Small Business Phone Service​: Why Is It Essential?

Management 21 minute read 2nd December 2024

A lot of people choose to call a business after finding information on it online. So, even the smallest companies should approach business numbers carefully. Could a small business phone service be the solution for you?

Demand is one thing, but what really makes a quality phone service essential is how much it impacts success. The truth is that not investing in a phone service can dramatically stunt your growth, and nobody wants that.

In this guide, we’ll teach you why phone services are essential so that you can weigh things up for yourself. Get ready for definitions and how-tos, plus a handy list of benefits to help you really understand the pros. We’ve even thrown in a section on the best time to invest in phone services,too. This way, you’ve got a solid timeline.

Are you ready to decide on a phone service for your business once and for all? Read on to determine the best way forward!

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What Is A Small Business Phone Service?

A small business phone service is simply a system that enables companies to communicate with customers on mobiles or landlines.

This is an umbrella term; it is a single phrase that covers multiple strategies and approaches. Business phone systems typically include unlimited calling, and some business phone service providers may offer extra features. For instance, you could enable voicemail transcriptions for training purposes.

In its most simple form, a business phone number takes calls and enables interaction with customer queries. This opens a corridor for communication and meets a demand.

However, it could also facilitate:

  • Voice over Internet Protocol (VOIP) which allows you to make calls from the Internet and different devices, such as computers
  • Two-way communication through an SMS API
  • One-way communication through an SMS shortcode
  • General SMS marketing
  • Cold calling
  • Call routing which allows multiple staff members to pick up incoming phone calls

You can see how advanced a phone service can become. When starting out with a small business, the features you require depend heavily on your industry and goals.

For instance, a small online business might still require call routing if it frequently deals with multiple incoming inquiries simultaneously. Alternatively, a small restaurant business might deal with walk-ins and online bookings and experience clashing incoming calls less frequently.

Therefore, despite being at similar stages of their journey and turning over similar profits, they’d require different features.

With small business phone services, there is no one-size-fits-all. 60% of people choose to call a business after finding them on Google, according to Numa. So, you must make an individual decision to choose a package with the features that your unique business requires.

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How To Save Money on a Small Business Phone Service

Small business phone service providers vary greatly in cost. Basic options with limited features could cost anywhere from $20 to $50 per user each month.

The biggest cost decider is the number of users you want to add to the package. To learn how to save money on a small business phone service, we’d suggest being savvy with user numbers. For example:

  • If you add just yourself to a package at $40 a month, it’s just that straight $40 to pay.
  • If you add two users onto a package at $40 a month, that’s $80.
  • With five users, that $80 increases to $200.
  • Yet, with 10 users, that would increase to $400.

If you have a 10-person team, adding so many users to one monthly subscription might be counterproductive. Be really savvy about who you involve. Small businesses rarely need so many hands on deck — perhaps you could get by with just yourself and your manager?

It’s also worth evaluating exactly what services you require. Business phone lines to answer incoming calls are non-negotiable, and call routing may be too. But do you need advanced features like VOIP or even video meetings?

You might be able to access more advanced services elsewhere, like Google Workspace. More expensive phone services might not be better, per se. Including more features doesn’t mean that your business actually requires them or that you should invest. Instead, evaluate the features behind the price tag and get brutal about what you actually require.

A cutthroat attitude initially could save you tons of money in the long run. Nobody wants more users or features than they need on their phone service, especially if it’s running up their bill!

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5 Benefits of Using a Phone Service

You know what a phone service is and how to save money on these handy business packages. However, you should understand exactly what brings this strategy value in the first place. Investing in a phone service for your business has many benefits, including simply enabling communication.

With that in mind, these are the top five benefits of phone services for businesses. These pros could be excellent motivation or decision-makers if you’re on the fence about investing.

1. Better Communication

That primary benefit is undeniable: You’re opening up an in-demand channel and enabling better communication with customers. This is great for enabling better responses, and by harnessing this benefit, you open the doors for even more improvements.

2. Foundations For Growth

With good quality phone service comes more opportunities, including foundations for growth. Opening those communication pathways creates chances to engage with more people and provides the framework necessary to scale.

3. Increased Trust

There’s no denying that a phone service increases trust in your business. It’s excellent for an authoritative brand image. Having a single, reliable point of contact reassures potential and current customers. It also simply looks more professional.

Would you trust a business with a public (and memorable) phone number? Or would you trust an elusive company that you couldn’t figure out how to contact? That instantaneous communication pathway just adds an element of trustworthiness and prestige.

4. Reduced Negative Reviews

By providing that point of contact, you’ll limit the number of negative reviews you’ll receive. A big reason people rush to leave reviews is to rant; it’s often an emotional reaction. A proper phone service provides a buffer, catching people who need support.

Dealing with customer issues over the phone can be tricky. However, it’s miles better for your reputation than allowing issues to leak into public reviews.

A huge benefit of investing in a phone service is that it redirects people toward customer service, not review sites. And who doesn’t want a gleaming TripAdvisor, Google Maps, or Yelp platform?

5. Better Staff Monitoring

On the flip side, investing in a phone service can actually improve your ability to monitor staff. Just like it’s your responsibility to manage interactions with customers, you’ve got to manage how staff interact with customers, too.

Certain service packages include voice transcribing or recording features. The purpose of these is to retain the contents of the phone call. This can be valuable for ensuring that your staff are upholding policies and operating effectively. It provides excellent opportunities for training and for investing in your workforce quality.

It’s also valuable to cover your own back. Working with multiple call handlers can be hard, especially as you expand your company. It’s good to have a record of advice and promises made. This way, you can provide consistency throughout the customer experience.

