Virtual Phone System: Benefits, Features, & Top Providers in 2023 - All About Virtual Phones for Business

Virtual Phone System: Benefits, Features, & Top Providers in 2024

In an era where flexibility and adaptability are crucial for business success, virtual phone systems have emerged as game-changers. Revolutionizing the way businesses communicate, these systems offer unparalleled benefits that cater to organizations of all sizes. Are you ready to take your business communication to the next level with a virtual phone system? Join us as we explore the world of virtual phone systems, their key components, top features, benefits, and how to choose the right one for your business.


Key Takeaways

  • Virtual phone systems provide businesses with flexibility, cost-effectiveness and automation capabilities.


  • Features such as IVR, call recording & team collaboration tools enable streamlined communication processes & improved productivity.


  • Select the right virtual phone system for your business by assessing features, pricing plans & scalability options to ensure seamless communication.


Understanding Virtual Phone Systems

Virtual Phone System: Benefits, Features, & Top Providers in 2023 - Understanding Virtual Phone Systems

Gone are the days of traditional landlines and their limitations. Virtual phone systems have taken center stage, enabling seamless communication through the internet and cloud-based services. By utilizing a broadband internet connection, these systems have eliminated the need for miles of copper wiring, bringing flexibility and cost-effectiveness to businesses, while also making the transition from a traditional landline to a cell phone much smoother.

Compatibility is the name of the game with virtual phone systems. They work with any assigned phone numbers you own and support toll-free numbers as well. Moreover, they can be accessed through different devices, such as mobile phones, desktops, and laptops. This versatility allows businesses to be more agile and better equipped to handle an increasingly remote workforce.

Cost is always a concern for businesses, and virtual phone systems deliver on that front too. The virtual phone system cost typically ranges from $17 to $80 per user per month, offering a cost-effective alternative to traditional phone systems. Talkroute takes savings a step further by offering all-inclusive pricing plans with additional users only costing $5 per user per month.

The inner workings of virtual phone systems rely on internet protocol (IP) to transmit calls and data, making them a modern alternative to traditional business phone systems. With automation capabilities like menu and text messaging, businesses can manage calls and improve communication efficiency. As more businesses embrace this technology, it is essential to understand the key components that make these systems so powerful.


Key Components of a Virtual Phone System

Virtual Phone System: Benefits, Features, & Top Providers in 2023  - Key Components of a Virtual Phone System

Businesses aiming to tap into the full potential of virtual phone systems must grasp their essential components. These systems are built upon three main pillars: call forwarding, VoIP technology, and cloud-based infrastructure.

The forthcoming subsections will delve into each of these elements, highlighting their role in facilitating smooth communication.


Call Forwarding

Call forwarding in a virtual phone system enables the redirection of calls to alternate phone numbers or devices, ensuring that no call goes unanswered. This feature brings numerous benefits to businesses, such as:

  • Increased flexibility for team members both in and out of the office

  • Decreased number of missed calls

  • Guaranteeing that callers can communicate with a live representative to enhance first-call resolution rates

Talkroute, a virtual phone system provider, offers the “ring in sequence” feature which enables call routing based on a specific order. This ensures that even if an employee is away from their desk, incoming calls will be forwarded to their mobile device or another designated number. Additionally, Talkroute’s call filtering allows users to create lists to block spammers and route incoming calls based on customizable schedules.

Larger businesses and crowded call queues can sometimes lead to extended wait times for customers. Call forwarding and routing features help alleviate these issues by distributing business calls efficiently and ensuring that customers receive the attention they need. Furthermore, businesses can set up custom greetings and interactive voice response (IVR) systems to guide callers to the appropriate department or representative.

In essence, call forwarding plays a vital role in streamlining business communication and enhancing customer satisfaction. The implementation of this feature in your virtual phone system guarantees uninterrupted connectivity for your employees and customers, irrespective of their location or device.


VoIP Technology

Voice over Internet Protocol (VoIP) technology is the driving force behind virtual phone systems, enabling voice communication over the internet. This technology has opened new avenues for businesses to communicate efficiently and cost-effectively. By leveraging VoIP, businesses can bypass traditional phone lines and tap into the power of internet-based communication.

One of the significant benefits of VoIP technology is its compatibility with SIP trunking, which virtually connects PBX hardware and VoIP phone lines for businesses with their own IT staff and on-premise equipment. This integration offers a cost-effective and efficient way to manage business phone systems without investing in additional infrastructure.

Advantages of VoIP technology are numerous. One such great feature is visual voicemail. It automatically transcribes missed voice messages on top of making audio attachments available for consumers. This feature streamlines the process of managing voicemails and allows agents to prioritize their responses more efficiently. Agents can access their voicemail messages through the voicemail portal, where they can listen, save, or delete the recordings as needed.

To summarize, VoIP technology, a vital part of virtual phone systems, presents businesses with an opportunity for:

  • Seamless & cost-effective communication

  • Improved communication capabilities

  • Adaptation to the ever-changing dynamics of the modern workplace

By embracing this technology, businesses can improve their communication capabilities and adapt to the ever-changing dynamics of the modern workplace.


