VoIP or Traditional Phone Systems: Which is Best for Your Call Center?

Are you confused about whether to choose VoIP or traditional phone systems for your call center?

You can be confused, as in the past; phone systems were all about landlines, and VoIP phones were new on the market. So, they both are phone systems, but it can get stuck in your head how they are different and which best suits your call center.

Although they have similar functionalities and can be used for the same purposes, VoIP easily replaces traditional systems with its affordability and flexibility.

In this article, we will provide you with the right ideas to clear your confusion in choosing the best business phone system for your call center.

Without further due, let’s learn in-depth whether to use VoIP or traditional phone systems!

Understanding Traditional Phone Systems

Traditional phone systems are telephone services provided through a dedicated line or service provider. They have been in service for more than 100 years and have the ability to convert sound waves into electrical waves through copper wires.

According to a report, it states that “With age, landline spending decreases as a percentage of total telephone services, with under-25s spending 94.0% on cellular phone services and seniors spending 49.4%.”. 

The report indicates that cellular services have overtaken traditional phone lines in recent days. POTS(Plain Old Telephone System) are commonly used at homes, schools, businesses, and hospitals.

Pros

• Does not need an internet connection
• Easy to use
• Great for emergency calls
• Excellent call quality

Cons

• Expensive
• Non-scalable
• Needs a physical setup
• Vulnerable to scam calls
• Need regular maintenance

Understanding VoIP Phone Systems

A virtual phone number uses VoIP technology to make and receive calls. It uses the internet for communication rather than the wired technology of traditional landlines. 

Communication through VoIP phone systems has made it easier for businesses and call centers as they can be accessed only with the help of the Internet. VoIP services are cheaper than traditional phone lines and have greater services and features. 

A report said there would be 3 billion VoIP users in 2021, which indicates that the popularity and use of VoIP phone services are increasing rapidly. It is known for its features, affordability, and flexibility, as you don’t have to set up a dedicated line like with traditional phone lines. 

Comparatively, VoIP phone systems provide better services and features than traditional ones. Let’s have a brief overview of the pros and cons of VoIP phone systems.  

Pros 

• Cost-effective
• Portability and flexibility
• Scalability
• Advanced features
• Security
• Low call rates
• Effortless cancellation

Cons

• Needs a good and stable internet connection
• Latency can occur during calls
• Dependability on VoIP providers

Comparison of VoIP and Traditional Phone Systems

VoIP and traditional phone systems have similar functions but vary in different ways. To provide you with a clear vision and differentiate between VoIP and traditional phone systems, we have made a comparison so that you can choose what’s best for your call center.

Let’s have a look at the comparison between them based on the following criteria:

Choosing Between VoIP and Traditional Phone Systems for Your Call Center

The choice between VoIP and traditional phone systems is important for business communication. There are key differences between the two systems, even though both provide reliable services. 

According to Statistica, between 2010-2018, 35 million VoIP services were added for businesses in the US.  Also, VoIP services blew up from 28 million to 76.6 million for residential purposes. 

Planning and evaluating the phone systems is important to ensure you’ll have successful communication and good call management in your call center. 

1. Evaluate call center needs

First, you need to evaluate the feature requirements of each type of system in your call center to determine what equipment may be necessary for installation and operation. 

If you’re considering a VoIP solution, you’ll likely need IP phones and routers with Quality-of-Service (QoS) capabilities to provide clear calls over the internet connection without any lag time. 

Or, if you need reliable call quality for your call center without depending on the internet, and your call center is based in the local area, you can choose traditional phone lines.

2. Analyze the advantages and disadvantages of VoIP and traditional phone systems

Before choosing, you should research and analyze the advantages and disadvantages of VOIP and traditional phone systems. VoIP phone systems have many advantages over traditional landline phone systems, such as lower cost, scalability, flexibility in routing calls, and improved customer experience. 

In addition to its advantages, VoIP has some disadvantages as well. These include security risks due to a lack of encryption on most networks; limited availability outside major cities; problems with latency, reliability, and compatibility with certain hardware devices.

Ultimately it depends on individual needs, whether VoIP or traditional phone systems provide better value for money. Still, overall both technologies have unique benefits worth considering when deciding about communication infrastructure.

3. Consideration of budget and resources

The hardware requirements for traditional telephone systems, such as wires, routers, and servers, result in higher upfront costs than VoIP solutions. Since VoIP equipment is not required or set-up fees are low, VoIP is generally cheaper on a monthly basis. 

