A virtual phone service follows the principles of cloud computing systems, with virtualized services provided over the Internet. All the equipment and software required to operate it is kept at the service supplier's site. Users sign up for the service and are given a new local or toll-free number, depending on their preference. They're also given an Internet login they can use to manage functions such as assigning extensions from that phone number to employees, scheduling which phone to ring at what time, and setting up the auto-attendant message. Calls come in and go out over existing phone lines, using phone equipment the agency already owns, delivering enhanced phone capabilities with minimal investment: the only cost is for the service itself, which is generally well under $100 per month.

Virtual phone systems are not just replacements for traditional business phone systems. They're actually superior in many ways. With an equipment-based phone system, only employees who work in the building where the equipment is housed can be assigned an extension. Virtual phone systems have no such limitations. You can assign extensions to anyone, anywhere in the world, allowing you to use a single phone number as the starting point to contact every agent and your entire support staff, whether they're onsite or working remotely.

The same applies to voice mail. Traditional phone systems only work for employees in the building. But virtual phone systems work for everyone in the agency, regardless of location, since they are recorded and stored at the hosting company.

Managing a virtual phone system, especially if the person assigned as administrator frequently travels, is also simpler because the management software can be accessed wherever there is an Internet connection.

Then there are the things a hosted system can do that a traditional business phone system can't do at all. The biggest example is the "find me/follow me" feature.

Large corporations are spending millions of dollars installing VoIP technology, which enables a call that goes into an employee's office to be forwarded to or ring simultaneously on a mobile, second office, and/or home phone. With a virtual phone system, insurance agents and brokers can achieve the same thing without the expensive investment. They can even have their voice mails forwarded to their e-mail-enabled mobile phones or PDAs, so when a message arrives they can respond instantly.

If individuals keep regular hours in and out of the office, the virtual phone system can be scheduled to always try a particular phone number at a particular time first--or even go directly to voice mail with an e-mail forward if the person doesn't want to be disturbed at that time. If working hours change, the schedule can be adjusted with just a few clicks of a mouse. Again, traditional business phone systems cannot do the same.

And the benefits aren't just technical. One of the biggest benefits is the increased professionalism projected to the outside world. Giving out three separate contact numbers with a jaunty, "If I'm not at this number, try that one next, then the other one" is not nearly as elegant as saying "Here is my toll-free number and my extension," and then letting the technology take care of the rest.

To further enhance your image, some providers offer professional voice talent to record the auto-attendant greeting and instructions at no charge, creating a better image for the agency from the moment a client calls. If you want to use a different greeting over the weekend, a second message can be recorded and scheduled into the system. At every turn, the agency is shown to be a highly professional organization--the type that clients want to stay and recommend with because they feel the agency really wants their business.

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