What is VoIP and How Does it Work?

In the commercial world, every company is keen on improving its customer experience, increase the employees’ productivity, and more importantly — make better returns. Unfortunately, it is hard to achieve all three goals under normal circumstances. According to experts, one of the main reasons why many companies find it hard to achieve the three goals is the high cost of production and the high cost of running a company. Communication between employees is one of the highest production costs.

Fortunately, VoIP is a game changer in reducing communication cost. According to a report by an independent entity — on the overall effect of using VoIP in a workplace — using this mode of communication reduces the communication cost by 40%. Unlike the previous options of cutting the running cost of a company, VoIP is affordable — by both mid-sized companies as well as small start-ups. In addition to its affordability aspect, the best VoIP provider offers additional services — with the sole purpose of simplifying communications in your firm.

How does VoIP work?

The new system utilizes two main communication models — analog voice calls and Internet Protocol. However, the system converts the typical costly calls to inexpensive packets of data. The conversion ensures that people or employees within the connection access can easily communicate without incurring extra charges. VoIP uses the same model as sending emails.

Unlike the analog calls, this mode of communication gives the management the liberty to connect as many employees to the main system as possible — without affecting the system functionality. According to experts, VoIP is one of the few technologies that give a company the freedom to reach more people within an organization without affecting the voice clarity or system functionality. However, it is vital to work with professionals when expanding VoIP services within a company.

Finally, the functionality of this communication model is not affected by distance or the size of the company. For companies with different stations around the world, this model of communication is not only cost-effective, but it is ideal for easy communications.

Advantages of VoIP over other communication alternatives

The following are some of the benefits of VoIP over other communication alternatives in the corporate world.

  • The communication model encourages remote working

One of the most significant benefits of VoIP — apart from costs and effectiveness — is the flexibility. Remote working is slowly changing how people and corporate world view work. Prior to this communication model, it was impossible to work remotely due to connections and weak signals. The analog communication model is also unreliable.

Fortunately, VoIP is a game changer in remote working. According to productivity pundits, an Internet connection is the only requirement when working away from the office. It is now possible to effectively carry work home and work effectively and with direct communication with other employees.

  • VoIP is a cost-effective communication model

In the typical world, communication across employees and within the management ranks is pricey. According to Forbes, the lack of effective communication affects the company’s productivity. Some pundits have pointed out that breakdown of communication is one of the reasons why the corporate world make losses. The main reason why the corporate world fails to communicate effectively is — the cost of communication.

Fortunately, this communication model redefines communication in terms of cost. In 2018, the average cost of using VoIP — compared to the other communication models — was 40% less.

  • The communication model integrates other systems

Unlike the conventional communication system, VoIP is the only communication platform that allows the corporate world to integrate different systems without losing efficiency. Under this communication platform, it is possible to access various records – such as customer and other stakeholders’ records — without endangering their safety and loss of information.

The main reason why this type of integration is a game changer is that it simplifies interactions and more importantly, it enables employees to understand the business direction. In the traditional model of communication, accessing information of your clients required a lot of bureaucracy. Due to the weaknesses of bureaucracy, it was easy to lose clients mainly because of information breakdown.

Lastly, VoIP is one of the most predictable models of communication in the following ways. While installing this model, it is easier to make accurate estimates — unlike the other communication models. Second, the system is expandable and its accommodates future growth.