Making and receiving calls is essential for most businesses. But if you still rely on a traditional phone system, you’re missing out on valuable features and cost savings.
This guide explores the telltale signs it’s time to upgrade your business phone system and offers a decision-making framework to help you determine the best course of action.
Why Upgrade Your Business Phone System?
Should you update your business phone system? If your trusty old phone system is more of a burden than a benefit, it’s time to look for other solutions. Here are some red flags that indicate it’s time to explore an upgrade:
1) Rising costs
Is your phone bill high and unpredictable? If so, upgrading your phone system to Voice over Internet Protocol (VoIP) is an easy, cost-saving win. The cost of legacy phone systems adds up quickly due to on-site equipment, licensing, maintenance, new phone lines, technicians, and international calls.
Switching to a cloud phone system can save up to 60% off your phone bill. It enables you to:
- Use your existing broadband connection instead of costly hardware and wiring.
- Save on calling expenses thanks to unlimited free local and low-cost international calling rates.
- Manage your phone system from a user-friendly dashboard and let your VoIP provider handle the rest.
- Add new phone lines, as well as entire new locations, at a minimal cost.
It’s simple, a landline phone system costs you around $50 per line each month and usually only includes local calls in that rate. Depending on your needs and the provider you choose, a VoIP phone system will typically cost you less than $25 per line and you’ll know exactly what your bill will be every month.
2) Outdated technology
It’s not just expensive to maintain, but it also relies on technology that will eventually go out of date. Every time a piece of your equipment fails, it will get harder for you to find replacement parts and a technician who can handle the fix.
It will also get more difficult for you to get new technology solutions added to your tech stack if your phone system is running a decade or more behind. They won’t be compatible and it will bring you more frustration than benefits.
Want to add a CRM, new office phones with fancy features, or internal collaboration tools to your setup? Consider a business phone system upgrade at the same time.
3) Limited scalability
Is your company growing fast and/or expanding to new locations? Is it complicated and expensive for you to add new phone lines and/or open new offices?
If you answered ‘yes’ to any of the questions above, you’re ready for a new business phone system. It makes no sense to hold onto a phone system that delays your growth or prevents it altogether.
VoIP scales with your business as it grows and expands. Adding new phone lines and users can be done with a few clicks. You can also add calling features to accommodate busier seasons. You won’t get this scalability and flexibility with legacy systems.
4) Lack of features
You might be completely satisfied with the functionalities of your current phone system. After all, it’s all about making and receiving phone calls, and that works just fine, right? Think again.
Features that come with cloud telephony can take everyone’s productivity to the next level. It’s not just about the phone calls themselves, but also about everything that happens around them. Here are some questions you can ask yourself about your current business communication processes:
- Who answers customer calls? Are calls routed based on customer type, issue, and purpose, or does it end up with any available agent?
- Do your customers have to queue for a long time before they speak to an agent?
- Can you monitor your call quality?
- Do your employees need to manually transcribe voicemails they receive?
If these questions showed you that you could have much more efficient workflows, you need new features. Upgrading your phone system will give you access to call routing, auto-attendant, call recording, voicemail-to-text, and many other features that will transform the way you communicate.
5) Vulnerability to outages
If your phone system is down, can you keep on working? Can your customers still get what they need from you easily? If your answer is ‘no,’ it means that every phone system outage creates frustration for your customers and brings your sales (and cash flow) to a halt.
Natural disasters like floods, hurricanes, and earthquakes, outdated infrastructure, and aging equipment can all throw your traditional phone system out of the game.
Outages are expensive not just to physically fix, but also because they can lead to lost sales and even damage your reputation in the long run. When you upgrade your phone system, here’s how you’re protected from these risks:
- Phone lines run over the internet, so factors like bad weather won’t disrupt your service
- If there’s an interruption to the service, your incoming calls can be automatically forwarded to a different number, like a mobile device
- If an issue does occur, your service provider can troubleshoot and fix it remotely
VoIP offers a level of disaster recovery capabilities that a legacy phone system can’t match. And with a provider like Nextiva, you’ll have a 99.999% uptime thanks to our multiple data centers, backup generators, and 24/7 monitoring.
