Top Benefits of Telecommuting That Prove It’s Here To Stay

December 29, 2023 11 min read

Cameron Johnson

Cameron Johnson

Remote work has become more than just a perk — it’s a work arrangement many people expect.

With flexible scheduling, better work-life balance, fewer sick days, and reduced commuting time, remote work makes employees happier, and employers are reaping the rewards, too. Reduced operational costs and increased productivity are just some of the benefits that await business owners willing to embrace remote work. 

Telecommuting often conjures up remote work challenges, such as, “How will I know if the work is actually getting done? And what does it take, technically speaking, to work remotely?”

Whether you’re running a small business or a larger enterprise, having a successful virtual workspace or hybrid team in-house is possible, but not without the right tools and structure in place.

If you’re still wondering whether the benefits of telecommuting are worth the effort, this guide is for you. 

What Is Telecommuting?

Telecommuting, also known as remote work or work from home, is an arrangement where full-time or part-time employees perform their duties outside of a traditional office setting. They typically use technology such as laptops, phones, and video conferencing tools to complete tasks and stay connected with colleagues.

Incorporating telecommuting into your competitive strategy is necessary in today’s business climate.

 “Hybrid is no longer just an employee perk but an employee expectation,” says Ranjit Atwal, Senior Director Analyst at Gartner. 

With an overwhelming 98% of employees wanting to work remotely, at least part-time, organizations that don’t offer this option significantly limit their available talent pool, putting them at a competitive disadvantage.

If that stat wasn’t enough to sway you, here’s more:

The fact that employees want remote work can’t be ignored. But a part-time approach is one that companies are adopting as a compromise, with many asking employees to spend two to three days per week in the office. 

Many more workers are expected to be heading back to the office by the fall of 2024, predicts Gartner, with the number of remote employees expected to continue to fall year over year.

Remote work decreasing year over year (via Gartner)
Remote work decreasing year over year (via Gartner)

According to workplace flexibility expert Brian Elliott, “the five-day work-week is officially dead.” However, he also points out that a fully remote model isn’t suitable for everyone, mainly because it overlooks the advantages of in-person interactions in fostering team trust and a strong workplace culture.

The good news is, there are plenty of perks when it comes to making the switch. And the advantages of telecommuting extend to employees and employers alike, so there’s something in it for everyone.

💪Top Business Benefits of Telecommuting

Reduced operational costs

With a smaller in-person workforce, telecommuting reduces your operational costs in several areas.

Consider downsizing to a smaller office, which can be especially beneficial if you’re located in an expensive city. As your team grows, you may not need to expand to accommodate a bigger workforce. Finally, save on office supplies by moving more of your processes to the cloud.

According to GoRemotely, telecommuting can save an average of $11,000 per employee annually due to reduced office space and overhead costs. Dell, for example, saves approximately $12 million per year in real estate costs in the U.S. by offering their employees a flexible work environment.

These cost savings can instead be reinvested into other areas of the business.

Enhanced sustainability

Telecommuting naturally shrinks your company’s carbon footprint. Embracing fully remote or hybrid models amplifies Environmental, Social, and Governance (ESG) commitments by cutting commuting emissions, optimizing space use, and reducing workplace materials and waste. It’s a sustainable step forward in business practices.

Increased productivity

With increased ownership over their work, no commute-related stress, and all the comforts of home, employees are just as (if not more) productive in their home offices when remote environments are well managed. Around 35% of remote employees feel more productive when working fully remotelyThe absence of office distractions and the adoption of asynchronous work models have helped employees perfect their productivity while working remotely.

Wider talent pool and competitive advantage

Telecommuting allows employers to hire the best talent regardless of geographic location. This benefit is particularly helpful for businesses needing highly specialized workers or industries facing local talent shortages.

Increased employee engagement

Employees with flexible working models often report higher job satisfaction, leading to lower absenteeism and employee turnover. This can result in significant cost savings and team stability.

Businesses may also see boosts in innovation and agility when remote work is well managed. Telecommuting can foster a culture of trust and self-management, encouraging employees to be more proactive and innovative.

😎 Noteworthy Telecommuting Benefits for Workers

Higher employee satisfaction 

Telecommuting isn’t just a way of working; it’s also a happiness booster. Bryan Robinson, Ph.D., noted a 20% increase in employee satisfaction among remote workers.

But why, exactly? Telecommuting improves mental and physical health, employee retention and engagement, and daily productivity. Employees also report much higher job satisfaction rates when they have the option to work remotely.

Better work-life balance

With less time spent commuting and higher productivity at home, employees experience a better work-life balance when working remotely at least some of the time. Exactly 64% said they had a better balance with their personal life.

This leads to happier and more productive employees — now, what boss wouldn’t want that?

No daily commute and reduced automotive expenses

By skipping stressful rush-hour traffic, remote workers bank an extra hour or two every day. Over a week, that’s anywhere from five to ten additional hours.

How are employees spending this extra time? They’re having more quality moments with their families, doing chores, and running errands (and freeing up their weekends while they’re at it). It’s a perk we’re sure you’d love yourself, so why not extend it to your amazing team?

According to the latest research from AAA, the average cost to own and operate a new vehicle in 2022 was $10,728 or approximately $894 per month. With fewer miles on the road and less wear and tear on their vehicles, employees pocket these savings by telecommuting.

Improved accessibility 

Telecommuting has revolutionized the work landscape for people with disabilities, unlocking doors that traditional office settings often kept closed. 

With a reduced need for commuting, there are fewer barriers to participating at the office. 

The U.S. Bureau of Labor Statistics found that, in 2022, the employment rate for people with disabilities reached a record high of 46.5%, coinciding with the widespread adoption of remote work during the pandemic. This represents a significant increase from 35.9% in 2020.

Overall, telecommuting has been a powerful equalizer for people with disabilities, dismantling barriers and paving the way for a more inclusive and accessible workspace.

Reduced expenses for employees

Telecommuting cost savings aren’t just good news for you; your employees also benefit immensely. Remote workers spend $6,000 less per year than in-office workers, according to Flexjobs.

The savings can be seen in preparing food at home, walking their own dogs instead of hiring dog walkers, spending less on commuting, and making fewer trips to the dry cleaners. Employees who previously lived in expensive cities now have the choice to move to cheaper areas if they have fully remote options at work.

Increased focus, productivity, and flexibility

A significant portion of remote workers, about 41%, report feeling more productive when working from home. This increased productivity is attributed to fewer distractions, allowing for better focus on tasks at hand.

Collaboration and communication tools have also caught up with the remote work revolution, with more employees and workforces adopting asynchronous work. It’s a flexible approach to productivity where employees complete tasks and communicate at different times, rather than relying on immediate, real-time interactions.

Asynchronous tools, such as Nextiva, provide remote workers with greater flexibility and ownership over their work schedules throughout the day, while also minimizing distractions and increasing productivity.

👎 Disadvantages of Remote Work

The benefits of telecommuting are certainly attractive, but as with most things, there are a few negative impacts worth mentioning and considering.

1) Inadequate tools

Remote work shifts the dynamics of quick, in-office communications to a digital space. When you’re implementing telecommuting, invest in multi-channel tools to help your team communicate at its best.

Whether it’s email, team messaging, texting, or virtual conferencing, there’s an optimal channel for every type of communication, and providing these tools — or better yet, an all-in-one communications platform such as Nextiva — helps keep things rolling smoothly.

Managing projects and collaboration also requires a different approach. Switch out your whiteboards for virtual collaboration tools that offer various useful features designed to power remote teams.

2) Increased loneliness

Remote work can lead to team members feeling isolated and burned out, as watercooler moments become non-existent. Approximately two-thirds of workers have experienced an increase in loneliness, which negatively impacts team morale. Extroverted team members may be particularly challenged, which can easily lead to decreased job satisfaction and productivity.

Loneliness continues to be evident despite advances in cloud communications. (via Statista)
Loneliness continues to be evident despite advances in cloud communications. (via Statista)

3) More distractions 

While your team may not be distracted by other employees, there may be a new set of distractions at the home office. From TVs and social media to noisy roommates and pets who demand a constant stream of attention, the distractions for telecommuting employees are still there, albeit different.

With the increase of software notifications needed to keep your remote team up and running, staying on top of work notifications while carving out distraction-free time for actual work is another challenge. That’s why remote teams are increasingly adopting async models to drive the health and happiness of their hybrid teams.

4) Low engagement and increased favoritism

In a hybrid setting, providing equal amounts of “face time” to all employees can be a challenge and may lead to increased favoritism of in-office employees and lower engagement with remote workers. Nearly half of remote workers polled by Think Remote said they feel managers trust in-person employees more.

Telecommuting disadvantages

A Gallup study found that remote workers are 16% less likely to agree than their in-office counterparts concerning their involvement in the team’s goal-setting process.

5) Security concerns

Security and privacy issues are another considerable concern for remote teams. Are your team members using their secured Wi-Fi connection? Or are they working on a shared and unsecured connection at a coffee shop or library?

Choosing security-minded tools and providing the right equipment for your remote team are essential for protecting sensitive business information. Unified communication platforms such as Nextiva efficiently mitigate security risks and make Wi-Fi calling, virtual conferencing, team chat, and more into a benefit rather than a security threat for your business.

6) Supervisory challenges without the right protocols

As a team leader, you may also find it challenging to know what your employees are up to. This “out of sight, out of mind” mentality may make it seem like you’ll have to micromanage to keep your team on schedule. If you don’t have the right tools or check-in procedures in place, knowing the status of your projects will be difficult. The good news is that these disadvantages can be overcome with the right plan.

✅ Helpful Telecommuting Best Practices

Fortunately, Nextiva is easy to implement and use. If you’re still unsure about this hybrid- and remote-friendly technology, check out our three-minute video below explaining how telecommuting works. 

Providing your team with cutting-edge AI productivity tools and communication software such as Nextiva will make them feel like they’re right next to each other despite being miles apart.

Support Your Team With the Best Phone System

The modern workplace has evolved, but you don’t have to decide between traditional in-office and telecommuting-only models — why not have both?

Nextiva’s scalable unified communication platform enables your team to thrive in both settings. They can remain productive, focused, and engaged while leveraging the incredible benefits and flexibility outlined in this guide.

Facilitate telecommuting easily with the Nextiva Cloud Phone System.

Learn more about Nextiva’s cloud phone system and discover how it can transform your business communication.

Since the pandemic, the world has embraced remote work, and it’s here to stay. The benefits of telecommuting are far too attractive to ignore, with its perks extending to employees and employers.

But pulling it off requires significant adjustments to your communication routine, collaboration strategy, and tool stack. Luckily, workers are willing to make these small, easy adjustments to become more productive at work and lead more fulfilling lives in and out of the office.

Telecommuting FAQs

Is telecommuting still relevant in 2024?

Telecommuting remains an extremely relevant factor for employees and employers in 2024. No longer a trend, remote work is now the preferred mode of work for the majority of employees.

With remote work options in place, employers benefit from a wider pool of talent and increased productivity and employee engagement, while saving significantly on supplies and real estate.

Employees, meanwhile, enjoy greater autonomy, cost savings, and work-life balance when working remotely.

What tools are needed for telecommuting?

Telecommuting requires a mix of collaboration, storage, and communication channels that facilitate remote work efficiently. Necessary tools include communication software such as Slack, Microsoft Teams, or Zoom or an all-in-one asynchronous tool such as Nextiva. Nextiva is a VoIP-powered unified communications system that brings together phone, conferencing, team messaging, and social media channel communication.

Project management software such as Trello, Asana, and Basecamp also helps distributed teams with task organization and delegation. Cloud storage tools such as Google Drive or Dropbox are essential for file sharing from remote locations.

Does telecommuting save money?

Telecommuting provides cost savings for both employees and employers. Employees save on costs associated with their transportation, dry cleaning, meals, and work attire, saving approximately $6,000 annually. Employers save about $11,000 per employee annually on costs associated with real estate and office supplies.

ABOUT THE AUTHOR

Cameron Johnson

Cameron Johnson was a market segment leader at Nextiva. Along with his well-researched contributions to the Nextiva Blog, Cameron has written for a variety of publications including Inc. and Business.com. Cameron was recently recognized as Utah's Marketer of the Year.

Posts from this author

Fixed & Non-Fixed VoIP: Everything You Need to Know

December 28, 2023 8 min read

Cameron Johnson

Cameron Johnson

Getting your business reliable phone service starts with the right phone system. Voice over Internet Protocol (VoIP) offers an easy way to make and receive phone calls at a low cost.

But one key decision remains: should you use a fixed or non-fixed VoIP phone system?

There are a few noteworthy differences between non-fixed and fixed VoIP service regarding your business phone lines.

In short, it can affect the response times of emergency services, but there’s an easy solution to ensure your virtual number is protected.

This guide details key distinctions between fixed and non-fixed VoIP phone numbers.

VoIP Phone Service Basics

Voice over Internet Protocol, or VoIP, works by placing calls through your internet connection. In fact, VoIP calls work on any internet connection, unlike traditional phone lines.

VoIP calls turn voice phone calls into data packets and are sent through a VoIP phone service provider. From here, your hosted VoIP service provider relays calls between your device and the public telephone network.

VoIP network diagram

Phone numbers are either tied to a physical location, like traditional landlines, or they are virtual phone numbers that exist on the Internet.

Since the widespread adoption of broadband, reliance on a physical landline isn’t needed. As a result, many businesses now use a non-fixed VoIP phone number.

A few areas in which non-fixed and fixed VoIP differ include:

  • Outgoing Caller ID
  • IP address accessibility
  • Unified communications
  • Emergency call routing

You don’t want your potential and existing customers to avoid answering their phones when you’re calling. This is where choosing the right VoIP number option helps.

Let’s dive deeper into this VoIP technology and how it could affect your business.

Physical landlines continue to decline every year (via Statista)
Fixed landlines continue to decline every year (via Statista)

What Is a Non-Fixed VoIP Phone Number?

A non-fixed VoIP phone number isn’t attached to a physical address. It’s also known as a virtual phone number. Just like fixed VoIP numbers, it can be used as a residential or business phone line as part of a company’s phone system.

Since they don’t require a fixed address, non-fixed VoIP numbers can be associated with one or more geographical locations. It means they’re a great solution for serving customers in areas where you don’t have a physical location.

With non-fixed VoIP, you don’t need to have a physical address to have a number that matches it. It’s excellent for people who work remotely or businesses with a virtual workforce. For instance, if you have a virtual call center.

Non-fixed VoIP numbers are easy to get, and they’re often issued by free and low-cost services like Google Voice. Unfortunately, this means they also attract fraudulent activity and scams.

One criticism of a non-fixed VoIP phone number is that phone calls to 911 from a non-fixed number aren’t easily traceable. If you choose this option, make this limitation clear.

🚨 There’s an easy solution to ensure emergency services respond quickly when dialing 9-1-1. Setting up Enhanced 911 (E911) allows you to transmit your physical address regardless of which VoIP system or VoIP phone you use.

Related: What Is STIR/SHAKEN & How Does It Help Businesses?

What Is a Fixed VoIP Phone Number?

A fixed VoIP phone number is bound to a physical address. Make no mistake, it’s still an internet-based phone line. It has an account owner and a real address assigned to it. Such fixed VoIP numbers are assigned to one subscriber at a time, typically found by directory assistance.

This address can be a residential one or a company’s office. VoIP numbers can easily be reassigned to different phone services through a process known as porting, in case you relocate or change VoIP providers.

The advantages of a fixed VoIP number include:

  • Simplicity: Each phone line is installed by the telephone company and generally doesn’t change after it’s set up.
  • Emergency services: Without a doubt, an emergency call can only come from the actual address of the telephone company, so dispatchers know exactly where to send public safety personnel.
  • Independence: Fixed VoIP numbers give the owner flexibility in updating their caller ID and republishing to a CNAM database.

Since these types of phone numbers relate to a single user or operator, it’s unlikely a VoIP call will be deemed suspicious. A large volume of outbound calls can get flagged by telephone companies, but it’s not an issue here. 

In general, fixed VoIP numbers are more trustworthy than non-fixed VoIP ones. It means they’re less likely to be used by fraudsters and scammers because it’s harder to mask their identity.

Fixed VoIP numbers make the subscriber location match the user of the phone. Want to see how others see your telephone number? You can check it out here.

