What is a virtual phone system and what are the benefits of using one?

Does your phone system offer the latest features to help you meet today’s shifting consumer expectations and connect your team no matter where they are?

Not all phone systems are created equal. That’s why more businesses are switching from traditional phone lines to feature-rich virtual phone systems to deliver a modern customer and employee experience while streamlining workflows and reducing overhead.

Here’s what you need to know about a virtual phone system and how it can benefit your business.

What is a virtual phone system?

A virtual phone system allows users to make and receive calls via the internet. Unlike traditional business phones, a virtual phone system doesn’t require on-premise hardware and uses Voice over Internet Protocol (VoIP) to handle voice communications. Users can make calls from any device (e.g., smartphone, computer) with an internet connection.

Virtual phone systems aren’t tied to a specific location so they can support local, toll-free, and international numbers. And their mobile and desktop apps allow users to turn smartphones, tablets, or computers into business phones so you don’t have to purchase additional equipment.

The benefits of using a virtual business phone system

A virtual phone system is a cost-effective solution for small businesses because they require minimum hardware and ongoing maintenance. And unlike traditional phone systems, virtual phone systems free up employees from using desk phones, which helps support remote work and enables teams to collaborate from anywhere.

A cloud-based virtual phone system is also highly reliable which minimizes the risks of costly downtime due to data loss or hardware failures. Many providers also have security measures in place to safeguard customer information and business-critical data, which helps build trust with customers and protects your reputation.

Why should a small business use a virtual phone system?

A virtual phone system isn’t just for the big guys — in fact, it’s very well suited for meeting the dynamic needs of small businesses. For example, you can scale up or down on a dime to accommodate business growth or seasonal fluctuations so you don’t have to pay for excess capacity when you don’t need it.

You can also project a professional image and deliver top-notch customer services with features like auto-attendants, custom voicemail greetings, and call routing without hiring a large team. And you can integrate a virtual business phone system with your favorite CRM, email marketing, and collaboration tools to streamline workflows and communications.

The low cost and flexibility make a virtual phone system an obvious choice over traditional business phones for growing companies. You can add phone lines and extensions as you grow without a substantial upfront investment.

Plus, your cloud platform provider will implement upgrades and new features regularly to help you deliver a modern employee and customer experience as part of your monthly fee, allowing you to stay relevant and competitive without hiring a large IT team.

Top features of a virtual business phone system

What features should you look for when selecting a virtual phone system for small business?

• A mobile app can help turn any phone into a business softphone to make and receive calls.
• Business SMS for sending and receiving text messages via your business phone number.
• Voicemail transcription converts your voicemails to text and sends it to you via email.
• Number extensions will help connect callers to the right team members.
• Call routing, call forwarding, virtual receptionist, and instant response enhance professionalism and give you the capabilities of a large enterprise.

How does a virtual phone system work?

Virtual phone systems connect to a cloud server via the internet, which consists of these underlying technologies:

• VoIP software converts voice data into digital packets and transmits them over the internet.
• Cloud-based servers handle call processing, call routing, and storage of call-related data.
• Virtualization technology allows the provider to manage virtual instances of phone systems for multiple users or businesses.
• Software applications enable users to use any device to make and receive calls from their numbers or manage phone features via a web-based portal.

Enhance business growth with a virtual phone system

A virtual business phone system gives you access to the latest communication and collaboration features to grow your small business without high upfront or ongoing costs. It evolves with consumer expectations and business requirements in today’s dynamic market to help you stay ahead of the curve.

Explore Grasshopper and see what our virtual phone system can do for your business!