How A Live Phone Answering Service Can Transform Your business

What is a live phone answering service? 

A live call answering service is a professional service where trained agents handle incoming phone calls on behalf of a business. 

These services provide real-time interaction with customers, offering support, taking messages, scheduling appointments, or even handling questions about your services and products. 

As opposed to automated systems, live answering services reassure your customers that they’re indeed talking to a person.

With this service, you can avoid missing sales opportunities and improve your customer retention rates. 

The first hello: History of call answering services

To truly understand the impact and significance of a call answering service, let’s look at its history:

Early beginnings 

The concept of answering services began with telephone operators who manually connected calls and tool messages for business owners. These operators were often the first form of customer service, giving services an irreplaceable personal touch in an era before automation. 

Post-war expansion (1940s – 1950s)

After World War II, the demand for business answering services grew with the rise of small businesses. Dedicated answering services emerged, where operators would manage calls for multiple businesses. This brought a more professional approach to the craft. 

Technological advancements (1970s – 1980s)

With the advent of the answering machine in the 1970s, businesses began to use these devices to manage missed calls. However, the human touch was still preferred, leading to a hybrid model where live answering services coexisted with machines.

Digital era (1990s to present)

The 1990s brought significant technological advancements, thanks to the introduction of voicemail and digital communications. Despite these changes, live answering services remained popular in sectors where personalized customer services are highly critical. 

Today, modern call answering services use advanced tools to manage calls, integrating with their clients’ CRMs and offering other services, from basic to complex customer support. 

How do answering services work?

Call answering services have been existing for a long time. But how do they work today, where customers can simply chat or text business owners? And are they still effective, just like virtual receptionists? We’ll answer that here:

1. Call forwarding

Most businesses forward their incoming calls to the answering service companies. This can be done manually by the business when needed, or it can be set up automatically during certain hours (ex. After-hours, during lunch breaks, or when the in-house staff is unavailable). 

2. Call handling

When the operator receives a call, they use a script and follow the guidelines provided by their client. Through the script, they can ensure to handle the call in a way that aligns with the company’s brand and customer service standards. 

3. Message delivery 

After handling the call, the service relays any important message to the person or department. This can be done via email, chat, SMS, or directly through a CRM system, depending on the setup. 

4. Integration with client tools and systems 

A lot of modern answering systems integrate seamlessly with a business’s existing systems (Ex. scheduling software like Google Calendar or Calendly). This ensures that information is always up-to-date, reducing the need for manual data entry. 

5. 24/7 availability

Just like virtual receptionists, one of the biggest benefits of the best answering services is their ability to provide 24/7 coverage. No call from your customers gets unanswered, even outside of normal business hours.

Other services

Live answering services don’t just handle your business calls. They also:

• Take messages

• Handles call transfers

• Schedule appointments

• Answering frequently answered questions (FAQS)

• Providing basic customer support

• Transferring urgent calls to the right department 

• Qualifying good and bad quality leads

• Handling order processing

Insider tip: Hire a bilingual answering service

Look for providers that offer a bilingual answering service if you serve a diverse customer base. This can significantly enhance your customer satisfaction rates and expand your reach to non-English speaking markets.

For example, a global travel agency caters to international clientele. The customers are hailing from various non-English speaking countries, including Spain, China, and France. The agency was struggling to manage calls from non-English speaking customers, leading to miscommunication, delayed bookings, and, ultimately, lost business. 

The solution: 

The agency decided to hire an answering service that offered multilingual support. The service provided agents with fluent in Spanish, Mandarin, and French, allowing the agency to better serve its diverse customer base. The agents were also virtual receptionists — trained to handle inquiries, call transfers, bookings, and customer support in multiple languages, ensuring seamless communication.  

The outcome: 

Within six months of implementing the multilingual answering service, the Global Travel Agency saw a significant improvement in customer satisfaction scores particularly from non-English speaking customers. The agency’s net promoter score (NPS) increased by 20%, and they reported a 15% increase in bookings from international clients. Additionally, positive online reviews from Spanish, Chinese, and French-speaking customers highlighted the agency’s commitment to excellent service. 

