VoIP Advantages & Disadvantages

We live in an age where people’s fingers endlessly fly over the keyboards of their mobile phones. So, it may surprise you that over 70% of customers still prefer speaking to businesses directly over the phone. Fortunately, this doesn’t mean you should stick to your traditional landline telephones and restrict your entire sales team’s movement.

VoIP (Voice over Internet Protocol) is the digital answer to outdated landline telephones. VoIP technology can help you keep up with customer demand. And it allows your team to connect with customers without them calling a help desk or using a chatbot.

VoIP means making voice calls over the internet. The technology works by converting your voice into a digital signal. Then, it sends the signal across the internet. You can still call regular phone lines using VoIP. In this case, the signal is transformed into a telephone signal before the other person picks up.

A simple example of VoIP in action is a WhatsApp call. When you call someone using WhatsApp, the app uses the internet to engage a VoIP phone service. This process means you make the call using data and not a cellular network.

VoIP phone systems are becoming increasingly popular in the business sector. This technology helps companies improve customer service. It also helps them grow by increasing productivity by up to 20%. Moreover, VoIP can also save small businesses on operational costs.

However, first, consider the advantages and disadvantages of VoIP before buying such a system.

VoIP vs Landlines: Why Switch To VoIP

Many businesses focus on the advantages of VoIP only. But this is not the best way to decide on the system you want to buy. Before you start ticking off the benefits of VoIP on your new smartphone, compare your existing landline system with the features that VoIP offers. Doing this will help you dissect the pros and cons of VoIP. And it will help you make a better decision.

For example, your business landline phones are static. A business phone system connects one phone to another and all phones to a central switchboard from several desks. A VoIP system, on the other hand, is a moving telecommunications solution. You can make and receive VoIP calls from anywhere, including from home or the office. You can even enjoy VoIP advantages while driving. You can install a VoIP voice communication system with a microphone, speaker, and screen.

If your company still relies on a static telephone system, it will become a hassle if you decide to move to another premises. The same goes for if you work from home. You will have to uproot the entire system when you move. You will have to hire someone to reinstall it in your new place. This will take money from your business budget that could have gone towards something else. You will likely have to change landline numbers, which is another unnecessary hassle.

On the other hand, VoIP technology is not linked to a specific line number or building. This means you can unplug your VoIP system, plug it into your new place, and immediately start working again.

This is why so many businesses continue to leave old telephone systems behind to embrace VoIP solutions. It is simply the more convenient and affordable communications solution for modern business needs. So, if you’ve been asking yourself, “Why use VoIP or Why use VoIP for business?” below are a few reasons to consider.

15 Advantages and Disadvantages of VoIP: What Are the Pros and Cons?

There are several more VoIP advantages and disadvantages to consider. Some of the most common VoIP pros and cons include the following:

Advantages

1. Lower Costs

You can buy a VoIP plan for less than half the price of a traditional desk phone. This means you can lower your monthly communications costs by over 50%. Firstly, you will save on direct expenses like PBX costs and hardware. A PBX (private branch exchange) connects several landline phones in one office. These cost up to $2,000 per employee. With VoIP, there is no need for a PBX system or any extra hardware because the technology works with a broadband connection.

You can use a SIP (Session Initiated Protocol) Truck to create digital communication lines for your VoIP service. You can also keep the existing phones (hardware) you already have. Furthermore, you don’t need extra copper wiring so there is no extra cost. VoIP networks work using voice and data via the same channel. This process is called full-duplex. To get it to work, you only need one Ethernet. If you prefer wireless communication, you can download a VoIP app.

Lastly, VoIP also comes with indirect cost savings because it allows your employees to work remotely. VoIP offers auto-attendant, video calling, and call waiting, so your team stays connected to the office wherever they are. You can also add features like call transfer, queuing, caller ID, etc., at no additional cost.

All these cost savings can go a long way for SMBs who must make the most of limited budgets.

2. Increased accessibility

You can keep making and receiving cloud-based VoIP phone calls as long as you have a stable high-speed internet connection. If you cannot answer a call, you can direct it to your team or let it go to voicemail. When you want to return the call, you can have the voicemail emailed to you. All these capabilities make communication more accessible for your employees, further increasing productivity and efficiency.

This VoIP benefit also works incredibly well in companies that allow remote working.

3. Complete Portability

Furthermore, if you travel for business, VoIP service providers allow you to use the same virtual VoIP number wherever you are. This means your team and customers can contact you, whether you are out of the office or not. And, it means that if you move premises, you can keep the same number too.

4. Higher Scalability

You’re working towards growing your business every year. To do that, you need systems and technologies that easily scale upward as you grow. This is one of VoIP’s outstanding benefits. For example, if you’re running a Black Friday promotion and expect an influx of calls, your VoIP system is scalable enough to handle the increase in communication. If your business expands and you open a new branch, you can extend your VoIP system to it without technical issues interfering.

