The 5 best Phone System for SMBs - Expert Guide 2024
For small and medium-sized businesses, finding ways to optimize tasks and maximize efficiency is crucial. One effective solution is implementing a phone system. 💡
Phone systems help to manage both internal and external communications, benefiting customers and employees alike.
By adopting one, you can improve operations, ensuring clear and timely information exchange for a more connected and responsive environment for all.
In this post, we'll compare, review, and recommend the top phone systems available in the market.
What is a Small Business Phone System, and How Does It Work?
Before presenting the best solutions, let’s go back to some basic definitions to be aligned.
What is a Small Business Phone System?
A small business phone system is a communication solution designed to meet the specific needs of small and medium-sized enterprises (SMEs).
It goes beyond traditional landlines by offering advanced features and functionalities that enhance productivity, streamline workflows, and improve customer interactions.
These systems typically include features like call routing, voicemail, conferencing, and mobile integration, allowing businesses to manage their communication effectively from anywhere.
What Are the Different Types of Phone Systems?
There are three main types of phone systems available, each with its unique advantages and considerations.
On-Premises Private Branch Exchange (PBX)
A traditional phone system infrastructure where all the necessary hardware components and software applications are physically installed and maintained within the business premises.
This traditional setup allows organizations to have complete control over their communication systems, as all the equipment, including the main switching unit, telephone lines, and other related devices, are housed on-site. On-premises PBX systems typically require dedicated IT staff for maintenance and upgrades, but offer enhanced customization options and potentially greater security for businesses with specific communication needs.
Cloud-Based VoIP (Voice over Internet Protocol)
A phone system hosted in the cloud, accessible via the internet. This innovative solution allows businesses and individuals to make and receive phone calls using an internet connection rather than traditional phone lines.By hosting the entire phone system infrastructure in remote data centers, cloud-based VoIP offers unparalleled flexibility, scalability, and accessibility. Users can effortlessly manage their communication needs from anywhere with an internet connection, making it an ideal choice for modern, distributed workforces and remote operations.
Hybrid
A combination of on-premises and cloud-based solutions, providing a versatile and adaptable solution that combines the strengths of both approaches. This hybrid model allows organizations to leverage the security and control of local systems while simultaneously harnessing the scalability and flexibility offered by cloud platforms. By strategically balancing workloads between on-site and cloud environments, businesses can optimize performance, enhance data management capabilities, and achieve a more cost-effective IT infrastructure tailored to their specific needs.
Now, let’s review their strengths and weaknesses.
| Feature | VoIP (Cloud-Based) | PBX (On-Premises) | Hybrid |
|---|---|---|---|
| Cost | Lower, typically subscription-based pricing | Higher costs for hardware and installation | Varies depending on the balance of on-premises and cloud components |
| Setup Complexity | Easy setup, often plug-and-play with minimal technical expertise required | Complex setup, requiring professional installation and configuration | Moderate complexity |
| Flexibility | High flexibility, features and users can be easily added or removed. Can be accessed from anywhere with an internet connection | Less flexible, changes may require hardware upgrades or technical support. Limited remote access | Offers some flexibility to choose which features are hosted on-premises and in the cloud |
| Scalability | Highly scalable, can easily accommodate business growth or downsizing | Less scalable, hardware limitations may restrict expansion | Scalability depends on the chosen hybrid model and the capacity of on-premises infrastructure |
| Maintenance | Minimal maintenance required, provider handles updates and upgrades | Requires ongoing maintenance and potential hardware replacements. May need IT staff or external support | Cloud components are managed by the provider, while on-premises components require internal or external support |
| Control | Limited control over the underlying infrastructure and system configuration | Full control over the system and its configuration | Offers a balance of control, with some aspects managed by the provider and others controlled internally |
| Examples | OpenPhone, Grasshopper, Google Voice, QuickTalk (Ringover), Allô | 3CX, Avaya IP Office, Asterisk | Mitel MiCloud Connect, Cisco |
Most small businesses go with a cloud-based VoIP system because of its affordability and scalability. It eliminates the need for expensive on-premises hardware and allows you to easily add or remove users as your business grows.
Additionally, cloud-based systems are typically easier to set up and manage, requiring minimal technical expertise.
What Are the Main Benefits of Using a Phone System for an SMB?
One of the most important benefits of using a phone system is increased productivity and time savings.
But there are more:
- Professional Image: A dedicated phone system with features like auto attendants and custom greetings creates a professional impression for your customers.
- Improved Productivity: Advanced features like call routing, voicemail transcription, and mobile integration streamline communication and save time.
- Scalability: Cloud-based systems can easily scale up or down as your business grows, ensuring you always have the right communication tools.
- Cost Savings: VoIP systems often offer lower call rates and eliminate the need for expensive on-premises hardware.
- Enhanced Collaboration: Features like conferencing and instant messaging facilitate teamwork and communication within the organization.
How Do I Choose the Right Phone System for My Small Business?
Ready to choose your phone system?
Let’s start with a few high-level recommendations.