Return on Investment (ROI):

The enhanced customer satisfaction and increased bookings more than covered the cost of the answering service, leading to a substantial ROI. The agency also expanded its market reach, tapping into previously underserved regions, which contributed to overall business growth. 

For a similar case study, you might want to explore examples from companies like TravelPerk or Expedia, which have successfully leveraged multilingual customer support to grow their global customer base. 

Pricing of an answering service

Just like virtual receptionist services, the cost of a reputable answering service can vary widely depending on several factors, including the level of service required, volume of calls, and specific features you need. Here’s a breakdown of the cost structure: 

1. Pricing models

Per minute

The most common pricing model, per-minute pricing model is where you pay for the total minutes an operator spends on all calls every month. Prices range from $0.60 to $1.20 per minute, based on the level of complexity involved in the call handling. 

Per call

Some services require fees based on the number of calls. The price can range from $0.70 to $2.00 per call, depending on the call’s nature (ex. basic message taking Vs. detailed customer support)

Flat rate 

A flat or monthly fee for a customized package of services, ranging from $50 to $500 per month. Depending on the scope, the rate could include the number of inbound calls and additional features such as 24/7 support or multilingual services. 

Pay-as-you-go

This is a flexible option where you only pay for the services you use. It’s typically billed per minute or per call, ideal for companies with fluctuating call volumes. 

2. Additional costs

Setup fees

Some services require a one-time setup fee to create your account, adjust scripts, and integrate their system with yours. The fee can range from $20 to $150. 

Additional services

Extra features like appointment scheduling, order processing, or bilingual support might come with additional costs. It might range from $10 to $100 a month, depending on the list of services. 

After–hours or holiday services

Some providers charge extra for holiday coverage, typically as a percentage increase over the standard rate. 

3. Contract terms 

Monthly contracts

Most services offer flexible monthly contracts, which may be more expensive than long-term contracts. 

Annual contracts 

Committing to an annual contract can reduce your monthly costs often by 10-20%. That said, you’ll be locked into the service for a year, which is not very flexible. 

4. Industry-specific fees

Healthcare 

Services compliant with regulations like HIPAA may charge higher rates due to the additional security and privacy measures required. 

Legal

Legal answering services may require higher fees, especially if the service involves client intake or legal-specific tasks. 

Insider tip 

When evaluating costs, consider the potential ROI. An answering service that improves customer satisfaction and reduces missed calls can lead to increased sales and customer loyalty, which can far outweigh the service’s cost itself. 

For a deeper comparison of costs, check out resources like AnswerConnect’s Pricing Guide, which breaks down various pricing models across different kinds of answering services. 

How an answering service can transform your business

An answering service can significantly transform businesses by improving customer service, enhancing efficiency, and ensuring no opportunities are missed. 

Property management company 

Real estate professionals often juggle a lot of tasks, such as showing properties to negotiating deals. An answering service ensures they never miss a potential client inquiry, even when they’re busy or after hours. 

For instance, a prospective buyer calls to inquire about a property after hours. The answering service answers the call, provides basic information about the property, and schedules a viewing for the next day. The fast response is a good sign to the buyer, increasing the likelihood of securing the sale. 

Legal practice

Legal practices often deal with urgent and sensitive matters. An answering service can filter calls, forwarding critical ones to the appropriate attorney while taking messages for non-urgent matters. This ensures no important client call is missed. 

Say, a client involved in a legal emergency calls outside of business hours. The answering service operator identifies the urgency, and forwards the call to the lawyer on call. This helps the lawyer take action immediately, helping the client gain peace of mind quickly. 

Healthcare 

Healthcare providers must be approachable and accessible to patients at all times. An answering service can handle patient inquiries, schedule appointments, and forward urgent calls to the on-call medical staff, improving patient care and satisfaction. 

In cases where a patient has an emergency after hours, an answering service could be really helpful. Say, a patient experiencing symptoms after surgery calls the clinic late at night. The answering service assesses the urgency, contacts the on-call nurse, and ensures the patient receives timely advice, potentially preventing a medical emergency. 