5. Advanced Features for Small and Large Teams

VoIP works for all types of businesses, whether large or small. You can use VoIP auto attendant or call transfer features to keep your small company in business. If your company has branches in different states, you can get a VoIP phone number with a dedicated area code. This will make your business seem local, even when you operate from a different state.

And you don’t need a separate conference call provider to stay in touch with different teams. VoIP offers multi-party calling features that allow you to talk to different team members from different branches at the same time.

6. Clearer Voice Quality

VoIP services everywhere have upped their game to keep providing a sought-after communications service. With a stable Internet connection, your business will enjoy clear call quality without lags and drops. A few years ago, VoIP couldn’t do this. Video conference calls would freeze, and voice conferencing calls consisted of muffled sounds and dropped calls.

In 2024, VoIP is a different service. As long as you maintain good bandwidth and a strong data connection, your calls will always be clear and free of echoes and lags.

7. Advanced VoIP Features

VoIP also uses AI technology to keep improving cloud-based communication. These systems employ NLP (Natural Language Processing) and speech recognition to scan all calls. It picks up phrases and keywords to determine whether customers are neutral, angry, or happy. This feature can help you build a more positive customer experience, which will help grow your business.

8. Supports Multitasking

You can also multitask using your VoIP system. For instance, you can send documents and photos while talking to someone. This is a valuable benefit for businesses that hold team meetings from other parts of the world. If you have team members joining you from another country, you can keep the meeting focused and productive by sharing documents and information required immediately during international calls.

Most VoIP systems also come with call forwarding to ensure that calls get directed to the right person.

9. More Flexibility with Softphones

You no longer have to deal with office and desk clutter when you switch to a VoIP system. VoIP uses softphone technology, a program you install on a laptop or mobile device. Doing this will help you free up space in your office. It will also help you avoid additional costs because you won’t need to install any hardware.

Disadvantages

However, keep in mind that there are also some VoIP disadvantages to consider:

1. Needs a Reliable Internet Connection

Unfortunately, if you have a poor internet connection, or if your internet connection goes down, so will your VoIP service. VoIP doesn’t use a massive amount of bandwidth but needs low latency.

Every device you want to use for VoIP must have an upload speed of at least 100 kbps. This means that a satellite and dial-up internet service is a big no-no for VoIP. Even Wi-Fi is not the best choice for VoIP, especially if you want to make long-distance calls. Your best bet would be fiber, cable, or 5G internet connections.

2. Susceptible to Network Jitter

If your internet network becomes jittery because of transmission delays, it will impact your VoIP service. This may happen because of a weak internet connection or a router that cannot handle VoIP services. It may also happen due to weak Ethernet cables. Using a low cable may not get you the VoIP power you need.

The only way to overcome and prevent network jitter is to buy high-speed bandwidth and activate jitter buffering. You may also need to upgrade your Ethernet cable.

3. Limited Location Tracking for Emergency Calls

Some of VoIP’s best features also cause some of its disadvantages. For instance, it’s great that VoIP is highly portable and accessible. However, this makes it challenging for third parties to determine where a call comes from.

And this is a massive issue when it comes to emergency calls. If you find yourself in an emergency, it will be nearly impossible for emergency services to find you. Fortunately, you can prevent this potentially dangerous situation by updating your E-911 information.

4. Compatibility Issues With Some Traditional Alarm Systems

Also, remember that your old alarm or fax system won’t work with newer VoIP technology. You will have to opt for a cellular modem or retrofit telecom hardware.

5. VoIP Requires a Continuous Power Supply

Here are more important VoIP advantages and disadvantages to consider. Unlike traditional phone systems, VoIP will not operate without power. This means you need to choose whether you can do without your VoIP system during unplanned power outages. Or, you will have to stay prepared by investing in backup power.

6. Security Concerns

VoIP also doesn’t come without serious security concerns. Some of these threats include phishing, malware, and even identity theft. VoIP services acknowledge these concerns, and most offer secure IP technology. This helps ensure that conversations remain encrypted and provides a form of identity management.

Make the Switch to VoIP

There are many advantages and disadvantages of VoIP for business owners to consider. It is clear, however, that VoIP advantages outweigh the disadvantages. There is a clear solution for each hiccup you may experience using a VoIP system. Your VoIP system won’t let you down if you have a strong internet connection, high-speed bandwidth, and the latest modem. Moreover, you can invest in backup power and VoIP technology with encryption to ensure that your conversations keep happening and stay private.

Podium is ready to help you make the switch to VoIP. Its Podium Phones system allows you to route all your calls to one inbox. This inbox also holds texts, social media messages, and business communications from other channels. Podium Phones provides this dedicated inbox to ensure you never miss a call (or message). If you do physically miss a call, Podium Phones makes it easy to get in touch with the person who called.

Furthermore, you get an overview of every communication directed at your business. This means you have a customer’s entire conversation history in front of you when you call them back. Learn more about the benefits of the Podium Phones system here.