A report said VoIP services save up to 30%-50% of the expenses than traditional landline phone service. It is also expected that, by 2025, 80% of businesses will switch to VoIP phone services due to its cost-effectiveness. 

Many companies are turning towards hosted PBX solutions, with cloud-based services becoming popular among businesses today. They can be very cost-effective compared with traditional landline alternatives.  

Implementation and Integration of VoIP or Traditional Phone Systems

For call centers, it is important to establish efficient communication channels by integrating and implementing phone systems. It plays a crucial role in connecting businesses with clients and their shareholders. 

Evaluation of hardware and software requirements

For installation and operation, you must evaluate each type of system’s hardware and software requirements. A good combination of hardware and software helps for efficient operations. Here is an evaluation of the requirements you need for your call center:

VoIP Phone System

Hardware Requirements:

• IP Phones or Softphones
• Network Equipment such as routers, switches, and firewalls
• Internet Connection
• Power Backup

Software Requirements:

• VoIP Provider app
• Session Initiation Protocol (SIP) Server
• PBX (Private Branch Exchange) Software
• Codecs

Traditional landline Systems

Hardware Requirements:

• Analog or Digital Phones
• PBX System
• Telephone Lines

Software Requirements:

• PBX Software
• Call Management Software

Evaluation of network and internet connectivity

On top of the hardware and software evaluation process, consider evaluating your current network infrastructure. Checking available bandwidth capacity and internet connectivity speeds prior so that these can meet the minimum requirements needed by either service provider. 

Many providers have specific recommendations depending on their own network configurations. This step helps guarantee quality call performance after being set up correctly during the deployment phase later down the road. 

Integration with existing systems and software

After determining compatible hardware & software components; confirming adequate networking resources, it is important to integrate existing systems & software into the new telephone environment. 

Depending upon complexity, this could involve linking various databases together, like customer relationship management (CRM) applications within the company’s internal IT architecture. It allows you to connect voice mail services to email accounts; set up auto attendant features; etc.

All these tasks help create more efficient workflow processes while streamlining communications across multiple departments within the organization.

Best Practices for Using VoIP or Traditional Phone Systems in Call Centers

Call centers are vital to any business, providing customers with a direct line to the company and its services. As such, businesses must ensure that their call center has the best possible phone system. In addition to choosing the right phone system, implementing the best call routing strategy for your call center is crucial. By analyzing call patterns, customer needs, and agent availability, you can determine the most effective way to route incoming calls. This may involve skills-based routing, where calls are directed to agents with specific expertise, or intelligent routing algorithms that prioritize certain types of calls. 

When deciding between VoIP or traditional landline phone systems for use in a call center environment, there are several best practices that should be followed to maximize efficiency and customer satisfaction levels.

• Training and education for employees

You should properly train your employees on how to use the chosen system so they can deliver excellent service every time. 

The training should cover all aspects of using both VoIP and traditional phones, including setting up calls correctly; understanding caller ID information; transferring calls appropriately; troubleshooting issues quickly; handling multiple lines simultaneously.

Proper education and training will help ensure that employees have all the necessary knowledge before taking customer inquiries or complaints over either type of telephone system.

• Monitoring and troubleshooting issues

Monitoring systems must be implemented so IT personnel can quickly identify and resolve technical difficulties efficiently if required.  

Automated alert mechanisms should be implemented when a caller cannot be available. It helps to analyze dropped calls, call quality and impress clients. 

These processes will significantly reduce downtime caused by technical issues, thus improving overall operational efficiency within your organization’s contact center operations. 

• Evaluation of the impact of the chosen system on call center operations

As a call center owner, It’s important to evaluate how well each type (VoIP vs landline phones) works when implemented into their particular environment. This could include measuring factors such as average handle times, number/percentage abandonment rates, first-time resolution rates, etc.

It may even require running tests where different types are compared against each other under identical conditions. 

This would give an accurate indication regarding which one provides better performance results. Evaluation lets you make more informed decisions about what kind/type of telephony infrastructure solutions would work. And helps to decide the best going forward based on those findings & measurements taken during the testing exercise. 

Conclusion

We hope this article will give you an idea about VoIP or traditional phone system. While choosing a phone system for your business, it is important to know your requirements.

While both services have unique features, you should carefully evaluate all the required features and choose the best virtual phone system for your call center.