A virtual switchboard is, in essence, a cloud-hosted telephone exchange. It enables businesses to make and receive calls over the internet using VoIP (Voice over Internet Protocol).
Traditional switchboards, often associated with ‘the reception desk’, are typically PBX (Private Branch Exchange) networks that handle both incoming and outgoing calls. For outgoing calls traditional PBX connect to the public telephone network.
To note: the PSTN switch off
the Public Switched Telephone Network (PSTN) is being switched off by 31 January 2027. The Integrated Services Digital Network (ISDN) will also cease operating when the PSTN switch-off goes ahead.
As the PSTN system comes to the end of its operational life it will start to become more prone to faults. BT, for example, recommends businesses switch to fully digital services, like virtual switchboards, by the end of 2025; just 8 months away!
How does a virtual switchboard route calls?
Simply put, a virtual switchboard routes calls via the internet rather than through physical switches and cables.
The key component, therefore, of a virtual switchboard is a reliable and robust internet connection with the capacity to handle phone calls and your businesses other internet requirements.
To note: terminology
Virtual switchboards are often referred to by a range of different names including ‘virtual PBX’, ‘hosted PBX’ and ‘cloud PBX’. Whilst these names are often used interchangeably, there are differences in their implementation. These differences are outside the scope of this brief article.
How does a virtual switchboard handle calls?
Virtual switchboards can simply replace a traditional PBX system, with a receptionist handling incoming calls.
Alternatively, a virtual switchboard can use a feature called ‘Auto-Attendant’ to direct calls to the appropriate caller or department. You will probably have already encountered virtual switchboards using Auto Attendant, maybe without realising it.
The Auto Attendant provides an automated menu system – a series of options. A caller navigates their way through the menu system, which may be multi-layered, using their phone keypad or, possibly, their voice, to reach the person or department they need to speak to.
The claimed benefit of this approach is that it offers a more efficient, accurate and automated system. If not correctly set-up, however, it can sometimes feel that you are lost in a labyrinthine vortex, or in a maze which eventually just leads to the call disconnecting without having spoken to anyone.
What are the key features of a virtual switchboard?
Virtual switchboards have almost infinite flexibility and customisability. Some of the key features of a virtual switchboard are:
- Flexible call routing, transfers and forwarding
It is possible, using a virtual switchboard’s flexible call routing rules, to set up hunt groups, implement time-based routing (e.g. different rules for out-of-office hours) or skills-based routing.
Because it uses the internet, a virtual switchboard can transfer calls to any device with an internet connection. For example, physical VoIP desk phones, PCs or laptops with a softphone app, smartphones with a mobile app installed.
Many of Paperclip’s clients use virtual switchboards and route calls to Paperclip when, for example, a call hasn’t been answered within ten seconds (delayed divert).
- Call queues and hold management
If all lines are busy, a virtual switchboard can place a caller in a queue. For many people this immediately causes frustration, particularly if the wait appears indeterminate. Callers may be willing to wait to speak to their GP’s reception team, or have no option other than to wait as in the case of HMRC, but they may be reluctant to sit in your business queue. How long would be willing to wait?
The best form of queue management is to answer the call. This is where Paperclip’s call answering services can help.
- Voicemail (to email)
Most virtual switchboards are able to send a voice message to your extension’s ‘inbox’ as an audio file. This means you can listen to voicemails on, for example, your smartphone without having to dial in to a mailbox system.
A word of caution, however. The vast majority of callers opt not to leave a voicemail and, in many cases, don’t listen to the voicemails they receive either.
Rather than direct a caller, a caller who could be a prospect or an existing client, to a voicemail, direct them to Paperclip and we can respond to the needs of the caller.
- Caller screening
With a virtual switchboard you will normally see the incoming caller’s number, and if linked to a relevant database, their name. ‘Screen popping’ is what Paperclip uses to identify which of our clients an incoming call is for, and to tailor the greeting accordingly in line with the protocols agreed with the client.
