What Does VoIP Mean?

As a business owner, you’ll face many decisions when it comes to the communications technology your teams use. Communication is of key importance for any company, whether with clients, vendors, or employees. It is natural that you will want to use technology that offers ease of use, reliability, scalability, and quick implementation, all at the most reasonable price. 

As you modernize and improve your communications, you may encounter terms that sound familiar but require further explanation—such as Voice over Internet Protocol (VoIP). So, what does VoIP mean, exactly? Let’s look more closely at what VoIP is and how it can help your business. 

What Does VoIP Mean? 

VoIP is a technology that enables clear, fast, and effective communication. It allows you to make and receive calls on VoIP-compatible business phones, computers, laptops, and smartphones. VoIP works by transmitting digital voice, text, and video data via the internet. 

Voice over Internet Protocol is highly cost-effective. You can make both domestic and international calls for a fraction of the cost of traditional telephone calls. With the right provider, unlimited international calling minutes will be free. 

Related: SIP Technology: How It Changes the Game for Today’s Businesses

Voice calling is only one benefit of VoIP. It also enables the transmission of many other types of data, from work documents and training materials to text, videos, pictures, and more. It essentially expands your business network to enable collaboration, information sharing, and the onboarding of employees and vendors. VoIP is an invaluable tool for business communication. 

How Does VoIP Differ From a Traditional Phone Service?

Traditional phone services were facilitated by copper wires that transmitted an analog signal. These landlines physically connected a business to the switch that enabled voice calling between two parties. 

Copper wiring, however, had some distinct disadvantages, even prior to the materials shortage that had people stripping everything they could find that contained copper to sell at inflated prices. Not only is copper wiring susceptible to noise interference, the signal can also weaken with distance, hampering the quality and speed of your calls. 

Before VoIP revolutionized communication, setting up a phone service for a business was expensive and time consuming. First, you had to register for the phone service and schedule the installation. If your building was new, or if your business needed extra lines installed, you would have to wait for a qualified phone-company technician to install them. That was only the start of the process.

Next, you had to purchase pricey specialized phone equipment. Larger businesses often installed PBX systems that required multiple lines and configurations before they could be used. They also required staff to be trained on their usage, plus a designated employee to manage the incoming calls. And let’s not forget the long-distance fees for calls outside of your local area code. 

VoIP, on the other hand, requires no physical installation, specially trained technicians, or expensive equipment. It doesn’t require a person to sit at a desk and route calls, and there is no specialized training necessary. There is no need for new infrastructure because it works on the broadband internet connection your business already has in place. 

The final and most compelling difference between VoIP and traditional phone service is the future outlook. VoIP is relatively new and constantly improving. The market is expected to triple within the next ten years. 

Conversely, as of 2022 the Federal Communications Commission has lifted the requirements for phone companies to provide and maintain landlines to support the proliferation of next-generation communication networks. 

How VoIP Integrates With Other Technologies

Answering the question “What does VoIP mean?” also requires an explanation of how it integrates seamlessly with other technologies. It helps businesses across all industries achieve a well-rounded, efficient means of communication. Though not an exhaustive list, some of the software and systems that VoIP works with include:

• CRM and sales applications. Most companies today use some form of customer relationship management (CRM) software that centralizes customer information and workflows. Others use sales-tracking software to track and monitor sales. VoIP integration makes using and accessing these systems easy—from anywhere and on multiple devices. 
• Customer support and call center applications. Providing best-in-class customer service is a goal for any business. VoIP integrations with helpdesk applications let you track call frequency, quality, and service agent performance. Some applications allow you to record calls, note the call source, and sync with a CRM system for quick access to customer information, or to facilitate surveys, email marketing, eCommerce, or invoicing.
• SMS text or chat. Some customers want to ask a quick question in person. Others prefer to text or participate in online chat sessions rather than calls. VoIP helps provide quick and easy services to your customers via multiple methods that meet their needs, creating a more personalized experience and promoting increased customer engagement.
• Artificial intelligence (AI) and transcription. VoIP integrations also enable next-generation technology such as artificial intelligence software. AI can relieve your team of manually typing up notes and instead create fast transcriptions of calls. AI is also helpful with training, customer service, and more. 

Related: What Are Call Data Records (CDRs) and How Can They Help Your Business?

How VoIP Is Used for Business 

Now that we’ve covered what VoIP means, how it differs from traditional phone services, and how it integrates with other technologies, let’s look at some of the advantages it provides when used for business operations. 

Reliability

No matter where you are, VoIP keeps you connected to your systems, employees, vendors, and customers. Since it is a growing market with a long-term positive outlook, there is no fear of it becoming obsolete any time soon in the manner of analog phone lines. 

Convenience

Accessing the benefits of VoIP for your business is as easy as getting a broadband internet connection and finding the right provider. You don’t have to wait on installation or train your employees on how to use it. Simply partner with a reliable, respected provider and enjoy the advantages of modern technology. 

Scalability

One of the greatest advantages of VoIP for businesses is that it easily scales up or down as your needs change. It is as simple as choosing the plan or features that fit your seasonality, growth, or demand. Your provider should provide an easy interface where you can customize your plan and make changes as and when you need them. 

Cost

With VoIP, you don’t need to pay exorbitant per-minute prices, purchase expensive specialized equipment, or subscribe to features you don’t need. There is also no need to hire on-site tech support for VoIP technology. You can simply choose the service plan that best fits your needs and budget. 

Disaster Recovery and Failover

Every business owner understands the importance of business continuity in the case of an unforeseen event that may impact operations. VoIP allows you to quickly redirect calls so you can manage outages. 

High-Quality VoIP Means Your Business Has a Competitive Advantage

So, what does VoIP mean for your business, ultimately? In a highly competitive business environment, you need to leverage every advantage. Technology empowers your business in multiple ways—helping you create quality products, offer best-in-class customer service, engage clients and customers so that they stay aware of your offerings, and reach new markets. When you are ready to leverage the power of VoIP technology, SIP.US is here to help. Contact us today to get started!