in to this app, your team members can call from your phone system from anywhere with an internet connection. This is particularly useful for businesses with remote or distributed teams because employees can make and receive calls using their business phone numbers from any location. 

SIP trunking

Not ready to move on from your legacy phone system yet? Broadvoice allows you to access limited cloud phone capabilities on your existing phone hardware. 

Specifically, it offers SIP trunking features such as call recording, call analytics, and unlimited usage options. So, you get the flexibility of a cloud phone service without the cost and time involved in overhauling an archaic business phone system. 

SIP Trunking Diagram

UCaaS features

Broadvoice has several unified communications features, including: 

  • A web-based communicator tool
  • SMS and text messaging
  • Advanced calling functions like call routing and queueing
  • Call logs
  • Voicemail and faxing
  • Admin call center analytics 

These UCaaS features enable businesses to power and control multichannel communications from a single platform to become more efficient. 

Mobile apps

If you need to work on the go, you can download Broadvoice’s Android or iOS applications on your smartphone device. G2 reviews suggest that this is Broadvoice’s most helpful feature, although some users say the app can be pretty buggy:

“I love the b-hive app on my cell phone! I can use the app to answer incoming calls no matter where I am, as well as [make] outgoing calls showing our main number.”

Risk-free cancellation policy

You can cancel your Broadvoice subscription for free within 30 days and get all your money back, which makes up for the lack of a free trial or freemium experience. This policy is rare in the cloud communications space.  

Why Customers Seek Alternatives to Broadvoice

Although it has appealing features, Broadvoice falls short in several areas. 

Customer service issues

Customer support isn’t Broadvoice’s strong suit. Users complain of long wait times, unhelpful support agents, and unresolved support tickets, among other issues. 

For example, one user said that the support team became nonchalant after he signed the contract, leaving him with a faulty business phone setup. And another user spent weeks waiting for feedback from the support team, only to finally receive incorrect information that did not solve their problem. 

Reliability concerns 

Broadvoice’s service quality frequently fluctuates. This manifests itself in several ways: pause and connection noises, call lagging, and interruptions during call transfers. For example, this user experienced poor audio quality and sudden call disconnections:

“We had issues with call quality. A lot of calls would cut out intermittently and sounded ‘choppy.’ On many occasions, we received feedback that it was hard to understand us when calling from Broadvoice. I understand internet issues could be involved, but we never had issues with other VoIP services on the same internet connection.”

Billing and account management

It is also common for Broadvoice users to experience billing discrepancies — either through multiple debits that aren’t refunded on time or payments that are not reflected in the system. 

For example, Broadvoice abruptly shut down this user’s telephone service with little or no warning after the cloud service provider failed to renew his monthly subscription despite charging his card multiple times. 

Poor user experience

It takes some time to learn how Broadvoice works, especially if you aren’t tech-savvy. And even when you’re up to speed, you might struggle with setting up certain features or understanding how specific aspects of the platform work. 

For example, this customer had to switch to a different texting service after finding it difficult to use Broadvoice’s Communicator application. And the administration portal lacks call flow visual aids, which makes it hard to use. 

In the App Store, Broadvoice has a 2.1 out of 5.0 score from its users. 

Limited features

As you use Broadvoice, you’ll quickly discover that most of its features are limited — as this person did: 

“Broadvoice’s call reporting is very limited, and the system doesn’t accurately account for calls transferred between users. Available SMS functionality can only be used by one user per phone number, making it impractical to manage in some cases. There aren’t available call queue options unless you upgrade to the premium contact center, which is available at a cost. Many providers offer an in-between option, but Broadvoice does not.”

6 Top Alternatives to Broadvoice

Want to switch from Broadvoice to another cloud-based VoIP service? Here are the best Broadvoice alternatives that are worth considering.

1. Nextiva 

If you’re searching for a reliable and easy-to-use cloud communications solution for your growing business, Nextiva is definitely worth looking into. 

It’s an AI-powered conversational platform integrating voice, video, and messaging services for all-in-one business communications. Nextiva’s features include advanced call management capabilities like call routing, IVR and call forwarding, CRM tools for customer personalization, and analytics. 

You get A+ customer support, too. Here’s one user’s experience with Nextiva’s team. 

2. Webex

Powered by Cisco, Webex is a collaboration tool for small and growing businesses. Its features include high-definition video conferencing, omnichannel support, and integration with other Cisco products.

What users love most about Webex is its robust security capabilities. It offers end-to-end data encryption, device authentication, and data retention controls.  

Webex has a free plan. It also has three paid plans, with the lowest tier priced at $14.50 monthly. Webex is worth checking out if your remote team prioritizes data security. 

3. 8×8

8×8 caters to global businesses with advanced communications workflows. It offers unlimited voice calling to numerous countries, video conferencing, skills-based routing, and strong analytics capabilities. 

Despite these features, 8×8 seems to be missing some key contact center capabilities. For example, this user said that the meeting and chat functions are basic. And another struggled to download call recordings. 

8×8’s global reach and scalability make it a great choice for businesses with an international presence or those planning to expand. You can choose from one of its five plans. Pricing isn’t available on its website, so you must contact the company for a customized quote based on your business needs.

4. GoTo Connect

Formerly known as Jive, GoTo Connect is an easy-to-use cloud phone system with voice, video, and messaging capabilities. Its top features include customizable call routing, unlimited call queues, and an extensive integrations library. 

What users love most is its user-friendly interface and flexibility. According to one customer, it’s really easy to change call flows and add out-of-office messages on the platform without needing help from the support team.  

GoTo Connect has two plans that cost $29 per user per month and $39 per user per month. It’s suitable for businesses that don’t want to be held back by unnecessary phone service complexity.  

5. CloudTalk

CloudTalk is a popular VoIP option for sales and customer support teams because of its CRM integration capabilities. You can sync the phone with HubSpot to get up-to-date customer data for more personalized calls. This integration comes with a one-click option that enables your sales and support agents to make calls directly from HubSpot. 

CloudTalk has other customer-centric features like advanced call routing, ring groups, and call recording. It has four pricing plans, including the Starter Plan, which costs $25 per user per month. Or you can contact the company for a tailored plan designed for your specific business use case. 

One thing to keep in mind is that CloudTalk often gets buggy. Users complain about random account logouts and app glitches. 

6. Ooma 

Ooma is ideal for small businesses looking for an affordable, uncomplicated phone system. It offers more than 50 standard features, including call transfer and forwarding, virtual fax, and call logs. 

Ooma has three business phone plans: Essentials, Pro, and Pro Plus. Pricing for the Essentials Plan starts at $19.95 per user per month. This plan gives you access to Ooma’s standard features and specialized capabilities like a virtual receptionist and mobile app support. 

Its customer service team is pretty responsive. According to this user, “The best thing about Ooma is the great and helpful customer service. Every time I have a problem, the customer service department is there to help and provide support.” 

Ooma might be worth exploring if you’re looking for a simple, cost-effective small business phone service that gets the job done. 

Nextiva vs. Broadvoice: Cloud PBX Pricing 

It’s important to note that all of Broadvoice’s pricing plans are based on three-year contracts. 

In contrast, Nextiva offers flexible plans with pricing that depends on the number of users and the duration. This is ideal for organizations that do not want to be locked into strict business phone contracts. 

With Nextiva, you can go month to month for the ultimate flexibility or a multi-year agreement for the most competitive price. 

Let’s look at the numbers. 

Broadvoice’s Standard Plan costs $18 per user per month, while Nextiva’s Professional Plan costs $21.95 per user per month. For a 100-person team, that’s $26,340 per year for Nextiva’s service compared with $21,600 for Broadvoice’s service. 

For a little bit more budget, your team gains advanced cloud PBX features like team collaboration, video and audio meetings, and free local and toll-free numbers, which Broadvoice’s plan doesn’t offer. 

The Verdict: Nextiva Wins

You get decent cloud communications features and pricing with Broadvoice. But upgrading to Nextiva gives you access to top-notch customer support, all-in-one UCaaS features, and an intuitive interface that’s easy to understand and use. 

Most importantly, you’ll be using a streamlined, integrated contact center solution that scales as your business grows. Say goodbye to switching software solutions every few years.

See why over 150,000 businesses made the switch. Learn how much of an impact Nextiva made on Austin Zoo in the video below. 

Related: Top 6 NICE CXOne Alternatives for Your Contact Center

Your PBX doesn’t have to be complex.

See why 150K+ brands simplify their business communications with Nextiva.

ABOUT THE AUTHOR

Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

Posts from this author

Sangoma is a company you might have heard about in discussions around VoIP and unified communications. It has decent popularity on the market. However, it isn’t the only fish in the sea.

Many budget-friendly options come with greater flexibility and more features than Sangoma. These alternatives could save you cash and fulfill your business’s needs. Some of them are easy to use and offer a variety of beneficial features.

Before we explore Sangoma alternatives, let’s see why people are curious about other options and what motivates them to look for other hosted PBX providers. 

Why Customers Look for Alternatives to Sangoma

Sangoma provides a decent tool for contact centers. But, some of its platform’s limitations could make its customers eager to look for other options.

Contact center functionality

Sangoma’s Asterisk platform users might need more functionality on the reporting side. Some of them have taken their dissatisfaction to review platforms, where they have complained about the lack of tools for analyzing reports. 

Optimizing interactions with these reports becomes tricky for business owners who believe in continuous improvement.

The need for technical expertise

Sangoma offers granular setup capabilities. But, configuring and customizing it requires vast technical knowledge and considerable effort. So, IT departments with limited time, expertise, or resources might find it challenging to work with Sangoma.

Support challenges

Limited customer service echoes throughout users’ reviews. Some customers say they’ve faced challenges with their support calls. Other customers say they’ve had trouble getting the proper resolution for their issues. Yet others nitpick about having trouble with call quality. 

