What is VoIp

Voice over Internet Protocol (VoIP), initially developed during the 90s, expanded into an advanced technology that allows anyone to make calls using any VoIP-installed device through an internet connection. VoIP is (commonly) utilized in businesses for unified communications and used by consumers to call and communicate with anyone anywhere at a low cost.

With VoIP, anyone can use their phones or computers to receive and forward calls, so long as these devices have access to a strong internet service. Some VoIP phones resemble landlines in appearance. Some VoIP phones are similar to landlines, but their systems and features are significantly different and more convenient than analog phones that require the installation of a cable system. You can use and access VoIP without having complicated cable wiring or worrying about using and paying a lot for other phone and landline services.

VoIP service providers worldwide are also expanding as more businesses are (becoming mobile and) transitioning to using VoIP. Finances Online note that a company saves 30% up to 90% of its phone bills, operational costs, and local and international call bills with VoIP. And VoIP's compound annual growth rate (CAGR) is foreseen to grow to 15% from 2021 through 2027, with a $95 billion projected value from $30 billion in 2020.

To further understand what is VoIP, we’ve listed the latest data and facts, how it works, and why a business should consider using and marketing with VoIP.

How VoIp Works

The rise in remote work caused by the pandemic in 2020 has influenced the growth of VoIP today. According to Thrive My Way, 31% of businesses use VoIP today, while 55% use it in conjunction with traditional phone services. Currently, the United States has the highest number of VoIP users in the world (34 million). And the latest population statistics of VoIP users and service providers across the globe are on the rise favoring VoIP for its competitiveness, with the low cost and affordable service price it offers in the market.

VoIP can be used for individual, residential, and business purposes. And call types vary depending on the VoIP service providers you’ll choose. Some VoIP services allow users to make calls with the same service only, and some also allow calling anyone who uses local or international telephone services. So, even if the person you're calling is not using the same service, they will still receive the audio or video call or SMS you sent via VoIP.

Likewise, VoIP calling allows the use of any device type. You can make and receive calls using your phone, computer, or (even) a regular landline phone connected to a VoIP adapter. The first thing you’ll need for VoIP is a broadband connection– high-speed internet with a bandwidth large enough to support all multiple VoIP calls and other internet activities if you plan to use it for your business.

Now that you’ve learned what VoIP is, how does it work and transmit call data then? VoIP service will collect the user’s voice information through signal and convert it to digital data (packets) called codecs. It will then be sent to an endpoint through the IP network. Some free and paid VoIP applications and software include:

1. Google Voice and Google Hangouts

2. Skype (VoIP and web-based platform/app)

3. Viber (VoIP & instant messaging app)

4. Facebook Messenger

5. WhatsApp

VoIP services operate better and have greater functionality than landline services. Traditional landlines are now limited and can cost more depending on the users’ location and service types. Some telephone lines are also expected to discontinue and undergo significant system changes in the coming years– this also sparks concern about VoIP’s reliability and security in the long run.

VoIP for Effective Marketing Strategy

VoIP is particularly beneficial for businesses. It establishes better interaction with clients or buyers anywhere. You would not just want to have a customer, you would also want to retain clients in your business. Businesses can connect with their customers in a more personal way through VoIP, gaining their market's trust and satisfaction.

Emails are the most common form of communication between clients and businesses today. And people feel less connected to businesses that communicate with no human interaction and sound overly automated. With VoIP, it will be easier for you and your business to interact with clients and offer them the best solutions in real time.

Additionally, you can also promote your products and services better using VoIP. It also allows you to increase your presence and expand your market reach while providing the most suitable options for your customers. Here are more reasons why you should consider VoIP:

1. Bigger savings for your business! VoIP helps in reducing company phone bills by up to 50% with its low-cost services and cheaper long-distance rates compared to landline phones.

2. VoIP is convenient for conference and group calls. Its features integrate company communication and include tools like VoIP switchboard and call recording. 

3. Businesses with remote employees benefit extensively from VoIP. You can contact employees from other countries without paying for expensive international call rates.

Does My Business Need VoIP

VoIP may seem compelling and worth your budget, but as a business owner, you should still ask whether your business needs VoIP. Also, here are the pros and cons of VoIP and why VoIP may or may not work for your business.

Advantages of VoIP:

1. You can save more money on setup, maintenance, and calling fees with VoIP compared to the old telephone services. Landlines can cost you a lot (especially for long-distance calls) and are limited and less convenient than VoIP.

2. VoIP offers more advanced and user-friendly features for all. Services have an automated system called Auto Attendant which answers and directs calls based on the caller’s selection on the system’s menu options.

3. Increased business mobility. This protocol is best for people or businesses who travel often and do not stick to working at the office.

4. VoIP devices are highly portable and you can use them anywhere you want as long as you are connected to the internet.

Disadvantages of VoIP:

1. VoIP is vulnerable to hacking or data breaching. Unlike landlines, which are said to be safer in terms of data transmission, VoIP is prone to abuse by hackers and other cybercriminals through network connectivity. Hackers can go into a VoIP system, and listen to calls, collect private data or steal sensitive information (both from businesses and customers). It is also susceptible to DDoS attacks which overwhelm a network with unwanted traffic affecting services and causing total outages. This can happen to VoIP providers with unsecured or unprotected IT infrastructure and systems.

2. VoIP doesn’t have emergency dialing and location tracking for emergency services.

3. VoIP is not available and is blocked in some countries. So, if you’re a business owner with remote employees from countries that have banned VoIP, then you and your other employees likely won’t be able to communicate using it.

4. When electricity is out and you lose your connection to the internet, you cannot use and access VoIP services. It simply won’t work during power outages.

Cutting business costs is also not certain when you transition to VoIP. Plus, it can be a bit more technical and complicated (to use and learn). It also does not guarantee the success of your business, as this matter will always rely on your business strategy and competence. You need to research and examine if VoIP will best fit your business.

If you’re considering VoIP but the disadvantages worry you, there are ways for you to keep your business safe when you choose to have this in your business. To ensure tight safety and security in the system, start by searching for a reliable VoIP service provider. Research and select a reputable VoIP provider offering services and products worth the price. A reliable VoIP service provider will assist you with all your business needs.

Similarly, you may consider VoIP if your business is fully remote or you have remote employees in your company and if you’re among the industries that undoubtedly need VoIP for frequent customer inquiries and monitoring– medical, retail, and e-commerce for example.

If you’re a business, and need help setting up VoIP for your office, consider contacting us to see if we can help.