Comparison of Fixed VoIP & Non-Fixed VoIP

First, let’s have a look at what fixed and non-fixed VoIP numbers have in common:

  • Relying on an internet connection
  • Same types of VoIP phones and devices
  • Identical VoIP benefits, like lower cost and ease of use
  • Can be used to send and receive text messages

Fixed VoIP vs. Non-fixed VoIP at a glance

FeatureFixed VoIPNon-Fixed VoIP
Associated Physical AddressYesNo
Location PortabilityLowHigh
Call cuality & reliabilityExcellent, single point of failureExcellent, multiple redundancies
Emergency servicesAccurate location providedMay route incorrectly
Number of usersOneMultiple
ScalabilityRequires number administrationNumbers easily added/changed
CostHigher initial costLower costs
Fraud preventionExcellent caller ID verificationHigher fraud potential

Fixed VoIP specifics

With a fixed VoIP system, a physical address is necessary. If your company is well established in your location(s) and serves local customers, that’s no issue. In fact, it’s an advantage. It makes your presence there authentic.

However, if you have customers globally, fixed VoIP numbers make it hard to build a presence where your customers are if you don’t have an address near them.

There’s no way around this if you choose the fixed route. This is why VoIP phone services are rarely entirely fixed unless the service is provided by a local phone company known as a Local Exchange Carrier (LEC).

Another downside is the cost you’ll incur for long-distance and international calls.

Non-fixed VoIP specifics

A non-fixed VoIP system is an ideal solution when you need a local number but don’t have a local presence. For example, you’re in the U.S. but also have Canadian customers or customers elsewhere.

If you have a distributed workforce, you can make sure each person’s individual phone number, known in the industry as a Direct Inward Dialing (DID) number, matches your company’s format. This ensures everyone has a direct number relevant to the location they serve without needing multiple physical phone lines.

Depending on the VoIP service provider you choose, you can also get unlimited calling and features like recording business calls, voicemail transcription, call queuing, and conference calls.

Although non-fixed VoIP numbers are often the solution of choice for fraud, there’s been consistent progress in systems that counteract it. This gives non-fixed VoIP a better reputation and opens its doors for businesses even more.

Even if you have a non-fixed VoIP number, register your business listing on places like Yelp, Google Business Profile, and Bing. At a minimum, this will at least display your company information when people search for your phone number.

Some softphone apps match your phone number to your business information found online, which improves the rate at which people answer the phone.

Types of VoIP Services

Wondering how to get your hands on a VoIP solution? Here are three standard options:

☎️ Business phone service: This is an end-to-end solution that gives you high-quality phone calls at a lower cost. It’s completely portable, scalable, and offers international calling. It hosts all of your communications, from audio and video calls to live chat and even a CRM.

🏢 SIP trunking: You can take your PBX equipment into a cloud system without new equipment or service disruptions. Your calls no longer use traditional phone lines but rely on your internet connection. It gives you advanced multi-line phone system features and centralizes your voice and data in one place.

🤝 Contact centers: Running a call center in the cloud means you can make it more productive. Cloud-based call centers let you handle massive inbound call volumes and automate multichannel customer support, as well as offer self-service options. The best part is that these contact center solutions are hosted entirely in the cloud without any difficult setup. You don’t even need desk phones — calls can be made entirely from your computer.

Takeaway: Non-Fixed VoIP is Better

In 2024, non-fixed VoIP is the better option for businesses so they can provide remote work capabilities for their team, easily add more locations, and eventually add a call center if they need to.

Despite the nuances of non-fixed virtual phone numbers, most of their limitations have been addressed. Your needs as a VoIP user will help you determine your best choice based on what we’ve outlined in this guide.

Save up to 60% on business VoIP

Experience why 150K+ businesses trust Nextiva for enterprise-grade VoIP service.

Thanks to secure internet services, data warehouses, and frequent updates of the CNAM, concerns about a non-fixed VoIP number are put to rest.

However, VoIP phone numbers certainly affect your ability to reach public safety services in a timely manner; make sure to train your staff to use their cell phones instead and be sure to update your E911 records on file.

It all comes down to choosing the best VoIP provider. Select the one with great customer service and an excellent track record. Ask questions about everything you need so you can set up your phone system with ease!

FAQs

Is there a way to tell if a phone number is a non-fixed VoIP number?

Yes, it is possible to determine if a phone number is a non-fixed VoIP number, but it can be a challenging task without contacting the phone number provider directly. The reason for this difficulty is that non-fixed VoIP numbers do not have a specific geographic association like traditional phone numbers. In appearance and functionality, non-fixed VoIP numbers resemble regular telephone numbers.

However, there are some methods you can try to identify if a phone number is a non-fixed VoIP number. One approach is to conduct a number lookup or reverse phone lookup. This process utilizes CNAM (caller name) data, which helps in finding the name associated with a given phone number. It may provide some clues as to whether the number belongs to a non-fixed VoIP service.

Although it could be useful, it is worth mentioning that relying solely on a number lookup or reverse phone lookup is not always guaranteed to be reliable. The accuracy and availability of CNAM data can vary, and it might not consistently indicate if a number is associated with a non-fixed VoIP service.

Can I text from a non-fixed VoIP number?

Texting with a non-fixed VoIP number is possible. By configuring your non-fixed VoIP phone numbers, you can enable the option to send and receive text SMS messages. So, the answer is yes, you can definitely text a non-fixed VoIP number by configuring your VoIP phone numbers accordingly.

Is non-fixed VoIP more budget-friendly?

Non-fixed VoIP is a cost-effective option for businesses due to several factors. VoIP providers typically operate on a subscription-based model. Over the years, the cost of a VoIP phone system has come down to about $20 per month per user. This means that businesses only need to pay a monthly fee, eliminating the need for large upfront investments or expensive setup and implementation processes.

With non-fixed VoIP, businesses can avoid the costs associated with maintaining a physical location or office. Instead of relying on a traditional phone system that requires physical connections, non-fixed VoIP allows businesses to operate using cloud-based technology. This eliminates the need for expensive on-premises PBX equipment, reducing costs significantly.

ABOUT THE AUTHOR

Cameron Johnson

Cameron Johnson was a market segment leader at Nextiva. Along with his well-researched contributions to the Nextiva Blog, Cameron has written for a variety of publications including Inc. and Business.com. Cameron was recently recognized as Utah's Marketer of the Year.

Posts from this author

2024 Business Communication Trends Leaders Need To Know

December 27, 2023 8 min read

Chris Reaburn

Chris Reaburn

What are some of the trends affecting the way businesses communicate with their teams and customers? A lot, actually.

We’ll catch you up on the major developments affecting business communication as we head into 2024. 

Combined with shifts in remote work, we’re seeing a bright new path for teams that can connect the dots between success and effective communication.

Business leaders who value these links are set to reap the rewards. But simply reading about these won’t be enough. Stakeholders need to leverage new trends to weather difficult economic times, starting with a few foundational shifts.

Here are nine of the top business communication trends for your team’s 2024 strategy — ignore them at your own risk!

The State of Business Communication: 2023 Recap

This past year was dominated by remote work and the challenges that come along with distributed teams. As more people discover how (and where) they work best, it’s clear that workplace flexibility is a popular perk, but companies are still struggling to master this dynamic. 

Many employees feared the return to the office, but according to McKinsey, remote work is only expected to grow.

Pie chart showing that remote work is set to increase
via McKinsey

Post-pandemic, businesses are also getting smarter about their spending. In response to high inflation, rising interest rates, and a tight job market, companies are cutting costs and identifying inefficiencies.

This past year also marked the breakout year of generative AI. Tools such as GPT-4, Bard, and Claude have quickly become indispensable tools in everyone’s tech stack. Workers use generative AI to help them write, code, brainstorm, conduct research, and streamline all kinds of tedious tasks.

So, what’s on deck for 2024? 

2024 Business Communication Trends

1) Unified communications goes mainstream

Gone are the days when a company’s communication channels are as distributed as its employees. In 2024, IT managers will be tasked with choosing tools that unite multiple communication channels, such as voice, video conferencing, automation, team messaging, and more.

UCaaS solutions that serve as Swiss Army knives of digital workspaces will streamline how you interact and help your team members make quicker, smarter decisions.

Remote and hybrid workforces will feel more empowered than ever, and digital communication will finally maximize team productivity rather than cause headaches.

2) Enhancing work with AI

Teams are embracing AI with open arms and outsourcing as many tasks as possible to these groundbreaking new technologies. Generative AI, computer vision, and other AI-based tech are transforming industries and changing the way we work.

The most common AI tool, GPT-4, is still an emerging technology, yet it’s already revolutionizing our workflows. Employees who previously spent hours on reports are now enlisting GPT-4 to build drafts, and law firms are turning to AI to review large documents.

3) Reducing employee app distractions

An excess of email and app notifications is sapping workplace productivity. With 79% of workers feeling distracted during the workday, it’s time to carve out more distraction-free time to get stuff done.

Workers will have more options to mute app notifications, and tools will help workers carve out more distraction-free hours. Get ready to curb your team’s endless cycle of low-productivity days that lead to employee dissatisfaction, low employee engagement, and burnout.

4) Working faster asynchronously

Asynchronous communication is the new productivity powerhouse, with a significant 64% of people believing it drives their most productive hours.

With fewer low-priority virtual meetings and less worrying over the speed of your real-time reply, async communication helps foster thoughtful team collaboration while skyrocketing productivity, especially within remote teams.

5) Video meetings become optional

As the number one workplace distraction, virtual meetings are a mixed bag in 2024. They’re exhausting workers and preventing them from doing deep work on tasks that require more focus.

Shopify is leading the way, announcing that it is canceling all recurring meetings with three or more attendees. Meetings on Wednesdays are also banned. The experiment has returned positive outcomes, with team members completing 25% more projects as a result.

6) Remote workplace collaboration tools

The majority of workers favor hybrid models, and in 2024, the tools they use will finally evolve to match.

Virtual teams with the right arsenal for seamless work-from-anywhere experiences are set to experience higher productivity, lower burnout rates, and greater workplace satisfaction.

For the first time, business communication tools will make remote work feel as natural and efficient as being in the office.

7) Deeply integrated customer experience

In 2024, it’s all about having a bird’s-eye view of every customer interaction across all of your business channels.

As customers reach out to companies through different channels, this holistic approach adapts to their wants and provides them with high-quality customer service on their platform of choice. 

Watch customer satisfaction rise as you implement these initiatives.

8) Business communications stay private

With remote communication as the new normal, securing sensitive business chats is critical.

As data privacy fines soar and new laws emerge in 2023, there’s a lot on the line for companies choosing to turn a blind eye.

For those dealing with personal and medical data, the stakes are even higher. Stay ahead of 2024 security changes to standards such as HIPAA, and ensure that your communication technology delivers the expected level of privacy required by law.

9) Expanded use of existing communication tools

By sticking with familiar tools, teams save on training, cut down on errors, and limit workflow delays. Embrace efficiency and effectiveness by making the most of your existing communication stack.

Are you maximizing the functionality of your tools? Should you expand their effectiveness by exploring potential third-party integrations? Are you leveraging automation? There’s always room for improvement, and your communication tools are no exception.

6 Trending Business Cloud-Based Communication Tools

1) Nextiva

Nextiva product shot

Nextiva serves as your all-in-one communications tool for managing all types of business communication. Its suite of asynchronous tools such as VoIP phone services, video conferencing, chatbots, team chat, instant messaging apps, and social media management make it hard to overlook.

Fit for small and large businesses, Nextiva can easily scale up or down while delivering unmatched reliability and taking the pain out of business communication.

Recognized by Gartner Peer Insights “Voice of the Customer” in 2023, alongside Zoom, Cisco, and Google Meet, Nextiva believes in providing business communication tools that give organizations, large or small, a chance to level the playing field.

2) Five9

Five9 contact center software

Enhanced with AI, Five9 is an all-in-one cloud-based contact center solution, enabling customer service teams to engage with their customers through voice, chat, email, and social media communication channels.

Rather than having support and service teams bounce between a dozen different tools, Five9 aims to provide a comprehensive enterprise contact center solution

Nextiva is also a certified Five9 partner to bridge the gap between business phone systems and its advanced contact center software. 

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

3) Asana

Asana Project management tool

Project management tools don’t get any better than Asana. With its easy-to-use interface, friendly user experience, and long list of must-have features, you’ll want to spend more time than usual ticking off tasks on your daily to-do list.

What makes Asana stand out from other tools is its intense focus on eliminating distractions while keeping stakeholders informed. It also has dedicated apps for desktop and mobile devices. 

4) Workvivo

Workvivo employee experience platform

Workvivo is a Zoom-owned employee experience platform designed to engage, excite, and connect a company’s employees. Its unique features include activity feeds, podcasts, internal news articles, employee directories, live streaming, events calendars, and more.

As employees seek a stronger sense of community and connection, Workvivo is one of the platforms for improving team communication.

5) Loom

Loom video tool

With Loom, employees can create and share video recordings with just one click. It’s an ideal tool for teams that prefer an asynchronous tech stack or remote companies with employees located in different time zones.

Use Loom to walk your employees through a complex process or quickly share a recap of an important meeting and send it to the entire team.

Loom’s easy-to-use editing tools make it a breeze to edit your screen-sharing clip, ensuring that the video communicates your message clearly and addresses the needs of your target audience.

6) Kustomer

Kustomer software screenshot
via Kustomer

As an all-in-one CRM platform, Kustomer streamlines the way customer service teams interact with customers. Whether by phone, email, or chat, the platform provides a full picture of each customer and their interactions.

Kustomer allows your teams to serve your customers faster and with an added personal touch — and they take care of those repetitive tasks, too. 

‘Less Is More’ in 2024

Using too many communication apps hinders your team’s performance, leading to burnout, uncertainty, and reduced focus. 

Instead, embrace simplicity and elevate business productivity with Nextiva.

With it, you consolidate several asynchronous communication tools, such as voice, video calls, messaging, and customer management, into a single platform. 

A smarter strategy this year is to use fewer disparate apps so they can work smarter and be more effective at helping customers. 

FAQs

What are the current trends in business communication?

In business communication, things are getting smarter and more user-friendly. Top trends in 2024 are to leverage all-in-one messaging platforms, reduce employee distractions, and adopt flexible communication methods.

With a cloud-based communication app such as Nextiva, companies can keep their messages safe from personal apps such as WhatsApp or text messaging. Workplace communications shouldn’t occur over personal channels.

Finally, as the number of remote workers increases, there is more demand for flexible tools and a greater need to secure collaboration tools.

What is the future of business communication?

Looking beyond 2024, employees can expect to use corporate communication tools that are increasingly personalized to their roles. By 2030, one-third of employees will be armed with different communication tools tailored to their specific responsibilities, supercharging speed, and productivity while helping to reduce critical errors.

Examples of modern business communication tools include Nextiva, Slack, Microsoft Teams, and Asana.

AI will continue to play a dominant role, with augmented reality, IoT, and generative AI integrations being essential features of business communication tools in the future.

How can a business improve team communication in 2024?

To optimize your team’s communication strategy, choose an all-in-one business communication platform. Asynchronous tools, such as Nextiva, streamline external and internal communication by gathering phone calls, video conferencing, team chat, and social media channels into one easy-to-use dashboard.

However, consider the importance of face-to-face communication and in-person meetings. These allow for non-verbal cues to come through and build a tight-knit connection between coworkers.

ABOUT THE AUTHOR

Chris Reaburn

Chris Reaburn is the Chief of Strategic Execution at Nextiva. Known as "Reaburn" by friends/family, he is responsible for championing Nextiva's brand and products into the market in support of the company's vision to change the way businesses around the world work and serve their customers. With his previous leadership roles in the communications industry…

Posts from this author

Every sales call is an opportunity — a chance to learn or grow revenue.

Sales calls are full of feedback, key moments of excitement, and insights for your sales team. These insights enter a salesperson’s mind and are quickly forgotten or disappear on sticky notes.

If your sales tools don’t also help you record sales calls, you risk losing these actionable insights and missing this quarter’s quota.

As a sales leader, you need to save call recordings to update and enhance your go-to-market motions.

Read on to discover easy methods to record sales interactions, best practices, and helpful call center features to grow revenue.

5 Ways To Record Sales Calls

Cloud phone systems offer call-recording features that let you choose suitable ways for different use cases. Take a deep dive to understand more about when to use them. 

1. Automatic call recording

The automatic call recording feature lets sales team members record all calls without manual intervention. These can be cold calls, follow-ups, demos, or critical business conversations. 

When you record every call automatically, sales reps can:

These recordings later become helpful for training, onboarding new account executives, and quality assurance. They assist in legal compliance for financial services, healthcare, and telecommunication businesses. 

What makes these recordings automatic? You can toggle on the option within your cloud phone system. No beeps, wires, or cassette tapes. Simply log in, and you can listen to calls anytime.