Hardware issues

Some users who’ve tried Sangoma’s hardware products have faced challenges in getting the system to determine the validity of the hardware, causing negative experiences with Sangoma. 

When you integrate it through APIs, some hiccups might occur. Your integration experience could be decent or moderate, depending on what you’re trying to integrate and how you’re trying to do it.

Sangoma product screenshot

What Are Some of Sangoma’s Strengths?

Customers who use Sangoma experience some benefits from the platform. Here are the advantages of using it: 

  • Unified communications: Sangoma has a unified communications platform with features such as instant messaging, call queuing, and conferencing. It’s a cloud-hosted solution that caters to customers who want their communications services all in one place. 
  • Flexible pricing: The company offers a variety of contracts. There are monthly, one-year, and three-year plans. On-premise plans are priced between $19.99 and $24.99 monthly. 
  • Ease of use: Sangoma’s Switchvox system offers an intuitive web interface that’s easy for both end users and administrators to use. 
  • Open-source development: Sangoma commercially supports open-source VoIP and PBX projects. This increases interoperability with various products, sometimes at the risk of excessive simplicity. 
what_is_voIP_vs_uCaaS

Related: 4 Better (and Easier) FreePBX Alternatives

Top 6 Alternatives to Sangoma

When you’re looking for alternatives to Sangoma, be sure to consider these six top options. Some of them clearly deliver more value than Sangoma for specific use cases. 

1. Nextiva

Nextiva is the top-rated cloud communications solution that directly replaces Sangoma. Nextiva’s unified communications platform serves the needs of SMBs and enterprises by bringing all their communications into one place. And it’s easier to manage, too!

Its VoIP phone system and contact center software make it the best choice for business owners who care deeply about their customers’ communications experiences. 

Nextiva-call-center-product-shot

What’s Nextiva’s advantage over Sangoma? 

Nextiva’s strong partner network makes it stand out when compared with Sangoma. The partner network drives value for you through integrated solutions and services. 

The software provides affordability with scalability, so Nextiva can offer competitive pricing tiers for small and large enterprises. The company is known for its intuitive interface and high service uptime. Whether your employees are in the office, remote, or on the go, they will have smooth communication experiences. 

Nextiva has the right solution for your use case, whether it’s a cloud contact center or a small business phone system. 

Nextiva’s highly rated features

Nextiva has several valuable features: 

“Nextiva is top-notch. Since starting to work with them, I’ve legitimately encountered some of the best customer service in any realm. It’s outstanding.”

~ Chris Hayes, IT Director of Conan

2. 3CX

3CX is a proponent of open-source VoIP and PBX platforms. It appeals to businesses seeking tailor-made communications solutions. It has extensive customization options and offers a wide variety of third-party applications. 

What’s 3CX’s advantage over Sangoma? 

3CX is versatile. But, new customers who aren’t well-versed in configuring the platform might find it challenging to use, making this customizability a risk rather than a benefit.

3CX’s features

Here are a few of 3CX’s notable features: 

3. Five9

Five9 offers cloud-based contact center solutions with features such as AI-driven analytics, omnichannel routing, and integrations. The company has a call and contact center that helps your agents deliver better customer experiences. 

What’s Five9’s advantage over Sangoma? 

Five9’s focus on its contact center gives it an advantage over Sangoma. Five9 delivers extensive features for this specific use case. However, these extra features make the platform much more expensive than Sangoma’s if you want a simple small business phone system or a unified communications tool. 

Five9’s features

Here are a few of Five9’s notable features:

Different types of call routing

Related: The 7 Best Five9 Alternatives That Are Easy to Use

4. Genesys

Genesys offers contact center solutions with analytics, omnichannel support, and AI capabilities. It combines human and automated resources to create better customer experiences. The platform helps teams provide cross-channel support with relevant context to engage customers. 

What’s Genesys’s advantage over Sangoma? 

Genesys focuses on customer experience and advanced analytics. It provides a more sophisticated solution than Sangoma’s. 

Genesys’s features

Here are some of Genesys’s notable features:

Omnichannel vs multichannel CX

Related: 7 Genesys Alternatives to Make Scaling Your Contact Center Easier

5. Ooma

Ooma’s VoIP solution caters primarily to SMBs. It has features such as a virtual receptionist, an easy setup, and a mobile app. Ooma’s major focus is phone systems, so its offerings might not include sophisticated solutions for enterprise use cases.

What’s Ooma’s advantage over Sangoma? 

Ooma is a simple, affordable VoIP phone system that’s suitable for businesses with straightforward communications needs. It’s a good solution for customers who don’t require sophisticated phone systems.

Ooma’s features

Here are some of Ooma’s notable features:

6. Zoom Phone

Zoom Phone leverages the popularity of the company’s video conferencing platform. The phone service offers voice, video, and messaging integration. It comes with features such as international calling, call recording, and number porting.

What’s Zoom Phone’s advantage over Sangoma? 

Zoom Phone’s familiar interface could be appealing to business owners who want a unified communications application with strong video capabilities. Zoom Phone is tightly integrated with the company’s video conferencing service, which makes it a logical choice for some buyers. 

Zoom Phone’s features

Here are a few of Zoom Phone’s notable features: 

business phone call recording

The Verdict? Nextiva Is the Best Sangoma Alternative

After exploring multiple alternatives to Sangoma, you can see that Nextiva shines more brightly than the other options. It’s packed with features that make it a smart solution for unified communications. 

Nextiva is easy to configure and navigate. Its UI/UX makes it flexible and customizable for users who aren’t very tech-savvy. Nextiva’s partner network and its best-in-class support make it a well-rounded solution. 

You’ll probably come out ahead when you compare the costs of its phone system to those of its competitors. Don’t cut corners. Give your team a complete communications platform. 

Related: Top 8 Talkdesk Alternatives for Contact Centers on a Budget

Your PBX doesn’t have to be complex.

See why 150K+ brands simplify their business communications with Nextiva.

ABOUT THE AUTHOR

Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

Posts from this author

PABX vs. PBX: There's Only One Difference

February 21, 2024 8 min read

Jeremiah Zerby

Jeremiah Zerby

A PABX is more or less synonymous with an upgrade of the corresponding private branch exchange (PBX).

PABX systems have evolved enormously over the past few decades — from purely analog systems to today’s digital PABX solutions that use voice-over IP (VoIP service) and bring a host of advanced features.

In this article, we’ll overview PABX systems, explore their key components, and discuss the benefits they offer businesses over standard phone lines.

Whether upgrading your telephony infrastructure or learning more about this integral tool for organizational communication, this article will get you up to speed on private automatic branch exchanges.

What Is PABX?

PABX stands for private automatic branch exchange. It’s a private telephone network used within an organization to allow internal communication and connection to the public switched telephone network (PSTN).

Diagram showing the path a phone call from VoIP to a PSTN (Traditional) Phone

PABX offers a business solution for companies that need many lines for in-house and outside calls. It lets companies use a single access number with several extensions, which is cheaper than using many separate direct landlines linked to the public network.

A company that uses PBX or PABX acts like a telephone exchange within its facilities. PABX automates the switching tasks needed to connect calls between extensions.

That’s the “A” in the acronym — it means automatic. In contrast, traditional PBX systems need human switchboard operators to manually connect phone users.

A PABX system is often owned and administered by the company hosting it on its premises. Many call centers and large enterprises use PABX to handle high call volumes efficiently. Common features include auto attendant, call conferencing, call holding, call forwarding, voicemail, and call transfer.

Modern PABX systems use VoIP technology, which is lower cost and has better scalability than legacy landline systems. Cloud-based PABX solutions are also now available.

What Is the Difference Between PBX and PABX?

PBX and PABX are both private telephone networks. The terms are sometimes used interchangeably when referring to private business phone networks.

The key difference is that PABX systems automate the call-switching process, while PBX originally referred to manually operated switchboards, but it can also be automated.

PABX emerged later as an automated system using computerized switching equipment instead of manual switchboard operators. This automated the call routing within the private phone network.

FeaturePBXPABX
DefinitionPrivate Branch ExchangePrivate Automatic Branch Exchange
AutomationManual (originally) – required operatorsAutomatic – no operators needed
Switching SystemManual (operators physically plugged wires)Automatic – electronic switching
FeaturesLimited (basic call routing)Advanced (IVR, voicemail, conferencing, etc.)
TechnologyAnalogAnalog or digital (including IP)
Use CasesOutdated – mainly historical interestBusinesses of all sizes, modern phone systems

How Does a PABX System Work?

Modern PABX systems interface with the public phone network and route calls digitally using Session Initiation Protocol (SIP) and VoIP technologies.

PABX works like a mini version of a public telephone exchange. A typical system has both software and hardware, including telephone units, routers, fax machines, modems, hubs, adapters, and switches.

A company can run its internal phone network using local phone extensions with PABX. These extensions correspond to specific phones and devices used in the corporate building.

This system simplifies internal telephone communication. In-house calls don’t need to go beyond the local network, and users can also make in-house connections with the touch of a button.

A PABX often greets an incoming call with a recorded message. This greeting is also called Interactive Voice Response (IVR). It usually requests a number for the caller to dial to reach the correct department or say their commands.

How-a-call-moves-through-an-IVR-system

The PABX routes incoming calls based on the code or extension number.

For outgoing calls, a PBX connects with the public telephone exchange. A traditional PBX has one or more external (trunk) lines. It has a fixed number of internal lines (extensions) connected to the trunk line. Staff and other local users need to share the external lines to make outside calls.

Evolution of PABX

The PABX system has advanced significantly over the years. Here’s a quick overview of the different types of PABX systems and their evolution:

1. Analog PABX

Analog PABX systems have been around since the late 19th century. They use analog signals and PSTN over copper wiring to connect extensions to a central control unit.

Tradition PABX systems were limited in features and functionalities, prone to signal degradation over distances, and difficult to reconfigure or scale up.