Cloud-Based Infrastructure

The cloud-based infrastructure of virtual phone systems underpins their scalability and flexibility in managing phone systems. By leveraging cloud-based resources, businesses can eliminate the need for on-premise equipment and IT management, while still enjoying the benefits of a sophisticated communication system.

Hosted PBX, a key aspect of cloud-based infrastructure, refers to a virtual phone system operated by a third-party vendor with offsite equipment. This setup allows businesses to focus on their core operations without worrying about software, equipment, updates, or IT issues. The cloud-based infrastructure delivers a cost-effective, scalable, and flexible solution for managing phone systems.

Cloud-based infrastructure is a combination of hardware and software components that enable cloud computing. This includes:

  • Servers & Storage

  • Networking

  • Virtualization resources

These components work together to provide a seamless communication platform for businesses. By leveraging cloud-based infrastructure, businesses can grow and adapt their phone systems with ease, ensuring that they remain competitive in the ever-evolving business landscape.

In short, the cloud-based infrastructure, a fundamental aspect of virtual phone systems, equips businesses with the necessary agility and scalability for success. Embracing this technology can help businesses optimize their communication systems and stay ahead of the curve in an increasingly connected world.


Top Features of Virtual Phone Systems

Virtual Phone System: Benefits, Features, & Top Providers in 2023  - Business phone system with multiple features

Virtual phone systems come packed with a variety of features that cater to different business needs. Some of the most notable features include interactive voice response (IVR), call recording, and team meeting tools. These features not only enhance the functionality but also enable businesses to streamline their communication processes.

IVR usage, for example, allows businesses to set up automated menus and payment systems for callers, guiding them through different options with the help of their phone keypads or voice input. This feature helps businesses manage incoming calls efficiently and ensures that customers receive the assistance they need without delay.

Call recording is another powerful feature that can benefit businesses in various ways, such as maintaining records for compliance purposes, training employees, and improving customer service. With virtual phone systems, call recording can be easily enabled, and privacy can be maintained by safeguarding recordings with a password or pausing and resuming the recording at different points during a conversation.

Team meeting tools offered by virtual phone systems help businesses work more efficiently by providing features such as:

  • File sharing & Co-annotating files

  • Transitioning from chat to video call

  • Using a whiteboard OR Taking remote control of another user’s screen

These tools enable seamless communication and collaboration within the team, resulting in improved productivity and faster decision-making.


Benefits of Using a Virtual Phone System

Virtual Phone System: Benefits, Features, & Top Providers in 2023  -  Business phone system with multiple benefits

The advantages of using a virtual phone system are manifold. For starters, businesses can save up to 65% on their communication expenses compared to traditional phone systems. Virtual phone systems eliminate the need for service contracts, IT costs, weather outages, and obsolete hardware maintenance, resulting in significant cost savings.

Setting up a virtual phone system is a breeze, with most systems being established online in less than 1 hour. This quick setup allows businesses to get started with their new communication system without any delays, ensuring a smooth transition from traditional phone systems.

Increased team collaboration is another significant benefit. By integrating the system with other business tools, such as CRM software and team collaboration platforms, businesses can improve communication and streamline their workflow. They provide employees with the flexibility to work from any location using their laptop, mobile device, or desk phone, ensuring that remote work is seamless and efficient.

Virtual phone systems can provide businesses with substantial benefits, including cost savings, straightforward setup, and enhanced team collaboration. By adopting this technology, businesses can optimize their communication processes and stay ahead in today’s fast-paced business environment.


Choosing the Right Virtual Phone System for Your Business

Choosing an appropriate virtual phone system for your business is vital to fully leverage its benefits. It’s essential to consider factors such as compatibility with your devices, advanced features, and cost when making your decision. Doing thorough research and comparing providers can help you make an informed choice that best meets your needs.

One aspect to consider when choosing a virtual phone system is the availability of advanced features such as:

  • Condition-based routing

  • Call recording & Call queueing

  • Interactive voice response (IVR)

  • Desktop, web, and mobile apps

These features can significantly enhance the functionality of your phone system and help your business stay competitive.

Another important factor to consider is the pricing structure of the virtual phone system. Different providers offer varying pricing plans, and it’s essential to choose a plan that fits your budget and business requirements. Additionally, check for any hidden costs or fees that may be associated with the chosen provider.

Finally, assessing the customer service and scalability options provided by the virtual phone system provider is of paramount importance. As your business grows, your communication needs may change, and it’s crucial to choose a provider that can adapt and scale its services to meet your evolving requirements. By considering these factors, you can choose the right virtual phone system for your business and ensure seamless communication and efficient operations.

Top Virtual Phone System Providers in 2023

Virtual Phone System: Benefits, Features, & Top Providers in 2023  - Business phone system being set up

In 2023, several providers stand out as the best virtual phone system options, each offering distinct features, pricing plans, and tailored services for varying business requirements. Some of the most popular providers include Talkroute, RingCentral, and 8×8.

