Cloud Telephony: What do small business owners need to know?

“There is no business strategy without a cloud strategy”

                              -Milind Govekar, VP, Gartner 

The post-pandemic era has encouraged small businesses to break traditional on-premises infrastructure limitations and move towards an agile and flexible approach. They’re determined to find ways to improve teamwork, connect with customers, and save money. Joining the digital transformation and using robust technologies like cloud telephony can help small businesses tackle these obstacles. It empowers them to deliver tangible and measurable business value by reducing costs, accelerating operational speed, and providing an exceptional customer experience. 

This blog post provides small businesses with comprehensive information regarding cloud telephony solutions, their operational advantages, and how to select the most suitable cloud telephony provider.

What is cloud telephony?

Cloud telephony, also known as VoIP-based hosted PBX solution, is a communication technology that enables voice and data services to be delivered over the internet through cloud computing infrastructure. Instead of using traditional telephone lines, cloud telephony leverages the power of the internet to transmit voice calls, messages, and other communication services. Essentially, it’s a phone system that runs over the internet.

Cloud telephony comes under the category of Unified Communication as a Service(UCaaS), and it’s a better solution to enhance the communication capabilities of small businesses that operate on a relatively small scale in terms of revenue, number of employees, and market reach. 

How does cloud telephony work?

• Making a Call

When a caller initiates a call, their voice is captured by the device’s microphone and transmitted to the cloud telephony service provider via the Internet. The cloud telephony service provider then routes the call to the recipient’s phone number.

• Routing the Call

Once the call is initiated, the cloud telephony service provider determines the best route based on the recipient’s phone number. If the recipient uses a traditional phone, the call is converted into an analog signal and routed through the Public Switched Telephone Network (PSTN). If the recipient uses VoIP, the call is routed over the internet to their device.

• Call Management

Cloud telephony service providers offer a range of call management features like call recording, call forwarding, voicemail, and interactive voice response (IVR). These features are managed through a web-based dashboard provided by the service provider.

• Data Integration

Cloud telephony integrates with customer relationship management (CRM) systems and other enterprise software to provide a seamless customer experience. When a call is received, the caller’s information is automatically displayed on the agent’s device’s screen, providing them with context to provide personalized service.

• Analytics and Reporting

Cloud telephony service providers offer real-time analytics and reporting on call volume, duration, and other metrics. This data can be used to optimize call center performance, track customer satisfaction, and identify trends to inform business strategy.

How is a cloud-based telephony system different from traditional PBX?

Employees, as the end users of telephone systems, may not notice significant differences between traditional PBX and cloud telephony at first glance. However, it is essential to recognize that cloud telephony and traditional PBX are fundamentally distinct approaches. Let’s delve into the key disparities that set them apart.

Using Cloud Telephony advantages to address small businesses’ communication challenges

Small businesses face various communication challenges that can hinder their operations and growth. Let’s explore some common challenges faced by businesses and how cloud telephony helps overcome them:

• Limited resources and infrastructure

Small businesses have tighter budgets. Cloud telephony offers a budget-friendly solution by eliminating the need  for on-premises equipment, installation expenses, and hardware maintenance expenses with cloud telephony, small businesses get access to advanced communication capabilities at a great price point.

• Scalability and flexibility

Small businesses require communication systems that can adapt and grow alongside their expanding operations. With cloud telephony, businesses can effortlessly scale up or down as needed by adding or removing phone lines, adjusting capacity, and accommodating changing communication requirements..

• Mobility and remote work

The increasing prevalence of remote work and mobile workforces requires communication solutions that enable uninterrupted connectivity regardless of location. A study by AT&T reveals that the hybrid work model is expected to grow by 81% by 2024. Cloud telephony offers mobility features, enabling employees to make and receive calls using their mobile devices or laptops. This empowers them to stay connected and ensures uninterrupted communication, regardless of their physical whereabouts. Cloud telephony enables remote workers to access the same communication capabilities as their in-office counterparts, fostering collaboration and productivity in the modern work landscape.