What are the Key Features of a Good Small Business Phone System?
No matter the product you choose, you will most likely need these essential features:
- Auto Attendant: Greet callers with a professional menu and route them to the right department or extension.
- Call Routing: Direct calls to the most appropriate person or team based on predefined rules or caller input.
- Voicemail Transcription: Convert voicemails to text for easy access and review.
- Mobile Integration: Access your phone system and manage calls from your smartphone or tablet.
- Conferencing: Host virtual meetings with clients, employees, or partners from anywhere.
- Call Recording: Record calls for training, compliance, or quality assurance purposes.
- Analytics & Reporting: Track call volumes, call durations, and other metrics to gain insights into your communication patterns.
7 Tips to Pick a System That Works for Your SMB
Not every product fits every company; there's no one-size-fits-all solution in terms of phone systems.
That’s why before choosing one make sure to:
- Assess your needs: Identify your specific communication requirements, including the number of users, call volume, and desired features.
- Review integrations: Check if the phone system plays well with your existing tools like your CRM.
- Consider your budget: Set a realistic budget for your phone system and compare pricing plans from different providers.
- Check online reviews: Read reviews from other small businesses to get insights into the pros and cons of different systems.
- Confirm scalability: Ensure the system can grow with your business and accommodate future needs.
- Test the system: Take advantage of free trials or demos to experience the system firsthand before making a commitment.
- Evaluate customer support: Choose a provider with responsive and knowledgeable customer support to assist you with any issues.
Now that we’ve shared some general recommendations, let’s look at the best options we’ve found for SMBs.
The 5 best Phone Systems for SMB
Our Selection Methodology
We evaluated various phone systems based on the following criteria:
- Features: We looked for systems that offer a wide range of features essential for small businesses, including call routing, voicemail, conferencing, and mobile integration.
- Ease of Use: We prioritized systems with intuitive interfaces and user-friendly setup processes.
- Scalability: We considered systems that can easily scale up or down to accommodate changing business needs.
- Pricing: We compared pricing plans from different providers to identify the most cost-effective options.
- Customer Support: We evaluated the quality and responsiveness of customer support offered by each provider.
Now, it’s time to share our picks.
Allô
Allô acts as a virtual receptionist service designed to help businesses manage their incoming calls and customer interactions efficiently.
At its core, Allô offers a user-friendly VoIP solution specifically for small and medium-sized businesses (SMBs).
During our tests, two things set Allô apart:
- Its integration of artificial intelligence (AI) capabilities. Allô can handle calls for you, send you transcripts of your calls or even let your callers book an appointment with you.
- Its mobile-first approach. Allô offers an app that can be installed on iPhones or Android. All your settings can be controlled directly from your phone. In other words, you don’t need to open your desktop to manage your calls or settings and you don’t need to buy additional hardware for it to work.
Key features:
- AI-powered 24/7 virtual receptionist and call routing
- Automatic call transcription and summarization
- Integrations with popular CRM and productivity tools
- Call recording and analytics
- Mobile app for iOS and Android
- Spam call blocker
- Customization like greetings and the voice and language of the virtual assistant
| 🟢 Strengths | 🔴 Weaknesses |
|---|---|
| Mobile app: Enables users to stay connected from anywhere | Not available on Desktop |
| Team collaboration: Includes features for internal communication and file sharing | Not able to do international calls |
| Call analytics: Offers insights into call patterns and team performance | You can’t select the AI Model (they use ChatGPT by default) |
| Long list of integrations like CRM, Slack, and more | N/A |
Pricing
- Starter $19 per number, per month
- Business $34,99 per month, for 3 users
Customer Feedback
Allô has a perfect 5/5 on the App Store, where users focused on their productivity increased, time saving and prospection.
Demo
OpenPhone
Like Allô, OpenPhone doesn’t require you to buy a new phone.
It relies on an intuitive app that works across all your existing devices.
But unlike Allô, OpenPhone offers a web interface to complement their mobile app.
It combines calling, messaging, and a lightweight CRM to easily manage and respond to customers and contacts.
OpenPhone works in North America, the United States and Canada. It is a suitable option for small business owners, remote workers, international users and freelancers.
Key Features
- Integrations with HubSpot, Zapier, Salesforce, Slack, Google Contacts, and more
- Automatic and on-demand call recordings
- Voicemail transcription
- Shared numbers to split responsibility for any incoming calls or texts
- Separate address book for all your OpenPhone contacts, so your team has the context they need to delight customers
| 🟢 Strengths | 🔴 Weaknesses |
|---|---|
| Clean inbox & UX: combining calls, texts, and contact information in one thread | Limited features like setting a default time zone for scheduling messages |
| Shared phone numbers: Multiple users can make calls and send texts from the same number simultaneously | Limit for mass messaging (up to 9 lines) |
| Collaboration: Ring multiple people, know who handles the call, shared inbox | Starter Plan doesn’t allow you to transfer calls |
Pricing
- Starter Plan $19/month
- Business $33 per user/per month
- Enterprise: Custom
Customer Feedback
OpenPhone score on G2 is 4.7 out of 5. Reviews praised the clear design of the app and the quality of the customer support.