But they did offer some benefits. The traditional PBX was inexpensive to install and operate, easy to troubleshoot and maintain, and reliable and durable hardware. But times have changed.

2. Digital PABX

Digital PABX systems were introduced in the 1970s and have mostly replaced analog systems today. They use digital signals instead of analog ones.

They support more extensions and lines, offer advanced call routing features, are easy to reprogram and scale up, and provide more reliable voice and data transfer.

3. Cloud-based PABX

With the rise of VoIP, cloud-based PABX solutions have emerged. These systems use cloud infrastructure rather than on-premise hardware.

Cloud-based PBX systems are better. They can have a limitless number of lines or extensions, and the Internet protocol also allows multimedia communications.

Key Features of PABX Systems

A PABX allows organizations to use more phone units than their physical phone lines. Companies just need to assign extension numbers to each telephone unit. Moreover, PABX users can have internal calls for free.

The following basic functions and advanced features are available in most PABX systems:

1. Call routing and forwarding

  • Auto Attendant (Digital Receptionist): Automatically connects callers to the target extension number using a menu.
  • Call Forwarding: Lets admins route incoming calls based on specific criteria.
  • Call Transfer: Enables a user to hand off a live call to another user or extension.
  • Voicemail: Provide callers with the option to leave a voicemail message to ensure you can follow up.
  • IVR: Works like an upgraded auto attendant for account inquiries, product information requests, and other purposes.
Call forwarding in Nextiva

2. Mobility and remote work capabilities

  • Automatic Ring Back: Enables users to pre-dial a busy line and receive a ring back when it’s available, supporting remote/mobile workers.
  • Direct Dial Numbers: Allows callers to bypass IVRs to connect to intended numbers directly.

2. Conferencing and collaboration tools

  • Conference Call: Allows speaking with more than one party at the same time.
  • Call Parking: Allows users to put an ongoing call on hold on one device and continue on another.
  • Call Recording: Used for documentation, monitoring, training, or other purposes by integrating with other applications.
Example of call center QA analyzing call recordings with AI.

4. Security and reliability

  • Do Not Disturb (DND): Blocks incoming calls to a specific extension.
  • Ring Groups: Instructs phones to ring in sequence or simultaneously for reliability.

Benefits of PABX

PABX offers lower costs, flexibility to grow, advanced features, centralized management and control, professionalism, and integration with cutting-edge technologies. Here are some of the main benefits of using a PABX phone system:

How To Choose the Right PABX System

When thinking about using a PABX, it all boils down to choosing the right solution. How? Here are 6 key considerations for choosing a PABX system.

Migrate Your PABX To the Cloud

Nextiva product shot

PABX gives businesses more control and flexibility over their voice communication processes. It’s a viable solution for internal collaboration. It’s also perfect for making and receiving outside calls. But installing expensive hardware can be a pain for many businesses.

Thankfully, many ways exist to build an IP PABX/PBX system. The two most common are:

Both methods use an internet connection to improve business telephony. They use ISDN (Integrated Services Digital Network) to process different types of data. Treat both as a data network rather than just voice.

To simplify the work, VoIP phone services like Nextiva give businesses more control and flexibility over their voice communication processes. Its cloud-based model also provides the flexibility to scale up or down as business needs evolve.

For any company looking to enhance its telephony capabilities, Nextiva is the best replacement for an IP PBX or a traditional PABX solution.

FAQs on PABX


How much does a PABX system cost?

Costs can vary widely depending on the size and features of the PABX system. Small systems for a few dozen employees may cost a couple thousand dollars. Larger corporate systems support thousands of users; advanced features like call routing and AI-powered IVR systems can cost more. Talk to your VoIP provider for more details.

How easy is it to set up and manage a PABX system, and do I need IT expertise? 

Thanks to the simplification of cloud platforms, no deep technical skills are required. However, some IT expertise or vendor support is still recommended to handle setup, maintenance, and getting the most out of a new phone system. Cloud-hosted VoIP systems like Nextiva are designed to simplify setup for most businesses. The vendor hosts the core phone system remotely, so no on-site hardware installation is needed. We have admin dashboards and guides to walk you through configuration.


Can PABX systems integrate with other business tools?

Many PABX systems offer integrations with CRM, calendar, and other business tools for improved collaboration and efficiency. Leading hosted PABX solutions like Nextiva include common app integrations and open APIs to build connections. This means your phone system data can sync with tools your team may already use daily for sales, support, and operations.


Are PABX systems secure and reliable?

Yes, business phone systems like PABX are secure and reliable when acquired from reputable enterprise-grade providers, especially today’s cloud-hosted PABX solutions. While no phone system is 100% immune to incidents, business-grade PABX platforms are engineered for enterprise contact center solutions, availability, and call quality across the board. Proper vendor selection ensures minimal disruption risk and authorization access.

ABOUT THE AUTHOR

Jeremiah Zerby

Jeremiah Zerby is a marketing specialist at Nextiva. He spent three years on the front lines of technical support, troubleshooting internet and VoIP topics. He moved forward into the technical writing and content creation space. He’s helped set up hundreds of businesses and advised thousands of people with their cloud communications.

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4 Better (and Easier) FreePBX Alternatives

February 20, 2024 7 min read

Danny Grainger

Danny Grainger

If you’re looking into business phone systems, you’ve probably come across FreePBX, an open-source web interface that simplifies managing Asterisk PBX phone systems. It provides a graphical user interface to control Asterisk without the need to edit config files.

However, despite millions of installations globally, FreePBX is so complex that it drives many business owners to seek alternatives.

In this guide, we’ll discuss the pros and cons of FreePBX for business use and compare it to four easier options that provide a smoother (and ultimately superior) experience out of the box.

What Are Some Strengths of FreePBX?

While it has its limitations, FreePBX (which stands for private branch exchange) does offer some compelling benefits that have made it a popular open-source PBX platform:

User-friendly web interface

FreePBX provides a graphical web interface that makes it much easier to set up and manage a phone or communication system than work directly with Asterisk. The dashboard allows you to configure extensions, set up call routing rules, manage voicemail, and more through your web browser without editing config files.

For non-technical users, FreePBX’s GUI is a welcome simplification of the complex underlying phone system software.

Essential business PBX features

Out of the box, FreePBX provides a solid foundation of standard PBX features, such as:

  • Auto attendants and interactive voice menus
  • Voicemail with email notification
  • Call recording
  • Call parking and transfers
  • Conference calling
  • Call management queues with hold music

For basic business phone needs, FreePBX covers the core features you’d expect in an IP PBX platform.

Compatibility with popular phones and gateways

FreePBX supports a wide range of commercial SIP phones, ATAs, and gateways from vendors such as Poly, Cisco, Yealink, and more. It can also be used with common desk phones and mobile softphones.

This hardware compatibility makes it easier to deploy FreePBX, as you can use standard gear.

21-day free trial

Want to test drive FreePBX? You can download FreePBX Distro and use it for free for 21 days. This makes it easy and risk-free to try out before deciding if you want to use it long-term.

Multi-language support

FreePBX provides interfaces translated into languages such as Spanish, French, Italian, Portuguese, German, and more, so administrators and users can interact with the system in their native language.

For global businesses and multi-national teams, FreePBX’s language flexibility is a big perk.

FreePBX vs. Asterisk

It’s important to understand that FreePBX is built on top of Asterisk, an open-source toolkit aimed at developers building communications applications and solutions.

In simple terms, Asterisk provides the underlying plumbing for real-time voice, video, and messaging applications. It’s like the Apache web server but for communication apps instead of websites.

Asterisk handles all the complex telecom protocols and technologies behind the scenes. This allows developers to focus on building innovative products without getting bogged down in the technical details.

With Asterisk, developers can create business phone systems and call centers, call distribution software, VoIP gateways, conference bridges, and more. But Asterisk is not an off-the-shelf solution — it’s intended for techies.

FreePBX is a ready-made interface that makes Asterisk accessible for regular users. Think of FreePBX as a handy toolkit built using Asterisk’s raw materials.

Why Customers Look for an Alternative to FreePBX

While FreePBX is a popular open-source option, many users end up looking for alternative solutions. The reasons vary but often come down to FreePBX’s technical complexity, hidden costs, and capability gaps compared to commercial competitors.

Question about FreePBX alternatives on Reddit

Like this user, many customers seek alternatives because FreePBX:

Has limited built-in functionality

FreePBX only includes basic PBX features out of the box. More advanced functionality, such as call recording, IVR menus, and wallboards, requires the installation of paid add-on modules. With commercial competitors, these kinds of features are usually included without extra fees.

Demands technical expertise

FreePBX’s learning curve is steep, especially for non-technical users. Getting up and running smoothly often requires help from open-source community forums. Lacking in-house expertise, many customers seek simpler alternatives.

Carries hidden costs

While “Free” is in its name, making full use of FreePBX requires purchasing add-ons such as SIP trunking service for PSTN connectivity. The basic free version has capability gaps. Commercial options deliver more value out of the box.

Lacks built-in video conferencing

At one point, FreePBX offered video capability. But currently, video conferencing requires integrating third-party tools such as Jitsi. For baked-in video chat, users have to look elsewhere.

For these reasons, users looking for modern UC with a polished interface tend to migrate to alternatives such as Nextiva, RingCentral, or 3CX. These options deliver more features and ease of use at competitive price points.

Top 4 Alternatives to FreePBX

Here are four leading options that can make your life easier:

1. Nextiva

Nextiva is a popular cloud communications solution known for its strong focus on customer experience. It’s a top choice among business owners, IT admins, and end users. 

2. 3CX

3CX dashboard

3CX is an open-source IP PBX communication server with an interface that’s especially intuitive and user-friendly. However, there’s a lot of chatter among the IT community about the company’s responsiveness since its 2023 security incident.

3. Sangoma

Sangoma dashboard

Sangoma’s offerings marry open-source flexibility with commercial support’s reliability.

