buying a phone system for your small business, consider that it’s all about the acronyms. For example: Do you know a KSU from a VoIP? Before you buy, it’s good to understand the differences among the types of systems and the terminology used, otherwise you may find yourself drowning in alphabet soup.
Here are some of the terms and features that you need to consider when buying a phone system for your small business. Key Services Unit (KSU) In the more old-school in-office systems, a key system is typically used for employers with five to 40 employees. A key services unit (KSU) enables ordinary phones to handle multiple lines and make calls to other in-office extensions. KSU-less systems are a cheaper option for companies with fewer than 10 people: The phones contain the technology, and the system is not permanently wired into the office space. Private Branch Exchange (PBX) PBX systems fit companies with more than 40 employees, or companies that need more advanced, customizable options. Bulky PBX systems in closets are things of the past: With improved technology, the newer models can fit comfortably on a shelf or a desk.
There are technical differences between KSU and PBX systems, but essentially, the physical system sits somewhere on-site. Both options require professional installation, configuration, and maintenance, and in most cases, the existing phone wiring will be adequate. Both KSU and PBX require a traditional existing landline with a local phone company. At this point, PBX systems are offered as part of a unified communications system that may also include features like instant messaging, fax services, and video chat. Voice Over Internet Protocol (VoIP) VoIP systems have dramatically improved since we covered them a decade ago. A lot has changed since Andrea Piero wrote this excellent piece in 2007. As service has improved, sales of the various products have exploded. Instead of using a traditional phone line, VoIP phone services uses a computer network, either with a standard phone or an adaptor, and broadband internet services.
VoIP phone systems involve dedicated equipment installed in a business that routes calls over the computer network. On-Premises or Cloud-Based VoIP Companies doing business via VoIP can have the hardware on-site (like a PBX) or can use a hosted VoIP system that solely relies on the cloud and off-site equipment. On-premises VoIP allows for a greater level of control, but comes with increased set-up costs, and the possibility that maintenance costs will increase. The trade-off is that the business controls the majority of what happens, but that requires an investment in well-trained IT personnel.
VoIP hosted services may cost less initially, with lower maintenance costs but a higher risk of increased monthly costs. All the upgrades to the system are done by the phone company, but that means that the company is in charge of what happens with your phone business. With the advances in VoIP, the tradeoff of the flexibility may have smaller offices upgrading from KSU or PBX as soon as their hardware becomes outdated. A cautionary note: VoIP service is usually only as good as your internet service provider. Seamless service requires a substantial amount of bandwidth, and there are still some areas of the country where access is spotty. If there’s an outage, your VoIP service provider will be scrambling to route calls through another area where the service is clear. If you need more information, a lot of what’s in our 2007 piece on this technology is still relevant. Virtual Phone Systems Virtual phone systems require no equipment, special Internet-quality phones or special wiring. Essentially, the system is a high-tech call-forwarding service that provides employees the ability to work from a workstation, on vacation, or pretty much anywhere. Traditional Landlines A landline telephone uses telephone wire or fiber optic telephone lines to transmit the sound waves we know as phone calls.
Just buy a telephone from a store or provider (AT&T, Sprint, etc.), plug the phone into the jack that’s already in your wall, and you’re ready to go with the phone number that you carry with you, or the one assigned by your carrier. System Features Some of the features of small business phone systems are designed to help owners and their employees work smarter and faster. Don’t ever want a call unanswered during the business day? There’s a feature for that. Want to be able to respond to messages via text or email? There’s a feature for that, too. Here are some of the system features you can choose from when selecting a new phone system for your business: Voicemail is a necessity these days, as it’s the best way to receive detailed messages - that’s assuming people have the patience to leave a message.
But accessing voicemail assumes that the receiver is sitting still with pen and paper in hand to transcribe message and number. Voicemail-to-email, voicemail-to-text, and voicemail transcription all do the same thing: they provide the user a quickly transcribed version of the conversation in a way that allows the user to respond more easily than dialing the caller back. Be aware that some of these services may already be offered free of charge via Google Voice. Transcription services and voice-to-email may also allow users to send the transcribed message to other employees as well. Call forwarding and call queues are priority features if never having a phone call go unanswered is important to you.