Call recording and speech analytics within the call center.

2. On-demand call recording

Salespeople can start and stop recording specific parts of the conversation. 

You can respect your customers’ privacy and comply with legal requirements tied to key discussions. When it’s switched on, both parties will hear a message such as “Recording in progress.”

Phone systems allow you to customize these messages as per your choice. An easy option is to mention in your call flows that calls may be recorded for quality and training purposes.

Salespeople are better equipped to record conversations of value rather than everything. When you come back for replays, it’s less clutter. You can jump into the core right away rather than sliding through conversations to find what you need. 

3. Supervisor-initiated recording

Sales leaders use supervisor-initiated recording to monitor sales calls remotely and provide feedback. 

Often, these recordings don’t announce whether a call is being recorded, avoiding any customer speculation. For this reason, professionals sometimes call it selective silent recording. 

Here are some situations where supervisor-initiated recordings help:

Monitoring call statistics in Nextiva

4. Conference call recording

Records multiple people’s voices on a conference call. 

Large organizations use conference call recording to maintain records of different verticals’ priorities and updates. It’s like a standup meeting on a large scale, where department heads report. 

Companies use it for various other reasons, including the following:

5. Video meeting recording

Salespeople use video meeting recording in industries where visual presentations or demos are key to successful sales. Software as a Service businesses rely on it to review potential customers’ sentiments after the call. 

Businesses see its benefits in several areas: 

Making conference call in Nextiva

Related: How to Record Customer Service Calls & Why You Should

Best Practices To Record Sales Calls

Now that you know how to choose a call recording method, you need a few best practices to set it up for success. Below are a few practices you can follow while recording sales calls. 

✅ Stay in compliance

Go through local, state, and federal laws related to recorded conversations. Many laws mandate that you get consent from both parties before recording begins. 

These laws vary from state to state. Some require the consent of one party, while others need it from all parties. Check what applies to your business.

♻️ Automate recording notifications

Your salespeople can verbally ask prospects and customers if they can record the call. However, it isn’t a part of the core conversation. Potential buyers trust you with their time. And you should quickly be able to share how you can help without going sideways. 

VoIP systems can automatically notify customers at the beginning of the call so you can drive them into the core discussion right away. 

ℹ️ State the purpose 

It’s important to state and honor the purpose of recording. Tell the parties why you’re recording the conversation, and adhere to the promise. 

Whether it’s for training, legal documentation, or quality assurance, add it to your recording notification, or state it verbally if you can’t append it. 

🔒Keep recordings safe

Protect customer data as your own. Safeguard call recording and transcriptions against security threats that affect confidentiality. You can adopt role-based access controls to make sure only authorized people or systems can access sales conversations. 

Identity and access management software will let you configure these security measures, keeping recordings safe from internal or external threats. 

🖊 Review recorded calls

Call recordings give conversation intelligence to your team that can push their sales performance metrics to the next level. You can see why a particular account turned into a deal or dropped off. This feedback lets you coach people and offer sales tips so they improve.

Regularly reviewing these recordings maintains a consistent flow of opportunities for your sales, marketing, and product teams and other business functions. Marketing gets a hint of what assets they can create, and product teams get actual customer feedback to ideate their future sprints. 

👍 Respect customers’ preferences

If a customer doesn’t want to be recorded, don’t record. But have a process to handle objections, so your normal workflows don’t create a hurdle that prevents customers from having the best possible experience. 

Sales coaching helps your team navigate these situations, amplifying their overall performance.

Related: How To Record Business Calls and Why It Matters

Alternatives To Call Recording

There are several alternatives to phone call recording. Based on your use case, you can decide what would fit the given situation. 

1) Live call monitoring

Supervisors can listen to inbound or outbound calls with call monitoring. Salespeople and customers may or may not be aware of it. Sales leaders use this feature for real-time quality assurance. It motivates sales reps to follow best sales practices. 

If calls go sideways, you can provide real-time guidance to maintain call quality per the company’s standards. 

Here are some notable benefits of live call monitoring:

2) Barge-in

Barge-in functionality allows sales managers to join a call. They can speak to all parties involved in the discussion to assist in a complicated sale. When a call isn’t going as planned, you can correct it with an intervention. 

Below are some of its notable benefits: 

3) Post-call surveys

In a post-call survey, customers receive a call from a company right after talking to their sales rep.

They pick up and hear, “Thanks for speaking with XYZ. How satisfied are you with the call on a scale of one to five? Five being highly satisfied.” They press a number on their phone and give feedback. 

Some companies do these surveys on call, while others send a text message with a link to submit feedback. 

A post-call survey offers many benefits for companies that implement it, including:

4) Sales manager callbacks

These are follow-ups made by a sales manager to the customer after a sales interaction. You can perform them to understand the customer’s experience and resolve unaddressed issues or concerns. 

Several benefits come with sales manager callbacks, including: 

Contact Centers Simplify Call Recording for Sales Teams

Cloud-based contact centers bring the scalability and flexibility of the cloud to sales organizations, allowing you to make, record, log, and analyze phone calls at scale. Here’s a quick overview to get you up to speed on cloud contact centers. 

🧭 Increases efficiency

VoIP phone systems let you record calls and save them for easy access when needed. You can avoid the hassle of running after notes or finding the conversation snippets you sent out to your manager. 

It gives you the context you want at the time you choose. But, of course, only if you have permission to access the recordings. 

Here’s how it increases efficiency: 

🤙 Delivers better customer experiences

VoIP systems let you pair call recording with other alternatives and complements such as live call monitoring or post-call surveys. This improves customers’ experience as you can provide real-time assistance and implement customer feedback as it comes in. 

Call Center QA Example of Call Recording

These factors play a pivotal role in enhancing customer experience: 

🔏 Reduces expenses and increases security

With a VoIP phone system recording calls, you don’t invest significantly to set up a physical infrastructure. It reduces your upfront expense of adopting traditional systems. 

Moreover, VoIP security strictly enforces call encryption and other measures to ensure business communications are safe and secure against threats.

Here are a few other benefits that make a strong case for VoIP phone systems:

🌐 Offers global reach

Cloud-based VoIP services give companies a global reach. You can make calls over the internet to anyone, anywhere, without high costs. Likewise, customers abroad can call you at their local rates, making your business more accessible on a global level. 

Here are a few reasons to consider VoIP if you operate internationally:

Recording Made Simple With Nextiva

Sales call recording tools deliver the knowledge nuggets you need to close more deals. While dialing prospects on your phone or hosting a video demo, use call recordings to refine the sales workflows with valuable insights.

Nextiva’s cloud call center records such sales calls. It makes analysis a breeze and streamlines sales performance management. Taking a route through the cloud is cheaper, more secure, and, most importantly, more adaptable to your team’s needs. 

It comes with enterprise-grade reliability and security paired with ample flexibility to handle calls from NextivaONE

Related: How Call Center Recording Software Is Changing

Sales teams scale faster with Nextiva.

Streamline sales workflows. See how Nextiva helps your team hit quotas.

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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Common VoIP Problems and How To Fix Them

December 27, 2023 9 min read

Cameron Johnson

Cameron Johnson

VoIP phones are great alternatives to landline systems. They offer better call quality and reliability at a fraction of the cost of traditional phone lines or PBX.

But even the best technology can encounter hiccups. If you’ve ever been on a VoIP call plagued by choppy audio, dropped connections, or robotic voices, you know the frustration.

83% of companies lost a customer, missed a major deadline, or terminated an employee due to a communication issue. You don’t want that happening to you due to a VoIP problem that’s easily resolved with the right knowledge and technology.

In this article, we’ll walk you through the most common VoIP problems and offer troubleshooting tips to fix recurring issues. You’ll save your IT staff time and get your business phone system in top shape in no time.

Common VoIP Problems

Voice over Internet Protocol (VoIP) systems send calls over the internet and rely on your local network and bandwidth capacity. A weak link in the chain can negatively impact voice quality.

How VoIP works

Here are the most common VoIP issues to be aware of and fix:

1) Poor call quality or choppy audio

Since VoIP calls are transmitted in real time as data packets, any disruptions to voice packets reaching a destined IP address will get heard as choppy, distorted, or delayed audio on calls.

If you’re experiencing call quality issues, look out for these common culprits:

How to fix choppy voice

Start by checking your internet bandwidth. Insufficient upload/download speeds are the most common cause of choppy VoIP calls.

Run speed tests and make sure you meet the bandwidth recommendations from your VoIP provider. Nextiva offers a handy VoIP speed test, enabling you to see how your network performs.

Next, test your network for issues like high latency/jitter or packet loss during calls and troubleshoot accordingly. This may involve router firmware upgrades or contacting your Internet Service Provider (ISP).

Network Jitter - Illustration showing what's happening
When packets arrive at unexpected times, VoIP calls can be interrupted.

A few more tips to fix choppy audio:

If the problem persists, check your VoIP network or VoIP device. Reach out to your telephony provider because a problem could be at their end.

2) Dropped calls

A VoIP call disconnecting abruptly is incredibly annoying. This usually happens on outbound calls on high-volume networks.

The first culprit is not having the most up-to-date firmware on your device. A quick call to your phone provider should confirm this.

The second issue might be a UDP Timeout, which is the amount of time a UDP route stays open on a firewall or router.

UDP network traffic is faster because it lacks the error-checking capabilities TCP offers. As a result, it’s susceptible to firewalls closing the connection and terminating the call unexpectedly.

How to fix dropped calls

Start by troubleshooting internet connectivity problems. If temporary ISP disruptions or using WiFi in dead zones causes dropped calls, use wired connections or mesh WiFi to strengthen signals.

Comparison of PoE standards and applications (via FS)
Comparison of PoE standards and applications (via FS)

3) Echo/feedback

Hearing your own voice reverberating back through the phone makes conversations very difficult.

Three potential problems cause echo/feedback on voice calls: audio configuration issues, headset lag, or network latency.

How to fix echo/feedback

Observe if the echo only occurs under certain conditions or directions to narrow down the root cause before troubleshooting.

VoIP QUality of Service
Routers prioritize voice traffic using QoS alongside other network demands.

If you still experience echoes, you may need to improve your network stability.

4) Call connects with no sound

Hello, can you hear me? One-way audio is a common VoIP issue.

Voice reliability depends on the intermediate network, firewalls, and audio software stack working properly.

Improperly configured VoIP phones, faulty/loose wiring and connectors, incompatible codecs, heavy network congestion, and QoS misconfiguration causing excessive latency, jitter, and packet loss can stop real-time audio despite calls connecting fine at VoIP protocol layers.

Packet Loss Percentage (%) Effect on VoIP Phone Calls
Packet Loss Percentage (%) Effect on VoIP Phone Calls

Your local system security software may also be blocking the RTP media traffic even while allowing the VoIP control traffic to flow normally.

How to fix call audio issues:

Fully plug headset/handset connections into the VoIP phone ports. Also, check the volume levels on the VoIP phones are turned up and not muted.

Inspect phone configurations to select the correct audio input/output settings. Devices may use wrong inputs like Bluetooth when wired headsets are expected.

Toggle between available codecs on the VoIP phones to rule out codec incompatibility issues. Also, reboot phones to reinitialize codec handshaking after switching.

Don’t forget to update VoIP phone firmware in case existing installations have bugs related to call connectivity algorithms that get addressed in later revisions.

5) Unable to make calls

If you have a giant “X” on your screen or are unable to make outbound calls, chances are you have two routers that drop certain critical packets of data.

This VoIP issue has less to do with your router configuration and more with the network layout.

Certain protocols are processed by the Application Layer Gateway (ALG) and rewritten for better flow through a firewall or NAT (Network Address Translation). However, it causes numerous problems for VoIP applications.

How to fix this VoIP issue:

To solve this VoIP problem, disable SIP ALG and avoid having double NAT or two routers inhibiting your flow of packets. Placing your VoIP phones on a VLAN can also help.

Disabling SIP ALG (TP-Link Archer A9).
Disabling SIP ALG is often as simple as unchecking a box. (TP-Link Archer A9).

6) Calls go to voicemail unexpectedly

It’s a big VoIP call quality problem when your phone doesn’t ring. But it’s a pretty simple fix! A possible setting was likely forgotten, or your phone is no longer registered with the VoIP provider.

You’ll also want to check that your phone is not in Do Not Disturb (DND) mode. You’ll know that this is the problem if a circle has a horizontal line inside it.

Review your current configuration for call forwarding and verify that all of your phones are registered and active.

7) One VoIP phone works but another doesn’t

If you’ve tested one phone and it isn’t working, but you try another device, and it is, chances are your VoIP Phone MAC address might not be registered or the configuration itself needs updating.

We recommend testing using a known working location and network port. If one phone works in both places and the other fails, it’s a problem with the phone.

If both phones work successfully at one location, it could suggest that an Ethernet drop is not functioning.

Otherwise, you must contact your VoIP service provider support for possible firmware or configuration updates.

You may need to replace your device if no updates are available and you’re still experiencing this issue.

8) Security breaches

VoIP systems may be vulnerable to security issues. Packet sniffing like man-in-the-middle attacks allows cybercriminals to eavesdrop on unencrypted calls routed over the internet.

VoIP systems have been compromised to rack up fraudulent international charges. The reason is that many VoIP providers do not include encryption by default.

How to stay clear of security breaches

Keep phones and systems fully patched and reset default passwords. Use VPN connections to secure sections of your network carrying VoIP traffic.

Also, make sure to pick a reliable VoIP phone service like Nextiva offering enhanced privacy with TLS & SRTP encryption and meeting security standards set by the ISO/IEC 27001 certification.

VoIP Troubleshooting Tips

When things go wrong, VoIP issues often feel daunting to diagnose and resolve.

Here are some basic first steps to troubleshoot common VoIP issues:

Related: How Does VoIP Work? The Beginner’s Guide To VoIP Phone Systems

Best Practices To Avoid VoIP Problems

While technical problems generally require technical solutions, following best practices helps avoid issues proactively.

See why 100K+ brands trust Nextiva.
99.999% Uptime. Easy to Use. Amazing Service®.

FAQs on VoIP Issues

What are the weaknesses of VoIP?

VoIP weaknesses include dependence on a broadband internet connection; emergency calls may fail if power or the internet is disrupted. Latency and jitter (if voice packets arrive inconsistently) also plague VoIP setups. Security is another concern if protocols are not properly implemented and kept updated.

What are VoIP issues?

A VoIP issue refers to any problem that affects the quality, reliability, or functionality of voice calls transmitted over the internet. Some common VoIP issues include:
– Choppy audio
– Call dropout
– Echo
– Latency/lag
– One-way audio
– Registration failures
– Number portability (porting and transferring phone numbers from traditional to VoIP networks)

How do I fix my VoIP problem?

Determine the root cause, prioritize VoIP traffic on the network, update hardware/software, optimize quality of service settings, or add bandwidth as needed to fix VoIP problems. Often it takes some troubleshooting to pinpoint the root cause. Maintenance is key to minimizing VoIP quality problems.

ABOUT THE AUTHOR

Cameron Johnson

Cameron Johnson was a market segment leader at Nextiva. Along with his well-researched contributions to the Nextiva Blog, Cameron has written for a variety of publications including Inc. and Business.com. Cameron was recently recognized as Utah's Marketer of the Year.

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Top 10 Grasshopper Alternatives & Competitors in 2024

December 26, 2023 10 min read

Yaniv Masjedi

Yaniv Masjedi

Grasshopper, the cloud-based virtual phone system, is a great choice for solopreneurs and small businesses. But as your business grows, Grasshopper’s limitations become more evident.

If you’re here looking for alternatives to Grasshopper, we got you. 

In this blog, we’ll go through the top ten Grasshopper alternatives so you can evaluate the best choice for your scaling business. We’ll compare the features, pricing, who they’re best for, and more to help you make an informed choice!

Grasshopper Alternatives at a Glance

Need a TL;DR? Here’s a quick overview of the top 5 Grasshopper alternatives.

SolutionNextivaGoTo ConnectOnSIPPhone.comMitel
Price/month (starts from)$17.39$29$49.95 $12.74$20.99
Best forCloud-based business communicationsBusiness phone system with fewer featuresHosted PBX for small to medium-sized remote teamsVoIP phone systemTeam collaboration
Top FeaturesLow international calling rates
Unlimited calls & video conferencing
Advanced IVR with Conversational AI
Analytics and automation
Smart call routing
International calling plans
Hold music and call queues
Drag-and-drop editor to configure call flows
Auto attendant or virtual receptionist 
Queues and groups
International dialing
Business text messages (additional fee)
Voicemail to text
Local business phone numbers
Team collaboration software
Interactive Voice Response (IVR) technology 
Mobile app dialer 

But first, let’s take a closer look at Grasshopper.

