Even in today’s modern environment, businesses still need a phone system to function. Many customers, clients, and partners actually still prefer phones over other communication options like chats, email, or texting when dealing with business matters.
Business phone systems are great for managing incoming and outgoing calls and, depending on the setup, can include a ton of features. Choosing the right business phone system depends on the specific business, and we will go into that a little further below.
Types of Business Phone Systems
There are three main types of business phone systems:
- Key System Units or KSU
- Private Branch Exchange or PBX
- Voice Over Internet Protocol or VoIP
Key System Units or KSU
This is the most simple of the business phone system types. Key System Units are very similar to home telephone setups in that they use physical, wired-in phones. This means there are physical phones on a person’s desk, but all the phones in a business are connected through a central control device to route calls.
KSUs are also called multi-line telephone systems, and they have features like hold line, speakerphone, intercom capability, voicemail, conferencing, and paging. They are typically used by smaller businesses that do not need more built-out features and are limited to only forty phone lines.
Key System Units are not super fancy, but they have proven to be sufficient for many business needs. They are also relatively cost-effective and do not rely on the internet since they use good old-fashioned phone lines.
The biggest cons with a KSU are that there is no portability (meaning it’s physically connected to a building/single location). A business can easily grow out of this system, and this setup relies on what many consider “old” technology. There are even rumblings of multi-phone lines being phased out as technology advancements in communication continue to expand.
Private Branch Exchange or PBX
The next level of business phone systems is Private Branch Exchange. PBX operates through an automated switchboard and is controlled by a hardware setup installed at the place of business or hosted by a service provider. Similar to KSU setups, PBX systems also involve physical phones.
PBX setups can be custom designed, which is highly desirable and can include many features beyond what a simple multi-line setup provides. These advanced features enhance a business’ security, internal communication processes, and external interaction satisfaction. Features such as automatic incoming call routing, no line limits, call monitoring and recording, customized call menus, and least-cost routing are all options with PBX.
PBX is also popular with businesses interacting with customers, clients, and partners internationally. Many hotel brands use PBX, and if you have ever “dialed 9” to make a call, odds are you were using a PBX system.
The biggest cons of PBX are that it is arguably the most expensive type of phone system. It relies on power and the internet, and advanced features mean there is a different level of training and oversight needed.
Voice Over Internet Protocol or VoIP
KSU and PBX systems are both limited by being on-premises (or in PBX’s case, the system can potentially be hosted by a telephone provider) and needing physical phone stations. Voice Over Internet Protocol Systems utilizes internet technology and bypasses landline networks completely.
Welcome to the world of cloud-based business phone systems.
VoIP uses the internet to handle all incoming and outbound calls. This newer technology is quickly gaining traction, and a vast majority of businesses worldwide are switching to VoIP systems. Cloud-based technology allows for companies to operate across the world, from home or the office, and includes a whole set of advanced features.
They include the ability to be used across multiple devices (desktops, laptops, tablets, and even smartphones), online call reporting and automatic data analysis, instant messaging, video conferencing, and integration into other cloud-based software like customer relationship management systems (CRM systems).
Voice Over Internet Protocol Systems are typically priced per user, so that the cost can vary greatly depending on the size and needs of a company. The biggest cons of VoIP setups are that they rely on the internet and power, and have been subject to cyberattacks.
Factors to Consider When Choosing a Business Phone System
Businesses have a lot to choose from when deciding what business phone system is the best for their employees, staff, and overall company growth plans/goals. There are many factors to be taken into consideration:
- What is the current staffing plan vs. growth plan? The right setup for your company now could be obsolete in a year or three years. You want to choose the business phone system that will grow with your company over time to maximize the investment, installation, and training time/costs.
- What is your phone system process? Do you have a receptionist vs. a call team? What are the communication protocols and guidelines in place when you have incoming calls? Outbound calls? You want a business phone system that supports all the complexities here.
- Is your business more locally-based or across multiple cities, states and regions? How about business internationally?
- What do you want your customer/client/partner experience to be when they call your business? You want to think through all of the features available to your market.
How Often Should You Upgrade?
Physical phones are quickly becoming a relic of the past, and business phone system technology is constantly advancing and changing. To truly have the best setup for your business, we suggest assessing your phone system at least once a year. This will allow business owners to zoom in on what is working and what is not, understand the current volume compared to past trends, discuss bottlenecks, and forecast future needs/usage.
If your current system is not working or is having problems, it’s time for an upgrade. If the current system doesn’t provide your staff and customers with the best experience possible, it’s time to upgrade. If you are growing too fast for your existing phone system to keep up, it’s time to upgrade.
You want your phone system to be up to date and to have all of the available features to help your business thrive and operate smoothly. Therefore, upgrades are an ongoing piece of choosing the right system.
Contact Us
If you have any questions about business phone system types, pros, cons, etc., you’re not alone. Contact KDI today to learn more about our services and how we can help your Philadelphia, eastern Pennsylvania, New Jersey, or Delaware company with the best phone system setup for your needs.