Call forwarding directs an inbound call to a designated phone or cell phone (if someone’s off on vacation, their calls can automatically go to the employee who’s covering for them). Call queues allow your system to search for the next available person to take the call, so instead of having an operator transfer a call manually, the call will be held until a staff member can answer it. Call recording does exactly what its name suggests: a call is recorder as a digital audio file. It differs from call logging or tracking - those services record details about the call (time, length, etc.) but not specifically the conversations. Local and toll-free numbers may be critical if you do a substantial amount of business out of state or out of the country. With the proliferation of cell phones, “long distance” may be a thing of the past. However, a local number makes your business seem like part of the community, while a toll-free number allows anyone to reach you on your dime, not theirs. Be sure that if you go the VoIP route that you can use your existing number.
If you’re being given a recycled toll-free number, discuss reimbursement for calls you receive that should have gone to the business previously associated with the number. Interactive voice response (IVR) is an automated system which allows your business to create a web of menus which callers can navigate by pressing keys or speaking in response to a prompt. Automated attendants function similarly to IVR, although an automated attendant is likely to use a simpler protocol than IVR. Interoffice instant messaging has become de riguer (via email or other applications like Facebook). You can have this service on your phone system as well, for those simple questions that doesn’t need a call or a face-to-face chat. Remember that apps like GroupMe may offer the same kind of service for a smaller office. Conference calling is desirable in these days of virtual meetings, and possible with VoIP, your internet provider, or the computer software you use (like Google). Extension dialing allows both outside and inside callers to reach employees via a dedicated, usually two- or three-digit set of numbers dedicated as that employee’s phone extension.
With VoIP providers, your extension can ring via the magic of call forwarding even if you’re not in the office. Ring groups spread out the volume of among employees, usually in a designated department. Phone calls directed to a ring group can be answered by anyone in the group, or a designated order for the extensions (like a tree) can be reprogrammed. Directory assistance is useful if you have a caller who is averse to or just unsure of all the other options provided by call queuing, or who perhaps doesn’t want to to leave a voicemail. Because at the end of the day, sometimes people just want to press “0.” Call transferring simply changes the location of a phone call through the use of mechanism that forwards a call to another extension. Most newer phone systems make the transfer as simple as pushing a clearly-marked transfer button, then dialing the digits of the receiving extension.
Internet faxing may replace bulky free-standing facsimile machines, because there may be times that receiving and sending original documents is still critical to business. However, consider that Google’s ability to share documents seamlessly may be adequate. Call reports are stored in the Cloud with VoIP systems, to allow the recipient, or anyone else with proper credentials, to retrieve this data. Call monitoring is another feature that’s become the norm for business phones. You’ve heard the phrase “This call may be monitored for quality assurance purposes,” right? That’s the business alerting the customer that the call is being monitored for a set of metrics that will help the business ensure quality service. Honesty, adaptability, and accuracy are a few of the metrics you can set for your business. Missed call notifications can take the form of an email or simply show the number missed when someone calls but doesn’t leave a message. Your employee can follow up if the contact is important. Coupled with you cellphone’s directory identification, this may be a powerful screening tool. Video conferencing connects two or more people in separate locations for a live video connection.
Your VoIP provider’s ability to produce high-quality, real-time streaming may be affected by the strength and quality of your IP bandwidth. Applications like Google Hangout, Microsoft’s Skype and others may already provide your small business this service. Online meetings minimize the need for individuals to be in the same place at the same time, and may be a bonus that a VoIP system offers . Cisco’s WebEx Meeting Center allows up to 25 people to connect at a time for under $50 per month. GotoMeeting and other companies may provide a less expensive, add-on connection if your small business only needs to link 10-15 people episodically. Customer Relationship Management (CRM) is a group of applications that help businesses analyze customer history to help maintain customer relationships, and track sales and engagement, among other things. Microsoft Outlook, Sales force and many Google services all are part of CRM. Some VoIP products include CRM features, while others specifically work with the features (like Sales force) that you may already have. Make sure that the provider explicitly spells out how the system will coordinate with the CRM options you have or want. When considering all these options, keep in mind that there may be a “free trial period,” and then the subscriber will have to pay for the continuing convenience. Additionally, pay attention to the contract - some companies offer unlimited voicemail transcriptions and teleconferences, while others charge more after a certain amount each month. Editorial Disclosure: Inc. writes about products and services in this and other articles.
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