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VOIP vs. Landline: 6 Stats That Prove Why VoIP is Better

It’s a battle we are often asked about: Voice Over IP versus landline phone… which one is better?

It is not a secret that Voice Over IP (or VOIP) is a cloud-based telephony solution that’s here to stay. Each year, more and more businesses and private consumers are signing on to this technology and saying good-bye to landlines for ever. So, there must be something to it.

The reality is that VoIP is more flexible, user friendly, efficient, and affordable than traditional phones. Overall, VoIP for business is better vs. landline phones. But you don’t have to take our word for it.

Here are 6 statistics about VOIP that might provide the answer to the question “Is VoIP better than landline phones for my business?

  1. 82% of businesses reported cost savings with VOIP

This is the number one reason why the choice of VoIP vs. landline phones is clear: VoIP saves your business money.

Over two-thirds of all businesses polled in a Microsoft survey reported that, when moving from traditional landlines to VOIP phones, they realized savings. The cost reduction came from direct savings versus the cost of landline phones, including set up (there is no wiring work, when you use VOIP phones), maintenance, and monthly service fees, but also through added efficiencies, because cloud-based telephony provides the flexibility that benefits remote and mobile workers (COVID work from home, anyone?) and improves collaboration.

  1. Remote employees exceed a 40-hour work week 43% more than on-site employees

Another key reason why the battle of VoIP vs. landline phones is won by Voice Over IP is its ability to move with your employees, without changing a single cable or line.

While many businesses were faced with the uncertainties of work from home (WFH), and feared that productivity would suffer, it turns out that most remote employees actually work longer hours when operating remotely. An Owl Labs survey found that to be true 43% of the times; this is probably due to the difficulty employees have in separating work and non-work activities, when most of the workday is spent at home. While the longer hours can actually produce burnout and should, for this very reason, be capped, this statistic shows that remote work should not be a productivity concern, especially when VoIP technology allows businesses to continue receiving calls even if their workers are not physically in the office.

  1. 83% of companies have lost business or had to terminate an employee due to communication issues

The right communication is at the heart of good business. Just the same, bad communication can cost businesses a lot of money, and can cost employees their job. It is vital to a company’s success that communication processes be clear and flexible. 2020 has showed how companies that cannot quickly adapt their communication processes and technology are more prone to losing business and revenues. But communication does not have to be fragmented, especially if a business is equipped with the flexibility of VoIP telephony (source: Nextiva).

  1. Voice Over IP (VoIP) saves businesses 32 call minutes, daily

Time is money. We all know that. Your telephone system should be able to ensure full availability all the time, but landlines are not designed to adapt quickly to loads or reduce manual, repetitive tasks through custom routines. When your small business switch to VoIP, you are able to customize your service and your tasks to fit your needs.

A VoIP cost study found that businesses with at least 30 phones can save a total of $1200 or more a month, when they switch to VoIP for business from landline telephones. Large businesses realized even bigger savings, with some saving millions of dollars a year.

  1. Call centers can reduce Average Handle Time by 40% with VoIP reporting

Companies that rely on their call center to handle business and generate revenues watch a specific metric called Average Handle Time (AHT, for short). AHT measures the amount of time the average call center representative requires to complete a customer service call.

As McKinsey reports, advanced analytics can help call centers improve their performance.

The thorough and efficient reporting capabilities that VoIP offers mean that call centers, dispatch centers and any business that relies on large call volumes have all of the metrics needed at their fingertip; this ensures analysis and quick action to improve performance.

  1. VoIP Reduces Call Cost for Domestic and International Calls

According to a study by TechCo, small businesses that switched to VoIP save 40% on local calls and 90% on international calls. These savings do not account for other cost reduction factors that a small business can realize through remote work, integration with software like Salesforce, and lower maintenance costs.

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