Related: Top 6 Sangoma Alternatives: What’s the Best Choice for 2024? 

4. OpenPhone

OpenPhone-business-VoIP-system

OpenPhone simplifies business communication through an easy-to-use cloud phone system.

The Verdict: Nextiva Is the Superior FreePBX Alternative

When comparing the leading FreePBX alternatives, Nextiva stands out as the best overall option for most small and midsize businesses.

Nextiva delivers significant advantages over FreePBX for its features, flexibility, and ease of use. It provides excellent value for money and outstanding customer service.

Powerful built-in capabilities

One major limitation of FreePBX is the need to purchase add-ons to enable many useful business features. Modules for call recording, advanced call queues, real-time dashboards, and other tools carry extra costs that can add up.

In contrast, Nextiva includes enterprise-level capabilities in its VoIP platform,  including:

  • Omnichannel contact centers with skills-based routing
  • Real-time analytics and reports to optimize operations
  • Flexible IVRs and advanced call flows for efficient call handling
  • Voicemail transcription and SMS capabilities
  • Salesforce, Zendesk, and CRM integrations

Nextiva provides all these out of the box without the need for a costly setup or decades of telecom experience. This gives businesses more tools to boost productivity and connect with customers at no added cost.

Robust features without sacrificing ease of use

Even as Nextiva packs in powerful functionality, the system remains easy and intuitive to use. The web interface provides a simple, consistent experience across all desktop, mobile, and tablet platforms.

With Nextiva, managers can easily generate reports, configure the phone system, manage call flows, and make adjustments on the fly through the web dashboard or mobile apps. No specialized training is required.

The phone system looks and works like any office phone, but employees gain capabilities such as extension dialing, call transfers, voicemail access, and the ability to start video conferences with one click.

Nextiva combines enterprise functionality at a small business price.

Nextiva cloud PBX phone system

A cloud platform that scales flexibly

Nextiva utilizes cloud VoIP technology, so scaling up to accommodate growth is fast and flexible. You can easily add or remove lines, features, and users in minutes through the online dashboard.

With FreePBX’s on-premises system, scaling often requires new hardware and licenses. This process is slower and makes it hard to adapt to fluctuating business needs.

Nextiva’s cloud phone system provides an elastic framework that adjusts smoothly to your organization’s evolving requirements. You only pay for what you need. As your business grows from 10 to 50 to 500 employees, Nextiva scales up just as effortlessly. The platform remains intuitive and full-featured at any size.

Get Nextiva for your business

In summary, Nextiva provides an enterprise-level phone system in a package tailor-made for SMBs. You get unmatched capabilities without unnecessary complexity or inflated costs.

See what’s possible when business VoIP is easy in the video below:

Business VoIP service done right.

Integrate secure phone service, SMS, video, and team chat in ONE platform.

ABOUT THE AUTHOR

Danny Grainger

Danny Grainger is a seasoned copywriter who specializes in helping brands build awareness and effectively communicate their value to both businesses and clients. With a focus on business marketing, advertising, and SaaS, he has a knack for translating the intrinsic worth of products and services into compelling narratives.

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What Is Direct Inward Dialing (DID) & How Does It Work?

February 20, 2024 9 min read

Devin Pickell

Devin Pickell

Need a direct phone number for your team member? Then you want a Direct Inward Dial number, known as a DID.

A DID allows callers to reach your employee directly without going through an automated attendant, receptionist, or call center. This differs from an internal phone extension, which only works for those calling from within your company’s phone system.

Using DID numbers for key team members boosts connectivity and efficiency as your business grows — whether you’re a small bsuiness building key customer relationships or enterprises strengthening existing relationships or keeping a professional image intact.

In this article, we provide an in-depth look at Direct Inward Dialing, how it works, and its benefits to businesses today.

What Is Direct Inward Dialing?

Direct inward dialing (DID) is a phone system feature that allows external callers to dial directly to an internal extension without having to go through a switchboard or attendant. It assigns each user/extension in an organization a unique external phone number. So external callers can call specific people directly rather than through a receptionist.

To help you use DID, telephone service providers connect a block of telephone numbers to your company’s Private Branch Exchange (PBX) phone system.

With DIDs, businesses can set up virtual numbers that bypass the main reception lines and go directly to a desk extension or group of extensions. DID can be used with local, premium-rate, or toll-free numbers.

Other common names for DID are direct-dial numbers, direct dial, and direct dial-ins. Essentially, when someone says, “Reach me at my direct number,” this is what they’re referring to.

Direct inward dialing offers businesses convenience, customized call routing, and a more professional image.

What Is a DID Number?

From a customer’s or client’s perspective, a direct-dial number looks like any standard telephone number. However, DID is a virtual phone number that goes directly to an extension or location in your company. Think of it as a shortcut phone line.

These direct-dial phone numbers point inbound calls to an organization’s phone system. The function of relaying callers to an individual user makes that number “direct.” The VoIP phone system manages this dedicated call routing.

Unlike a landline (or POTS line), these numbers are directly routed through your company’s phone system.

How Direct Inward Dialing Works

Traditionally, DID works in one of two ways: through Public Switched Telephone Network (PSTN) lines or Voice over Internet Protocol (VoIP). Let’s start with PSTN.

1. Direct Dialing on PSTN

First, a telephone service provider connects a set of trunk lines to the customer’s hosted PBX. Next, a provider allocates a block of phone numbers and assigns these to the customer as their direct-dial numbers.

When an inbound call reaches one of the direct-dial numbers, it is forwarded to the customer’s PBX via the trunk line. When the call arrives at the PBX, the dialed number and calling party are provided.

Finally, the PBX routes the incoming call directly to one of the business’ phone extensions without the need for an operator or an auto attendant.

How direct inward dialing works
Source: Cisco Certified Expert

In older phone systems, direct dial functioned by using analog circuits. This meant that the customer’s equipment had to provide the low-voltage signaling for the phones in the system to work.

The telephone company’s Central Office (CO) would check to determine if the line was operational and disable the circuit if it wasn’t terminating properly.

More recently, traditional phone services offer DID via Primary Rate Interface (PRI) circuits. These require you to have adequate trunk lines leased from the telephone company.

2. Direct Inward Dialing on VoIP

VoIP is the most modern and flexible way to employ virtual direct-dial numbers with the help of SIP trunking. SIP makes the trunk line connections available as needed. These are not physical lines but virtual links across broadband only when you require them.

SIP Trunking Diagram

These virtual links are configured internally, and the numbers are linked to your extensions by a software application. You can do this yourself or have your VoIP provider do it for you.

DID on VoIP is highly scalable. For example, if you decide you’d like to launch a sales campaign next month that requires you to have 20 new trunk lines, you can easily do it yourself.

There’s no need to contact your telephone company, wait for them to allocate a block of numbers, and then send out a technician to physically connect the trunk lines to your business PBX.

3. DIDs for Faxing

The simplest way to use DID as a fax service is to connect your direct-dial line to a fax machine. Sounds simple, right? However, you’d be missing out on the more useful and powerful ways to route fax calls with DID.

How online faxing works

A popular practice is to assign a block of direct-dial numbers to a computer that runs a fax server. This allows for multiple fax numbers for your company linked to a particular machine or even multiple devices.

Just like each team member within your company has an email address, you can assign them a fax number. When a fax comes in for a particular individual, it can be routed to the printer in their work area or even their computer and its printer.

Types of DIDs

The main advantage of DID is it allows direct external access to employees and departments over a single shared telephone line. Companies can allocate numbers based on their communication needs and workflows.

Here are some common types of DID numbers to choose from:

Types of Phone Numbers

Benefits of Using DIDs

DIDs offer plenty of benefits compared to traditional phone lines. The ability to dial employees directly is extremely useful for most modern businesses. Here are some notable benefits:

💰Cost and operational efficiencies

With DID, you can reduce the number of trunk lines required to connect your business. With a VoIP system, you can even forward the DIDs to different continents, saving long-distance costs.

VoIP helps direct-ins occur in the telephone network, and virtually, you won’t need to buy all new phones or hardware.

📱Better flexibility and mobility

With DID, you have more control over where and when you receive calls. A mobile workforce demands a flexible solution. Combining the power of VoIP, DID, and SIP with mobile phones, email, and SMS equals a more robust telecommunications system for your business.

You can also automatically forward calls to different numbers at given times. This is great for after-hours support for different time zones, especially for global teams.

📈 Improved customer experience

Customers can reach employees when they need them without hurdles. That can be a remarkable experience from the customer’s perspective.

People typically prefer to call local phone numbers. A business operating in New York can easily set up a phone number in Miami or London for customers in that market.

By assigning different numbers to different marketing campaigns, you can accurately track the performance of each campaign, find areas for improvement, and enhance the customer experience even further.

✅ Productivity

Routing calls to the person directly, without the need for a receptionist or phone menu, saves time. Follow-up becomes easier for customers when their agent has a single number.

It also fosters better communication. Employees contact team members via a dedicated extension, even if they’re in different buildings, cities, or even countries.

You can even have your direct-dial line automatically forward incoming calls to your mobile phone or other temporary numbers without the customer knowing these private numbers.

Different Applications of DID

DIDs have many uses beyond basic business phone systems.

Examples of how businesses use DIDs:

Drawbacks of DID Phone Numbers

There are cases where a DID number may not be the right option for your business.

For example, if you’ve experienced turnover recently and have direct-dial numbers assigned to former employees. Limited employee availability may also impact your decision to go with DID.

It’s up to your business to determine the importance of having customers, clients, and vendors reach departments directly.

Here are some common limitations of DID and ways to mitigate them:

1. Limited call routing 

When using a basic DID, calls are directly routed to the assigned extension, offering limited control over call flow. This can be inefficient for managing high call volumes or directing callers to specific departments. Employ virtual receptionists, IVR menus, or call queuing for efficient call distribution.