What Is Grasshopper?

Grasshopper is a virtual phone system that offers business numbers and basic call management features such as VoIP calls, text messaging, voicemail greetings, phone extensions, and inbound faxing.

Small businesses in the US and Canada typically prefer Grasshopper due to its ease of use, quick setup, affordable pricing, and user-friendly mobile app. Porting your existing phone number is also easy. You can choose between vanity numbers, local numbers, and toll-free numbers.

grasshopper phone service

Grasshopper’s features list is simple. The most popular features include:

Pricing: Grasshopper offers four main pricing plans based on the number of users, phone numbers, and extensions you need. The base plan starts at $14 per user monthly.

Why Consider a Grasshopper Alternative?

Although Grasshopper is a good introduction to virtual phone systems, its limited capabilities and call quality will leave you wanting more. 

As you scale, Grasshopper may struggle to adapt to your growing business communication needs, prompting you to look for a more comprehensive Grasshopper competitor.

1) It isn’t built for scale 

Grasshopper doesn’t integrate directly with everyday business apps like Zoho, Salesforce, and HubSpot, making it difficult to consolidate important customer data and work from a unified interface. 

Smart automation, too, is limited on Grasshopper. There’s not much business owners can do besides sending automated texts.

These limitations and the lack of add-ons will likely slow down your workflows and impact call-handling effectiveness when your business scales. 

2) It only offers basic call management features

Though Grasshopper is a cloud-based virtual phone system, you cannot make video calls with it. You can’t send or receive files, or share your screen using Grasshopper.

Limited call analytics, fewer auto-reply options, no shared number or shared email, and no call recording facility, make it less appealing for businesses that want an advanced communication solution. 

3) It can be expensive 

With Grasshopper, calling international numbers can be expensive. Grasshopper’s international calling rates aren’t competitive, so you may rack up a hefty bill.

When it comes to a richer feature set, the plans are expensive compared to virtual phone services like Nextiva, which offer unlimited minutes for voice and video calls, voicemail, toll-free numbers, business integrations, and unlimited internet fax right from the basic plan.

Grasshopper’s plans lack advanced features; you need to pay additional fees for additional features you use. Some users also cite poor call reliability, customer service, and analytics as other reasons they would switch from Grasshopper.

The good news is there are many Grasshopper alternatives available to meet your communication needs.

Here’s a walkthrough of the top 10.

Top 10 Grasshopper Alternatives

1. Nextiva

Nextiva cloud phone system

Nextiva is a cloud-based business phone system that meets the needs of small businesses while offering enterprise-grade functionality.

Nextiva is an all-in-one communications solution. It offers business phone service with video conferencing, collaboration tools, and more for businesses of all sizes.

U.S. News named it the best business phone system for four years running. Popular review sites like G2 also rate Nextiva highly compared to other VoIP solutions.

More than 150,000 businesses across the U.S. use Nextiva. Notable customers include Amazon, Cisco, Netflix, and the Pac-12 Conference. Nextiva has been helping companies supercharge their phone systems since 2006.

Key features

Nextiva offers voice & video calling, text messaging, third-party integrations, and robust call management features. Instead of using multiple services and apps, you can maximize efficiency with Nextiva’s highly rated business phone app — NextivaONE.

Nextiva has a robust VoIP phone service with more than 40+ standard and advanced features.

Here are some features that make it a better alternative to Grasshopper:

Nextiva’s monthly pricing

Nextiva has three plans that offer powerful VoIP features without breaking the bank. You can also request a no-obligation quote to see if you’re eligible for additional discounts and offers. 

Essential, $17.39 per user: Ideal for small businesses. Includes unlimited voice and video calling, voicemail, toll-free numbers, integrations with Outlook and Google Contacts, and unlimited internet fax.

Professional, $20.74 per userExcellent fit for smaller teams and has everything from the Essential plan, plus more. You get unlimited conference calls for up to 40 participants, video conferencing, screen sharing, multi-level auto attendant, SMS, and MMS on mobile and desktop. Salesforce and HubSpot integrations are also included.

Enterprise, $27.44 per user: Supports small-to-medium-sized teams. Easily add unlimited participants to voice and video conferencing, record calls and videos, and voicemail transcription. Enterprises can also take advantage of SSO and advanced integrations.

Why is it better than Grasshopper?

Nextiva goes above and beyond just VoIP. Its powerful capabilities, along with CRM integrations, advanced features, and all-around performance, ensure a reliable and seamless communication experience. 

Nextiva integrations

It’s the top pick for businesses seeking efficiency and reliability in their communication solutions. 8,400 Nextiva reviews and a rating of 4.6 out of 5 on review sites like GetVoIP show how much Nextiva prioritizes its customers’ needs.

The ease of setup and use, excellent customer support, great features, great return on investment, enterprise-grade security, and all-in-one business communication solution make Nextiva the best Grasshopper alternative.

“What truly sets Nextiva apart is their unwavering commitment to meeting our unique company needs. They didn’t simply offer a one-size-fits-all solution; instead, they took the time to understand our specific requirements and tailored their services precisely to suit us.”

Ari M.
Nextiva Customer

2. GoTo Connect

gotoconnect phone service

Best for startups looking for a business telephony system with fewer features.

Formerly known as Jive, GoTo Connect is a VoIP phone service, much like Grasshopper. They typically offer products for conference room calls, delivering training, and running online webinars.

Key features

Pricing

GoTo Connect offers two pricing options. The Basic plan starts at $29 monthly. The Standard plan starts at $39 monthly and offers all the features of the Basic plan plus additional benefits.

3. OnSIP

OnSIP phone service

Best for small to medium-sized remote teams looking for hosted PBX.

OnSIP is a hosted VoIP services provider offering video conferencing and high-quality VoIP phone calls. It’s designed to help businesses upgrade traditional landlines and switch to a modern alternative that moves with their team, wherever they are.

Key features

With OnSIP, you get enterprise PBX features and a cloud platform’s productivity-boosting capabilities.

Pricing

OnSIP’s Basic Plan starts at $49.95 per month per account. Calling minutes aren’t included; they’re charged at $0.032 per minute. The Unlimited Plan starts at $18.95 per month, but a five-user minimum means you’ll end up paying at least $94.75 monthly.

4. Phone.com

Phone.com voip provider

Best for businesses looking for a basic VoIP phone system.

Phone.com is a business phone system provider. It offers entrepreneurs and small businesses an easier way to manage their business communication.

Key features

Phone.com offers 50+ features across their business phone system packages, including:

Pricing

Phone.com offers three different pricing plans. The Basic plan starts at $12.74 per user per month (billed annually).

5. Mitel

Mitel MiCollab

Attractive for businesses looking for advanced team collaboration capabilities.

Much like the other Grasshopper alternatives, Mitel offers a suite of business communication tools, including a VoIP phone system, contact center, and collaboration software. 

Key features

Mitel’s cloud phone system includes some great features like:

Pricing

Mitel has three main plans for its business VoIP packages. The Essentials plan starts at $20.99 /user/month.

6. Google Voice

Google voice product shot

Ideal for US-based users who use Google Workspace heavily.

Google Voice is Google’s VoIP offering, allowing you to make and receive calls over the internet. The easy-to-use tool uses conversational AI for intuitive calling experiences and time savings. In addition to phone calls, you can also send texts via Google Voice. 

Key features

Pricing

Google Voice has three convenient plans with an increasing number of features. You can expect to pay $10, $20, and $30 per month per user for their Starter, Standard, and Premier plans.

7. 8×8

8x8 phone service

Decent option for businesses solely looking for a VoIP phone system.

8×8 is not a complete business communications platform, much like Grasshopper. It’s a VoIP service with a unified platform for contact center, business phone, video, chat, and APIs. Each runs through a company’s privately hosted PBX platform managed by 8×8.

8×8 provides businesses VoIP features like auto attendants, call recording, and voicemail to email. As a Grasshopper alternative, 8×8 is a step up.

Key features

Pricing

8×8 has two pricing tiers. X2 Plan costs $24/user/month. It’s an entry-level plan. X4 Plan costs $44/user/month and includes 8×8’s higher-tier UCaaS software.

8. Zoom Phone

zoom phone system

Helpful to use in tandem with the video-conferencing app Zoom.

Zoom is best known for helping businesses host online meetings. It also offers other communication features through its Zoom Phone — a business phone service that allows users to make and receive calls.

It’s not as feature-rich as Nextiva, but it’s a good alternative to Grasshopper. 

Key features

Zoom has some great features in its communications package, including:

Pricing

Zoom offers a free plan for video conferencing. To access its virtual phone system, you’ll need to upgrade. For the US & Canada, pricing starts from $120 per year per user. Pro Global Select for international calling costs $240 per user per year. 

9. Aircall

Aircall phone service

Best for small teams and VoIP call centers.

Aircall is a VoIP platform made especially for contact centers. It integrates with helpdesk and CRM software and is designed specifically to manage customer conversations. It’s a strong Grasshopper competitor if you want VoIP call center and call monitoring functionality.

Key features

Pricing

Aircall has two main pricing tiers. Pricing for the Essentials plan starts at $30 per month, purchased for a minimum of three users, while the Professional plan starts at $50 per month for the same number of users.

10. Dialpad

Dialpad phone service

Best for businesses looking for an AI solution.

Dialpad focuses heavily on artificial intelligence (AI) and could be an overkill for businesses looking for basic call functionality. Nevertheless, its advanced VoIP functionality gives it the upper hand over Grasshopper.

Key features

Pricing

The Standard plan starts at $15 per month. For custom pricing, you’ll need to talk to their sales team for a quote.

Choosing the Best Grasshopper Alternative

When looking for the best Grasshopper alternative, consider your specific needs and the features most important to you.

If you’re looking for a best-practice Grasshopper alternative that offers advanced VoIP features at affordable prices, go for Nextiva.

Amazing Service is integral to Nextiva’s team culture. When it comes to physical security and network security, Nextiva has superior reliability. Calls are handled through one of eight military-grade data centers across the United States.

Nextiva has all the essential and advanced phone, communication, and collaboration features your business needs. With flexible pricing options for businesses at any stage, you’re sure to find Nextiva to be the best Grasshopper alternative.

ABOUT THE AUTHOR

Yaniv Masjedi

Yaniv Masjedi is the chief marketing officer at Nextiva, a leading provider of cloud-based unified communication solutions headquartered in Scottsdale, Ariz. He manages the firm's marketing and branding efforts and initiates programs related to brand management, demand generation, advertising, marketing communications, and thought leadership.

Posts from this author

100+ Essential Customer Service Statistics & Trends for 2024

December 26, 2023 12 min read

Ken McMahon

Ken McMahon

Thanks to limitless choices within almost every industry, brands must work harder to build customer loyalty. A company’s customer service is a true differentiator, and it’s not only product and price that companies must compete on.

Good customer service is vital to business, but how critical is it? A few decades ago, customer service channels were nearly non-existent; now, they’re essential to any successful business.

So, how can companies of all sizes deliver excellent customer service? For starters, a strong customer service philosophy makes a huge difference. But read on for more tips.

Advances like cloud-based office phone systems have raised customer expectations. The shifting sentiment of younger consumers has placed a greater demand on the role of customer service. Likewise, a company’s social media interactions happen publicly versus privately.

Complimentary Gartner® report

Evaluate & elevate your CX maturity with research-backed insights.

Here are 100+ insightful customer service stats to help your company deliver a seamless customer journey.

The State of Customer Service

Customer Service Experience
  1. Customer expectations are higher than ever, a sentiment 93% of customer service teams agree with. (HubSpot)
  2. Eight in 10 people regularly have negative experiences with customer service. Customers want improved prices and fees, product capabilities, and ease of use. (Qualtrics)
  3. 71% of customer support leaders experienced an increase in overall contact volume since February 2020 and expected that trend to continue. (FreshWorks)
  4. 74% of U.S. consumers said they had a bad customer service experience with a product or service in 2022 — an 8% increase over 2021. (WSJ)
  5. Customer satisfaction hit during the pandemic, with the national American Customer Satisfaction Index reported at 73.4 in Q4 2022. (ACSI)
  6. Since the pandemic, consumers have become targets of fraud, furthering distrust of offers and messaging from unfamiliar sources. Fraud losses exceeded $1.03 billion. (FTC)
  7. 68% of people feel brands should have personalized experiences in every interaction; the same expectation applies to customer support. (Acxiom)
  8. Organizations have invested in customer success, with 91% of customer service reps reporting their team had grown between 2020 and 2021. (Totango)
  9. The pandemic has led customer service team leaders to move to cloud technology to meet customers’ needs better. 75% also said they plan to move to a cloud contact center by 2024. (Deloitte)
  10. Consumers today are more focused on “we” than “me,” with 63% of consumers saying they are more attracted to brands focusing on making the world a better place. (Edelman)
  11. 45% of companies actively provide training to customers, and most agree it improves client relations. (Docebo)
  12. Average weekly customer service issues have been up 20% since the start of the pandemic. (Zendesk)

Related: 10 Ways to Spark Social Media Conversations (with Examples)

Brand Building & Building Brand Loyalty

Building Brand Loyalty
  1. Seven out of 10 customers have stopped doing business with a brand due to a poor customer service experience. (Verint)
  2. Eight out of ten consumers expect brands to do more than provide good customer service, such as giving money to good causes and addressing societal challenges. (Edelman)
  3. 76% of people “always” or “regularly” read online reviews for local businesses. (BrightLocal)
  4. More than half of consumers (60%) have posted a new customer review when prompted by the brand in the last 12 months. (BrightLocal)
  5. Consumers are 5.1 times more likely to recommend a brand after an excellent customer service experience. They’re also 3.5 times more likely to purchase from a business after positive customer experiences. (Qualtrics)
  6. 68% of customers said a positive customer experience over a particular messaging channel significantly improved their brand loyalty. (Conversocial)
  7. ‘Brand’ is the full summation of your customer’s experience with and connection to your company. (American Express)
  8. The most important review factors for consumers are 1. Star rating, 2. Legitimacy, 3. Recency, 4. Sentiment, and 5. Quantity. (BrightLocal)
  9. Featuring customer reviews on a landing page can increase conversion rates by up to 270% (Spiegel Research)
  10. 83% of customers would use a community forum for self-service support knowledge base. (Vanilla Forums)
  11. Customer-centricity is a growing trend among companies known for great customer service, with 77% of front-line reps saying their company views them as customer advocates. (Salesforce)
  12. The best way for customers to have a positive customer experience after purchasing a SaaS app is to receive personalized guidance to use the product. (Cognism)
  13. Nine out of 10 U.S. consumers are likely to use a business when responding to positive and negative reviews. (BrightLocal)

Reaping the Rewards of Good Customer Service

Rewards of Good Customer Service
  1. 91% of customers say they’re more likely to make another purchase after a great customer service experience. (Salesforce)
  2. Almost two-thirds of consumers say they are more likely to forgive a mistake by a long-term favored brand than a brand they have only done business with for a year or less. (Deloitte)
  3. 63% of consumers expect customer service agents to know their unique needs and expectations. (Salesforce)
  4. 63% of consumers say they’d be willing to share more information with a company that offers a great experience. (PwC)
  5. Consumers who report a good customer service experience are 38% more likely to recommend that company than consumers who received bad customer service. (Qualtrics)
  6. 28% of consumers learn about a new brand, product, or service by word of mouth. Yet, only 4% of marketers attribute sales to word of mouth. (RRD)
  7. 94% of consumers who give a company a great customer service experience rating are likely to purchase more products or services from that company in the future. (Qualtrics)
  8. Personalized experiences are more important than personalized messaging to 79% of consumers. (Gladly)
  9. More than two-thirds of customers (68%) expect brands should demonstrate empathy in communication channels. (Salesforce)
  10. Earned growth is a customer service metric that measures the quality of your company’s growth between existing customers, net-new accounts, and referrals. (SentiSum)
  11. Increasing customer retention rates (lower customer churn) by 5% increases profits by 25-95%. (Harvard Business School)
  12. About three-quarters of consumers who give a company a “very good” customer experience rating are likely to forgive a company for a bad experience. (Qualtrics)
  13. 78% of customers expect a brand/product to have self-service options over traditional customer service channels. (Document360)

