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Using VoIP to Reduce Costs: Everything You Need to Know

How can VoIP reduce costs?

Collaborated with Meryl D’Sa-Wilson

When managing a business, it is imperative to make cost-effective decisions in order to maintain a budget. Internet-based calling — like using voice over IP (VoIP) instead of traditional phone lines — proves much more effective at saving business communication costs.

But how exactly can you use VoIP to reduce costs?

From eliminating the need for new or expensive equipment to reducing long-distance calling fees, your business can switch over to a cloud solution that better meets your communication needs and budget.

How Exactly Does VoIP Help Cut Costs?

The simple answer: VoIP phone systems use the internet to send and receive quality calls, and this means lower calling charges, especially for long-distance and international calls.

But that’s not all! Switching over to the cloud brings you more reliability and flexibility letting you save on equipment and overhead costs. This is why hosted VoIP is generally recommended for businesses looking to expand to new locations with tight budgets.

When running a business or preparing to expand, communication budgeting is an important factor to consider. Most management positions are aware of the fees involved in seemingly menial tasks and daily activities. Customer phone calls are one of these expenses, especially if you have customers located outside your state or country.

So how does VoIP reduce these costs? Let’s dive into the rest below.

1. Lower Calling Fees

Since VoIP uses the internet to transmit calls, callers no longer have to pay high long-distance fees. This is because sending calls through the internet is cheaper than using the traditional telecom infrastructure like the PSTN.

This means that your business does not need to have physical offices in different regions where your customers are simply to cut down on calling fees. You can have all incoming calls automatically forwarded through digital routes directly to your team wherever they are already located.

By eliminating this extra cost, you have the ability to reach out and engage with your customers without hesitation. And you can extend sales and customer service to new regions without relocating. In the sales part, you can integrate sales prospecting tools into the process.

2. No New Hardware or Equipment Required

In most cases, you can integrate VoIP with your existing infrastructure and devices. Providers will often offer a softphone app that you can use to make and receive calls from your computer, IP desk phone, laptop, or smartphone.

The best part about this is that these devices will work on the same VoIP network, so your calls work as normal phone calls going through your business phone line. This means employees don’t need separate phones or extra cell phones to protect their privacy.

You may need to upgrade your internet a bit to match VoIP bandwidth needs but that depends on how many calls your business makes simultaneously. Here’s a table for reference:

Number of Concurrent Calls Bandwidth Recommended
1 100 Kbps
5 500 Kbps
10 1 Mbps
15 1.5 Mbps
20 20 Mbps

Plus, since the network is hosted by your provider, VoIP is easy to set up and requires little-to-no maintenance on your business’ part. This means, no complicated wiring, routine maintenance, or quality checks. Your provider will take care of it all, leaving your teams to focus on serving customers.

3. Little to No Overhead Costs

When expanding locally and globally, most businesses are concerned with overhead costs such as opening or renting new offices, adhering to local regulations, etc.

However, VoIP lets you extend operations to new locations and regions without needing to open physical offices. In other words, you can have a local presence by powering your global, remote, and distributed teams with VoIP.

And since your business isn’t limited geographically, you can hire employees in countries with lower labor costs. All you have to do then is forward incoming calls to their devices wherever they are located.

4. Access to International Coverage for Less

Perhaps the most significant selling point is that businesses can use VoIP for international calls. As this technology allows your company to make and receive calls from anywhere through the internet, you spend less on international, long-distance calls.

In this way, VoIP encompasses a modern way to communicate with people around the globe without the costs typically associated with landlines and PSTN calling.

VoIP providers like United World Telecom can provide you with international phone numbers like local and toll-free numbers from as low as $7.95 per month. And you can forward calls coming in to these numbers to multiple users and teams within your company.

5. Scalability and Flexibility

While expanding your business is important for sustainability, you need to grow at a reasonable pace. Taking things at a comfortable and appropriate speed for you and your teams can ensure a steady road to success. While this process unfolds, VoIP can follow along with your business, letting you adjust your business phone service as you see fit.

VoIP’s flexibility allows you to add phone lines and numbers, as needed, instead of pushing forward with a big expansion plan. And you only pay for what you need. Add and remove users and teams, route calls to new destinations, and more when you switch to VoIP.

6. Prepare for Emergencies & Extreme Circumstances

VoIP can also help you maintain business continuity in a contained and safe fashion during emergencies. We’re talking about extreme weather conditions, safety concerns, health issues, etc.

Mitigate the risks posed to your business with VoIP calling. For instance, you can send calls to different office locations or remote employees, if your main office suffers an outage or disaster.
Another example is switching to virtual communication during an event like the recent COVID-19 pandemic, where the whole world put a pause on operations and worked remotely.

As the business world adapted, the global VoIP market expanded. Even now it continues to grow, as it is expected to reach $145.76 billion USD by 2024. Making the switch allowed for all industries to continue operations despite adjusting to a new normal, and provides unique features now used in daily activities.

7. Operate Remotely

With remote work becoming a staple in the modern office setting, businesses can use VoIP to maintain their communication with customers and other team members.

By choosing to incorporate VoIP, your business not only cuts costs but also keeps up with the ever-evolving technology and workplace trends.

How Can I Make Money with VoIP?

Many of our clients are looking to use VoIP to cut costs, however, we’d like to highlight how much money can be earned with a better reach to new clientele.

While VoIP helps to save money, it can also boost sales by opening your business up to new markets and regions with low expansion costs. And by using local virtual and toll-free numbers, you can expect an increase in response rates and callbacks, giving your teams a better chance to close international sales.

There are many benefits of using VoIP besides cost-savings, such as:

  • Improving customer service and retaining more customers
  • Allowing for remote work to be at its most efficient
  • Increasing global coverage
  • Centralizing business communication and improving call management, etc.

So switching to VoIP also gives you access to advanced calling features and reliable telephony functionality.

Why Choose United World Telecom?

If you’re looking for a VoIP provider who can help you cut communication costs without interrupting call quality and reliability, we at United World Telecom can help!

Over the last 27 years, we have rapidly expanded our service offering and global presence. Our wide global network ensures we’ve got you covered no matter where your business or customers are located.

To get started, all you need to do is sign up through our website. Speak with our dedicated VoIP experts today! Call us at +1 (561) 276-7156 or chat with us online today!

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