2. Security concerns

DIDs can be vulnerable to unauthorized access if proper security measures are not in place. Safeguard DIDs with strong passwords, multi-factor authentication, and call masking.

3. Missing call insights

Basic DIDs often lack detailed call tracking features, making it difficult to analyze call data and optimize call handling. Choose providers with call tracking and integrate with your CRM for comprehensive data analysis.

4. High costs

Depending on the usage patterns and chosen features, DIDs can be more expensive compared to traditional phone lines. Negotiate volume discounts, utilize pay-as-you-go options, or explore alternative VoIP solutions.

How to Get DID Numbers

Give your customers and vendors a way to reach people and departments in your company with a Direct Inward Dialing phone number. DID allows inbound callers to skip the phone tree and bypass call queues.

The first step is to obtain one or more business phone numbers. It’s likely you already have some business phone numbers.

You can transfer these through a method known as porting. Next, you would assign these to each user in your phone system. This can be done from the administrative dashboard effortlessly.

A complete business phone system with Unified Communications - Nextiva

Adding the direct-dial features your team needs is simple when you go with an experienced VoIP provider, like Nextiva. We’ll help you determine how many direct-dial numbers you’ll need and what the most cost-effective solution for your business will be.

Once your DID service is set up, inbound callers will be able to reach your teams with low friction. In a world where great customer service is a competitive advantage, direct-dial numbers are just another way to provide personalized experiences.

Calling feature that customers love.

See how Nextiva integrates Direct Inward Dialing into your VoIP platform.

FAQs on Direct Inward Dialing

How much does a DID number cost?

There is no standard cost for a DID phone number. The price can vary depending on the telecommunications provider, number of DIDs required, and geographic location. Reach out to your VoIP provider to know more about the individual cost.


Do I need direct inward dialing?

Direct inward dialing (DID) allows callers to reach specific employees or departments directly without going through a receptionist or phone menu. Consider getting DID and setting up VoIP caller IDs if you have specific lines for customer service, sales, and other departments — especially when paired with a top-rated VoIP provider.

What is the difference between DID and call forwarding?

DID is a way to directly reach users through individually assigned numbers, while call forwarding redirects calls without changing the initially dialed number. DID provides direct inward access and call forwarding enables flexible rerouting.


What is the difference between DDI and DID?

DDI (Direct Dial Inward) routes external calls internally while DID assigns direct external numbers to internal extensions. Both allow external callers to reach users directly without an operator.

What is direct outward dialing (DOD)?

A similar arrangement called Direct Outward Dialing (DOD) is used for outbound calls from your office phone system. You would use DOD to bypass pressing a number before dialing or connecting to the operator when making external calls. Employees can dial outside numbers directly without going through a switchboard.

ABOUT THE AUTHOR

Devin Pickell

Devin Pickell was a growth marketer at Nextiva. He combines his skills in content marketing, SEO, data analysis, and marketing strategy to meet audiences in their journey. He has helped scale SaaS brands like G2 and Sphere Software and contributed to G2's traffic growth. You can find him tweeting about e-commerce, sports, gaming, and business.

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How to Make VoIP Calls With an iPhone (Top 5 Apps)

February 19, 2024 9 min read

Alex Doan

Alex Doan

Finding the right Voice over Internet Protocol (VoIP) app for your iPhone isn’t just about convenience. It’s about embracing the nature of your on-the-go lifestyle and the unique demands of modern business.

Whether you’re strategizing from the boardroom, checking in on a new out-of-state franchise location, or closing deals halfway around the world, a reliable and capable VoIP calling app is a game changer.

VoIP apps offer more than cost savings and streamlined communications — they redefine what it means to be present for your teams, your clients, and your family.

Are you ready to be just a call away for every moment that matters — professionally and personally? 

Follow along as we showcase several of the best VoIP apps for iPhone and find the right one for your business needs, budget, and lifestyle.

Why Do You Need a VoIP App?

Here are four good reasons why you need a VoIP app.

Advanced calling features

Typically, iPhone VoIP apps provide users with handy features that traditional phones skip.

These enhanced features may include video calling, group chat, call recording, voicemail transcriptions, screen sharing, and increased security, making VoIP so much more than a tool. VoIP is a comprehensive communication platform for personal and professional use.

6 VoIP features you can't live without

This is especially true in the remote work era that increasingly demands flexible communication solutions.

Separate phone numbers

For small business owners, the ability to have unique phone numbers is often a critical feature. 

This feature allows you to create distinct lines for various departments or employees without the complexity and expense associated with traditional phone lines. Virtual phone numbers enhance your professional image as a business, making you appear world-class even though you might just be starting out. 

They also improve your work–life balance, helping you differentiate between business and personal phone calls.

Low-cost or free phone calls

VoIP is also an excellent option for small businesses looking to reduce their communication costs. 

VoIP apps often provide free calling within their network and extremely low rates for international calls, which is a sharp contrast to the high international costs associated with landlines and mobile phone providers. 

For businesses that communicate regularly with global customers or employees, VoIP apps are the stepping stone to unified communications.

Graphic showing 11 UCaaS features

Simplified travels

Business owners who travel frequently will appreciate VoIP’s seamless communication capabilities. 

Whether you’re traveling abroad or to your newest franchise location out of state, VoIP gives you the power to communicate without the constraints of a traditional phone service. 

When traveling abroad, avoid the hassle of dealing with local Subscriber Identity Module (SIM) cards and international roaming charges. VoIP apps bypass these travel headaches and provide flexibility. Users can enjoy low-cost phone calls and communicate with their team and clients from anywhere in the world as if they were in their own office.

Best VoIP Apps for iPhone

Nextiva

Nextiva VoIP iPhone App

Source: Nextiva/Apple App Store

Key features

Star rating: 3.8 out of 5 – 3.9K ratings

Nextiva pros

  • A comprehensive communication solution.
  • High reliability and call quality with 99.99% uptime.
  • Excellent 24/7 customer support.
  • Comprehensive platform suitable for small or large businesses.
  • Monthly or annual pricing plans that suit the needs of various businesses.
  • High-definition voice and video quality.

Nextiva cons

  • No free plan.
  • Primarily meant for businesses, not casual users or solopreneurs.

Groundwire

Groundwire VoIP and SIP iPhone App

Source: Groundwire/Apple App Store

Key features

Star rating: 3.5 out of 5 – 65 ratings

Groundwire pros

  • Multiple SIP account support makes it ideal for business use.
  • End-to-end encryption offers high security and privacy.
  • Personalized user experience.

Groundwire cons

  • Fee for users to download and use the app.
  • Complex setup and configuration could be frustrating for some users.
  • Resource-intensive app, which may affect the performance of a user’s phone.
  • Occasional bugs and glitches reported by users.
  • Limited customer support due to the smaller size of the provider.

Zoiper Softphone Premium

Zoiper VoIP and SIP iPhone App

Source: Zoiper/Apple App Store

Key features

Star rating: 3.6 out of 5 – 127 ratings (Zoiper Premium)

Star rating: 4.4 out of 5 – 1.6K ratings (Zoiper Lite)

Zoiper pros

  • Free app version available (with limited feature set).
  • Advanced call features, such as call forwarding, auto-answer, call recordings, and voicemail with premium version.
  • Smooth and simple setup and configuration.
  • Modern and user-friendly interface.

Zoiper cons

  • Advanced features require premium (paid) app sign-up.
  • Free app version bombards users with ads.
  • Common issues include connection failures, and bugs.
  • App must be open to receive incoming calls.

Bria Mobile

Bria VoIP iPhone App

Source: Bria Mobile/Apple App Store

Key features

Star rating: 4.4 out of 5 – 2.3K ratings

Bria pros

  • Comprehensive set of features for professionals.
  • Reliable performance and connectivity.
  • Strong emphasis on enhanced messaging security.
  • Compatibility with a wide range of VoIP and SIP servers.

Bria cons

  • Subscription model is expensive compared to those of competitors.
  • Setup and customization can be complex.
  • Configuration can be complicated for new users, especially those unfamiliar with VoIP.

Google Voice

Google Voice iPhone App

Source: Google Voice/Apple App Store

Key features

Google Voice pros

  • Free phone number.
  • Standard plans with auto-attendant features.
  • Seamless integration with Google suite of services and products.
  • Free calls to U.S. numbers from anywhere.
  • Simple, intuitive, and familiar user interface.
  • Affordable rates for international calling.
  • Google’s robust infrastructure for reliable service and uptime.

Google Voice cons

  • Limited features exist for business users compared to dedicated VoIP apps.
  • Calls to toll-free numbers are prohibited.
  • Customer service is slow to respond, especially for free users.

TextNow

TextNow iPhone App

Source: TextNow/Apple App Store

Key features

Star rating: 4.8 out of 5 – 675.8K ratings

TextNow pros

  • Offers a completely free, cost-effective version (with ads).
  • Includes free text messaging services.
  • Enables user to choose their own phone number.
  • Provides unlimited texting and calling plans within North America.
  • Has user-friendly interface to make it easy for anyone to use.
  • Updates app continuously to deliver new features and improvements regularly.

TextNow cons

  • Ads on the free version are intrusive and affect the user experience.
  • Limited features compared to other comprehensive VoIP solutions mean it may not be suitable for business users.
  • International calling is charged by the minute, which could add up for frequent long-distance users.
  • Call quality depends on the Internet connection and server load.
  • Customer support options are limited on the free version of the app.

3 Different Ways to Place Calls From an iPhone

How else can you place and receive calls and text messages with an iPhone? Let’s explore how other popular call formats compare to VoIP.

Cellular: standard SIM

We know and love the familiar standard SIM card, but this option isn’t without its drawbacks. Owners appreciate the simplicity and reliability of a physical SIM card, but these SIMs can run into connectivity issues and incur high costs when traveling abroad.

