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The Ultimate Guide to Telephone Answering Services for Small Businesses

Maintaining seamless communication with customers is critical to success. 

For many small businesses, especially those with limited staff, juggling operational tasks while handling customer inquiries can be overwhelming. 

A single missed call could mean a lost opportunity, a disgruntled customer, or even a decline in revenue. Small businesses increasingly turn to professional call answering services to bridge this gap.

A telephone answering service is a third-party service that handles incoming calls on behalf of a business. This could involve taking messages, scheduling appointments, or answering frequently asked questions. 

With the right call answering service, businesses can ensure their customers’ calls are answered promptly and professionally, even during busy periods or outside of normal working hours.

This article will explain the core concepts of telephone answering services, their benefits, how they apply across various industries, and how to choose the right provider. 

Whether you’re a small business owner looking to improve customer satisfaction or optimize operational efficiency, call answering services could be your solution.

What is a phone answering service?telephone answer service phone

A telephone answer service is a professional solution for managing incoming phone calls for businesses. These services typically employ a team of trained operators who answer calls, take messages, and provide basic information based on the client’s needs. Depending on the chosen service package, they may schedule appointments, route calls, forward urgent calls, or offer technical support.

For instance, imagine a small veterinary clinic that is too busy to answer every incoming call, especially during peak hours. They could use a call answering service to ensure no call goes unanswered, managing everything from appointment bookings to inquiries about pet care. This way, the clinic staff can focus on providing care while the phone answering service handles administrative communication tasks.

Some of the critical functions of a phone answering service include:

  1. Transfer calls. Answering incoming calls on behalf of the business which is especially useful when the business is closed or employees are occupied.

  2. Message Taking. Recording messages from customers and relaying them to the appropriate team members.

  3. Customer Support. Responding to common customer inquiries and providing troubleshooting for simple problems.

  4. Appointment Scheduling. Assisting in booking appointments or reservations based on the client’s calendar.

  5. 24/7 Availability. Offering round-the-clock call management, ensuring no call is missed outside of business hours.

  6. Personalized Scripts. Using tailored scripts and responses that align with the business’s branding and customer service goals.

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Benefits of using a phone answering service

Outsourcing call management to an answering service can provide small businesses with a range of advantages, mainly cost savings and customer service enhancement:

 

1. Cost-effectiveness

Hiring full-time staff to handle phone calls can be expensive, especially for small businesses with tight budgets. 

Answering services offer a more affordable solution by allowing businesses to pay only for the services they need. Instead of paying salaries, benefits, and training costs for in-house staff, companies can outsource their call management at a fraction of the cost.

A small real estate firm that doesn’t have the budget for a full-time receptionist could use an answering service during regular business hours to manage inquiries and schedule viewings. The firm pays only for the time spent on calls, which is more cost-effective than hiring a full-time employee.

2. Improved customer experience

Providing prompt and professional customer service can set a business apart. 

An answering service ensures that calls are answered quickly, reducing wait times, routing calls, and preventing customers from feeling ignored. This not only boosts customer satisfaction but also enhances the business’s reputation.

A local café may use answering service companies to handle orders during busy lunch. With professional answering service operators answering calls, customers receive prompt attention, improving their overall experience with the café.

3. 24/7 availability

Customers may expect support outside normal business hours, mainly if a business serves clients in different time zones. Many business answering services provide 24/7 availability, ensuring customer inquiries are always addressed, even when the business is closed.

A software company with international clients may use an answering service that operates around the clock to take outbound calls, handle technical support queries and direct urgent issues to the on-call team.

4. Increased productivity

When businesses delegate call management to customer support services, their employees can focus on their primary tasks without the constant distraction of ringing phones. This increases productivity and ensures staff members can dedicate their time to more value-driven activities.

A small law firm may use an answering service to manage client calls, allowing attorneys to concentrate on preparing for cases without the interruption of constant phone calls.

5. Scalability

As a business grows, its communication needs may evolve. Answering service professionals offer scalable solutions that adapt easily to fluctuating call volumes or seasonal demands. This flexibility benefits businesses that experience spikes in activity during certain times of the year.

A tax preparation service may experience a significant increase in calls during tax season. An answering service can help manage the additional volume inbound calls, ensuring no client inquiries are missed during this critical period.