Poor Customer Service Loses Out

Bad Customer Service Stats
  1. Bad experiences cost businesses $4.7 trillion in global consumer spending every year. (Qualtrics)
  2. 42% of consumers would pay more for a friendly, welcoming customer service experience. (PwC)
  3. Companies with poor customer service could potentially achieve 25–95% more profits. (Bain & Company)
  4. 37% of consumers abandon a purchase or post a negative review with a poor digital shopping experience. (SiteCore)
  5. The most frustrating aspect of customer service is the hold time when waiting for a customer support rep. (Zendesk)
  6. Only one in five customers who gave a company a poor customer service experience rating are likely to purchase more goods from the company in the future. (Qualtrics)
  7. 13% of those who gave a company a bad customer service experience rating are likely to recommend a company to others. (Qualtrics)
  8. Every week, 14% of business professionals deal with a service issue with a communication channel that creates a short-term communications crisis. (Nextiva)
  9. 27% of Americans report “lack of effectiveness” as their top frustration with customer service reps. (Statista)
  10. 12% of Americans rate their highest frustration with customer service as “lack of speed.” (Statista)
  11. Only 15% of those who gave a company a “very poor” customer experience rating are likely to forgive a company for a bad experience. (Qualtrics)
  12. Reviews are a popular form of customer engagement, with 72% of U.S. consumers saying they have written a review for a local business. (BrightLocal)
  13. Providing bad customer service risks $494 billion due to customer churn and brand damage. (CCMC)
  14. About half (49%) of customers’ social media complaints go unaddressed by businesses. (ASU)
  15. Only 48% of consumers would consider buying a good or service from a business with fewer than four stars. (BrightLocal)
  16. 17% of consumers are likely to raise awareness about a bad customer service experience with friends and neighbors. (CCMC)
  17. Dissatisfied customers tell twice as many people about their poor customer service experience than those with a positive customer experience. (CCMC)

Millennials & Gen Z Drive Demand

Millennials & Gen Z Drive Customer Experience
  1. Gen Z accounted for an estimated 40% of global customers. (McKinsey)
  2. In 2019, 61% of Millennial consumers in the United States stated they would be willing to pay more for quality customer service. (Statista)
  3. 14% of Millennials say they would take to social media or a brand’s website to share a review and give feedback. (Retail Drive)
  4. 62% of Millennials report seeking an unofficial knowledge base (such as a subreddit, Twitter, or YouTube video) as a self-service option for service issues, even with 24/7 customer support available. (Gartner)
  5. Among Millennials, 35% said they prefer email, making it the most-used customer service channel for support interaction. (Hiver)
  6. 14% of Gen Zers value empathy from customer support reps, more so than their Millennial (11%) and Baby Boomer (6%) cohorts. (Hiver)
  7. 63% of Gen Zers say that mobile experience is a top factor in customer satisfaction. (PwC)
  8. 77% of Gen Zers expect companies to offer new ways to get existing products, such as digital versions of traditionally in-person experiences. (Salesforce)
  9. 60% of all B2B tech buyers are now Millennials and 2% are from Generation Z. (TrustRadius)

Handling Customer Feedback

Handling Customer Feedback and Complaints
  1. More than four in five customers expect to immediately talk with a customer service agent when contacting a company. (Salesforce)
  2. Most companies cannot engage with customers via live chat or a chatbot. So much so that they’re more likely to text than chat by a 3:1 ratio. (Nextiva)
  3. The top 10 preferred communication channels are email, phone, in-person, online chat, mobile apps, messenger apps, text/SMS, online portals, video chat, and social media. (Salesforce)
  4. More than two-thirds of customers say they want an organization to “reach out and engage with proactive customer notifications.” (Microsoft)
  5. Since 2016, customer conversations have shifted from public social to private messaging channels by 36%. (Conversocial)
  6. American consumers say that phone and online chat are the easiest communication channels. (Statista)
  7. People under 40 prefer using branded apps, texting, and chatbots. Those over 40 favored more traditional channels such as call centers and email. (Shep Hyken)
  8. 87% of customer service representatives say customers have increased their use of digital channels like social media during the pandemic. (Salesforce)
  9. Nearly one-third of customers report sending an SMS text message to the company requesting assistance. (Forrester)
  10. 57% of service professionals believe automated voice assistants will become a top customer communication channel. (Salesforce)
  11. Customers use an average of nine channels to browse inventory, seek advice, and make purchases. (Salesforce)
  12. American consumers say that social media is the most difficult communication channel. (Statista)
  13. 71% of customer service employees say switching between multiple communication channels has made it challenging to meet customer needs. (Nextiva)
  14. Customer data is rated the most useful data source for B2B (39%) and B2C (42%) for marketing effectiveness. (Oracle)
  15. 86% of consumers expect seamless communication across multiple channels with customer support agents. (Gladly)
  16. 42% of adults prefer to resolve their issues over the phone, compared to digital channels like knowledge bases (38%) and email (20%). (Statista)
  17. Only 12% of self-service support platforms are highly integrated; for most organizations, only 20% of service issues are resolved. (McKinsey)
  18. Two in five U.S. consumers say they’ve used three or more channels to reach a company’s customer service team. (Airkit)
  19. By 2025, proactive customer service teams will outnumber reactive customer service interactions. (Gartner)
  20. Reaching a business via the phone remains the most popular customer service channel method (Cornell University)

Social Media & Customer Service

Social Media in Customer Service
  1. 48% of consumers expect a response to social media questions and complaints within 24 hours. (Statista)
  2. Just one-third of consumers in the United States don’t expect a response when asking a question via a company’s social media. (Statista)
  3. More than half (54%) of casual social media lurkers research products and services. (Global Web Index)
  4. At least one in three consumers follow brands they like on Facebook, YouTube, and Instagram — and those social media platforms are also where engagement is most likely to happen. (RRD)
  5. Social media micro-influencers with fewer than 500,000 followers have conversion rates that are six times higher than Facebook ads. (Ubiquitous)
  6. 18% of consumers expect a response from a company’s social media within one hour of their message. (Statista)
  7. Online users spend two hours and 28 minutes per day on social media. (DataReportal)
  8. Companies respond to social media users faster, with 59% of responses happening within 15 minutes. (Gartner)

The Rise of Artificial Intelligence & Automation

The Rise of ‌Artificial Intelligence and Automation
  1. One in three decision-makers implementing AI state that predicting customer needs and delivering personalized experiences is a key consideration to drive ROI. (Forrester)
  2. Classifying service issues with artificial intelligence (AI) and automatic routing of incoming customer contacts increases contact center agent productivity by 1.2 hours a day. (Freshworks)
  3. Nearly two-thirds of customer service tasks and up to 70% of contacts can be automated with an AI-powered omnichannel contact center solution (McKinsey)
  4. 79% of businesses consider automation necessary in their customer experience strategy. (Verint)
  5. 74% of consumers prefer a callback option instead of waiting on hold for a customer service rep. (SupportYourApp)
  6. Customer support response times influence customer satisfaction (CSAT) scores the most. (Freshworks)
  7. 38% of B2B decision-makers say their organization used chatbots in 2020, an increase of 67% from 2018. (Salesforce)
  8. 54% of customers have had a poor customer service experience when engaging with a chatbot. (Conversocial)
  9. 71% of Americans would rather interact with a human than a chatbot or automated process. (PwC)

Ask the Customer Experience Experts

Ask the Customer Service Experts
  • “Your most unhappy customers are your greatest source of learning.” — Bill Gates
  • “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.” — Jeff Bezos
  • “I can’t stress how important it is for companies and their support teams to place themselves deep in their customers’ shoes, understand how their expectations are currently evolving, and provide support that is more human and relatable.” — Dan Gingiss
  • “Companies that show that they are willing to invest in their customers even if it doesn’t contribute to short-term results will be the winners of tomorrow“ — Steven Van Belleghem
  • “Customers do not care how much you know unless they know how much you care.” — Damon Richards
  • “The most dangerous customers aren’t your haters; they are the ‘meh’ in the middle, the dissatisfied customers who don’t take the time to complain.” — Jay Baer
  • “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — Maya Angelou

Related: The Top 50 Customer Service Experts of the Decade

As we look toward the future of customer service, there are a few rising customer service trends for 2024 to take into consideration:

Trend #1: Omnichannel is here to stay

2023 Customer Service & Customer Experience Trends

An omnichannel approach to customer service is becoming increasingly important. This means offering a seamless experience across all your customers’ communication channels, not just live chat.

With an omnichannel contact center, you can provide consistent and unified customer service, which is essential in meeting the needs of today’s customers. While implementing such an approach may be challenging, ensuring your organization remains competitive in the current business landscape is crucial.

Trend #2: Personalized customer experiences

Companies that leverage customer data effectively can improve every step of the customer journey and will thrive in 2024 and beyond. These interactions also parlay into customer service representatives providing personalized experiences.

Investing in mature customer experience tools like Nextiva builds strong relationships with their customers, which is essential to business growth.

Trend #3: Tap into workforce flexibility

In today’s world, it’s becoming increasingly common for customer service teams to work remotely, in the office, and hybrid locations. Customer service leaders invest in networking equipment, analytics, cloud communications, and collaboration tools to keep agents connected and working together.

Although some firms resist working from home, you can deliver excellent customer service regardless of where your team works. Unified communications providers like Nextiva keep everyone connected and display every customer interaction’s full context.

Trend #4: The practical uses of artificial intelligence

The use of Artificial Intelligence (AI) and chatbots in customer service has long been discussed. But only recently, it’s become a reality. Companies can implement these tools to save customers time, direct callers to the best customer service agent, and even resolve concerns automatically.

AI and chatbots can respond to customer queries, update customer data systems, and render a more personal customer experience.

Additionally, these tools can manage simpler customer service requests, freeing up live agents to focus on more complex interactions that need a personal touch.

Trend #5: Prioritize customer service agent happiness

Since customer interactions have swelled during the pandemic, customer service agents have carried a heavy burden. To improve morale and reduce call center turnover, focus on enhancing the agent experience.

Encouraging greater autonomy and flexibility is paramount. By investing in better customer support tools, chat bots, cloud phone service, and automating repetitive workflow steps, companies can help customer service teams agents provide a superior customer experience because they’re genuinely happier.

Trend #6: Respond to customer reviews to strengthen brand reputation

Online Reputation Management Software from Nextiva

Customer reviews are essential to an effective marketing strategy. Ensure that every piece of customer feedback is reviewed and addressed. Online reviews have a significant impact on customer acquisition and customer retention.

Reply to each review (good and bad) consistently with a reputation management tool. This will help your brand maintain its online reputation and prove your commitment to excellent customer service.

Related: How To Build an Incredible Brand Reputation From Scratch

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.

Posts from this author

How To Record Business Calls and Why It Matters

December 22, 2023 7 min read

Danny Grainger

Danny Grainger

When a new barista starts working behind the counter, they shadow their coworkers to learn how to make different drinks, how to clean the equipment, and how to interact with customers.

You wouldn’t want to just throw them into the fray and wish them luck on their first day. You’d end up with a lot of customers waiting a long time, only to receive messed-up orders.

Training and learning are important parts of any customer service philosophy. It’s important to learn from your mistakes as well as your successes. The same applies to new members of sales, service, and other customer-facing teams in the corporate world.

You’ve got to have resources that accurately reflect real-world scenarios. The best case is to record your best and worst experiences so that new and current reps can learn from them and feel better prepared for anything.

With the right call recording software, capturing and learning from customer interactions and phone conversations can uncover opportunities and unlock advantages.

Why Businesses Need To Record Calls

Call recording can be used in a lot of different ways across teams to help build more effective sales, support, and collaboration workflows.

Recording calls in sales

For sales teams, recording inbound and outbound phone calls with customers and prospects can help individuals and leadership find patterns — sometimes, these are opportunities for improvement as a team and other times, it helps identify and address common issues for each rep early on. 

By reviewing even a small sample of customer calls regularly, sales managers quickly gain visibility into reps’ day-to-day interactions so they can course-correct them together if necessary.

Here are a few ways to use recorded sales calls and make an impact:

Recording sales calls in nextiva

Related: How To Record Sales Calls: What Team Leaders Need To Know

Recording calls in customer service

In customer service, recording calls, especially those involving complaints and concerns, can greatly improve client interactions. Call centers and shared services teams use these recordings to:

Example of call center QA analyzing call recordings with AI.

How internal teams collaborate better with call recording

Call recording systems help improve alignment for internal meetings while driving smoother cooperation between departments that rely on shared situational awareness. There are several key benefits here:

3 Most Common Types of Call Recording

But what are the main methods for capturing these recordings? There are a few ways to record calls, and each has its advantages and disadvantages depending on your unique needs.

Call recording setup in Nextiva

1. Automatic call recording

Automatic call recording integrates seamlessly with your existing telephony infrastructure, such as VoIP, business phone systems, and contact center platforms that route calls. You can configure it to record all or specific calls based on criteria such as phone numbers or user groups. 

Advanced tools organize and index these recordings, making it easy to search by date, representative, or product.

Additionally, analytics features offer managers vital insights into call trends, handling times, and other performance metrics, helping them make informed decisions about staffing, training, and operational strategies.

Related: What Is a Contact Center? Definition, Features, and Uses

2. On-demand call recording

An on-demand call recording feature contrasts with automatic, always-on recording, enabling team members to have more precise control during customer interactions. Users can manually start and stop recording as required.

For instance, recordings are often halted if confidential information, such as credit card numbers, is being discussed. Similarly, law firms can use on-demand recording to take recorded statements from clients or witnesses when necessary. 

3. Video meeting recording

Finally, video recording entails capturing audio, on-screen activity, and video feeds from virtual meetings, training, and events via platforms such as Nextiva or Zoom Meetings. 

Nextiva video meeting software

Key use cases for video meeting recording include documenting critical meetings to share with personnel who couldn’t join live and structuring asynchronous training sessions for onboarding materials.

As remote distributed work continues to be the norm, video recording ensures transparency and alignment with all teams.

How To Set Up a Call Recording

Businesses that use Nextiva’s industry-leading call recording software can easily set up call recording by following these three steps:

NOTE: If “Always with pause/resume,” “On demand with user-initiated start,” or “On demand” is enabled, you can also set up alerts and notifications to alert the caller when recording is enabled/paused. 

After enabling call recording for a user, additional steps will need to be taken by Nextiva Support to make sure that an administrator, supervisor, or the agent themselves can access recorded calls. To contact our amazing service team, click here.

Legal Aspects To Consider When Recording Calls

While call recording delivers immense value, it also introduces important legal considerations surrounding participant rights and preferences and tight data privacy protocols.

👍 Consent 

Businesses must inform participants and secure consent before recording interactions to align with local laws. 

In two-party consent states like California or all-party consent localities like Canada, businesses must gain approval from every party on a call before recording can legally commence.

Companies typically notify callers when recording starts through audio queues or on-screen prompts. Representatives then log all verbal or electronic consent received to shield against future disputes.

In many one-party consent states, businesses must obtain permission from at least one party before recording calls. Still, upfront notification is considered a best practice to uphold transparency, even in these regions.

Nextiva cannot provide legal advice here. Check with a licensed attorney in your state to understand your call recording obligations and restrictions.

🤝 Transparency

Further, companies implementing call recording must manage access to accumulated interaction data in compliance with regulations. Leaders must limit internal access to sensitive customer recordings only to roles requiring playback for call center quality assurance, dispute investigation, etc.

🔐 Privacy protection

IT and security teams must also adhere to far-reaching regional privacy rules, such as GDPR in Europe and CCPA in California while storing, accessing, and processing call recordings. Legal departments commonly establish retention rules to age out old recordings balanced against continued business value.

Another federal law businesses must be aware of is the Health Insurance Portability and Accountability Act (HIPAA), which “defines national standards for security and privacy to safeguard protected health information.” Nextiva provides full HIPAA-compliant voice, fax, and video services to its healthcare communications clients. 

📋 Employee training

Lastly, businesses seeking to implement call recording must thoroughly train team members on the laws pertaining to securing consent locally. They must coach personnel on company guidelines regarding how to disclose recording procedures, respect caller preferences to stop recording, and protect private data.

With the proper precautions around obtaining permission and dialing-in privacy safeguards, companies can confidently unlock the performance benefits of call recording while avoiding unnecessary legal and reputational risks.

Start Recording Your Calls With Nextiva

Implement call recording processes across sales, service, and other teams to unlock data-driven performance gains — legally and securely.

Recording calls in Nextiva

Using Nextiva’s call recording features can bring several practical benefits to your business, focusing on enhancing communication and operational efficiency:

Related: How to Record Customer Service Calls & Why You Should

Get powerful call recording for your team today.

Tap into the voice of the customer to achieve sales goals, retain customers, and improve operational excellence.

