Communication is a crucial part of success in any well-established business. Companies are using business phone systems to do much more than making and receiving calls. The methods that companies use to interact with customers, clients and partners are ever-changing, but when it comes to a primary phone system, how do you choose from all the options you have?

There are many methods and factors to consider so you can maintain a professional image in the most cost-efficient way. Certain features, connection methods and technology are essential to achieving this goal. The best systems integrate voicemail, conferencing and more. Many different types of phone systems offer these capabilities alongside a multitude of other features, but settling on one can be confusing and stressful.

Thankfully, there are many different routes a business can take to ensure they make the right decision. To choose the right system, you must understand the options you have available and which would be best suited for your particular needs.

The Different Types of Phone Systems

The Different Types of Phone Systems

There are a few significant types of business phone systems, and each one provides benefits and setbacks that must be evaluated to see which best fits your own specific needs.

1. Landline

The most traditional phone system is a landline. These systems work by plugging each phone into a wall and using a physical wire that allows for the telecommunications with regional phone companies and the system itself.

Business landline phone systems are a reliable, tried-and-true method. However, the system offers far fewer features compared to Internet-based phone systems. As business innovates with a broader range of communications technology, landline phones are fading. Considering that phone system providers are moving away from landlines, they are going to become increasingly difficult to purchase, and repairing components that will inevitably become damaged at some point is going to be more challenging.

Even though landlines are a dated phone system, that does not mean they are the least expensive. They usually require a private branch exchange (PBX). This hardware makes it possible for call transferring, and its acquisition may raise the cost of an office phone system higher than another method.

  • Pros: Reliable connection and service
  • Cons: Additional hardware is expensive, fewer features than Internet alternatives, repairs may be difficult as they are phased out

2. Voice Over Internet Protocol (VoIP)

Instead of relying on your local phone company to establish a connection, VoIP systems interact with an Internet service provider to connect with other users. The effectiveness of a VoIP system correlates with how robust your Internet connectivity is in the office.

Setting up additional features such as automated voicemail boxes and conference calling is extraordinarily easy with these office phone systems, and many of these benefits cannot be achieved easily or at all while using a landline. The benefits also do not require additional hardware and can be remotely acquired through the Internet.

VoIP is an emerging technology and has vastly improved in recent years. The reliability and quality of the connection are on the same playing field as an expensive landline system but does so in a more cost-efficient way. They also can interact with computers and other devices so your employees can make their calls through other means than just a traditional phone.

There are a few options on how to host a VoIP system. The two most common ways are at your business or the online cloud. Deciding to host an on-premise VoIP system requires pricey equipment and software plus a monthly fee. Your company is also responsible for managing and maintaining the technology. While this is unsurprisingly the more expensive route, some businesses choose an on-premise VoIP system if they want more power over their phone system.

Cloud-based systems do not require any extra hardware, and the maintenance is taken care directly by the provider. A service fee is typical, and its price will depend on the size of your business. Not having to buy additional hardware or incur the upkeep associated with an on-premise system generally saves companies a great deal of money in the long run.

  • Pros: Vast amount of easily obtainable features, no need to purchase PBX hardware, affordable
  • Cons: Requires a strong Internet connection

3. Virtual Phone System

This type of phone system works by connecting remote workers to the company phone number through their mobile or home phones. Customer calls are transferred to the employee’s extension even if they are not at their desk or anywhere near the office. While they do not have as many features as VoIP systems, they still include many useful features such as e-receptionists, call screening, voicemail and online faxing.

If your business includes employees who frequently travel or work in many different locations, a virtual phone system can be a great option. These systems are not as robust as the other phone systems mentioned, but provide additional features while using a non-centralized network away from the office such as at home or on mobile.

Today’s technology provides workers with more remote possibilities and flexible work arrangements so that customers can reach them at all times. Forcing a client to go through the hardship of hunting down their service representative when they need them most is terrible for the customer relationship and could lose the client’s business.

Virtual phone systems see a lot of use by smaller businesses that want to maintain a professional image but might not want to invest in a full-fledged VoIP or landline system. Another advantage is that employees no longer have to share their personal phone numbers with work contacts and convolute their home and work lives.

  • Pros: Remote workers can make company calls on the go and take advantage of features their own device does not offer
  • Cons: Not an all-inclusive phone system, calls are processed by employee’s device and can incur charges

Factors to Consider When Choosing a Phone System

Factors to Consider When Choosing a Phone System

There are many questions to ask when buying an office phone system to ensure you make the best choice to fit your company’s particular needs. Consider the following aspects during your phone systems for business comparison to make a functional and cost-effective decision.

1. Current and Future Needs

Do you already have a phone system in place, or are you starting fresh? If you do not already have the infrastructure in place, it is more feasible to invest in a cloud-based phone system to save on upfront costs.

If you already have a PBX system and other equipment needed for a landline, it might not be profitable to switch to another system quite yet. VoIP phone systems and other digital forms of communication are rapidly improving, and making use with your current system for a little longer might get you a better technology when you do switch in the future.

