Avoid Pitfalls During Your Business VoIP Software Implementation by Learning From Buyers With Experience

Traditional phone systems can be costly and lack flexibility, especially for businesses with remote or international teams. As a business owner, if you are looking for a tool with versatile communication capabilities for your teams, a Voice over Internet Protocol (VoIP) software is likely the right choice. Also known as internet telephony, VoIP software enables users to make phone calls using a broadband connection instead of a traditional phone line. With features, such as call monitoring and conference calling, it helps teams improve communication efficiency and enhance collaboration. 

However, to make the right purchase, it is crucial to know the features needed, average software price, and common challenges faced while purchasing business VoIP software.

Each year, Software Advice's advisors speak with thousands of software buyers evaluating new business VoIP software for their businesses. We've pulled insights from those conversations that will help small businesses understand the budget requirements, features, and pain points of current users to find the best tool for their needs.

Prospective buyers and current users prioritize different features

To gain insights into user preferences, we analyzed thousands of VoIP software reviews available on Software Advice to identify the features that the users of the software consider most critical for their daily work. Interestingly, our findings revealed a discrepancy between the priorities of VoIP software buyers and users.

• Thirty-four percent of current software users rate online voice transmission as the most essential feature in VoIP software compared to buyers who are mostly looking for a private branch exchange system in a business VoIP tool.

• These findings indicate that businesses already using VoIP software find immense value in online voice transmission functionality. This feature enables the transmission of voice data over the internet, converting voice signals into digital packets and sending them through internet protocols to the recipient. Users can leverage this feature to make high-quality voice calls using the internet as the transmission medium, reducing costs, especially for long-distance and international calls.

• Private branch exchange, on the other hand, allows businesses to handle multiple lines, enabling employees to communicate internally via extensions and externally through shared lines. This feature routes incoming calls to appropriate extensions and facilitates call forwarding and call conferencing, without the need for additional on-site hardware.

Current pain points for VoIP software buyers

When our advisors asked buyers what methods they were currently using to handle their day-to-day VoIP operations, here's what they found:

• Around 71% of buyers use third-party tools, such as customer relationship management (CRM) and video conferencing platforms for their communication workflows. 

• Nearly 18% of buyers already have a system in place. While 16% of buyers do not have any method in place at all, around 5% use manual methods in their day-to-day operations.

These discussions shed light on businesses' real-life challenges with their existing methods. These included limited functionality (33%), reliability (19%), and new business opportunities (15%).

• Limited feature options: Third-party tools provide limited functionality compared to comprehensive features within a VoIP tool. These usually offer basic functionalities such as simple call handling without advanced features, such as integrated call routing and recording abilities. Likewise, manual methods, including manual communications with customers, lack integration abilities that VoIP tools can offer to simplify workflows and enhance efficiency. 

• Reliability: Generic third-party solutions and manual methods are often less reliable due to their limitations and lack of comprehensive features. While third-party tools provide basic functionalities, manual methods are prone to human error, lacking automation and scalability. Both these methods may result in inconsistent call quality and increased operational costs.

• New business opportunities: Compared to manual methods and third-party tools, dedicated VoIP systems offer an advanced set of features that help businesses gain access to high-quality voice and video calling, real-time analytics, and call security measures. These features help businesses enhance customer service and improve operational efficiency, ultimately driving growth.

Reasons for switching to a dedicated VoIP software

Compared to the existing methods used by professionals, a dedicated business VoIP software solution offers the following benefits: 

• Specialized features: A dedicated VoIP system is designed specifically to enhance business communication—both internally and externally. It offers comprehensive features, such as automated call routing, voicemail to email, interactive voice response (IVR), and real-time call metrics to help businesses improve efficiency and enhance customer service. 

• Scalability: Compared to manual methods and third-party tools, a dedicated business VoIP system offers the flexibility to add new users, phone lines, or additional features as the business grows. These solutions generally leverage existing infrastructure, reducing the need for additional expenditures while scaling operations.

• Mobility and flexibility: VoIP software allows employees to make and receive calls from anywhere with an internet connection. Employees can use various devices, such as their smartphones, tablets, and laptops to communicate within and outside teams. With VoIP, employees can access voice, video, and messaging through a single platform, easily switching between different communication modes as needed.

• Enhanced security: Compared to existing methods used by software buyers, a dedicated system offers robust security measures, such as encryption, identity management, and call screening to mitigate security threats, such as fraudulent phone calls to employees.

Average budget for VoIP software buyers across industries

The budget for purchasing VoIP software varies from industry to industry based on factors such as the software functionality, number of users, deployment model, call volume, and integration requirements.

However, the average budget across industries for purchasing VoIP software was approximately $48 per user, per month. 

The chart below highlights the average buyer budget per user, per month for the top five industries interested in business VoIP software.

Use cases for VoIP software

Based on our advisors’ interactions, these are the top industries using a business VoIP tool for different use cases:

• Professional services, such as consulting firms and legal practices, need VoIP software to improve client interactions. They usually look for high-quality voice and video calling for client consultations, advanced call routing to ensure calls reach the right professionals, and security features to protect sensitive information.

• Retail businesses typically look up to VoIP systems to improve internal and customer communication. Therefore, they may consider call handling features, such as call queuing, automated attendants, and call recording for direct customer inquiries, as well as the ability to manage high call volumes, and ensure call quality. 

• Nonprofit organizations need VoIP systems as they offer cost-effective communication solutions essential for their operations. Their specific feature requirements from a VoIP tool may include voice and video calling capabilities, call forwarding, voicemail to email transfer, and integration with CRM systems. 

• Healthcare businesses, including hospitals and telemedicine providers, require VoIP tools to improve operational efficiency and enhance patient care. They may look for Health Insurance Portability and Accountability Act (HIPAA) compliance for protecting patient confidentiality, video conferencing to support remote consultations, and integration with electronic health record (EHR) systems to access patient information during calls.