What is a Virtual Phone Number For Business?

Communication plays a critical role in the success of any organization, and despite email remaining the preferred form of communication for businesses, having a reliable and efficient phone system is also vitally important. This is where virtual phone numbers come into play. Virtual phone numbers have become increasingly popular among businesses of all sizes and across a range of industries, and are particularly useful for international companies.

But just what is a virtual phone number and how is it used in business? In this blog, we’ll explore what virtual phone numbers are, how they work, and the benefits they offer to businesses. 

What is a virtual phone number?

A virtual phone number is a phone number that is not directly associated with a physical phone line or location. It’s a cloud-based phone number that allows businesses to make and receive calls from anywhere in the world as long as there is an internet connection — these can be used for anything from a virtual number for LinkedIn to a number for calling international teams and team members.

A virtual phone number works by routing calls through the internet rather than traditional phone lines. When a call is made to a virtual phone number, the call is passed through a cloud-based phone system and then directed to the appropriate device or location. This means that businesses can have their virtual phone number forwarded to any device, such as a mobile phone, landline, or computer.

Types of virtual numbers

There are three main types of virtual phone numbers: local virtual phone numbers, toll-free virtual phone numbers, and vanity virtual phone numbers. Let’s explore each of these in a little more detail.

Local virtual phone numbers

Local virtual phone numbers are associated with a specific geographic location. They are typically used by businesses that want to establish a local presence in a specific area without physically being there. For example, a business located in New York can use a local virtual phone number with a Los Angeles area code to make it easier for customers in that area to reach them.

Toll-free virtual phone numbers

Toll-free phone numbers start with a toll-free prefix, such as 800, 888, 877, or 866. These numbers allow customers to call a business without incurring any long-distance charges. Toll-free virtual phone numbers are often used by businesses that want to make it easier for customers to reach them, regardless of their location.

Vanity virtual phone numbers

This option is where a business uses a custom phone number that spells out a specific word or phrase. For example, a business selling flowers may use the vanity phone number 1-800-BOUQUET. These numbers are often used for branding and marketing purposes and can be easier for customers to remember.

Overall, the type of virtual phone number a business chooses will depend on its specific needs and goals. Whether they want to establish a local presence, make it easier for customers to reach them, or create a memorable brand image, there is a virtual phone number option to suit their needs.

What are the benefits of virtual phone numbers?

Virtual phone numbers offer numerous benefits to businesses, including the capacity to save costs, increase flexibility, and improve accessibility. Here’s a summary of the most tangible benefits of a virtual phone number:

• Cost-effectiveness: Virtual phone numbers are often more cost-effective than traditional phone systems as they eliminate the need for expensive hardware and physical phone lines. Businesses can also save on long-distance charges, as many virtual phone numbers offer unlimited calling to certain regions.

• Professionalism: A virtual phone number allows businesses to establish a professional image by using a toll-free number or a local number in a specific area. This can help build trust with customers and improve brand perception.

• Flexibility and scalability: Virtual phone numbers offer more flexibility and scalability than traditional phone systems. Businesses can easily add or remove lines, change call forwarding settings, and even set up an automated attendant to handle incoming calls.

• Privacy and security: Virtual phone numbers offer greater privacy and security than traditional phone systems. Businesses can keep their personal phone numbers private and set up call screening to prevent unwanted calls. Additionally, many virtual phone number providers offer advanced security features such as two-factor authentication and encryption.

• Accessibility: Virtual phone numbers make it easier for international businesses to stay connected with customers and colleagues across different time zones and locations. Say you’re based in the US but you also have team members in Spain, for example; with a virtual phone number, businesses can forward calls to any device in any geographic location — particularly useful if you’re planning to hire talent globally soon.

Virtual phone numbers offer several advantages over traditional phone numbers. Not only are they often more cost-effective as they eliminate the need for physical phone lines and expensive hardware, but they also offer more flexibility and scalability as businesses can easily add or remove lines as their needs change. 

How can businesses use virtual phone numbers?

Businesses can use virtual phone numbers in various ways to help improve their communication systems and better serve their customers. Here are some common use cases for virtual phone numbers:

Customer service

Virtual phone numbers can be used to provide ecommerce customer service and support.. Businesses can set up a dedicated virtual phone number for customer service inquiries, which can be forwarded to a call center or customer service representative. This allows businesses to provide timely and effective customer service and support.

Sales and marketing

Businesses can set up a virtual phone number to track incoming sales calls and measure the effectiveness of their marketing campaigns. Plus, vanity phone numbers can improve brand awareness by making the phone number more memorable. 

Remote work

Virtual phone numbers can be particularly beneficial for businesses with remote or distributed teams. Businesses can provide virtual phone numbers to their employees, allowing them to work from anywhere and stay connected with colleagues and customers. This can improve productivity and collaboration among remote teams.

International expansion

Virtual phone numbers can be used by businesses to expand internationally. By setting up virtual phone numbers with local area codes in different countries or regions, businesses can establish a local presence and better serve customers in those areas.

Who should use a virtual number?

Using a virtual phone number can be beneficial for all kinds of businesses, but you might consider creating one if the below applies to you:

• Startup: Startups can benefit from virtual phone numbers by establishing a local presence in different regions and countries, and to provide a more flexible and cost-effective communication solution.
• Small business: Small businesses can use virtual phone numbers to establish a professional image and provide more efficient customer service, without the need for expensive hardware or software.

• International business: Businesses that operate in multiple countries or regions can use virtual phone numbers to establish a local presence and better serve customers in those areas.

Whether it's for customer service, sales and marketing, remote work, international expansion, or call tracking and analytics, virtual phone numbers can provide significant benefits to businesses of all sizes.

With the ability to establish a local presence, reduce communication costs, improve accessibility, enhance the efficiency of customer service teams, and manage incoming calls more efficiently, virtual phone numbers can benefit businesses across a number of industries.