• Projects professional and ensures exceptional CX

Projecting a professional image and providing exceptional customer service is paramount for small businesses. This is further emphasized by the fact that 84% of companies prioritizing their customer experiences observed a rise in revenue. Cloud telephony facilitates this through various features, including virtual phone numbers, call routing, white labeling, IVR (Interactive Voice Response), and call recording. These capabilities elevate professionalism, ensuring calls are handled efficiently and enhancing customer experience. Virtual phone numbers enable businesses to create a local or toll-free presence. At the same time, call routing directs calls to the most appropriate agents. IVR systems offer personalized greetings and menu options, streamlining the customer journey. White labeling supports customisation according to the business’s logo, colors and visual elements, seamlessly integrating it with their existing brand identity. Additionally, call recording enables businesses to review interactions for quality assurance and training, further improving customer interactions. 

• Business continuity and disaster recovery

Small businesses require communication systems to withstand unexpected disruptions and maintain business continuity. One such example of disruption is the COVID-19 pandemic, where small businesses experienced a 50% loss in revenue.

Cloud telephony provides a reliable solution by leveraging redundant, geographically distributed servers. This architecture ensures 24*7 support and minimizes downtime in the face of power outages, natural disasters, or hardware failures. With cloud telephony, small businesses can confidently navigate through unforeseen events as the system remains operational, calls can be redirected, and communication channels remain intact. This resilience contributes to uninterrupted operations, seamless customer service, and quick recovery from unforeseen disruptions.

• Integration with business applications

Small businesses rely heavily on diverse applications to enhance productivity and manage customer relationships effectively. Cloud telephony seamlessly integrates with these applications, including CRM systems, help desk software, and collaboration platforms. This integration brings numerous benefits, such as improved efficiency, automated workflows, and enhanced customer experience. By integrating cloud telephony with existing business applications, small businesses can streamline communication processes, automate call logging, access customer information during calls, and foster seamless collaboration across teams. This integration ensures a more cohesive and efficient workflow, leading to enhanced productivity and a higher level of customer satisfaction.

• Increased security concerns

Cloud telephony providers employ robust security protocols, including data encryption, secure access controls, and regular system monitoring, to safeguard communication channels and sensitive information. With cloud telephony, small businesses can benefit from the expertise and resources of the service provider. These providers often have dedicated security teams and infrastructure in place to ensure data privacy and protection. This enhanced security helps alleviate concerns about unauthorized access, data breaches, and fraudulent activities, providing small businesses with peace of mind and confidence in their communication systems.

How to choose a cloud telephony provider?

After realizing the benefits of adopting a cloud telephony solution, it’s time for small businesses to know how to choose the best cloud telephony provider that suits their needs.

• Quality of service and established reliability 

The reliability and quality of service are crucial factors to consider when choosing a cloud telephony provider. It’s essential to have high uptime and redundancy to ensure that your phone system works seamlessly. While pricing and features are essential, more is needed if the provider can guarantee that your phones will work when needed.

To ensure high uptime, verifying the provider’s status page and checking their track record is important. For instance, Tragofone offers 24/7 network monitoring to detect issues before they impact your business. This way, you can be sure of a reliable and uninterrupted service.

• Security and adherence to industry standards 

After ensuring uptime and reliability, security is another critical factor to consider when choosing a cloud telephony provider. It is essential to check if the provider offers call encryption, which establishes high-grade security for every call using Transport Layer Security (TLS) and Secure Real-time Transport Protocol (SRTP).  A provider like Tragofone guarantees robust encryption for all calls, ensuring your operations remain secure from any breaches. 

• Diverse features and smooth integration options

Understanding your specific business needs is crucial when considering the implementation of cloud telephony. Evaluating phone system features and integrations becomes essential in fulfilling those needs. Tragofone, for instance, offers an auto-provisioning feature in their cloud telephony solution. This eliminates the need for manual configuration, streamlining the deployment and management of communication devices, ultimately enhancing efficiency and ease of use.

Leave obsolete phone systems and switch to cloud telephony 

Cloud telephony offers cost savings, improved productivity, and enhanced resilience while serving as a centralized hub for business communications. Traditional phone systems can hinder small businesses by impeding operations, increasing expenses, and diminishing customer and employee experiences. Partnering with a reputable provider like Tragofone can help small businesses address these challenges. With features like the white label, business owners can personalize and brand cloud telephony solutions according to their specific requirements. This ability to customize the cloud telephony solution to their specific requirements gives business owners greater control and adaptability.