6) Security concerns
Whether you’re a small business or a large enterprise, security is never trivial. If you’re using a traditional phone system, also known as the Plain Old Telephone System (POTS), your calls are transmitted using audio signals that attackers can easily intercept — too big of a risk to take.
VoIP phone systems, on another hand, offer higher security, reliability, and privacy to businesses. Respected VoIP providers invest in military-grade security using Session Border Controllers (SBCs).
SBCs act as firewalls that maintain performance and logical call routing, so your data never ends up in the wrong hands. Depending on your industry, you may also need to look for these accreditations in your VoIP provider:
- HIPAA compliance if you’re a healthcare service provider
- PCI compliance if you accept credit card payments
- ISO/IEC 20071 as a global standard for assessing security threats
- SOC 2 compliance in privacy, security, availability, and data integrity
Cloud phone systems meet the strictest security standards. Don’t make your phone system security and afterthought and wait until it’s too late.
7) Poor call quality and reliability
One of the fastest ways to look unprofessional in front of a customer is through a call that drops or gets choppy. Poor audio quality will force you to repeat yourself, or ask your caller to do so, deal with background noise, and run inefficient conference call meetings. If this is your current reality, it’s time to upgrade to a VoIP solution.
High-quality calls are possible on VoIP thanks to HD voice codecs that compress and decompress audio for rapid transmission over the internet. This technology works smoothly through VoIP phones and softphone apps.
Advancements in voice quality on VoIP will make you feel as if you’re in the same room as your caller. The best part?
Once you have a cloud phone system, a compatible VoIP desk phone or a mobile phone app, and sufficient bandwidth, you don’t have to do anything to experience HD voice. Simply get your phone service provider to make sure HD voice is enabled for your account.
8) Limited support for remote work
More than 38% of companies today have remote employees. Is your company one of them? If not, what’s holding you back? Chances are that the answer is along the lines of “We just don’t know how to make it happen with our current phone system.”
If your employees make and receive lots of calls and collaborate often, this is a reasonable challenge. If you want to add a phone line that isn’t connected to an office phone, your legacy phone system will hold you back. If an employee is moving locations, they can’t just easily move their phone number with them.
With VoIP, your employees can be more mobile and flexible. When you move your phone system to the cloud, your employees don’t need to be connected to the same network of physical phone lines. They can take their phone number and all their phone features home with them through a softphone or a VoIP desk phone.
This upgrade will keep your entire workforce connected while housing all your communications on a single phone system that’s easy to manage. Your remote teams can stay organized, focused, and flexible in their workday.
9) Lack of unified communication
Another downside of a traditional phone system is that it exists outside of your other business communication systems. If you use anything other than phone calls and voicemail — including email, chat, text messages, and web, audio, and video conference calls — you can’t integrate your phones with the rest.
Unified communications bring all of your communication channels together. It streamlines both your internal and external communication. Unified Communications as a Service (UCaaS) is a unified communications model that lets you run all your systems and tools from the same software solution.
UCaaS for your internal communication means you’re bringing your meetings, calls, file sharing, chat, tasks, and all internal collaboration into one place and accessible from anywhere. It also drives customer retention and loyalty because it lets your customers choose the channel they can contact you through so you can serve them better.
If someone contacts you through email, phone, or website chat, UCaaS makes it possible to track all of these interactions in one place. The result? Ultimate connectivity. You’ll get to work with hyper-focused teams and provide exceptional customer service to your customers, all from one place.
10) Inability to meet critical business needs
Here’s a final question for you: on a scale of 1 to 10, how important is your phone system for your business success? If you use it to provide customer service, delight your customers, talk to prospects, close sales, and collaborate with coworkers, you’re pretty close to 10.
In other words, your business phone system is what makes or breaks your productivity, your customer loyalty, and your chance to bring in new revenue. If you can’t work without your phone system, you need one you can rely on in every circumstance.
And if the one you currently have doesn’t give you that, it’s time for an upgrade.