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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5 Best UCaaS Providers: Key Features, Use Cases, & Pricing

December 21, 2023 10 min read

Chris Reaburn

Chris Reaburn

Your team is exhausted from switching tools just to have a quick meeting or ping a coworker with an update. If you’ve ever felt a pit in your stomach when deciding between an email or text message or hunting for a Zoom link — you’ll appreciate what unified communications software can do. 

Unified Communications as a Service (UCaaS) helps businesses consolidate multiple communication channels on a centralized platform.  

Today’s UCaaS solutions offer notable cost savings with numerous advanced features in one package.

When exploring UCaaS service providers for your business, you’ll find many options, and narrowing them down can be overwhelming. We’ll tell you about the top five UCaaS platforms so you get a firm idea of their features, pros and cons, and pricing. 

Let’s take a closer look at the upsides of UCaaS and the features of an ideal provider.

Why More Businesses Choose UCaaS

UCaaS brings the benefits of the cloud to your communication system. It combines business phone systems, instant messaging, video conferencing, and other collaboration tools, creating a single place for all business communications. 

This unified interface offers several benefits for businesses. 

💰It lowers expenses

UCaaS works on cloud infrastructure. You need a computer or mobile device and an Internet connection to work with it. It makes costly physical maintenance obsolete, saving you time and money. 

Adopting a UCaaS system requires no upfront investment. In most cases, a simple subscription fee applies to each team member using the communication service.

It’s easily affordable for small- and medium-sized businesses (SMBs). Most importantly, UCaaS pricing is based on the number of users, which makes the costs predictable and doesn’t tie up your budget unnecessarily. 

If you compare cloud-based Voice over Internet Protocol (VoIP) systems and UCaaS, the former are comparatively cheaper as they primarily focus on voice calls. With UCaas, you get unlimited calling (including video calls) among its collaboration features. 

Businesses prefer UCaaS since it helps them manage not only their phone interactions but also the entire communication system. In 2021, around 57% of businesses increased spending on video meeting apps, such as Zoom, as a part of their UCaaS solution. 

📈 It scales

An organization’s communication needs aren’t the same all the time. There are busy months, and there are quieter periods. Your communication system should be able to grow and shrink as needed. 

A UCaaS solution makes adding new staff members very easy. And if needed, you can reduce capacity to meet business needs. This flexibility benefits high-growth businesses and companies with seasonality or a fluctuating market. 

When you expand operations on a global level, you won’t need additional on-premises private branch exchange (PBX) servers or new phone lines. You can just add more users to your subscription plan.

Since no physical maintenance or security is required, you can invest more in delivering a remarkable customer experience through unified communication. 

📍It promotes collaboration

UCaaS provides a centralized platform for communication and collaboration. For example, a retail business works with enterprise-grade telephony; messaging; audio, video, and web conferencing; and other communication channels. 

UCaaS software brings them together while adding contextual intelligence and real-time dashboards. Integrating different tools helps businesses collaborate better and be more responsive in communication. It facilitates file sharing and screen sharing while making team collaboration easier.  

UCaaS allows employees to sync while working in different locations so you can deliver a consistently remarkable customer experience wherever you are. 

🧮 It supports multiple teams

Customer-facing teams rely on customer relationship management (CRM) tools, analytics software, call recording tools, and others for their day-to-day operation. A UCaaS platform has these features built-in. It helps team members focus on their jobs rather than going back and forth between tools. 

The teams that benefit most include sales, support, and customer success. UCaaS benefits teams that deal with large volumes of calls daily — for example, a car dealership.

UCaaS comes with call routing capabilities to route potential or current customers to the appropriate department, helping you to serve customers with excellence. 

☎️ It’s the standard for office communication

Remote work and hybrid environments are a priority for both employees and employers.

On LinkedIn, more than 50% of job applications received in February 2022 expected remote work options. UCaaS solutions provide this much-needed flexibility for remote or hybrid work environments. 

UCaaS is easy to scale up or down without setting up any physical hardware. You can grant access to new remote team members, and they can collaborate internally and externally with UCaaS cloud communications features. Softphone functionality gives users the convenience of a mobile app to stay in touch. 

Most importantly, UCaaS vendors handle updates and platform security, helping businesses access the latest communication tech without worrying about the risks.

With these benefits in mind, here are several characteristics to look for when evaluating a UCaaS vendor.

What To Look For in a UCaaS Provider

Businesses’ priorities largely depend on their market segment. For example, small businesses may care much more about costs than mid-market or enterprise companies. 

On the other hand, larger enterprises need a UCaaS that can support a large number of team members in several departments, along with more extensive requirements. 

UCaaS for small businesses

UCaaS for mid-market and enterprise businesses

Top UCaaS Providers

As the UCaaS market keeps expanding, selecting the perfect solution for your business is increasingly important. We have narrowed down a list of unified communication platforms known for their performance and reliability.

1. Nextiva

Nextiva offers an all-in-one UCaaS solution to bring voice, video, messaging, and fax together with other business applications. The platform is famous for its user-friendly interface and affordable price. You get dozens of highly rated features that serve over 150,000 companies. Nextiva’s pricing starts at $17.95 per user monthly. 

Nextiva allows companies to: 

Nextiva business applications

What users love about Nextiva 

Areas where Nextiva can improve

Who Nextiva is best for 

Nextiva is suitable for businesses of all sizes. It addresses the needs of remote or hybrid businesses in the SMB market segment. For a large business that requires 24/7 support, Nextiva’s UCaaS solution is top-notch.  

👉 Get your custom quote from a communications expert for your business today.

2. Vonage

Vonage’s UCaaS platform has a wide array of communication features for global businesses. It offers advanced call routing to connect calls quickly to the right department.

The video conferencing feature manages virtual meetings, where teams from across the globe collaborate and share in real time. Its Premium plan starts at $20.99 per user monthly. 

Vonage helps global businesses operate efficiently. For effective UCaaS software geared toward international use, consider Vonage

What users love about Vonage

vonage phone system

Areas where Vonage can improve

Vonage is best for

Vonage is suitable for enterprises and multinational corporations. It may not be the right fit for high-growth businesses requiring a scalable solution. 

Related: Vonage Pricing: Is It Worth It for Small Businesses?

3. Dialpad

Dialpad provides an AI-powered communication solution as its UCaaS offering. Its features adapt to users’ needs. AI learns from interactions to improve call quality and offers real-time insights that lift productivity. Dialpad’s Pro plan starts at $25 per user monthly. 

Dialpad’s solution streamlines workflows for teams and simplifies call transcription and analysis. After you leave a meeting, it sends an automatic call summary to your inbox.

The platform comes with a 100% uptime service-level agreement and integration with applications such as Salesforce, Zendesk, and Google Workspace.

What users love about Dialpad

Dialpad phone system

Areas where Dialpad can improve

Dialpad is best for

Dialpad is ideal for startup, tech-savvy SMBs deeply invested in AI communication tools. As G2 suggests, companies in the mid-market segment usually work with Dialpad for business communications.

4. RingCentral

RingCentral brings a phone service, messages, videos, and analytics together in a unified communications platform with over 300 integrations. You can leverage workflow automation to complete repetitive tasks. RingCentral’s Advanced plan starts at $25 per user monthly.

You can use RingCentral MVP on your phone, tablet, computer, or desktop via VoIP phones and headsets. 

What users love about RingCentral

Related: RingCentral Pricing, Plans, & Feature Breakdown

RingCentral phone system

Areas where RingCentral can improve

RingCentral is best for

RingCentral is a good option for businesses seeking a user-friendly and versatile unified communications solution. It’s suitable for businesses of all sizes, but large businesses prefer it as their communications solution.

Related: The Top RingCentral Alternatives for Business Phone Service

5. 8×8

8×8’s UCaaS solution helps businesses deliver an exceptional customer experience. It comes with features such as omnichannel routing and contact center analytics.

The platform allows companies to engage their customers at scale with SMS, voice, chat apps, and video APIs. According to Forbes, 8×8 costs $24 per user monthly. 

Overall, 8×8 increases productivity by connecting to various business and CRM applications. 

What users love about 8×8

8x8 phone service

Areas where 8×8 can improve

8×8 is best for

8×8 is a suitable option for businesses that need a flexible UCaaS solution. It’s a reasonable choice for companies that are growing or have a lot of remote employees globally. 

Related: 8×8 Pricing: Is It Worth It?

Considering a UCaaS Provider?

Nextiva product shot (UCaaS)

You’ve got to give Nextiva a try. 

Its unified communication platform adds flexibility and scalability to business communication in a cost-effective manner. Plus, you’ll get around-the-clock customer care any time you want it. 

Nextiva has the features that businesses care about — reliable cloud phone service, video meetings, team collaboration, Call Pop, voicemail transcription, online faxing, business SMS, email integration, and dozens of other features to improve business communication. 

With Nextiva’s connected and centralized platform, your team is always in the know when helping customers or collaborating with coworkers.

When you’re considering migrating to UCaaS, start by defining your goals and determining what you would need to accomplish them. Assess how many employees would be using it and what features and functionalities they would expect for their day-to-day operations. Then, use this guide to narrow down software options to one that best fits your expectations. 

Talk to a communications expert to see how Nextiva checks all your boxes for an ideal UCaaS platform. 

ABOUT THE AUTHOR

Chris Reaburn

Chris Reaburn is the Chief of Strategic Execution at Nextiva. Known as "Reaburn" by friends/family, he is responsible for championing Nextiva's brand and products into the market in support of the company's vision to change the way businesses around the world work and serve their customers. With his previous leadership roles in the communications industry…

Posts from this author

What Is a Contact Center? Definition, Features, and Uses

December 20, 2023 14 min read

Dominic Kent

Dominic Kent

Customer-focused contact centers have come a long way from the outdated cost centers of the past.

Modern contact center solutions and compassionate customer service help solve customer issues faster, build better loyalty, and drive customer engagement and retention. Your customers are no longer stuck in a phone tree, and you no longer have to deal with bulky equipment and choppy call quality.

From AI and automation to predictive analytics and sentiment analysis, these support centers now provide deeper insights into customer needs and the tools to deliver personalized and better customer experience.

In this guide, we round up what a contact center is, the top features it provides, and how companies use it to scale.

What Is a Contact Center?

A contact center is a team of agents that handle all incoming and outgoing customer communications via phone calls, email, live chats, social media interactions, and other communication channels.

Whether you’re calling to rebook an airline ticket, inquire about a credit card charge, or troubleshoot why your new laptop won’t connect to Wi-Fi, you rely on support centers, big and small, to solve issues and provide service.

Contact centers integrate people, processes, and technology to offer efficient customer support across multiple communication channels. With robust analytics and enterprise-wide visibility, they create high-quality interactions that drive customer and business growth.

Contact center technology supports various business functions. These can be call centers where staff (usually called agents) only handle calls. Or they can be multichannel contact centers where agents handle transactions from digital channels such as email, social media, and phone calls.

The term contact center can refer to a variety of different uses, so don’t get confused when you come across these.

Related: Customer Service Contact Center 101: Features, Metrics & More

Contact centers vs. call centers

Call centers focus on managing high-volume inbound voice calls. Many businesses try to use a typical VoIP phone service as a contact center, and that’s the wrong approach. Why? Because it is not designed to handle huge volumes of calls, so you would get a lot of voice mails or “busy signals” vs. a contact center, which is built for the use case of high call volumes.

On the other hand, contact centers take a much more expansive, omnichannel approach to customer interactions. They allow seamless integration across multiple channels customers prefer to use today, including phone, email, messaging, web chats, and social media. 

Contact centers offer a much more personalized and consistent customer experience than a call center.

6 Types of Contact Centers

Contact centers come in many shapes and sizes to suit the scale and scope of different business needs.

Here are the six key types:

Let’s look at them in detail.

Call Pop deeper insights

Related: 5 Types of Call Centers: Which Is Right for Your Business?

1) Inbound

An inbound contact center only handles inbound transactions. 

This might be an inbound call center, where contact center agents (aka call center agents) handle inbound calls only. In this case, staff in other departments will handle other digital channels. For example, your marketing team might handle social media inquiries. Or they might go unmanaged completely.

Within an inbound call center, you have call routing features like auto attendantsinteractive voice response (IVR), and call queues. More on these in the features section further down.

Some inbound support centers manage other digital channels like web chat, email, and social media.

An important part of inbound contact center management is that contact center managers can report on all the channels. Most call center software includes comprehensive reporting and analytics.

2) Outbound

An outbound call center is a team of agents dedicated to calling customers to start a new transaction. Unlike inbound call centers, these teams don’t typically handle incoming calls.

Companies use outbound call centers to grow sales, conduct surveys, collect market research, and proactively deliver customer service.

Agents have pre-populated contacts to call from a database and are assisted by automatic dialing technology called a dialer.

Typical use cases for outbound call centers include:

functions of an outbound call center

3) Multichannel

Multichannel refers to the ability of support agents to handle customer queries via a multitude of contact channels.

As well as handling inbound calls, multichannel centers include:

You still get access to call management features, like in a multichannel call center. Multichannel access gets included on top of this functionality.

The same applies to reporting on these various channels. You get all your call reports and analytics, as well as the same across other channels.

4) Omnichannel

Omnichannel refers to using a multichannel support center in a way that connects all the channels. This means that agents have a holistic view of the customer journey when a customer calls in to follow up on their email, web chat, SMS, or social media transaction.

Rather than having to find the agent that dealt with the previous transaction, agents can access the exact email, web chat, etc., and help the caller right away.

Not only does this improve first-call resolution (FCR), but it also makes for a better all-around customer experience. When both your customer and agent have unified communication experiences, everyone benefits.

Omnichannel vs. Multichannel Contact Center

5) On-premises

On-premises contact centers are, for the majority, a thing of the past. Thanks to advancements in cloud technology, the features available on-premises have been replicated and improved by cloud contact centers.

On-premises deployments still exist in niche use cases like financial institutions and data-sensitive industries. When legislation dictates that customer information must not leave a physical location, migration to cloud technology is difficult.

FunctionCloud contact centerOn-premises contact center
Setup Time1–4 weeks6–12 weeks
EquipmentOptionalMandatory
ScalabilityFeatures delivered on-demandRequires extensive hardware upgrades
IntegrationsNumerous API-based integrationsLimited middleware integrations
FlexibilityEmployees can work in the office and remotelyEmployees must work within an office
AnalyticsReal-time customer journey analyticsLimited to agent dispositions
PricingApprox. $100 per agent per month that grows with youApprox. $75,000 upfront per agent, plus software licenses, trunks, and maintenance
ReliabilityRedundant upstream carriers monitored 24/7Less susceptible to jitter over the Internet

6) Virtual/cloud

virtual contact center, otherwise known as a cloud contact center, refers to software deployed via the internet.

There is no need for a physical installation in your office. Agents can access a virtual desktop interface via software and log in using a username and password.

Choosing from these types can look daunting at first. But figuring out what you need is much easier when you dive into your specific use case.

Benefits of a Contact Center

Improved customer service

Contact centers allow for omnichannel support, shorter response times, personalized interactions, proactive outreach, and faster complaint resolution. By prioritizing the customer experience, they drive increased satisfaction, loyalty, and referrals.

Operational efficiency

Sophisticated routing tools distribute high volumes of inquiries across the right channels and available agents. This increases productivity, first-call resolution, process consistency, and the capacity to handle more interactions without expanding headcount.

Valuable data and insights

With comprehensive integration of CRM and other data sources, businesses gain holistic customer intelligence to understand customer expectations, behaviors, and preferences. Predictive analytics and interactive feedback also fuel strategic decision-making.

Enhanced sales and revenue

Many contact centers have dedicated sales teams and outbound representatives to drive lead generation, cross-selling/upselling, appointment setting, and higher deal closing rates. Their efforts directly impact top-line revenue gains.

Cost savings

Consolidating customer interactions allows businesses to use economies of scale and newer technologies to reduce overhead. Outsourced and offshore models provide additional budget flexibility. Investments in automation and self-service also contain long-term costs.

Key Contact Center Use Cases

Proactive customer service

By providing your customers with a logical way to contact you, rather than phoning and getting through to random staff, their queries get answered faster and by the right people.

One example of proactivity in contact centers is auto attendants, which provide automated options for callers to choose from. 

For example, “press one for sales or press two for support” immediately sends customers into the correct queue for a team that can handle their query. 

Here, you can configure logic as simply or complex as you deem necessary. Some businesses opt to provide information, like opening hours or website details, upfront so customers don’t need to queue for an agent.

The same applies across other channels too. 