A successful company is always thinking ahead. If it is time to make the switch from a landline and choose an option that better fits your situation, consider one that will grow with your business and not become obsolete in the coming years. Continuously replacing the same outdated and problematic system is not worth the money and time investment. Establish what your exact needs are going to require, and what is the best method to achieve them that will leave your customers and employees most satisfied.

VoIP and Virtual Phone Systems are vastly more scalable, flexible and mobile than a landline-based connection. Once you make the switch, the future of your telecommunications becomes much less of a headache.

2. Price

No one wants to spend more than necessary. Although some types of phone systems generally cost more than others, deciding on a preferred cost structure and what you are comfortable with spending your money on will likely impact your decision.

No matter the phone system you choose, the price will likely vary depending on the size of your business and what equipment you want to be included. Usually, landline systems cost about $70 monthly per line. You can find a plan at this price point that will likely provide the number of minutes you need but does not include the PBX software that significantly raises the expense.

Cloud-based VoIP and Virtual Phone Systems are less expensive monthly and can be anywhere from $10 to $50 per user a month. If you include more features that come with premium plans, the price will increase. If a monthly cost structure is unappealing to you, on-premise VoIP costs only initial fees, which charge between $500 to $1,250 per user on top of an installation fee.

When choosing an option, you must consider both upfront and ongoing costs. On-premise VoIP and landline systems can have a high upfront cost including equipment, licenses and installation fees, while cloud-based and virtual systems have no upfront costs, and instead you pay monthly per user. Do not be deceived by “too good to be true” discounts from vendors, because they will likely charge hidden fees later in the buying process.

3. Reliability and Connection

Maintaining stable connectivity is vital in any business. Ensure the phone system you select has many data centers that provide a high percentage of uptime so there is no service loss. In the event of a server crash, an emergency protocol should be put into place so the service can reach restoration quickly.

As more regions are provided fast and reliable Internet connection, VoIP is an acceptable option for most. If your business in a rural area or somewhere that cannot guarantee a stable connection, a traditional landline might be the superior option until better options become available. This consideration is the largest when dealing with the VoIP vs. landline for business debate.

Choosing a VoIP system is not as cut and dry as what landlines once were. Making the wrong decision when choosing a package can be a waste of thousands of dollars. Common issues that can arise through mishandled VoIP systems include extended downtime, poor sound quality and other communication problems.

A stable and reliable connection is arguably the most critical element in a phone system. But, in addition to the plan itself, an experienced IT staff is also vital to managing data centers and office places. If your business does not have an IT staff, 24/7 support by your provider is a must. You will also want to familiarize yourself with how to contact support and when you can expect to get a response. The best telecommunications companies offer many different ways of reaching them and can get back to you very quickly. Read the phone companies’ information about their business as well as user reviews to get an idea of the most common complaints and issues.

4. Integration

If your company relies on tools such as CRM software, email services, ticket managing software, live chat and call scripts, choosing a system that can easily mesh with those business applications is essential.

You know how convenient it can be to have all of your personal devices be interconnected and easy to transition between — there is no difference in the workplace. A virtual phone system will allow you to handle every step of customer interaction with ease by unifying your phone systems interface without having the costs of expensive services and software.

When accessing phone data such as voicemails and other important aspects of your plan through other devices is essential, but you cannot justify investing in a full-fledged virtual phone system, some VoIP providers make it possible to convert other devices into something known as a softphone.

Hardphones are the traditional phones in the office. While a softphone can not make or receive calls, they do access some features such as sending messages to an email or transcribing them through text. Certain applications can also allow users to tap into their business phone lines and even make or receive calls on them.

5. Call Volume

Call Volume

Consider the amount of inbound and outbound calls you receive, and if these numbers fluctuate seasonally.

If you constantly get a large number of calls, a stable landline connection might work best. However, if these numbers vary throughout the year or if your team is considerably large, the digital route will likely save you some headaches. Adjusting the number of users is flexible and easy to accomplish and avoids an extra surplus of equipment.

Need Help Choosing a Phone System for Your Business?

Need Help Choosing a Phone System for Your Business?

Wrestling with the pros and cons of business phone system options is not easy. If you feel you are drowning in comparisons and technology that you are not sure exactly what it is all about, there is no reason to be overwhelmed. In the fast-moving business world, your particular area of expertise is where the most effort should lie.

These feelings are why DenMark Business Solutions have assisted their customers in meeting their communications goals for many years by knowing precisely what to look for in a business phone system. In particular, we offer the following services:

  • Telecom Services
  • VoIP Services
  • Cloud-Based Services
  • Conference Call Services
  • Telecom Expense Management
  • Telecom Audit
  • Telecom Inventory Management
  • Cable Services
  • Carrier Services

Letting us take care of all your telecom necessities allows you to focus on the work you love doing while enjoying increased profits, streamlined operations and reduced risk by outsourcing your telecommunications management services.

Our team with over 80 years of combined experience in business telephone solutions and provides businesses with excellent service and custom products.

Before you bog yourself down with extensive research or make a compromise that could be less than ideal, contact us and receive a free quote today.