6. Personalized services

Many answering services offer customizable solutions tailored to a business’s specific needs. This may include using branded scripts, handling industry-specific inquiries, or providing bilingual support for diverse customer bases.

A luxury spa might use a personalized answering service to handle reservations and offer tailored client recommendations based on their preferences. The operators follow a script that reflects the spa’s high-end brand, ensuring a consistent customer experience.

7. Enhanced communication and message accuracy

With professional operators managing calls, businesses can ensure that messages are accurately taken and relayed promptly. This minimizes the risk of miscommunication and missed calls and ensures that important information is conveyed effectively.

A construction company may rely on an answering service to relay time-sensitive messages about ongoing projects to different teams. This ensures that instructions are passed on accurately, reducing delays and misunderstandings.

8. Improved work-life balance for business owners

Small business owners often wear multiple hats and may struggle to balance their work responsibilities and personal lives. Using an answering service, they can delegate some of their workload, reducing stress and improving their work-life balance.

A family-owned bakery may use an answering service to handle customer calls and take orders. This allows the owners to focus on baking and other essential tasks without worrying about answering the phone.

telephone answer service benefitsIndustries that benefit from answering services

While answering services can benefit almost any business, certain industries find them especially valuable. Below are some industries that frequently use answering services and examples of how these can top answering services that can enhance their operations.

1. Healthcare

In the healthcare industry, timely communication is essential. Medical offices, clinics, and hospitals often use answering services to manage patient inquiries, schedule appointments, and provide after-hours support. HIPAA-compliant answering services are designed to protect sensitive patient information, ensuring both security and efficiency.

A busy dental office may use an answering service to schedule patient appointments, handle inquiries about treatments, and send appointment reminders. This helps reduce no-shows and keeps the practice’s schedule running smoothly.

Riverdale Medical Center also incorporated DocVA to manage patient records and streamline appointment scheduling. The result was a significant reduction in wait times, improved record management accuracy, and a 30% decrease in administrative tasks, which allowed healthcare providers to dedicate more time to patient care. 

2. Legal services

Law firms require a high level of professionalism when managing client communication. Answering services help legal professionals maintain consistent, accurate communication with clients by taking messages, scheduling consultations, and handling urgent inquiries.

A criminal defense attorney could use an answering service to ensure urgent client calls are answered after hours. The live answering service can prioritize critical cases, such as bail hearings, and forward only the calls with necessary information to the attorney.

For example, James Mullaney, a family law attorney in Jacksonville, FL, uses PATLive‘s virtual receptionist services to handle client calls. As a solo practitioner juggling legal and personal responsibilities, he struggled to answer all calls, leading to missed client opportunities. 

By switching to PATLive, James reduced his costs by 25% and ensured that every call was answered professionally. PATLive’s team captures client inquiries, transfers calls, and helps him avoid missing new business opportunities by being available 24/7. 

3. Real estate

Real estate agents rely heavily on leads and inquiries to secure new clients and close deals. Answering services help real estate professionals capture leads, schedule property viewings, and manage client inquiries efficiently.

A real estate agency that frequently holds open houses on weekends may use an answering service to handle inquiries and book showings when agents are unavailable. This ensures that potential buyers receive prompt responses and are more likely to book viewings.

Diamond Equity Investments, a real estate investment firm, faced overwhelming calls due to their high-volume property transactions. They turned to PATLive for help managing inquiries, scheduling appointments, and screening calls. 

PATLive’s service ensured that the firm’s potential clients always had someone to speak to, even during busy times or after hours. This improved lead capture and allowed the business to grow without losing opportunities. 

4. E-commerce and Retail

In the retail and e-commerce industries, good customer service is critical in driving sales and retaining customers. Answering services can handle inquiries about products, process orders, and assist with returns or exchanges.

An online clothing store may use an answering service to manage customer calls about order statuses, returns, and sizing questions, especially during high-traffic periods like Black Friday. The service can also upsell products or provide recommendations based on customer preferences.

5. Hospitality

The hospitality industry thrives on providing excellent customer service. Hotels, restaurants, and event venues use answering services to manage reservations, answer customer questions and inquiries, and provide guest support.