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What Is the Best Phone Service for a Small Business?

The “best” phone service for small businesses isn’t a copy-and-paste answer. Not every company requires the same features, which eliminates the concept of a singular winning service.

Instead, you need to review the criteria internally before window shopping. When shopping for phone services for small business ventures, you need to know what to look for on an individual basis.

With that said, there are some green flags to look for and questions to consider, such as:

  • Does it offer the potential for call routing as your business grows?
  • Does it offer recording or transcribing services that you could use for training purposes?
  • Is two-way or one-way communication important to you? If so, does it offer an SMS API or shortcode?
  • Are you already investing in SMS message campaigns? If you might want this integrated, does it offer text gateway to send texts from computers?
  • Does it come with marketing software that hosts bulk-sending features? If not, is it compatible with one?

You should also consider more general criteria, such as:

Is there a free trial or demo option? This is preferable as it allows you to dip your toes in without too much upfront financial commitment.

  • Is it compatible with your existing systems?
  • What are the reviews like? Do other people approve of this service?
  • What’s the cancellation policy if it doesn’t turn out to be a fit?
  • Does it have the features that your particular phone strategy requires?
  • Is it the right time to make this investment for your business?

If you’ve worked your way through all of those questions and still want some inspiration. We’d suggest looking into these providers:

  • Nextiva
  • RingCentral
  • 8x8

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What Is VOIP Phone Service for a Small Business?

A VOIP phone service for a small business simply stands for voice over internet protocol. That might sound like a mouthful, but it’s nowhere near as complicated as it sounds. It’s handy to use the Internet for phone calls — for example, using a laptop to take a call.

Rather than relying on a mobile phone or landline, it renders your phone service more flexible. It simply provides you with more options when it comes to managing your business communications.

Not every phone service provides VOIP, which is a pretty niche and advanced feature. Therefore, if you’re interested in this, you’ll need to specifically hunt for providers that advertise VOIP. It could be worthwhile, though, especially if you envision a need to take calls from a computer instead.

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When Should You Invest in a Phone Service?

It might sound premature, but we’d advise you to invest in a phone service right away. That original statistic we referenced, about 60% of customers wanting to ring companies they find on Google, is telling. There’s just too much demand to delay this avenue of communication.

You could have a small business for multiple reasons. Perhaps you want a close-knit customer base, or maybe you’re just starting out. Either way, neither of these reasons justifies not investing in a business phone service — or at least a number! Sure, there are compromises, like using a personal number, but this has repercussions, like risking burnout.

Investing in phone services establishes work-life balance, looks professional, enables better customer communication, and lays the foundations for business growth.

Because of all those benefits, there’s no time like the present. It’s a great move no matter the point in your business journey; in fact, the sooner the better.

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How To Collect Phone Numbers

Hold on, though. By now, you understand what a phone service entails, yet we’ve also touched on marketing features. It’s all good to choose a service that offers SMS marketing features. But how do you actually collect phone numbers to take advantage of this?

It’s a great question, and the truth is that there is more than one way to skin a cat. You could use any of the following strategies to collect phone numbers to contact people through your new phone service:

  • Offer text confirmations for bookings and purchases.
  • Create a text-based loyalty program.
  • Run competitions and require phone numbers for entry.
  • Ask customers if you can send them feedback quizzes via text.
  • Set up captive portal software for your guest’s WiFi network.

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Beambox: Collecting Phone Numbers Through WiFi

Did you know that you could collect phone numbers through WiFi? All you need is a captive portal. A captive portal strategy involves investing in specific software that attaches to your existing WiFi network. Here’s how it plays out.

When a customer clicks to join your guest network, it triggers the portal to pop up. The portal appears as a web page containing a form requesting the details of your choice. You could request anything from demographic information to, in this case, phone numbers. How smart is that?

Customers can only proceed once they comply with the form, increasing motivation to part with their number. When they do, they receive instant internet access, and you get a number for your contact database.

You must abide by GDPR by stating that you wish to use their number for marketing purposes and gaining consent. Overall, this strategy is easy to organize and entirely passive after launch. It’s a great way to boost your database and enable future SMS or phone campaigns.

At Beambox, this is our bread and butter; we run an all-in-one WiFi marketing solution with a customizable portal. Start your Beambox free trial today and take the following steps after investing in your small business phone service!

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FAQ

Don’t disappear just yet! Let’s revisit what we’ve covered. There’s nothing like a quick pop quiz — are you sure you remember all the essentials we’ve just taught you?

Here are the most commonly asked questions about phone services for small businesses. Would any of these still stump you?

What is a small business phone service?

A small business phone service is just a system enabling mobile or landline communication for a small-scale company.

This umbrella term could refer to a package providing the ability to receive and make calls. Or it could be a little more advanced, offering SMS marketing and analytics software. It can even facilitate things like call routing, where multiple handlers man the lines.

What should you budget for a business phone service?

Budget upwards of $20 a month per user, increasing this to around $40 a month for more advanced packages. The cost of a phone service really depends on the scale of your business. The more staff members you give access to, the more expensive it will become. For small businesses, the investment shouldn’t be too great. We’d put it on par with investing in email marketing or WiFi marketing software. Besides, it’s tax-deductible and extremely cost-effective; it gets good results.

What are the benefits of using a small business phone service?

The benefit of a small business phone service is that you meet the demand for this form of communication. Picking up the phone and calling remains a hugely popular method of customer communication.

Therefore, this strategy keeps you connected with both your existing base and potential customers. It’s low-cost and pretty essential should you wish to scale your business and see real success.

Grow your business and customer loyalty with guest WiFi!

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