Omnichannel Contact Center Dashboard

👉 If your business sounds like this use case, consider an omnichannel contact center.

Outbound sales and lead generation

Instead of dialing each phone number, getting the occasional wrong one, and losing time due to inefficiencies, an outbound dialer can pull contacts from your database and automatically call each number when an agent is free.

If there is no answer, contacts get added back into the queue. If the caller doesn’t wish to be called again, the agent can choose “Do not call.”

Success can be viewed thanks to the use of sales analytics, usually included in outbound dialer technologies.

👉 Consider an outbound call center if your business sounds like this use case.

AI-powered self-service (Artificial Intelligence)

Making a payment no longer needs human intervention. Instead, when a customer needs to pay a bill, they call you, choose “make a payment,” and get directed to a self-service payment line.

Secure and automatic collection of credit card payments is possible thanks to contact center solutions that comply with PCI-DSS standards. Customers can simply enter their card information using their dial pad and make a payment. If they need help, they can opt out of the self-service call and get connected to a live agent.

Other use cases, like knowledge bases, provide your customers with answers to FAQs. Instead of queuing to speak to an agent, you can redirect customers to a comprehensive bank of helpful content.

When human intervention is needed, customers can escape the chatbot and get connected for non-AI help.

👉 Use an automated contact center if your business handles transactions and payments regularly.

IT Helpdesk

Whether internal or external, a support center license is often used to facilitate helpdesks.

Here, IT managers can manage their incoming tickets while providing a proactive experience to colleagues reporting issues.

Mimicking the inbound call experience of a customer contact center, IT can optimize the experience. After all, if you’re looking after your clients, why wouldn’t you look after your employees?

👉 Look into an enterprise telephony system if your business needs to streamline IT requests.

Contact Center Technology & Features

We’ve touched on the basics a little. Let’s dive into 10 high-quality contact center features that can really transform your customer care or sales operation.

1) CRM integration

Integrating your contact and customer relationship management (CRM) software is a no-brainer. 

When you receive a call from a customer, you need to know who it is—not just the company they’re calling from, but their recent and historical activity.

When you empower your agents with information, you set them up to provide the best possible customer experience.

Nextiva Call Pop displays useful information on the screen about incoming calls.

Integrate Your Apps: See Which Ones Integrate With Nextiva

2) Inbound call routing

Call routing directs inbound phone calls to any person or team in real time, given a set of rules. Call routing rules can be as simple or as powerful as you want. 

You can choose round robin-routing, which rings different agents in a circle. Or you could choose to provide the next call to the person who’s answered the fewest phone calls this morning.

3) Advanced call routing (ACD)

For more advanced capabilities, you can allow customers to say why they are calling and route them to the most qualified agent.

This allows you to add more context to the call and be even more specific with your agent routing. 

With this conversational AI approach, you can save customers’ time holding for the wrong person and queuing for long periods.

Advanced call routing knows whether there’s a long queue—and whether calls to that queue are usually long—so it offers a callback when a specialized agent becomes available.

Screenshot of changing call flows in Nextiva

In some cases, like booking appointments and making payments, there’s often no need for a human whatsoever.

4) Website chat

Nobody likes waiting on the phone. This is where chatbots come into play.

They can be resourceful when well-executed. New data from Gartner suggests consumers are less enthusiastic about bringing their customer service concerns to a website chatbot.

But it’s not all bad, either.

Live chat is an excellent way to quickly provide information to visitors without the burden of calling in, navigating their IVR phone system, and maybe reaching someone in less than five minutes. Answering a prospect’s questions accurately and quickly is a worthwhile business investment.

5) Social media channels

Like your live chat on your website, you can use almost any social media channel to manage customer inquiries. 

Platforms like Instagram, Twitter, WhatsApp, and Facebook are commonplace in businesses. 

If a customer is on your social media and wants to reach out, offering a way to do so without leaving that channel is a win-win for both the customer and the business.

social media channels

If customers can immediately contact you, there’s little friction and minimal wait time.

6) Knowledge base integration

The best customer experience is the most integrated. There’s no need to keep everything in different places. That just keeps your customers searching.

When customers have access to everything they need without the need to call and ask for it, they become more autonomous and self-sufficient.

knowledge base nextiva

Check out Nextiva’s knowledge base as a prime example. You can access support materials for all products, chat with an agent, or submit a ticket, all from the same place.

7) Workforce management

“Failing To Prepare Is Preparing To Fail” —Benjamin Franklin

The best-performing support centers embrace workforce management (WFM) for their workflows.

In high-demanding and ever-changing environments, it’s important to be accurate with staffing for each area.

WFM is forecasting software that uses data to suggest how many agents are needed to manage customer inquiries at certain times of the day or season.

Staff reallocations must be based on data if your business suffers a major outage. The more data in your WFM software, the more accurate your forecasting is.

8) Customer experience analytics

When a customer contacts you, it pays to be aware of their entire journey. 

Rather than only knowing their most recent call was three hours ago, viewing their hour-long web chat, email message, and public social media rant adds a lot of context to the next conversation.

Analytics tracking the customer experience also flags this scenario as happening, so it doesn’t have to get to this situation anyway.

When looking at historical customer data, you can see where things went wrong in your process and put in place changes where necessary.

customer experience analytics

9) Conversational analytics

Customer journey analytics are those applied to the entire call, while conversational analytics are those applied to specific conversations.

These customer analytics can be over the phone or via written channels like email, web chat, and social media.

Reflect on trigger words, emotional responses, and raised voices in a conversation. These all show that something happening in the call could lead to a different outcome.

10) Quality monitoring

If you’re not monitoring the quality of your contact center, you’re never going to improve.

Quality monitoring is the process of checking in on agents’ calls or transactions to ensure they’re doing a good job.

This might be the role of a specialized or senior agent or supervisor. Whoever is tasked with quality monitoring will be aided by the use of quality monitoring software, usually included within a modern contact center package.

Example of call center QA analyzing call recordings with AI.

Here, you can select flagged calls or choose randomly, then evaluate agent performance on that call.

As a result of consistent quality monitoring, you can learn about repeat issues, compile training sessions, and escalate agent or customer issues that need intervention from senior staff.

Related: Enterprise Contact Center Solutions: Overview & Key Features

Developing a Contact Center Strategy

The right contact center for you may differ from someone else’s.

Just because a manufacturing firm uses one vendor for their inbound call center doesn’t mean a technical support function must use the same one.

contact center platform nextiva

Consider these five key areas when choosing your contact center:

Then there’s the overriding factor: can you afford it? 

A more effective perspective is to ask yourself: is there a clear return on my investment? If the answer is yes, move on to onboarding and support options.

If you run a 24/7 support function, does your contact center provider mirror these hours? If you need help setting up 200 agents, can your provider help with this?

These are all crucial factors when considering which provider to choose.

Related: The Leader’s Guide to Call Center Strategy

Futureproof Your Contact Center

When looking into a contact center for the first time or renewing your existing one, make sure every element is right for now but as well-prepared as possible for the future.

Think about features you will use immediately versus features you will need in the future.

For example, you might not need web chat or social media today. But if you know your customers try to send you messages via other mediums, it makes sense to factor this into your plan.

The same applies to AI and automation features that may seem like too much of a step into the future.

voip phone service

That’s where selecting a flexible vendor with proven deployments of traditional and futuristic support centers pays dividends.

Nextiva was a lifeline to a benefits administrator that was frustrated with its on-prem call center. The company switched to a cloud-based contact center without doing all the work — Nextiva did.

The utmost importance of providing for the now while planning for the future is recognized throughout the Nextiva client base.

Nextiva is the 2022 winner of G2’s Best Software Award, an award voted for by users, and is recognized by Gartner, the leading provider of research and consulting services for businesses in the IT sector, as being rated the best in the world.

🙌 Case Study: How a FinTech Company Scaled Growth With a Contact Cente

Contact Center FAQs

How does a contact center improve the customer experience?

A contact center improves the customer experience by providing a single pane of glass experience for agents to handle inbound customer interactions.

Customers communicate via their channel of choice and experience connected, frictionless customer relationships

What are the core functions of a contact center?

Support
Sales
Market research
Customer service

What technologies should I look for in a contact center?

Omnichannel: the ability to service customers via voice, SMS, email, web chat, and social media.
AI and automation: self-service options to make a customer’s interaction with your business easier.
Cloud deployment: a flexible rollout method that doesn’t need physical installation.
Reporting and analytics: graphs, predictions, and trends that trigger business decisions.
Advanced call routing: management of inbound calls for efficient customer resolutions.

What metrics determine contact center success?

Some of the key call center metrics are:
– Net Promoter Score® (NPS®)
– Customer Satisfaction (CSAT)
– First Response Time (FRT)
– First Contact Resolution (FCR)
– Call volume
– Customer Effort Score (CES)
– Customer Retention Rate (CRR)
– Customer Churn Rate (CCR)

Check out more call center metrics here.

ABOUT THE AUTHOR

Dominic Kent

Dominic Kent is a content marketer specializing in unified communications and contact centers. After 10 years of managing installations, he founded UC Marketing to bridge the gap between service providers and customers. He spends half of his time building content marketing programs and the rest writing on the beach with his dogs.

Posts from this author

The Complete Guide To Power Over Ethernet VoIP Phones

December 19, 2023 7 min read

Cameron Johnson

Cameron Johnson

Everyone is familiar with the annoyance of cables cluttering up the office space. It looks messy and disorganized and can even be a trip hazard.

But what if you cut the number of power cables you’re using — even slashing it in half?

Power over Ethernet (PoE) technology lets you power office phone systems using a single network cable. Let’s talk about how they work, their advantages, and some recommended PoE-ready equipment. 

What Is PoE?

Power over Ethernet (PoE) is a standard that allows network cables to carry electrical power. A single Ethernet cord can provide both data connection and electrical power to devices instead of needing a cable for the internet and a cable for electricity. 

How PoE works

PoE uses existing Cat5e and higher cables to provide power to compatible devices. The electricity comes from power source equipment, such as a network switch or router. 

There are two types of PoE specs:

Comparison of PoE standards and applications
Comparison of PoE standards and applications (via FS)

What Is a PoE VoIP Phone? 

VoIP phones work by making calls via an internet connection instead of a landline or mobile network. This internet connection can be established in various ways, most commonly over a wired Ethernet connection. 

Almost all VoIP phones include a separate power supply that plugs into the user’s electrical outlet. However, these come with drawbacks: space and reliability.

A VoIP PoE phone lets team members make and receive business calls over a single Ethernet line that provides both electricity and an internet connection. 

How Does PoE Work With VoIP Phones?

Certain VoIP phone systems are PoE-compatible. In this situation, power is supplied through either a PoE switch or a PoE injector. 

An Ethernet cable will connect to the PoE switch or injector, which contains twisted wiring for both data and internet connections. The Ethernet cable transmits power to the device — in this case, the VoIP phone. 

This video from our friend Prince Rich explains how PoE phones work: 

Are All VoIP Phones PoE-Compatible?

No, not all VoIP phones are PoE-compatible. However, all phones that Nextiva sells are PoE-ready. 

VoIP phones come in a variety of models and specifications. PoE is a specific feature, and not all models possess it. 

1. PoE-compatible VoIP phone

PoE-compatible VoIP phones can receive power and data through a single Ethernet cable as long as it’s connected to a PoE switch or injector. We’ll discuss specific PoE-compatible VoIP business phone systems later in this post, including popular VoIP desk phones. 

2. Non-PoE VoIP phones

These phones require a separate power source and lack PoE compatibility. In many cases, they’ll require a traditional AC adapter plugged into an electrical outlet. This can cause cord clutter, which is one reason businesses may opt for PoE models instead.

3. Wi-Fi VoIP phones

Some VoIP phones may connect to the network wirelessly via Wi-Fi. These phones also typically require a separate power source, as Wi-Fi does not provide electricity. 

These phones also carry some risk. If there’s ever an interruption in the wireless network, the VoIP phone can lose connectivity or experience low call quality. 

Benefits of PoE VoIP Phones

Businesses that are choosing new communication systems often have a number of reasons for preferring VoIP phones that are compatible with PoE. The advantages of PoE-compatible phones are especially important when upgrading an office network.

Simplified wiring

Fewer cables are required since power and data are carried over a single Ethernet cable. This is easier to maintain and makes it much faster to install the VoIP system. The office will also look much more organized, with fewer wires cluttering the space. 

Cost-effective

With fewer wires needed and a faster installation process, there’s a reduced need for electrical wiring and outlets. This can reduce installation costs. 

Reliability

PoE VoIP phones typically include battery backup features, ensuring that phones remain operational during power outages. 

They’re also typically more reliable than Wi-Fi VoIP systems, which may be prone to connection issues and rely entirely on functioning routers. 

Scalability

All businesses should consider scalability, and VoIP PoE systems are, by definition, scalable phone systems.

You can easily add new phones or relocate them. You only need to manage your network connections, so there’s no need to worry about separate power supplies. Your system can easily scale up and down with your business. 

Energy efficiency

The latest PoE technology often comes with energy-saving functionality that provides a phone with only the amount of power needed to operate it. This can result in long-term cost savings, especially at scale. 

What Kinds of Businesses Use PoE VoIP Phones?

PoE VoIP phones are ideal for traditional office environments, call centers, and any in-person location where several phones are needed. They’re also invaluable for businesses that plan to grow rapidly and those that may need to either reorganize their office space or move to a new location in the foreseeable future. 

PoE is less common for people who work from home, but with a PoE switch or injector, home users can also use PoE. 

PoE-compatible VoIP phones can simplify infrastructure, are easy to manage, and can reduce clutter in your business location. 

Top 5 PoE VoIP Phones

PoE VoIP phone systems are only as strong as the VoIP service providers and the PoE devices themselves. 

So, it’s important to get started with the right device. Let’s discuss the top five PoE VoIP phones for 2024, all of which are available as Nextiva VoIP desk phones.

1. Yealink T33G IP phone

Yealink T33G IP phone

The Yealink T33G IP phone offers a dual-port Gigabit Ethernet with integrated PoE. 

It’s an entry-level IP phone with a color screen, high performance, and the ability to offer support for up to four lines. It supports a wireless headset and has an adjustable, multi-angle stand support. 

This is a high-quality, cost-effective solution, making it a popular choice for many Nextiva customers.

Price: $160

2. Nextiva X-835

Nextiva X-835

The Nextiva X-835 is an IP phone offering a color LCD display and the ability to support up to 12 lines.

It has a multipage approach that allows users to program additional keys for speed dialing as they see fit for greater ease of use. This phone is also cost-effective, yet it still consistently provides high audio performance. 

Price: $160

3. Yealink T46U IP phone

Yealink T46U IP phone

The Yealink T46U IP phone is a mid-range option that provides extraordinary audio quality and a large, full-color display. 

It has dedicated call-handling buttons, a hearing aid–compatible handset, and the ability to handle up to 16 lines. It supports multiple options for headset connection, including a wireless Bluetooth option. It also allows for Wi-Fi connectivity. 

Price: $200

4. Poly Edge E350

Poly Edge E350

The Poly Edge E350 has a sleek look that’s ideal for a modern office, but it’s still packed with features. It was designed for hybrid working, and it comes integrated with Wi-Fi and Bluetooth functionality for strong performance. 

This phone supports up to eight lines and has a 3.5-inch color LCD display.

Price: $230

5. Poly CCX 500

Poly CCX 500

The CCX 500 is a relatively new addition to the Poly brand of phones and offers outstanding audio quality with strong functionality that makes it a great option for brands looking for a cloud communications platform. 

This phone has a five-inch color touch screen and can support up to 24 lines. 

Price: $420

Additional PoE Equipment You May Be Interested In

In addition to the PoE VoIP phones themselves, businesses should consider PoE switches and routers to integrate into their existing network infrastructure. 

PoE switches

PoE switches deliver both power and network connectivity to connected devices via Ethernet cables. They come with multiple ports, each one capable of delivering the power needed to run a device. 

PoE routers

Some routers have built-in PoE compatibility, allowing them to power devices directly. This is less common than in PoE switches, so you’ll want to ensure that you’re choosing a router with PoE functionality.

Choosing a PoE-Ready VoIP Phone System

Using a PoE VoIP phone system in your office allows for flexibility and scalability while still offering a superior level of reliability in call quality performance. 

Now that you have your list of PoE VoIP phones in hand, it’s time to find a VoIP service provider to help you get the most out of your devices.

Nextiva’s VoIP phone system is known for its consistent call quality and service uptime, and we offer the advanced call features a growing business needs, all with an intuitive interface. 