Demo
Grasshopper
Like Allô and OpenPhone, Grasshopper is a cloud-based VoIP phone system compatible with both Android and iOS.
Although Allô, OpenPhone and Grasshopper share many similar features, Grasshopper lacks some key features like power dialer, call recording and international calls outside the US will have additional fees.
Grasshopper is only available in 3 countries: the US, Canada, and the United Kingdom, targeting small businesses, self-employed businesses owners and companies with up to 50 users.
Finally, Grasshopper is available on desktop and mobile just like OpenPhone.
Key Features
- Supports Multimedia Messaging Service (MMS) and group messaging capability on your business phone
- Extensions & Call forwarding with cascade or simultaneous calls to several team members
- On hold music to keep callers on the line
- Instant Response: automatic text for first time callers + scheduling link
- Virtual Receptionist Ruby: an auto-attendant answering system or live virtual receptionist that may not be physically located in your office but answers all your inbound calls
- Voicemail transcription that converts your voicemails to text and record by email
| 🟢 Strengths | 🔴 Weaknesses |
|---|---|
| Virtual phone system with toll-free, local, and vanity numbers | Doesn’t have auto responses |
| Ruby virtual receptionist | Lack of integrations like Slack, Zapier, CRM |
| Mobile and desktop apps | Doesn’t have routing features like IVR and queuing |
Pricing
True Solo: $14 per month
Solo Plus: $25 per month
Small Business: $55 per month
Customer Feedback
The overall rating of Grasshopper on G2 stands at a commendable 4.0 out of 5 stars. This score reflects a generally positive user experience with the platform. Many users consistently point that Grasshopper has a user-friendly interface and the convenience it offers in managing business communications.
A 4-stars review of Grasshopper on G2 highlighting how easy to use the platform is.
Demo
QuickTalk for Business
QuickTalk is a good alternative to Grasshopper. It has competitive all-in-one pricing at $19/month per company including unlimited calling to and from international destinations.
QuickTalk is the product that works in most countries. While Allô, OpenPhone and Grasshopper operate in 2 or 3 countries, Quicktalk has unlimited inbound and outbound calls to and from 36.
Its primary focus is the European market having presence in France, Belgium, Spain, Netherland, Italy, United Kingdom and Ireland. But the solution is also available in the US and Canada.
Key features:
- Cloud-based phone system with unlimited calling
- Call recording, voicemail transcription, and call monitoring
- PowerDialer for outbound sales teams
- Integrations with CRM and help desk tools
- SMS and team messaging
| 🟢 Strengths | 🔴 Weaknesses |
|---|---|
| Custom greetings in 15 languages | The bot is incapable of correctly verbalizing certain English words in French |
| Unlimited inbound and outbound calls to and from 36 countries | It doesn’t rely on Wi-Fi, so if you don’t have a good connection, you probably can’t receive calls |
| You can connect your e-commerce and Slack CRM | Not mobile first: settings are on a webpage, and subscriptions are not in-app |
Pricing
All-in-one pricing plan of €19 per month, per company.
Add-Ons:
- Additional users: €10/month per user
- Additional phone numbers: €5/month per number
Customer Feedback
A 4.7 out of 5 score on the App Store. Users appreciate the fast installation and praise the intuitive interface.
Demo
Google Voice
Google Voice gains the best price offer in its starter plan compared with all the phone system services mentioned above, being the most affordable. However, its highest tier Premier plan is comparatively more expensive.
Like OpenPhone and Allô, Google Voice is also known for its user-friendly interface being straightforward to use.
OpenPhone, Allô, and QuickTalk allow setting business hours, while Google Voice does not.
Key Features
- Read voicemail transcripts in your inbox and search them like emails
- Call people in your contacts and organization
- Get protection from spam calls and messages
- Block unwanted callers
- Screen calls before you answer
| 🟢 Strengths | 🔴 Weaknesses |
|---|---|
| Free tier for personal use and very small businesses | Compared to dedicated business VoIP providers, Google Voice lacks advanced features like call recording, auto-replies, or CRM integrations |
| Easy-to-use interface and seamless integration with other Google Workspace apps | Does not allow multiple phone numbers in one account and shared numbers on a team |
| You can set up different voicemails for different contact groups | Free available for personal use in the United States only |
Pricing
- Starter: $10 per user/month
- Standard: $20 per user/month
- Premier: $30 per user/month
Customer Feedback
Google Voice has garnered positive reviews from users, boasting a score of 4.1 out of 5 on G2. Users consistently talk about the tool for its user-friendly interface and management capabilities.
Many reviewers highlight its effectiveness in facilitating communication with international clients, making it a valuable asset for businesses with a global reach.
Demo
Using Google Voice to manage business lines
Conclusion
- For personal use Google Voice and Grasshopper are the best solutions.
- For small and medium sized businesses OpenPhone and Allô are the best solutions.
- For large sized companies Google Voice and QuickTalk are the best solutions.