Consultancy

In the world of consultancy, clients are often known to be more demanding and expect prompt responses. An answering service ensures that all inquiries will be handled professionally, even if the consultant is idle, traveling, or at a meeting.

Here’s a scenario where an answering service could really help: A potential client calls to inquire about a consulting service while the consultant is in a day-long strategy session. The answering service provides initial information, schedules a follow-up call, and ensures the client feels valued. This could help the consultant secure a new contract, even when they’re occupied by a demanding task. 

Technical support

In technical support agencies, teams are often inundated with calls, especially during product launches or outages. An answering service can help triage calls, provide basic troubleshooting, and/or escalate urgent issues to the right team. This decreases response times and grows customer satisfaction rates. 

Say, during a system outage, an answering service can help in handling the influx of calls. Customers will be updated and given resolution times, while escalating critical issues to the senior technical staff. This helps manage a sticky situation more effectively. 

Digital marketing agencies

If you’re familiar with digital marketing agencies, you’d know that their clients are also demanding and need prompt updates. With an answering service, agencies can ensure their potential and existing clients’ inquiries are addressed, allowing the agency to focus on delivering results. 

For example, if a client calls to ask about the campaign’s performance metrics while the team is deep in a creative brainstorming session. The answering service takes the message, assures the client of a follow-up, and relays the information to the team. The client will still feel reassured without distracting the team in their brainstorming session. 

How to choose the right phone answering service

There are dozens of live answering service providers, but not all of them align with your needs. Follow these steps to make sure you select a provider that matches your needs: 

1. Understand your business needs

• Determine your call volume. How many calls are you receiving every day and during peak times? This helps you choose an exceptional service that can accommodate your call volume without compromising quality. 

• List your 2-3 non-call handling services. Decide on your additional services: message taking, appointment scheduling, or order processing. These will be included in your custom service package. 

• Consider your business hours. Do you need 24/7 coverage or just after-hours support? This could significantly change your package rate as well, so decide on it. 

2. Evaluate the answering service’s features

• Customization options. Look for a service that allows you to customize scripts, greetings, and call-handling procedures to reflect your company’s brand voice. 

• Tech and integration. Make sure they can integrate with your existing systems such as CRM, calendar, or scheduling software to streamline your operations. 

• Multilingual support. If you’re catering to a diverse client base, opt for a provider that offers bilingual support to non-English customers. 

3. Assess the quality of customer service

• Test responsiveness. Make some test calls to evaluate how the operators promptly handle calls. This gives you a firsthand experience of what your customers will experience. 

• Review training protocols. Inquire about the training and experience of the operators. A well-trained team can make a huge difference in customer satisfaction.

• Check for years of industry experience. The best answering services focus on serving certain industries. Choosing a specialized provider can lead to a better, more personalized service. 

4. Compare costs and contracts

• Understand pricing structures. Study their pricing model, whether it’s pay-per-call, per-minute, or flat-rate. Make sure there are no hidden fees like setup or cancellation fees. 

• Flexible contracts. Find providers that allow you to scale as your business changes without penalties. 

• Value for money. Don’t just go for the cheapest option. Consider the overall value. Are their service quality, features, and support all effective? 

5. Check their reputation

• Read customer feedback. Browse online review sites such as Clutch, G2, or Glassdoor. This could give you an insight into their company culture. 

• Ask for references. A simple search on LinkedIn would help you find their previous clients. Send them a DM and ask about their previous experience with the provider you’re planning to hire. 

• Look for awards or certifications. Industry awards such as the “Customer Service Department of the Year” given by the Stevie Awards, which recognize a company’s outstanding customer service. 

6. Trial period or pilot program

• Start with a trial. Many providers offer a trial period or pilot program, letting you test their services before committing to a monthly or annual contract. 

• Monitor performance. During the trial, closely monitor call handling, customer satisfaction, and any integration issues. This helps you in making an informed decision later.

Is a live phone answering service worth it? 

Yes, especially if you consider the long-term ROI for your reputation and sales. Using a live phone answering service can be game-changing for your business. Carefully select a provider that aligns with your business needs, and you can significantly improve your customer satisfaction rates and drive tangible business growth.