11 Critical VoIP Stats Small Businesses Need to Know in 2022
This article is part of a larger series on VoIP.
Voice-over-internet-protocol (VoIP) technology allows you to quickly and easily communicate with both customers and colleagues over the internet. This protocol either replaces or augments traditional telephone calling and is particularly useful for businesses with remote workers. If this doesn’t quite sound like your business, remember that according to Upwork, 22% of the U.S. workforce will be remote by 2025.
An agile system like VoIP will help you better coordinate with work from home (WFH) employees. The technology also works to protect your data, especially for providers who encrypt at-rest and in-transit. VoIP clearly has business benefits, which is why we’ve compiled this list of essential VoIP stats that will help you understand its growing importance.
More Businesses Are Adopting VoIP
1. 61% of Companies Are Switching Away From Landline Systems to VoIP Phone Setups
(Source: Blueface Research)
Before we get into some of the advantages of VoIP, let’s take a quick look at how VoIP technology is consistently growing, especially as teams become more remote. While many look at the industry’s compound annual growth rate (CAGR) as a chief illustration of technology adoption, it’s also critical to look at how smaller businesses are switching to VoIP.
VoIP’s growth is typically due to the extensive feature sets offered by providers like RingCentral, Nextiva, and GoTo Connect. Pre-pandemic, Software Advice sampled hundreds of small businesses to account for VoIP adoption. Even in the 2014 to 2015 period when they performed the research, about 36% of the sampled businesses were using the technology.
With a VoIP-powered business phone system, you not only pack in calling, but call routing, collaboration, and call handling features are often folded in as well. This makes VoIP a very compelling technology, and we covered how well it stands up to landline technology in our VoIP vs landline comparison.
The previously mentioned RingCentral is one of the top-rated providers out there. Check out our review to determine if they fit your communication needs.
Want to know what’s in store for the VoIP industry this year? Read our article to know the latest VoIP trends and news.
VoIP Enhances Processes
2. Companies Report a 20% Rise in Productivity With VoIP
(Source: Harbor Networks)
By its very nature, VoIP is a powerful technology that enhances customer experiences, but it also has value for employees as well. This is likely due to the fact that VoIP providers tend to roll in useful tools, like audio/video conferencing, task management, and team chat.
Underlying VoIP technologies also make an employee’s workday more efficient. For example, you’d be hard-pressed to find a provider without some form of call routing. With an IVR system, most customers can get help without having to utilize an agent, thanks to self-service. This means that employees can spend less time on activities, such as helping with bill pay, and more time actually tackling issues that need a human touch.
3. 22% of Businesses Leverage the Power of an 800 Number
With VoIP, it’s incredibly easy to get a toll-free number for your business. While it’s often advantageous to have local numbers for your customers to use, there’s a certain level of prestige when you present them with a toll-free option. This is because a number with an 800, 833, 844, 855, 866, 877, or 888 prefix makes even solopreneur businesses look more national.
Customers use these numbers to quickly reach out to your brand, no matter where they are. These numbers are free to dial from anywhere, and since they are national, it adds a bit of credibility to your company. Finally, toll-free numbers are very portable—even if you decide to change locations, your number will travel with you so that customers can continue to reach you.
Modern VoIP providers usually have the full gamut of toll-free number options available. Additionally, you’ll find some providers with international toll-free numbers as well as vanity numbers, which allow you to customize the number to fit the name or the purpose of your business. A good example of this would be 1-800-FLOWERS.
4. 91% of Businesses Find That Compliance Is Easier With VoIP
In order to avoid liability, you need to ensure that you’re compliant with local, state, and federal laws and regulations. For example, the government places heavy emphasis on maintaining and protecting patient information through the Health Insurance Portability and Accountability Act (HIPAA). In fact, there are several types of compliance programs that affect communications security to consider.
Fortunately, many businesses find that switching to a cloud-based communications system actually helps them maintain compliance with these types of laws. This is facilitated by providers actually providing dedicated tools for businesses to meet compliance needs.
VoIP Is the Most Budget-friendly Calling Technology
5. 50% of Telecom Costs Are Reduced by Switching to VoIP
The setup costs for an on-premise PBX system can be more than $15,000. On-premise systems are expensive because of the cost of hardware. Here’s a breakdown of how much you can expect to pay in upfront costs:
- PBX server: Over $6,500-plus
- Phone costs: $3,000-plus
- Setup: $1,000-plus
- Software licenses: $3,500-plus
These prices don’t take into account monthly costs, such as the price for toll-free and local numbers, internet fax, and long-distance calling. In the first year alone, you can easily spend over $30,000 just to make calls from your office to local and international locations.