With a standard SIM card, you are tied to a single number from a phone provider. You’ll be juggling personal and professional calls on the same number, and you may find yourself switching between SIMs frequently if your iPhone does not support a dual SIM (physical SIM and eSIM). 

Cellular: eSIM

eSIM technology marks a significant leap forward in mobile communication. An eSIM is a modern option for business owners seeking greater flexibility and security in their iPhone call options. 

Unlike traditional SIM cards, the eSIM is embedded directly in your phone. This eliminates the need for physical chips and enables you to activate and switch between phone numbers, carriers, or plans. This option is well suited for business owners who travel internationally, allowing them to easily switch to local eSIM plans and avoid high roaming charges.

Some limitations of eSIMs involve the requirement for an eSIM-compatible device and, in certain situations, the need to activate eSIM functionality before traveling. It’s also important to note that eSIM transfers may require contacting your provider. If you switch phones frequently, this may not be the most convenient option.

Making a call with your eSIM-connected iPhone is as simple as placing one with a standard SIM. Simply choose the eSIM Line before tapping the call symbol. For more information, follow these instructions.

Managing multiple SIM cards on an iPhone

Source: Apple

Internet: cloud-based VoIP

Then there’s VoIP, the smart choice for businesses of all sizes looking to connect globally without high costs. VoIP service providers like Nextiva offer a suite of useful and reliable features that power business communication: think video conferencing, team messaging, automatic call flows, customer call recording, and increased security, just to name a few.

How VoIP works

VoIP relies on a dependable internet connection and is often agile enough to meet the flexible demands of small businesses. Team members no longer feel like they’re chained to their desks and can freely accept calls through their mobile phones, allowing them to easily work remotely or in a quieter area of the office.

To place a VoIP call using Nextiva, first install your chosen VoIP app on your device. Then, link your mobile phone number to the app and sign in with your account details. Once logged in, simply use the app’s keypad to dial the phone number you wish to call.

Curious about how to get a dedicated business phone number? Jake explains it all in the video below.

VoIP Calls Have Never Been Easier

The right platform is the key to maintaining first-class communication and striking that balance between your professional and personal life. With so many options at your fingertips, it’s easier than ever to stay connected. 

VoIP fuels much of the innovation in how businesses serve customers and how people interact from their mobile phones. The technology offers users the ultimate blend of convenience, functionality, and cost-effectiveness.

Not all VoIP apps are created equal, though. While free services might be attractive, these options often come with strings attached, such as intrusive ads or privacy concerns due to tracking.

Nextiva’s highly rated iPhone VoIP app has redefined cloud communications by turning your device into a versatile command center for handling calls, conference lines, and much more, no matter where you are. 

For businesses seeking a reliable, feature-rich business phone system, Nextiva’s full-feature platform is a top choice. With eight redundant data centers spread across North America, Nextiva yields an impressive 99.999% uptime, ensuring you’re always responsive to customer needs. 

The best part is its simplicity. Users can use the NextivaONE VoIP app to stay in touch — there are no complicated setups, IT worries, or hassles to think about. You just need your username and password, and you’re ready to take business calls anywhere you go. 

Want to upgrade your team’s communications?

Nextiva’s got your back. See how much you can save and improve your workflow.

ABOUT THE AUTHOR

Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

Posts from this author

What Is a SIP Proxy? How Does a SIP Server Work?

February 19, 2024 5 min read

Jeremiah Zerby

Jeremiah Zerby

If you’ve used VoIP before, you may have heard the terms SIP and SIP proxy. But what do these mean?

SIP stands for Session Initiation Protocol. It brings together many of the ‘building blocks’ needed to make phone calls via an internet connection (aka VoIP calls). Through SIP, a connection forms between endpoints.

Whether you’re a tech enthusiast interested in understanding how your online calls work or simply curious about the infrastructure behind VoIP technology, this article will provide a comprehensive primer on SIP proxies.

Let’s unpack how SIP proxies define communication behind the scenes.

What Is a SIP Proxy? 

A SIP proxy is a type of server that routes Session Initiation Protocol (SIP) messages between user agents and other servers to establish communication sessions, such as voice or video calls over IP networks. It’s a key component for session management in IP telephony networks.

SIP trunking in a VoIP system

SIP proxies enable routing of signaling and session management in VoIP networks. They help route call setup signaling between VoIP network entities like user agent clients (softphones) and other servers (like registrars).

SIP proxy servers offer better authentication, authorization, network access control, call routing, reliable request retransmission, and security. They also enable features like call forking and redirecting SIP requests, allowing VoIP networks to handle many more users and sessions compared to centralized solutions.

This distributed approach avoids overloading any single server.

How SIP Proxies Work

SIP proxies are like air traffic controllers for real-time communications over the internet. They coordinate the connections for voice, video, and messaging between devices across a network.

Like an air traffic control tower at an airport, SIP proxies direct signaling messages to make sure sessions can start and that resources are available. This signaling protocol helps set up, route, control, and end media streams between endpoints.

For example, when you make a VoIP phone call, the SIP proxy signals that someone wants to connect with the caller, handles actions during the call like transferring or joining conferences, and releases the connection when finished.

SIP proxies also ensure high-quality connections by checking network availability and managing transcoding. Additionally, they authenticate users and balance loads across servers, optimizing system resources.

By smoothly directing the “traffic” of media packets for each session, SIP proxies enable clear and reliable unified communications over internet networks, just as air traffic control safely routes flights to their destinations.

Components of a SIP Proxy Server

Session Initiation Protocol (SIP) and Real-time Transport Protocol (RTP) are the core technologies behind VoIP systems, handling call routing and advanced calling features.

The SIP proxy server acts as a central hub, seamlessly directing calls and messages across the network to enable unified communications. Beyond basic calling, it unlocks valuable functionalities like:

The SIP proxy administers the “rules of the road” behind the scenes, ensuring seamless interconnections for a unified experience.

As an open standard, SIP provides flexibility along with strict guidelines around performance and interoperability from the Internet Engineering Task Force (IETF). This makes VoIP communications extremely reliable while reducing costs compared to proprietary systems.

The scalability also makes it easy to add new users, ideal for growing companies. A cloud-hosted model eliminates the need for on-premises hardware.

How SIP Servers Keep a VoIP Network Secure

SIP proxies play a key role in securing VoIP networks.

As the first point of contact for incoming calls, SIP proxies start by validating callers by checking the IP address from which the SIP signaling originates. This ensures calls are coming from a legitimate source before being transferred.

In addition to IP address verification, SIP proxies also utilize Message Digest 5 (MD5) authentication to encrypt SIP messaging between endpoints.

The MD5 algorithm converts data of any length into a unique 128-bit hash value that acts as a “fingerprint” to authenticate the message. This prevents tampering or interception of calls while data is in transit.

For networks that require heightened security, Secure/Multipurpose Internet Mail Extensions (S/MIME) can also be implemented. S/MIME encrypts the entire SIP message body rather than just a hash value. This fully encrypts all voice, video, and instant messaging data on a call for end-to-end security.

SIP Proxies vs. VoIP Technologies

SIP Proxies are servers that route signaling messages between devices to establish and control voice/video sessions over IP networks.

VoIP (Voice over IP) refers to a range of technologies that enable voice communications over IP networks.

The key difference is that SIP Proxy servers form the core signaling infrastructure for routing in VoIP systems, while VoIP represents the end-user applications and devices for delivering voice traffic over IP networks instead of traditional dedicated circuits.

The two work hand-in-hand — SIP Proxies make possible the rich communication capabilities of modern VoIP technology.

SIP Trunking: VoIP vs. SIP Trunking

Benefits of SIP Proxies (Why Use Them)

1. Enables seamless connectivity

SIP proxy servers act as intermediaries between endpoints like IP phones, mobile devices, and conferencing equipment.

The proxy handles call routing and signaling using logical identifiers, abstracting away network complexities so endpoints can communicate without needing to know each other’s IP addresses.

2. Powers advanced call handling

Intelligent features like call forking, retry attempts, and redirect responses improve reachability and avoid failed call setup attempts offering more reliable connectivity.

3. Facilitates collaboration

Presence capabilities enable users to see coworker availability status. This allows choosing the right real-time or offline communication mechanism for seamless collaboration.

4. Simplifies dialing

Enterprise dial plans and number mapping on SIP proxies let users dial coworkers easily by extension instead of hard-to-remember IPs. Localization features also make it easier to work across regions.

5. Guarantees quality of service

Policies for call admission control and bandwidth management ensure reliable connectivity even when sharing infrastructure, delivering optimal audio/video quality for business-critical calls.

Key takeaway

SIP proxy is the backbone enabling secure and feature-rich enterprise communications for simpler, more powerful collaboration.

Know Before You Go Proxy

Implementing a SIP proxy server enables efficient call routing, but does come with some challenges around scalability, reliability, and security. However, solutions exist to effectively overcome these hurdles.

Nextiva offers extensive experience in securely deploying and managing SIP proxy infrastructure to deliver enterprise-grade voice services.

Our VoIP was purpose-built to be resilient, scalable, and reliable. If you aren’t already benefiting from a robust hosted VoIP solution, contact us today. We’re happy to discuss your needs and demonstrate how our service consistently delivers excellent call quality with minimal disruption risk.

If you aren’t already benefiting from a robust, enterprise-grade VoIP solution, get in touch. We’re happy to discuss your needs and show how our service delivers flawless call quality with minimal business disruption risk.

Ready to give VoIP a try?

See our VoIP solutions page to learn more.

ABOUT THE AUTHOR

Jeremiah Zerby

Jeremiah Zerby is a marketing specialist at Nextiva. He spent three years on the front lines of technical support, troubleshooting internet and VoIP topics. He moved forward into the technical writing and content creation space. He’s helped set up hundreds of businesses and advised thousands of people with their cloud communications.

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SIP Line vs. SIP Trunk: What's the Difference?

