Menu
Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Learn everything you need to know about virtual phone lines and how you can use one to optimize your business in a matter of moments.
Every organization needs a secure, reliable business phone system to communicate with customers, employees, prospects and vendors. But for small businesses, fully featured types of business phone systems can be expensive and challenging to install and run.
A virtual phone number is a cost-effective and feature-rich solution that will expand your business’s communication capabilities. If you’ve ever used FaceTime or called a corporate contact center for product support, the chances are that you were connected through a virtual phone number.
Below, we explain what a virtual number is, set out eight of its main benefits and show you how you can obtain one for your business.
A virtual phone number is a telephone number that isn’t tied to a specific device or location. Using voice-over-internet-protocol (VoIP) technology, virtual phone numbers let people make secure phone calls from anywhere with a solid internet connection.
>> Learn More: What Are VoIP Business Numbers?
Virtual numbers offer businesses a remarkable level of flexibility. Administrators can assign a virtual phone number to almost any area code, a process called direct inward dialing. Administrators can even assign toll-free numbers, which means customers aren’t charged when calling you.
You can choose a virtual local number to help you build trust since you’ll appear to be part of the community. Meanwhile, virtual toll-free numbers are ideal for companies that want to project a national presence. Not charging customers to call you also helps you present your business as a client-centered company.
Many virtual numbers offer free or reduced-cost long-distance calling that can substantially reduce your telephone costs. You and your customers will also benefit from the clean, clear audio virtual phone connections offer.
Unlike traditional phones, you don’t need a copper wire connection to the local exchange or a separate handset. This leads to significant cost-saving opportunities with VoIP-based virtual phone numbers. Each virtual line you connect doesn’t need physical hardware either, a significant cost saver over how telephone companies previously allocated and charged for lines.
Anyone with a desktop computer, laptop or mobile device can use a virtual phone number. A virtual line sends a call to another device over a fixed or mobile broadband internet connection by converting the audio from a phone line into a digital signal. These virtual lines are created and used in the cloud, rerouting calls to existing lines or team members’ devices.
>> Learn More: Cloud-Based Business Phone Systems
You can bundle multiple virtual lines together to form a virtual switchboard. You only need one broadband connection for multiple lines, eliminating the need for separate physical lines that a traditional phone system requires. You don’t need a complex and expensive local private branch exchange (PBX) either.
Instead, you control your group of virtual phone numbers and how they interact with each other via an intuitive cloud PBX that’s easy to operate. From a desktop or mobile app, you can route calls, switch on call forwarding, activate voicemail, set up auto-attendants and more.
For example, an administrator in your company could log onto the cloud PBX and create a new virtual toll-free number (or an international toll-free service number for a global presence) that forward calls to individual team members’ devices in a contact center. For added flexibility, the representatives receiving the calls can choose the equipment they want to use, whether it’s a VoIP handset or an application like Zoom or RingCentral on their cellphone, tablet, desktop or laptop.
Virtual phone systems rarely become overwhelmed because virtual phone numbers use the cloud, not your local computers or devices. Since virtual phone calls don’t drain too much data, bandwidth concerns aren’t an issue.
Think of a virtual phone number as an intermediary for voice communication between two devices.
Traditional phone line | Virtual phone line |
---|---|
Requires a dedicated device | Works with smartphones and computers |
Tied to a specific location | Can be used anywhere |
Requires a SIM card | Easy connections over the internet |
Requires a physical connection to the local exchange | Multiple lines can be created and run from the same broadband connection |
>> Learn More: VoIP vs. Landline
Virtual phone numbers offer eight primary benefits that might appeal to your business. We’ll take an in-depth look at each.
One of the most significant benefits of virtual phone numbers is that they offer a much lower total cost of ownership than traditional landlines. When choosing a business phone system, you’ll find that traditional system costs add up quickly and become prohibitive, especially if your business is growing.
Because a virtual line doesn’t require specialized or dedicated devices, your hardware costs are virtually nothing. When you’re moving a business into new communities or regions, you can create a local number to avoid the added costs of long-distance calls. It’s essential to keep operating expenses as low as possible when opening your business to new opportunities and clients. Virtual phone numbers can help you do this.
Because anyone can get a virtual number for any location, you can create local numbers to serve any region. This decreases costs because you’ll avoid premium charges from long-distance calls as you find new neighborhoods and clients to serve.
Without the need for dedicated hardware and with no line limitations, creating more virtual phone numbers to scale with your business is easy. When you’re building a sales team and hiring more employees, you can call your administrator and add all the virtual phone lines you need.
When you have a memorable or toll-free customer support phone number, your customers gain a sense of security and recognition. Virtual phone numbers make it easy to create specific numbers to help your business look more professional.
Whether it’s a toll-free number or a vanity number like 1-800-CONTACTS or 916-CALL-TUR, a virtual number can help create a brand identity.
It’s not easy to record, digitize and analyze a traditional call. But because a virtual call is already digital, it’s easy to record with the push of a button. You can seamlessly transcribe a virtual call, appraise it for relevant content and archive it.
With all the information a virtual number provides, a business can track key internal performance indicators, such as average call length and customer satisfaction, to improve its services.
With an easy way to archive phone calls, a business that uses virtual phone services can quickly compile critical know-your-customer information, such as customer preferences and overall business trends. This kind of data helps an organization prevent fraud and comply with multiple government rules and regulations.
Compliance is a particularly important factor for businesses in the banking, healthcare, financial services and insurance industries that rely on verifying a customer’s identity. [Related article: How Health Insurance Portability and Accountability Act (HIPAA) Laws Impact Employers]
Creating a safe, secure phone line to conduct business is easier than ever with a virtual phone number. Because it uses VoIP, a virtual number can be encrypted and protected behind layers of firewalls and other security methods. These protections keep out prying ears, so you can keep your business running smoothly without interference. To ensure security, reach out to your internet service provider to ensure your virtual number is encrypted.
>> Learn More: Looking for a Business Phone Number, but Not a Business Phone?
Because you can tie a virtual number to any PC or mobile device, you can receive calls from anywhere in the world. This allows your workforce to redirect calls to their preferred device. When traveling or working remotely, any employee can still answer a support call or call back sales prospects. [Related article: Creating a Remote Help Desk for Your Business]
It’s remarkably easy to set up a new virtual phone number; some service providers, such as Google Voice, even offer it for free. To get started, select a provider like RingCentral, Ooma or GoTo Connect. Then create an account, select a plan, choose your area code and the service will generate a new number for you.
Below, find links to reviews of eight of the best business phone system providers in the United States, each of which offers virtual phone numbers.
Pricing:
Features on all plans:
Premium tier-only features:
Advanced tier-only features:
Read our comprehensive review of Vonage.
Pricing:
Features on all plans:
Pro tier-only features:
Enterprise tier-only features:
Read our in-depth review of Dialpad.
Pricing:
Features on all plans:
Standard tier-only features:
Read our latest review of GoTo Connect.
Pricing:
Features on all plans:
X4 tier-only features:
X6/7/8 tier-only features:
Read our updated review of 8×8.
Pricing:
Features on all plans:
Professional tier-only features:
Enterprise tier-only features:
Read our comprehensive NextivaONE review.
Pricing:
Features on all plans:
Advanced tier-only features:
Ultra tier-only features:
Read our in-depth RingCentral review.
Pricing:
Features on all plans:
Pro tier-only features:
Pro Plus tier-only features:
Read our latest Ooma review.
Pricing:
Features on all plans:
Features on all plans are essentially identical. Read our updated Zoom review.
Eduardo Vasconcellos contributed to this article.