You can count on features such as the following:

Every Nextiva plan offers unlimited calling and exceptional customer support. As a result, combining Nextiva’s PoE-enabled phone devices with your VoIP phone service is an easy way to quickly improve your communications system.

ABOUT THE AUTHOR

Cameron Johnson

Cameron Johnson was a market segment leader at Nextiva. Along with his well-researched contributions to the Nextiva Blog, Cameron has written for a variety of publications including Inc. and Business.com. Cameron was recently recognized as Utah's Marketer of the Year.

Posts from this author

PSTN vs. VoIP: Which Is Right For Your Business?

December 18, 2023 12 min read

Cameron Johnson

Cameron Johnson

Picture this: A customer hangs up after getting a busy signal calling your sales phone number.

Scary, thought, isn’t it? That’s what you risk with a traditional phone setup that relies on analog phone lines.

These days, small businesses depend on a reliable and cost-effective approach to business communications. You shouldn’t limit your success by as far as landline copper wires can reach.

Voice over Internet Protocol (VoIP) is at least comparable to the telephone lines of the past but with dozens of advanced calling features.

As you weigh your options between PSTN vs. VoIP, we’ll make the case for both types of phone systems and technologies. But there are a few cases when PSTN beats out voice over IP.

New to VoIP? Check out our definitive guide to VoIP — it’s beginner-friendly!

But first, let’s tackle the acronyms.

Phone System Acronyms

Let’s navigate the alphabet soup – PSTN, VoIP, PBX, POTS, and SIP and give you a quick primer on them.

PSTN

PSTN is short for Public Switched Telephone Network and describes the physical network of dedicated lines connecting telephones globally. These phone lines transmit your voice data in analog format, allowing you to reach any other user on the network with their phone number. When referring to PSTN, it means you can dial anyone across the public telephone network consisting of area codes, switching centers, and various exchanges. The emphasis here is on the network established between telecom providers.

POTS

POTS stands for Plain Old Telephone Service, which is an informal alias for PSTN technology. It emphasizes the fundamental nature of traditional landline telephony, relying on dedicated copper wires and basic voice calls.

POTS lines refer to the actual technology consisting of analog wiring that runs from your building to a local central office. These voice signals traverse over various switches and network terminals to reach the PSTN.

PBX

PBX means Private Branch Exchange and is how a company establishes phone service for multiple users within an organization. PBXs can operate on a PSTN system or VoIP phone system.

Traditional on-premises PBX systems require a significant level of telecom expertise to manage, but VoIP flavors are much easier to set up and manage. Speaking of VoIP …

VoIP

VoIP is short for Voice over Internet Protocol. VoIP means that voice signals are sent over an internet connection through a business phone service provider rather than through analog-based phone lines.

VoIP network diagram

SIP

Session Initiation Protocol (SIP) is the technical foundation of Voice over IP. A lot of real-time communication apps use this technology for high-quality audio, video, and messaging.

Most commonly, SIP is used for SIP trunking, which is like a bulk set of VoIP lines often used for call centers.

PSTN vs. VoIP Differences

If you’re thinking of switching to a new business phone service, you should know some key differences between VoIP vs. PSTN.

PSTN

PSTN refers to the traditional landline phone networks that have been around for decades. PSTN uses analog signals transmitted over copper wires to make phone calls. The telecommunications system relies on dedicated circuits being opened between exchanges to connect your call to the other person — hence long-distance charges.

In addition to this, it’s important to note that the PSTN uses a variety of signaling techniques to manage the calls:

  • Dual-tone multi-frequency (DTMF): Used by touch-tone telephones where each key press sends a specific sound frequency. This system replaced older pulse dialing used by rotary phones.
  • In-band Signaling: Early signaling method where the signals (like dial tones and busy signals) are carried over the same path as the voice. This was susceptible to interference and fraud.
  • Out-of-Band Signaling (Common Channel Signaling): Modern method where signaling (call setup and control information) travels on a separate digital channel, not through the voice channels. SS7 (Signaling System #7) is the standard set of protocols used globally, allowing more efficient and secure management of calls and services like caller ID and call forwarding.

How PSTN Works

To fully understand how the PSTN works, we need to break down its components and also the process involved in establishing a phone call. 

Key Components of the PSTN:

  • Telephone Lines: Copper wires that connect homes and businesses to the local exchange. These are also known as ‘subscriber lines’ or ‘local loops’.
  • Exchanges: Facilities that house switching equipment to connect calls locally or route them to long-distance services. These can be small for rural areas or massive buildings in cities.
  • Trunks: Larger capacity lines that connect exchanges to each other. Unlike the local loops, trunks carry multiple calls simultaneously using multiplexing techniques.
  • Switches: Devices at exchanges that connect incoming calls from one line to another, enabling communication between two endpoints. Originally mechanical, modern switches are digital.
  • Signaling Systems: Methods used to communicate information necessary to set up and manage telephone calls.

Call Setup Process in PSTN:

Initiating a call:

  • The caller lifts the handset, which sends a signal to the local exchange.
  • The exchange provides a dial tone, indicating readiness to receive the dialing input.
  • The caller enters the destination number using DTMF tones.

Routing the call:

  • The local exchange processes the received number and determines the route for the call through the network of switches and trunks.
  • If the call is local, it might only pass through one or a few switches. For long-distance calls, the routing becomes more complex and may involve several exchanges and trunks.

Sending the ring signal:

  • Once the route to the destination is established, the exchange sends a ring signal to the receiver’s phone and a ringback tone to the caller, indicating that the call is being connected.
  • The receiving phone rings until the call is answered or disconnected.

Establishing call connection:

  • When the receiver picks up the handset, the circuit between the two phones is completed, allowing voice signals to flow through the network.
  • This connection is maintained as an open circuit for the duration of the call, with voice converted to electrical signals via the microphone, transmitted across the network, and converted back to sound at the receiver’s handset.

Disconnecting the call:

  • Once the conversation is over, hanging up the handset at either end disconnects the call.
  • This signals the exchange to disconnect the circuit and release the network resources.

The PSTN’s analog nature and dedicated circuit for each call provide a very reliable and high-quality voice transmission but lack the flexibility and scalability of more modern technologies like VoIP. The transition to digital has been driven by the need for more efficient use of the network and broader service capabilities.

Voice over Internet Protocol (VoIP)

VoIP is a better phone service technology that works using the Internet. With VoIP, your voice is converted into digital data packets that are transmitted over the Internet, similar to how emails or downloading files work. Since the data packets take different pathways through the Internet, no dedicated circuits are kept open.

Hosted VoIP network diagram illustrating how cloud-based phone systems work
Hosted VoIP network diagram illustrating how cloud-based phone systems work.

VoIP Protocols

  • Session Initiation Protocol (SIP): The most commonly used protocol for initiating, maintaining, and terminating real-time sessions that include voice, video, and messaging applications.
  • Real-Time Transport Control Protocol (RTCP): Works alongside RTP to provide control and quality feedback for the data delivery.

How VoIP Works

VoIP involves several key components and processes to effectively convert, transmit, and reconstruct voice communications over IP-based networks.

Key Components of VoIP:

  • IP Phones or Softphones: These can be physical devices similar to traditional telephones or software-based phones that run on personal devices like computers or smartphones.
  • VoIP Servers: Typically manage calls within the network, handling functions such as call routing, voicemail, and connectivity with traditional phone networks.
  • Media Gateway: Converts data between different formats or networks, such as converting VoIP calls to a format suitable for the PSTN.
  • Session Initiation Protocol (SIP) Servers: Facilitate the setup and teardown of VoIP calls, handling signaling and control for initiating, maintaining, and terminating communication sessions.
  • Routers and Switches: Network devices that manage traffic within VoIP networks, ensuring data packets are sent to the correct destination.

VoIP Call Process:

Initiating the call:

  • A user initiates a call through a SIP invitation from a SIP client (softphone or IP phone).
  • The SIP server processes the invitation and sends a request to locate the recipient of the call across the network.

Signal setup process:

  • SIP messages are exchanged between the initiating and receiving SIP clients to negotiate session parameters using SDP (Session Description Protocol) contained within the SIP messages.
  • These parameters include codec selection (e.g., G.711, G.729), which determines the method of compressing and decompressing the voice data.

Transmitting voice data:

  • Once the session parameters are agreed upon and the call is accepted, RTP packets begin to flow between devices. 
  • Each packet contains a portion of the encoded audio data, packet sequence information, timestamp, and payload type. 

Reception and reconstruction of voice data:

  • At the receiving end, RTP packets are decoded back into a voice signal that can be heard by the receiver.
  • Packets may arrive at different times or out of order. However, the receiving device uses sequence information and timestamps to reorder packets and smooth out delays, ensuring a coherent conversation.

The RTCP monitors delivery statistics and network conditions, such as packet loss and jitter. This information can be used to adjust the quality of the service dynamically. For instance, switching to a lower bitrate codec during periods of high network congestion to reduce bandwidth usage. 

The main advantage of VoIP is that it allows making phone calls using any IP address rather than needing a landline. VoIP also tends to have lower costs compared to traditional landline services. The sound quality can be lower than landlines in some cases, but VoIP call quality keeps improving.

VoIP vs. PSTN Comparison

FunctionVoIPPSTN
TechnologyDigital – transports calls over the internetAnalog – transports calls over copper phone lines
CostLower monthly fees typicallyHigher monthly fees typically
HardwareRequires IP phones or adapterUses traditional landline phones
FlexibilityEasy to add numbers and linesAdding new lines requires new wiring
ReliabilityDependent on internet connectionVery reliable, dedicated circuits
MaintenancePrimarily software updates and network management.Requires physical maintenance of lines and hardware.
FeaturesAdvanced features like video calls, call routing, virtual numbers, conference calling, etc. Basic features like call forwarding, caller ID.
IntegrationSeamless integration with CRM systems, email, voicemail to email, etc. Minimal integration with other digital services.
MobilityHigh mobility; users can access their phone system from anywhere with an internet connection. Limited to physical locations connected by wiring.
Network ManagementThe user or provider can manage, allowing more control over system configuration and customization. Managed by service providers with little control by users.
Business ScalabilityDynamic configuration options accommodate business changes, including remote work setups.Static and limited adjustment to business growth or downsizing.

🗞️Case Study: Media Publisher Thrives with Flexible Phone System 👇

VoIP & PSTN Limitations

PSTN limitations

Here are some of the common issues with PSTN that compel business owners to move on from traditional phone lines.

Infrastructure Dependency

PSTN relies heavily on physical infrastructure that includes copper lines, telephone poles, and exchange centers, which can be susceptible to damage from natural disasters and aging. This infrastructure requires regular maintenance, which adds to its operational costs. 

Additionally, expanding service or adding new lines requires physical construction that can be both costly and time-consuming, making it less adaptable to rapid changes or business growth.

Cost Considerations

Operating a PSTN system incurs higher costs due to the need for ongoing maintenance and repairs of its extensive physical network. Moreover, the charges for long-distance and international calls are typically higher with PSTN compared to VoIP. These costs can accumulate significantly for businesses that require frequent international communication, making PSTN an expensive option in the globalized market.

Scalability Issues

Scaling up a PSTN system can pose logistical challenges and often requires significant financial support. Adding additional lines and hardware involves not just cost but also considerable effort, which can hinder a business’s ability to adapt quickly to changing demands.

Now, let’s take a look at some of the limitations of a Voice over IP system.

VoIP limitations

When researching VoIP technology, there are a few concerns that you want to plan around. In most cases, most businesses are unaffected by these — we’ll share solutions below.

  • Reliability issues: VoIP call quality and functionality depend on a high-speed internet connection. Slow internet speeds or high traffic volumes can cause lag, jitter, or call drops. Power outages will cause the hosted VoIP phone system to go down unless proper battery backups are connected.

    Solution: Test your internet connection for VoIP call capacity and set up redundant battery backups on critical systems.
  • Emergency call limitations: VoIP users must register their location so 911 operators can identify their address. Without registration, operators may be unable to pinpoint the caller’s location. In a power outage, VoIP users typically cannot make emergency calls unless using a softphone installed on their mobile device.

    Solution: Update the actual physical address (E911) of each user on your VoIP phone system. Recommend users download the free VoIP app that works on Wi-Fi and cellular connections.
  • Legacy hardware challenges: Using VoIP requires new IP phone hardware or adapters for analog phones. Installation and setup take some time across an office. As a cloud-based system, VoIP relies on servers rather than direct copper wiring. This transition could mean replacing old telephony equipment.

    Solution: Retire analog phone equipment that no longer meets business needs, such as fax machines. Set up the equivalent of cloud communication, such as online faxing.

Comparing VoIP vs. POTS Lines

FunctionVoIPPOTS
ConnectivityUses data networks, no new infrastructure neededRequires dedicated voice network with special techs
Call CapacityLow bandwidth needs, burstableReserved bandwidth per call, costly to upgrade
Remote ExtensionsEasy software additionsPhysical lines required
ResilienceForwards calls on power outageStays active in power outage
Call ManagementIncludes call waiting, forwarding, transferAdd-ons cost extra fees
Emergency CallsNot location traceableLocation traceable
PricingVoIP is often priced per user monthly. Many advanced features are included in one fee. POTS is often priced per line monthly with additional fees for long-distance or other calling features. 

POTS uses dedicated infrastructure, so it has high resilience and emergency call traceability. But upgrades require new analog lines and hardware, which is costly as the business grows.

VoIP also enables value-added features like auto-attendants, voicemail-to-email, and softphones. Upgrading is a lower cost since it leverages your existing data network.

20 Popular VoIP Phone System Features

The Bottom Line on PSTN vs. VoIP

While PSTN has its place for some use cases where internet access is limited or legacy telecom installations prevent an upgrade, the best option for businesses is VoIP phone service.

VoIP beats PSTN in every category:

  • Scalability: Easily add or adjust the number of lines or users whenever your business needs.
  • Advanced calling features: Access dozens of calling features your team needs to help customers, collaborate, and outmaneuver competitors.
  • Emergency services: Have confidence that you can dial 911 accurately with E911 capabilities.
  • Redundant internet service: Reliable broadband is the norm, and even if you lose service, cellular (4G/5G) has you covered.

Change can be hard, but resisting change is even harder. 

Go easy on yourself and choose a reputable business VoIP provider. See why over 150,000 businesses choose Nextiva for their company’s phone service. Get a customized quote today!

What is PSTN?

The Public Switched Telephone Network (PSTN) is the traditional telephone system based on analog signal transmission using copper wires. It’s a circuit-switched network where each call is allocated a specific line throughout the duration of the call.

What is VoIP?

Voice over Internet Protocol (VoIP) is a technology that allows voice to be sent over the internet using packets. This digital technology converts analog voice signals into digital data packets which are then transmitted over an IP network.

Is VoIP cheaper than PSTN?

Yes, VoIP tends to be cheaper in the long run due to reduced setup, call, and maintenance costs. The scalability and flexibility of VoIP also mean that it can adapt more cost-effectively as business needs change.

Which provides better call quality, PSTN or VoIP?

PSTN typically provides consistent high-quality voice transmission because it uses dedicated lines. VoIP can achieve similar or better quality, but it depends on the strength and stability of the internet connection and network setup.

How reliable is VoIP compared to PSTN?

PSTN is known for its reliability, as it doesn’t depend on internet connectivity. VoIP’s reliability has improved significantly but can still be affected by internet outages and bandwidth fluctuations.

Can VoIP work during an internet outage?

No, VoIP requires an active internet connection to function. However, modern VoIP systems can be configured with backup options such as cellular networks to maintain service during internet outages.

What advanced features does VoIP offer that PSTN does not?

VoIP offers a range of advanced features including video calling, call routing, virtual numbers, conference calling, and integration with digital business tools such as CRM systems and email.

Is VoIP secure?

VoIP can be very secure if proper security measures are implemented, including encryption, secure network configurations, and continuous monitoring for threats.

Does VoIP require a lot of technical maintenance?

VoIP requires maintenance primarily in terms of software updates and network management, which can often be handled through automated systems or remote administration.

What are the cost differences between PSTN and VoIP?

VoIP generally offers lower operating costs because it uses the existing internet infrastructure and does not require separate lines for each call. PSTN typically involves higher costs due to the maintenance of physical infrastructure and higher charges for long-distance calls.

ABOUT THE AUTHOR

Cameron Johnson

Cameron Johnson was a market segment leader at Nextiva. Along with his well-researched contributions to the Nextiva Blog, Cameron has written for a variety of publications including Inc. and Business.com. Cameron was recently recognized as Utah's Marketer of the Year.

Posts from this author
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