A boutique hotel could use an answering service to handle booking inquiries, process reservations, and provide guests with information about local attractions. This ensures that every potential guest receives prompt and courteous service, enhancing the hotel’s reputation.

6. Finance and insurance

Financial advisors, accountants, and insurance agents use answering services to manage client inquiries, process claims, and schedule appointments. These services provide timely, accurate communication, especially during high-stress situations like claims processing or tax season.

An insurance agency could use an answering service to handle inquiries about policy renewals and claims, ensuring that clients receive support during emergencies, such as natural disasters or car accidents.

Wheelhouse Wealth Advisors, a financial planning firm, leveraged Ruby’s live virtual receptionists to handle client calls and improve customer engagement. Their challenge was maintaining high-quality client communication without the overhead of hiring a full-time receptionist. 

Ruby’s team helped Wheelhouse offer a personalized touch to every client, contributing to the firm’s ability to maintain strong customer relationships and focus on providing financial advice. This solution proved more practical and cost-effective than adding a new hire to the team.

7. Construction and trades

Contractors, electricians, plumbers, and other tradespeople frequently use answering services to capture leads, schedule appointments, and manage client communication, especially when on-site and unable to answer calls.

A roofing company may rely on an answering service to handle emergency repair requests after a storm. The service ensures that urgent calls are directed to the appropriate team, allowing quick response times.

8. Technology and IT Services

Tech companies often need to provide their clients with around-the-clock tech support. Answering services can assist by handling technical support calls, troubleshooting common issues, and directing urgent matters to on-call IT staff.

An IT firm offering managed services could use an answering service to field support calls from clients, escalate urgent issues to the on-call technician, and provide basic troubleshooting for common problems, ensuring minimal downtime for clients.

 Answering service scripts and templates 

Here are some examples of answering service answer scripts tailored to various industries and situations:

1. Basic Answering Service Script

This script is used for general business inquiries.

Greeting:

  • “Good [morning/afternoon], thank you for calling [Business Name]. This is [Your Name], how may I assist you today?”

Caller Inquiry:

  • If it’s a common inquiry: “I’d be happy to assist you with that. Let me transfer your call to the appropriate department.”

  • If it’s an unknown inquiry: “Let me take your message, and I’ll have someone get back to you as soon as possible.”

Closing:

  • “Thank you for calling [Business Name]. Have a great day!”

2. Medical Office Answering Service Script

Used for scheduling, emergencies, and patient inquiries.

Greeting:

  • “Good [morning/afternoon], thank you for calling [Medical Office Name]. This is [Your Name]. How can I assist you?”

Appointment Booking:

  • “I can help you schedule an appointment. What day and time work best for you?”

  • If the desired time is unavailable: “That time isn’t available, but we can schedule you for [alternative time]. Does that work for you?”

Urgent Calls:

  • “If this is a medical emergency, please hang up and dial 911.”

  • “Let me get your contact details and inform the doctor on call. Someone will return your call shortly.”

Closing:

  • “Thank you for calling [Medical Office Name]. We will follow up shortly.”

3. Legal Office Answering Service Script

For law firms handling urgent client calls and consultations.

Greeting:

  • “Good [morning/afternoon], you’ve reached the office of [Law Firm Name]. This is [Your Name]. How may I help you?”

Urgent Inquiry:

  • “Is this an urgent legal matter? I can transfer you to the attorney on call.”

  • If no attorney is available: “Let me take down the details, and I will notify the attorney to contact you as soon as possible.”

Non-Urgent Inquiry:

  • “I’ll make sure your message is delivered, and someone from the office will reach out within [time frame].”

Closing:

  • “Thank you for contacting [Law Firm Name]. We will be in touch soon.”

4. Real Estate Answering Service Script

Used to capture leads, schedule showings, and answer property-related inquiries.

Greeting:

  • “Hello, and thank you for calling [Real Estate Agency Name]. This is [Your Name]. How may I help you?”

Property Inquiry:

  • “Are you calling about a specific property listing?”

  • If yes: “I can check the availability of that property for you. Would you like to schedule a viewing?”

Lead Capture:

  • “Can I get your contact details so we can follow up with more information?”

Closing:

  • “Thank you for reaching out to [Real Estate Agency Name]. We’ll be in touch with the details soon.”