Benefits of an Upgraded Business Phone System
A modern phone system is an investment that pays off in multiple ways:
- Enhanced features: From auto attendants that greet callers professionally to call routing that ensures calls reach the right person, a feature-rich business phone system streamlines communication and improves customer experience.
- Increased productivity: Features like video conferencing and mobile apps empower your team to collaborate seamlessly, regardless of location. This translates to increased productivity and a more agile workforce.
- Improved call quality: Clear audio ensures every conversation is clear and productive, eliminating frustration and misunderstandings.
- Scalability and flexibility: A modern phone system can easily adapt to your business’s growth. Adding or removing users becomes a breeze, allowing you to scale your business communications infrastructure effortlessly.
- Cost savings: VoIP phone services often offer lower maintenance costs and potentially lower monthly charges compared to analog setups, especially helpful for small businesses. Additionally, features like voicemail transcription save time and resources.
How To Upgrade Your Business Phone System
Upgrading your business phone system is a significant decision, and choosing the right option depends on several factors. Here’s a breakdown of key things to consider before adopting a better phone system:
1) Cloud-based vs. on-premises
Cloud-based phone systems offer a pay-as-you-go model with lower upfront costs. They’re highly scalable, require minimal IT maintenance, and work for businesses of all sizes.
The VoIP service provider manages the Private Branch Exchange (PBX) hardware and software in the cloud, eliminating the need for on-site equipment. However, you relinquish some control over the system and rely on a strong internet connection.
On-premise or a traditional PBX provides better control over the hardware and software of the PBX system. It might be preferable for businesses with strict security requirements or unreliable internet access. However, on-premise systems require significant upfront investment and ongoing IT expertise for maintenance and upgrades.
Choosing a cloud VoIP system any day offers far more benefits than on-premises.
Here’s a quick cost comparison for traditional vs. VoIP phone systems
| Feature | Traditional Phone System | VoIP Phone System |
|---|---|---|
| Initial Hardware Costs | High (Phones, servers, wiring) | Lower (VoIP phones or softphone apps) |
| Monthly Costs | Per-line charges, long-distance fees, maintenance | Flat monthly fee per user |
| Scalability | Difficult and expensive to add lines | Easy to add users and features |
| Maintenance | Requires on-site IT support | Managed by the VoIP provider |
2) Features & functionalities
Don’t get bogged down by every bell and whistle. Identify the features that are most crucial for your business. Here are some popular options to consider:
- Voicemail to text: This feature transcribes voicemails into text messages, improving accessibility and saving time.
- Video conferencing: Facilitate face-to-face meetings with remote teams or clients, fostering collaboration and communication.
- CRM integration: Integrate your business phone system with your CRM software to streamline customer interactions and improve lead management.
- Auto attendant: Greet callers professionally and route them to the appropriate extension or department.
3) Scalability & budget
Think about your future growth plans. Choose a business phone system that can easily accommodate an increase in users or locations without requiring a major overhaul. Cloud-based phone systems typically excel in scalability.
Also, determine your budget for the new phone system. Cloud-based systems often have predictable monthly subscription fees, while on-premise solutions require upfront hardware and software costs. Compare pricing models from different providers, including per-user fees and bundled plans.
4) Needs assessment
Before diving in, take a step back and analyze your current system. Identify your communication pain points and determine the specific features and functionalities you need in a new system.
Research different phone system providers and compare their offerings. Look for providers with a good reputation, reliable customer support, and features that align with your needs and budget. Don’t hesitate to request demos and trials to get a feel for the system before making a decision.
5) System installation & training
Once you’ve chosen a provider, ensure a smooth implementation with professional installation. Reputable vendors like Nextiva offer comprehensive training to ensure your team can use the new VoIP system’s full potential. This minimizes disruption and maximizes user adoption.
You Deserve a Better Business Phone System
It’s time to get a new phone system — one that gives you the flexibility, scalability, pricing, features, and reliability to support your needs and growth.
That’s exactly what you’ll get with Nextiva’s small business VoIP system. It lets you work from anywhere, adjust your phone service as your business changes, and stay connected with your customers, employees, and partners. Once you upgrade your business phone system, you’ll never look back.
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