February 18, 2024 7 min read

Julie Bai

Julie Bai

Upgrading business phone systems can be daunting when balancing costs and capabilities.

SIP lines and SIP trunking provide affordable ways to upgrade from traditional landline systems, removing reliance on outdated technology like public switched telephone networks (PSTN) and physical lines for business communications.

While traditional PRI and analog lines only process voice data and offer limited features, SIP solutions enable voice, video, instant messaging, and more over a company’s existing internet infrastructure through internet telephony.

SIP trunking specifically allows large call capacity scaling through a single conduit, cost-effectively meeting evolving business needs without requiring on-premise infrastructure.

It helps to know what each offers so you can choose the solution that fits your business needs.

In this article, we’ll discuss SIP lines and SIP trunks and the key differences between them. We’ll also discuss how these solutions can affordably upgrade communications for evolving business needs.

What Is a SIP Trunk?

A session initiation protocol (SIP) trunk refers to a communications medium that connects a company’s private branch exchange (PBX) or PABX to the web. It works like a digital version of the traditional phone line.

As its name suggests, a SIP trunk is analogous to a tree trunk that can have many branches. Each branch represents a unique line or a phone extension.

Many SIP lines can share a single SIP trunk.

For example, a company can have one SIP trunk that can support many desktop phones, softphones, and mobile phones. Each phone call uses a single line that consumes a certain amount of bandwidth.

What is SIP trunking?

SIP trunking is a method used to enable business phones to work over an internet connection instead of a traditional landline. Technically, it also broadens the multimedia processing capabilities of both plain-old telephone service (POTS) and basic Voice over Internet Protocol (VoIP) enabled phone networks.

SIP trunking allows companies to transmit and receive different types of data, including voice calls, text, and video.

SIP Trunking Diagram

A SIP trunk is different than a SIP phone. A SIP phone is a device (like a desk phone or speakerphone) that can establish phone calls via the SIP protocol.

It can be considered a quantum leap in the field of business communications. That’s because of its radical benefits when it comes to cost savings, scalability, flexibility, and return on investment.

What Is a SIP Line?

A SIP line refers to a branch that comes from a SIP trunk. It’s also called a channel or a session. SIP lines act as lanes for exchanging communication data between two points or locations.

In a call session, a SIP line represents a unit’s capacity to support one incoming or outgoing call.

A large number of SIP lines can be configured from a single SIP trunk. In VoIP call centers, one SIP trunk can hold hundreds of SIP channels. Each call takes up one channel. As such, most businesses generally need just a single SIP trunk to cover all their communication needs.

Three steps to use SIP Trunking

The exact number of SIP lines a company requires depends on the average number of concurrent calls it handles at any time in the workday.

Depending on the service provider (ITSP), a company can have a SIP trunking plan with:

SIP Line vs. SIP Trunk

It’s easy to confuse SIP trunks with SIP lines. They can be interchanged in some contexts.

A SIP line connects a single phone or device to make VoIP calls over the internet. It enables one device to make and receive calls.

A SIP trunk connects an entire business phone system or PBX to a VoIP provider. It lets the whole internal phone network make and receive calls over the internet.

Capacity

  • SIP Line: Allows one device to make/receive calls.
  • SIP Trunk: Allows multiple devices/phones to make calls simultaneously. A SIP trunk is one-to-many while a SIP line is one-to-one.

Features

  • SIP Line: Basic call capabilities for a single device.
  • SIP Trunk: Enables features like call routing, IVRs, and call handling/transferring, through the business PBX. The intelligence sits with the phone system rather than the end device.

Scalability

  • SIP Line: Adding lines is tedious as each device needs its own line.
  • SIP Trunk: Easy to add more phone lines as a business grows by simply adding more phones to the existing PBX/SIP trunk.

How To Choose Between SIP lines and SIP trunks

SIP line supports one incoming or outgoing call at a time and is ideal for small businesses with low call volume. If you rarely have more than one or two calls happening simultaneously, SIP lines offer a simple and cost-effective option.

They’re also easy to scale. You can add individual SIP lines as your needs grow. But it may require additional hardware. You might need an IP-PBX system to manage calls across multiple lines.

SIP trunks can carry multiple concurrent calls (usually 10-30 or more) and are best for businesses with higher call volume. If you frequently have multiple employees on the phone, a SIP trunk offers more efficient use of your internet bandwidth.

It’s also highly scalable. You can easily increase the number of channels within your trunk as your business grows. Plus you don’t need additional hardware. Your VoIP provider handles call management.

FeatureSIP LinesSIP Trunks
Number of concurrent callsOne per lineUp to 30+ per trunk
Ideal forLow call volume businessesHigh call volume businesses
ScalabilityAdd individual linesIncrease channels within trunk
HardwareMay require IP-PBXNo additional hardware needed

Consider the following when choosing between SIP lines and SIP trunks:

Benefits of SIP Trunking

It’s only a matter of time until landline phones will become obsolete. Because you don’t want your business to go down with outdated technology, making the right investments now matters. With pretty much everything going digital, SIP trunking can help you thrive in the new economy.

1) Easy Setup/Low Maintenance. You don’t need physical phone lines and other hardware to install and maintain a SIP trunk. A reliable internet connection will do.

2) Affordability/Lower Costs. SIP trunks can reduce phone service expenses significantly. In-network calls, as well as long-distance domestic calls, are free. Meanwhile, international calls cost a fraction of traditional fees.

3) Scalability. Getting extra SIP lines is much easier than having a SIP trunk installed. All you have to do is inform your SIP provider — no need for additional hardware

4) Dependability. SIP trunks allow for better risk management through service redundancy and reliability. For example, you can have calls forwarded to secondary phones when a rare internet outage occurs.

5) Enhanced Customer Service. SIP trunking gives you a full range of multimedia and unified communications capabilities. This can improve sales, marketing, and customer service. In addition to voice services, you can include SMS texting, file sharing, and web conferencing in the package.

Although a better solution, since SIP trunks rely on the public internet, you risk call quality issues or failed calls due to bad network connectivity. You also need to account for potential security issues, dependency on broadband, and power failures.

Make sure to assess the potential drawbacks and mitigate them by setting up better security measures, firewalls, power backup options, and above all, choosing the right VoIP provider.

Before You Choose SIP….

SIP trunking is an excellent investment for your team’s productivity. But not all SIP trunk services are the same.

When evaluating SIP trunking providers for your VoIP phone system or VoIP phone service, be sure to consider factors like reliability, scalability, and features.

To get the best deal for your business, here are tips to evaluate and select a SIP provider:

ABOUT THE AUTHOR

Julie Bai

Julie Bai was a product manager at Nextiva, UCaaS evangelist, no-bull communicator, and translator for people, dog lover, and mother to an adorably active boy.

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Top 17 Customer Service Metrics You Need to Track

February 17, 2024 11 min read

Ken McMahon

Ken McMahon

Customer Service Metric Definition

Customer service metrics are key performance indicators (KPIs) that help measure the efficiency of your support team, such as how long your customers are on hold, how long it takes agents to resolve an issue, your peak call hours, and much more.

The more value you create for your customers, the less you generally have to worry about losing their business. You can measure your effectiveness with several customer service metrics or KPIs that illustrate different parts of the customer experience.

The right customer experience tools help track these key metrics and improve service with a holistic view of the customer journey. At the same time, if you don’t meet customer expectations, they just might stray from your stable — and quickly.

Nextiva customer experience dashboard

At least one-third of consumers said they would consider switching companies after just one instance of bad customer service. Those customers didn’t just take their business elsewhere but were also likely to tell their peers or the general public about their poor customer service interactions.

We compiled these 17 best benchmarks to help nourish your customer relationships and avoid customer service pitfalls.

  1. Average Wait Time
  2. Rate of Answered Calls
  3. First Contact Resolution Rate
  4. Call Service-Level Agreement
  5. Average Handle Time
  6. Average Interactions Per Ticket
  7. First Response Time
  8. Average Response Time
  9. Average Resolution Time
  10. Issue Resolution Rate
  11. Self-Service Usage
  12. Backlog
  13. Customer Satisfaction Score
  14. Net Promoter Score
  15. Customer Effort Score
  16. Customer Churn
  17. Repurchase Rate

1. Average Wait Time 

Average wait time is the average time customers spend before connecting with a support agent.

Average wait time formula

No one likes waiting on hold, especially your customers with important questions about your products. When customers wait, they’re 16 times more likely to feel impatient than excited or any other non-negative emotion besides neutrality.

💡How to improve it: Use VoIP phone service to gather and display vital customer information before answering their call, so your agents spend less time digging.

2. Rate of Answered Calls

The one frustration that enrages customers most is waiting through long, scripted prompts before speaking with an agent. A high percentage of missed calls means you have lots of customers with negative experiences who gave up before they got through to someone.

Remember: Just one bad experience can send at least a third of your customers packing.

Rate answered formula

Measure your answered call rate to watch out for any spikes in customer dissatisfaction. If you use landlines, it can be hard to keep track of these metrics. But with VoIP and Nextiva’s Service CRM, call tracking happens automatically.

Check out this breakdown of the rate of answered and missed calls:

Breakdown of the rate of answered and missed calls analytics dashboard
💡How to improve it: Use self-service resources like FAQs to help you triage high call volumes and reduce less urgent customer calls.

3. First Contact Resolution (FCR) Rate

Also known as first call resolution, first contact resolution rate measures the percentage of customers that have their problem solved on the first call.

First contact resolution rate formula

FCR can be tricky to measure without a proper CRM system.

If you only measure phone numbers, you could dilute your data with calls from the same customer about different issues. If they call from two different phones or reach out through another channel, you’ll record two different customers.

FCR is also a key call center metric that captures a more nuanced customer annoyance: disappointment. If they don’t ever reach an agent, they’ll start getting impatient. But if they get through to an agent and don’t solve their problem, they may become disappointed and annoyed.