Talkroute is an excellent option for small teams and startups, offering an affordable phone system with essential features such as call forwarding, business text messaging, call recording, and video meetings. Additionally, Talkroute offers apps for desktop, web, and mobile devices so your team can truly work from anywhere.

When selecting the most suitable virtual phone system provider for your business, comparing the features, pricing, and services of each contender is crucial. This will help you make an informed decision that best meets your unique needs and requirements.

Setting Up a Virtual Phone System

Virtual Phone System: Benefits, Features, & Top Providers in 2023  - Business phone system integrated with other business tools

The process of setting up a virtual phone system is uncomplicated and can be accomplished in a few simple steps. First, select a business phone number for your company. This can be an existing phone number or a new one provided by your virtual phone system provider.

Next, evaluate the system by making test calls to ensure that everything is functioning correctly. This will help you identify any issues that may need to be addressed before the system goes live. Once you’re satisfied with the system’s performance, program greetings for incoming calls. This can include:

  • welcome OR after-hours message

  • on-hold music

  • voicemail message

Some virtual phone system providers, such as Talkroute, offer customization options for greetings, allowing you to use an audio file or text-to-voice options with pre-recorded voices in different accents. Additionally, Talkroute will guide you through the setup process with a list of items to complete, making it easy to get your virtual phone system up and running.

Once your virtual phone system is set up, you can start enjoying the benefits of seamless communication, cost savings, and increased team collaboration. With the right virtual phone system in place, your business will be well-equipped to thrive in today’s competitive market.


Tips for Getting the Most Out of Your Virtual Phone System

To optimize your virtual phone system’s efficiency, it’s crucial to utilize its comprehensive range of features and capabilities. For example, make use of call forwarding and routing options to ensure that incoming calls are directed to the appropriate department or representative. This not only streamlines your communication process but also helps improve customer satisfaction.

Another tip for getting the most out of your system is to regularly monitor its performance and adjust its settings as needed. This can help you identify any issues that may be affecting your system’s efficiency and make necessary changes to improve its overall performance. Stay up-to-date with the latest updates and features offered by your virtual phone system provider to ensure that you’re always using the most advanced and efficient tools available.

Utilize the integrations offered by your virtual phone system to connect it with other business tools, such as CRM software and team collaboration platforms. This will help streamline your workflow, improve communication, and increase productivity across your organization.

Finally, invest in training your team on how to use your virtual phone system effectively. Ensuring that all employees are familiar with the system’s features and functionalities will help maximize its benefits and ensure a seamless communication experience for your business.

Ready to get started?

Talkroute’s virtual phone system gives you the power of an enterprise-level phone solution without the cost or the need for complex onsite infrastructure. Now your team can talk, text, and meet from one easy-to-use app that works with any browser, desktop, or smartphone. Try Talkroute for free for 7 days.


In conclusion, virtual phone systems have revolutionized the way businesses communicate, providing cost savings, scalability, and flexibility. By understanding the key components, features, and benefits of these systems, businesses can make informed decisions when choosing the right virtual phone system for their needs. Additionally, integrating with other business tools and optimizing their performance can significantly enhance overall productivity and efficiency. Embrace the power of virtual phone systems and propel your business toward success in today’s competitive landscape.


Frequently Asked Questions

How much does it cost to have a virtual phone system?

Virtual phone systems generally cost between $10 and $50 per month per user, and some providers offer discounts for longer contracts. VoIP systems usually cost between $99 and $400 per extension plus an additional monthly fee of $20 to $30 per extension. Adding virtual phone numbers to an existing VoIP system can cost as low as $5 to $10 per number per month.

Talkroute starts at $19 per month and additional users are $5 per month each.


What is a virtual telephone?

A virtual phone number is a telephone number that is not linked to a specific device, but rather powered by VoIP technology over the internet. It allows users to route calls from one number to another number, IP address, or device, and make and receive calls through the internet and the cloud. This makes it a great tool for businesses that need to stay connected with customers, partners, and employees. It also allows for more flexibility in terms of where and how calls are made and received.


How do I setup a virtual phone?

Sign up with a VoIP provider, select a phone number, and assign it to an agent, and you’ll be ready to start making and receiving calls from your virtual number. Texting and other features are also available.

What is a virtual phone system?

A virtual phone system is a cloud-based communication platform enabling businesses to make and receive calls over the internet, rather than traditional landlines. It can be used by companies of any size.


How do virtual phone systems work?

Virtual phone systems use the internet instead of traditional phone lines to make and receive calls, providing businesses with a modern and effective alternative to traditional systems. This modern alternative offers businesses a range of features, such as call forwarding, voicemail, and conference calling, that are not available with traditional phone systems. It also allows businesses to save money in many ways, that way you can put the cash towards building your empire!




Stephanie is the Marketing Director at Talkroute and has been featured in Forbes, Inc, and Entrepreneur as a leading authority on business and telecommunications.

Stephanie is also the chief editor and contributing author for the Talkroute blog helping more than 100k entrepreneurs to start, run, and grow their businesses.

StephanieVirtual Phone System: Benefits, Features, & Top Providers in 2024