5. E-Commerce/Retail Answering Service Script

Focused on customer inquiries, orders, and returns.

Greeting:

  • “Thank you for calling [Store Name]. This is [Your Name]. How can I assist you today?”

Order Inquiry:

  • “Could you provide your order number so I can check your status?”

  • If the order has shipped: “Your order has been shipped and is expected to arrive by [date].”

Returns/Exchanges:

  • “I can help you initiate a return or exchange. Could you provide me with the order number and the item details?”

Closing:

  • “Thank you for shopping with [Store Name]. Have a wonderful day!”

6. Emergency Answering Service Script

For emergency services or urgent business inquiries.

Greeting:

  • “You’ve reached [Company Name]. This is [Your Name]. How can I assist you?”

Emergency Situation:

  • “Is this an emergency that requires immediate assistance?”

  • If yes: “Please provide your location and the nature of the emergency. I will connect you with the emergency team.”

Non-Emergency:

  • “For non-emergency inquiries, I can take down your information and have someone follow up with you shortly.”

Closing:

  • “Help is on the way. Please stay safe, and thank you for calling [Company Name].”

How to choose the best answering service

Selecting the right answering service for your business requires careful consideration of several factors. Here are the key elements to keep in mind when choosing the best answering service:

1. Identify your business needs

Start by determining the specific services your business requires from a virtual answering service. Some businesses may only need basic message-taking, while others require 24/7 availability, appointment scheduling, or customer support. Make a list of the essential features your answering service must provide.

  • Example: A dental office might prioritize services such as appointment scheduling, patient reminders, and HIPAA compliance, while a retail store may only need basic customer service to handle inquiries and orders.

2. Look for industry experience

Consider whether the answering service has experience in your business address or industry. Providers specializing in specific sectors will better understand your business’s unique needs and can offer more tailored services.

  • Example: A law firm seeking an answering service should seek a provider with experience handling legal calls. This ensures that the operators understand the sensitivity of legal inquiries and can respond accordingly.

3. Assess Their technology and features

Make sure the answering service uses modern technology to handle your calls efficiently. This may include CRM integration, real-time message forwarding, advanced call routing, and detailed call volume and performance analytics.

  • Example: A healthcare provider may require an answering service that integrates with their electronic medical records (EMR) system to ensure that appointments and patient information are handled seamlessly.

4. Check for 24/7 availability

If your business operates across multiple time zones or requires after-hours support, choosing an answering service that offers 24/7 availability is crucial. This ensures that you can provide uninterrupted phone service to your customers, regardless of the time of day.

  • Example: An international tech company offering SaaS solutions may need 24/7 support to serve clients in different time zones and ensure that any technical issues are addressed promptly.

5. Evaluate pricing models

Pricing structures can vary between answering service providers. Some charge by the minute, while others charge per call or offer flat-rate packages. It’s essential to choose a pricing model that aligns with your business’s needs and budget.

  • Example: A small business with low call volume may prefer a per-call pricing model, while a busy call center handling hundreds of calls daily may benefit from a flat-rate package.

6. Consider bilingual or multilingual support

If your business serves a diverse customer base, you may want to consider an answering service that offers bilingual or multilingual support. This ensures that your customers receive assistance in their preferred language, which can improve customer satisfaction and retention.

  • Example: A hotel located in a popular tourist destination may use a bilingual answering service to handle guest inquiries in both English and Spanish, ensuring that all guests receive personalized and efficient service.

Common challenges when using an answering servicetelephone answer service challenges

While the best answering services offer many benefits, businesses may face challenges integrating these services into their operations. Awareness of these challenges can help businesses make informed decisions and find solutions that work for them.

1. Lack of industry-specific knowledge

Some answering services may lack the industry-specific knowledge required to provide high-quality service. This can result in incorrect information being provided to customers or a lack of professionalism when handling sensitive matters.

Solution: Choose the best answering services that specialize in your industry or provide extensive training for their operators to ensure they can handle your specific business needs.

2. Impersonal customer experience

Some businesses may worry that using a third-party answering service will lead to an impersonal customer experience. Since the operators are not part of the business, they may lack the in-depth knowledge needed to answer complex customer queries.