- Call analytics
Virtual switchboards are software-based. They are able to log and monitor detailed call data: calls received, missed calls, call durations, wait times and more.
Call analytics are very valuable, but are frequently overlooked by many businesses. They are the cornerstone of Paperclip’s planning and also contribute to quality control.
Other features of virtual switchboards can include:
- Call recording
- CRM and other business software integrations
- Conference calling
The business benefits of virtual switchboards
There are many practical business benefits of using a virtual switchboard. These include:
- Cost savings
Unless, like Paperclip, your business is absolutely dependent on the phone and cannot afford for it to fail, there is no need for expensive on-site hardware; the brains of the virtual switchboard are in the cloud. Consequently, both initial set-up costs and ongoing operational costs are significantly reduced.
- Simple set-up, rapid deployment and scalability
Virtual switchboards are relatively simple to set up, although it is advisable to have initial support from your service provider. As they are cloud-based, virtual switchboards can be installed/deployed quickly and they can be scaled quickly without the need for additional hardware. New lines or features are typically implemented through a simple web interface.
- Mobility
With a virtual switchboard, you can make or receive business calls from any device. This ensures continuity regardless of location.
- Analytics
As mentioned earlier, virtual switchboards provide detailed analytics data which, if used correctly, can greatly improve the effectiveness of your business phone communications.
Other benefits claimed for virtual switchboards include:
- Business continuity
- International reach
- Integration capabilities
- Enables SMEs to offer call features traditionally associated with larger organisations.
What are the potential drawbacks of virtual switchboards?
There are a few potential drawbacks of virtual switchboards, but most can be mitigated:
- Internet dependency
You need to make sure your internet connection is reliable, stable and has sufficient capacity. If the connection fails or is unstable, call quality may drop and your system may, in extremis, become temporarily unavailable.
- Emergency calling limitations
This is something you would need to address with your virtual switchboard provider, to ensure you are covered for calls to 999 and other emergency numbers.
- Reliance on third-party providers
Your service quality and reliability will depend on your internet connection and your service provider. Ensure you use a trustworthy provider with a proven track record.
- (Short-term) Learning curve
If you switch to a virtual switchboard from a traditional PBX there will be a need to train users in the new system’s features. However, VoIP systems are not complex (unless you configure them to be so!) and the impact should be minimal.
When switching from a traditional PBX system to a virtual switchboard you will obviously be moving from a known cost base to the unknown. Your costs will typically be reduced, but make sure your provider clearly explains the costs involved both in the short-term and beyond.
Avoid the trap! The biggest lesson from this article...you still need to answer the phone!
For all their undoubted benefits and flexibility, virtual switchboards will not answer the phone for you. In fact, if you use a virtual switchboard’s queueing and Auto-Attendant features without care and attention, you do risk alienating your customers and prospects, albeit at a lower cost.
The key message from this article is that the key to good telephone communications is not down to technology. As it has always been, good telephone communications simply involve answering calls promptly, professionally, and effectively. If your business is struggling to do this, Paperclip can help.
Use your virtual switchboard wisely. Look at the call analytics and if you are dropping a significant number of calls – one dropped call may be too many – then transfer your calls, via your virtual switchboard, to Paperclip.
To find out more about Paperclip’s call answering and contact centre services, simply call me on 01246 418 181 or email at louise@paperclip.co.uk
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If you prefer information in a video format...
This video from American provider GET VOIP provides a good basic introduction to virtual switchboards:
Hi, I’m Louise Bellwood, Director at Paperclip. I am responsible for delivering Paperclip’s customer service and growth strategies for 2024 and beyond, I am a crusader for the benefits call answering can deliver for organisations of all kinds; customer service, sales generation, customer retention and more. If you have a question about call answering – pricing, set-up, benefits – I would love to hear from you at louise@paperclip.co.uk or 01246 418 181.