While the lion’s share of the cost is upfront, a small business can be virtually crippled just getting a phone system up and running. With VoIP, much of these costs are subsumed by a monthly payment structure. With a cloud provider, such as RingCentral, you never directly pay for the server managed by the provider itself. Additionally, if one of its servers were to go down, then there are backups around the world that grant geo-redundancy for higher uptimes.
While you may have to pay for IP phones, many providers allow you to easily use their service on multiple, pre-existing devices. Additionally, on-premise PBX features that you’d be paying for monthly, like virtual numbers and audio conferencing, are typically much cheaper or rolled into the service with a VoIP system.
While long-term VoIP subscriber costs may add up, it’s much easier for a small business to subsume this cost. This makes it a much more cost-friendly option for businesses without massive communications budgets.
6. VoIP Saves Businesses 40% on a Monthly Basis
(Source: Multicom Inc)
With most providers delivering free calling to the U.S., Canada, and sometimes Mexico and Puerto Rico, it’s easy to see how a business can save. VoIP statistics sometimes miss the fact that this kind of business calling often accounts for much of a company’s communications costs. With agents able to freely make outbound calls without metered pricing, the value of a traditional landline phone system, which often charges fees for calling slightly out of area, is lost.
7. VoIP Reduces Startup Costs by as Much as 90%
Outside of simple hardware and software costs, VoIP provides new business with opportunities to save money. For example, even very small businesses without centralized offices for their employee(s) can leverage VoIP services for local, national, and international calling without breaking the bank.
Starting a business gets expensive, but VoIP allows you and your employees to create a virtual office that can help bring in revenue. This reduces the cost of startup and can help your business get off the ground easier.
8. Businesses Save as Much as $1,727 a Month When Using Software Dialing
Softphones allow businesses to make calls completely by computer or smartphone using VoIP technology. This helps businesses save cash by completely eliminating the need to purchase IP phones, analog telephone adapters, and VoIP gateways. Instead, businesses only need to use existing hardware that’s already in use.
For example, work phones were very popular in the early 2000s, but now, personal smartphones can be used for work calling—without the need to use personal numbers. Virtual direct inward dialing (DID) numbers are perfectly usable on personal devices with an internet connection, so agents can even receive international calls when they are in the field.
These applications help businesses avoid both data charges and long-distance fees. Additionally, agents who formerly commuted to work can now work exclusively from home while using their personal devices to carry out business communications.
VoIP Helps Businesses More Comfortably Reach New Markets
9. Businesses Save Up to 90% on International Calls With VoIP
In today’s world, even smaller businesses are taking advantage of the opportunities that come with expanding overseas. With legacy landline systems, the old-school copper wire telephone systems made overseas communications expensive due to upkeep costs. With many VoIP providers, VoIP international calls tend to be much cheaper thanks to the presence of the sprawling internet network that connects the globe.
For example, Verizon has calling plans to places like the United Kingdom for as little as 8 cents per minute. A quick look at our VoIP international calling piece will show you that you can call England for as little as 1 cent per minute. In fact, this doesn’t account for providers with unlimited plans, like 8×8 and Ooma. With these, you won’t spend a cent extra when calling well over 20 countries.
VoIP Features Deliver Value
10. 70% of Companies Place Mobility as a Major Priority
The calling features inherent in a VoIP system make employees more agile. For example, if you have agents who often have to venture into the field or need to work from home, VoIP’s inherent mobility is a major advantage.
With VoIP, employees aren’t limited to desk phones. They can answer calls on laptops, on home computers, or on their Android or iOS smartphones. There are even several technologies offered by providers that help agents switch calls seamlessly between one device and another, like call flip.
Curious about the key features of a VoIP system that can help both you and your employees? Check out our guide on the top 20 VoIP phone features for business.
11. 57% of Small Businesses Rely on VoIP’s Call Routing & Handling Features
(Source: Software Advice)
Call routing is a business communications technology that’s offered by most providers. It places callers in the queues automatically and helps them reach the right person or department based on several predetermined criteria. Combined with automatic call distribution, these technologies help reduce call hold times and ensure that customer expectations are positive.
These features are often available at even base-level plans with some VoIP providers. For example, 8×8 offers intelligent call routing and an auto-attendant, even at the initial tier of service.
The writing’s on the wall: VoIP just has too many inherent business benefits to ignore. Its efficiency, inexpensive nature, and convenience ensure that modern businesses will only prosper when they adopt the technology.
Still looking to learn more? Take a look at our best VoIP apps guide to learn more about some of the front-runners in the industry. Most have free trials available, so that you can evaluate how well they’ll work for your business.