Solution: The best answering services offer customizable scripts and detailed training for their operators to ensure they represent your brand accurately. Businesses should work closely with the service provider to develop custom call scripts that align with their values and customer service philosophy.

3. Miscommunication between the business and service

If communication between the business and the answering service is not managed effectively, important messages may be delayed or lost, resulting in missed opportunities or dissatisfied customers.

Solution: Set up clear communication protocols with the answering service provider, ensuring that all messages are relayed promptly and accurately. Some services offer real-time message forwarding and detailed reporting, which can help prevent miscommunication.

 Future of phone answering services

The future of phone answering services is poised to be heavily influenced by technological advancements, business dynamics, and evolving customer expectations. 

Here’s an exploration of all the difference and key trends shaping the industry and what to expect in the coming years.

1. AI and Automation Integration

One of the most significant shifts in phone answering services will come from the integration of Artificial Intelligence (AI) and automation. 

Chatbots, voice recognition systems, and AI-driven virtual assistants are already making an impact, helping businesses handle routine inquiries without human intervention. As these technologies become more sophisticated, they can manage more complex interactions, reducing wait times and improving overall customer satisfaction.

However, AI will likely be used in tandem with human agents rather than replacing them. For example, AI can handle preliminary calls or filter customer queries, passing more complex issues to human agents. This hybrid approach will streamline operations, offering cost savings and faster responses while maintaining a personalized touch for high-value or sensitive customer interactions.

2. 24/7 availability

The globalized nature of business means customer expectations for round-the-clock support are rising. 

Phone answering services will increasingly operate on a 24/7 basis, supported by both human agents and AI tools. This shift is particularly crucial for industries like healthcare, emergency services, and e-commerce, where customer needs can arise anytime.

Providing 24/7 availability improves customer satisfaction and ensures that businesses do not miss out on opportunities, such as potential sales leads or resolving customer issues before they escalate. As phone answering services adapt to this model, they will become a more valuable asset to businesses looking to scale their customer support globally.

3. Personalisation and data utilization

Future phone answering services will increasingly rely on data-driven insights to deliver personalized customer interactions. 

With access to customer data, agents can tailor their responses based on previous interactions, preferences, and even sentiment analysis. AI will also contribute to this personalization, helping to predict customer needs and provide solutions proactively.

Using Customer Relationship Management (CRM) software integrated with phone answering systems will enable agents to access detailed information during calls, offering smoother and more relevant customer experiences. This focus on personalization will set high-quality phone answering services apart from competitors and build stronger customer relationships.

4. Remote and Distributed Teams

The rise of remote work, accelerated by the COVID-19 pandemic, has proven that phone answering services do not need to be tied to a physical location. 

As cloud-based phone systems and advanced communication platforms become the norm, more phone answering services will operate with fully remote teams. This trend allows companies to hire top talent from anywhere globally and provides flexibility to scale services based on demand.

5. Multichannel integration

The future of phone answering services will not be limited to traditional voice calls. 

Customers increasingly communicate with businesses using multiple channels, including SMS, social media, and live chat. Phone answering services of the future will evolve into comprehensive communication hubs that seamlessly integrate and manage multiple channels.

For example, a customer might start an inquiry via chat and continue the conversation over the phone, with all the relevant data accessible to the agent in real time. This multichannel approach will provide customers a more cohesive and satisfying experience, regardless of how they choose to interact.

The value of a reputable answering service

They significantly benefit small businesses looking to improve quality customer service and operational efficiency. From cost savings and enhanced productivity to 24/7 availability and scalable solutions, answering services can provide the support needed to ensure no call goes unanswered and no opportunity is missed.

By choosing the right answering service provider, businesses can focus on their core operations, knowing that professionals are handling their communication needs. Investing in an answering service can help your business grow and thrive in a competitive marketplace — whether in healthcare, legal services, retail, or hospitality.

About Nathan Barz, CEO, DocVA

Nathan Barz is dedicated to integrating virtual assistants into healthcare practices across the United States, Canada, and beyond. With firsthand experience in healthcare, he has successfully implemented virtual medical assistant services in numerous practices, improving profitability and service quality and reducing staff burnout. Nathan firmly believes virtual assistants are the solution to addressing staffing shortages and economic challenges in the healthcare industry.

View all posts by Nathan Barz, CEO, DocVA