That’s why tracking the customer journey across all channels is crucial by using state-of-the-art tools.

💡How to improve it: Get the right calls to the right people at the right time by using conversational AI prompts to quickly route calls to different teams.

4. Call Service-Level Agreement (SLA)

A call SLA is an internal goal or rule for your level of service. Your agents have to answer a set percentage of calls within a defined time, like 60 seconds.

Call Service-Level Agreement

Many businesses prefer SLAs to average wait time as a performance metric. This way, they can eliminate outliers and focus on the vast majority of calls they answer.

SLAs can illustrate where companies need to focus, like efficiently pooling their resources around high-demand times and letting a small number of calls during odd times go unanswered.

💡How to improve it: Monitor customer calls for quality and efficiency to address slowdowns like repetitive, simple questions that could be answered with an FAQ.

5. Average Handle Time (AHT)

Average handle time (AHT) measures call center efficiency via the average amount of time a customer spends on a call from start to finish.

Average Handle Time (AHT) formula

You can also use AHT to evaluate individual agent and team performance. Longer AHT for an individual might spotlight a coaching opportunity, while lower AHT across a team may indicate a training need.

💡How to improve it: Introduce automations to tackle demanding agent tasks, including following up on customer messages.

6. Average Interactions per Ticket

Average interactions per ticket show how often a customer contacts support over the same issue.

Average Interactions per Ticket formula

Without a CRM that keeps track of customer profiles across channels, the average interactions per ticket are difficult to record. Most businesses will want to track average interactions per ticket to flag customers who might have had a negative experience.

💡How to improve it: Use self-service tools like FAQs and video tutorials to help reduce customer inquiries and potentially lower average interactions per ticket over time.

7. First Response Time (FRT)

First response time is the average time it takes you to respond to customer inquiries.

First Response Time (FRT) formula

It’s vital to differentiate between communication channels when you record response times. This accounts for the different customer expectations seen in each channel. Some customers might think that a 24–48 hour email response time is acceptable, while an Instagram Message response time of more than 12 hours is unacceptable.

💡How to improve it: Optimize your conversational channels with chatbots to immediately engage with customers.

8. Average Response Time

While first response time only measures the wait time until the first response, the average response time is the average time for each response to a ticket. 

Average response time

Since the first response time only shows the start of a customer experience, the average response time is a better measure for the entire customer journey. It indicates how quickly agents follow up, not just initiate responses.

💡How to improve it: Create templated customer service phrases to help your team more quickly respond to certain customer messages.

9. Average Resolution Time (ART)

Also called time to resolution, average resolution time is the time it takes to resolve a support request from first contact.

The difference between ART and average handling time is that ART has a confirmed resolution, while AHT typically measures call length, regardless of the result.

Average Resolution Time (ART) formula

Along with metrics like first response time and average interactions per ticket, ART can show how quickly your agents solve customer problems. If ART is high, it could mean your product needs more post-sale support, lowering your customer lifetime value as you spend more time dealing with issues.

💡How to improve it: Use unified communication tools that allow customers to continue conversations across channels. This limits repetition and speeds up customer problem-solving.

10. Issue Resolution Rate

Your issue resolution rate is the percentage of total issues your customer service team resolves.

Issue Resolution Rate formula

Customers who don’t resolve their issues aren’t exactly happy, so a high resolution rate is always a priority for customer service teams.

💡How to improve it: Decrease the number of support tickets you receive with self-service tools that enable customers to learn independently.

11. Self-Service Usage/Success Rate

Be it a Facebook chatbot or a VoIP phone service, many companies offer self-service customer support for common issues.

Self-service usage measures what percentage of your customers take advantage of your self-service support options for these support requests.

Each of the following can contribute to your self-service usage rate:

💡How to improve it: Think about any problems your customer has that could be solved with one click. Then, create a CTA for them to click it.

12. Backlog

Backlog refers to the total number of unresolved tickets. Unlike many percentage-based metrics, this number should stay as low as possible — fewer unresolved tickets probably means fewer unhappy customers.

crm ticketing process diagram

The service level and response times you commit to customers might vary based on their customer value, though. If an enterprise customer has a ticket open more than one day, that might be escalated and actioned — but a freemium customer might have a 3-day response time.

💡How to improve it: Cull unresolved tickets periodically (daily, weekly, or monthly, depending on frequency) to reassess them and attempt another solution.

13. Customer Satisfaction Score (CSAT)

Happy customers spend more and churn less. Customer satisfaction is one of the most crucial metrics to measure because it can affect what customers feel, think, and do regarding your business.

Calculate your CSAT score by giving a simple, one-question survey after a customer interaction:

“How would you rate your overall satisfaction with the service you received?”

You can vary the customer satisfaction survey question if the intent stays the same. Then, customers can respond on a scale from 1–5, 1 being Very Unsatisfied, 3 being Neutral, and 5 being Very Satisfied.

Satisfied customers score a 4 or 5.

Customer Satisfaction Score (CSAT formula

If you surveyed 100 customers and 43 answered Satisfied while 29 answered Very Satisfied, your CSAT score would be 72.

The American Customer Satisfaction Index (ASCI) publishes the CSAT scores of several major companies every year. This public data makes it easy to benchmark your scores against other companies in your industry.

Nextiva's customer satisfaction survey tool

With Nextiva’s inbound call center solution, you can easily handle tons of incoming calls, track team performance against benchmarks, and generate more revenue. You can even see customer sentiments in real time with built-in CRM.

💡How to improve it: Focus on a top-notch customer service strategy with the right communication tools at your side to increase satisfaction across the board.

14. Net Promoter Score® (NPS)

The Net Promoter Score is a survey-based metric that aims to show how likely a customer is to recommend your business.

Measuring the Net Promoter Score (NPS)

Unlike the CSAT survey, it’s not necessarily asked right after a service interaction. The NPS survey can be sent to the customer at any point after purchasing your product or service.

Some consider NPS a staple for SaaS businesses and apps, and businesses often use it when forecasting organic growth. Like the CSAT, it’s one question:

“How likely is it that you would recommend [BRAND] to a friend or colleague?”

Answers are usually on a scale from 1–10. To NPS, you divide the results into three categories:

Subtracting the percentage of Detractors from the number of Promoters. If you surveyed 100 customers and 70 answered 9–10, 20 answered 7–8, and 10 answered 1–6, your NPS would be 60.

💡How to improve it: Quickly reducing first-impression metrics like hold time, response time and resolution time can encourage customers to recommend you.

15. Customer Effort Score (CES)

The Customer Effort Score is another single-question, survey-based metric. This one is from 1–7, and asks:

“To what extent do you agree or disagree with the following statement?The company made it easy for me to handle my issue.’”

Then, the answer scale ranges from 1 (strongly disagree) to 7 (strongly agree). Total CES is the average of all the answers.

Nextiva's get to know your customer infographic
💡How to improve it: Reduce the number of customer issue tickets (like adding self-service resources) and lower average resolution time to encourage higher CES responses.

16. Customer Churn

For any high-growth service business, customer churn is a vital metric. Churn is the percentage of your customers that leave during a specified time frame.

Customer churn formula

For example, if you had 100 customers last year, and 12 months later, you have 50 of those same customers. This means your churn rate is 50%. (Over 12 months)

There is no unified time for churn, but many companies calculate it by weeks, months, or quarters. Churn rates over different periods can give you insights into how different variables affect customer retention. For example, if you introduced a new CRM in June, churn for the calendar year might look different in the year’s first half compared to the second half.

It all depends on the industry, type of service, and contracts. A social media app might go as far as to calculate churn by the day. A real estate management company might calculate it by the year.

💡How to improve it: Spotlight the customer journey points where most churn happens and redirect resources to improve that pain point.

17. Repurchase Rate

For companies that don’t sell subscription-based products (like e-commerce), the repurchase rate can be a key indicator of customer satisfaction.

Repurchase Rate formula

If you have a high rate of repeat customers, your customer service squad is likely doing its job right. Especially considering how quickly bad experiences affect customer behavior, customer trust takes time to build.

Repurchase rate can be difficult to measure if you sell consumer goods through retailers. You’ll only be able to measure it if your customers sign up for product insurance, register the purchase, or contact customer service on their own.

The product literature that you provide to customers is crucial here. Think about using a QR code or a simple guide that educates customers on how to use your product best and tutorials that reduce the likelihood of a return. All in all, it adds up to a more well-rounded customer experience.

💡How to improve it: Build a loyalty program that creates value for customers and defines incentives for them to make (and record) return buys.

Grow Your Capabilities With Comprehensive Customer Data

Unified communication tools help measure every step of the customer journey across multiple channels. You can isolate metrics like first response time and average number of interactions per ticket to visualize the satisfaction of each customer account.

With a grasp on vital customer service metrics, you can spot precisely where your team needs to improve most.

Net Promoter, Net Promoter Score, and NPS are registered trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

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Customer Service Metrics FAQs

What is a good KPI for customer service?

The best KPIs for customer service measure the entire customer experience and map the journey from beginning to end. These include customer satisfaction score, average wait time, first contact resolution, average resolution time, and more.

What are service level metrics for customer support?

Service-level metrics are internal metrics companies use to benchmark their customer service goals. These metrics aren’t made publicly available. They are often called SLAs and measure how many customer inquiries happen within a given time frame.

How do B2B companies measure customer service success?

One of the best ways B2B companies can measure customer service ROI is with artificial intelligence (AI) tools. With conversational AI and other customer support tools, you can analyze interactions and grab key insights like issue resolution rate, purchase frequency, and more.

ABOUT THE AUTHOR

Ken McMahon

Ken McMahon leads Customer Success for Nextiva. His 25 years of experience leading various aspects of the customer experience including professional services, customer success, customer care, national operations, and sales. Before Nextiva, he held senior leadership roles with TPx, Vonage, and CenturyLink. He lives in Phoenix with his wife and two children.

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