Many businesses try to find an answering service. They are looking for professionals to answer their business phone calls, so they are often looking for phone answering service pricing or answering service costs.
There are different types of answering services and many answering service plans. In this article, we’ll discuss the differences between answering services, factors that affect their cost, how to choose a service provider, and answering service companies’ pricing models.
Understanding the Different Types of Answering Services
Sometimes, a business owner wants someone to answer their phone calls. Small businesses don’t want to hire a full-time receptionist to answer phone calls because they don’t receive many incoming calls. Also, a full-time receptionist is not a solution that small businesses can easily afford.
For many businesses, answering phone calls can be an issue. Either you don’t have dedicated agents or don’t wish to pay the additional costs of the dedicated call centers. Whatever your reasons, we’re about to explore the different types of answering services so you can choose a professional service suitable for your business. Answering services offer a range of solutions, from basic call handling to comprehensive virtual receptionist services, to meet the diverse needs of companies.
It’s important to remember that not every answering service is worth your money. Let’s check what makes an answering service worth your money.
Live Answering Services
Service providers offering live phone answering services have dedicated agents who answer your business calls. A live answering service uses human beings to respond to customers and clients. No automated machines answer inbound calls. Live answering solutions increase customer satisfaction because nothing matches having a live agent (person) answer customers and clients on time.
This service also helps businesses win more business growth opportunities. A telephone answering service is suitable for companies with a high call volume. It is also helpful for businesses that depend on timely customer and client responses and exceptional customer service. Live answering services are designed to provide excellent customer service, ensuring every call is handled professionally and promptly.
Automated Answering Services
In automated answering services, human beings don’t answer the phone. Call answering is done through a machine. This service means that machines answer incoming calls. The callers hear a list of options for services or information they need. They press numbers to get more information or ask questions; a voice recognition feature helps them understand and answer their questions.
It all depends on the automated service provided. This service can save employees time by giving callers the necessary information without talking to an employee or live agent.
Automated answering services are suitable for those who need help answering the phone and would use some automation to save time. The automated answering service can also direct callers to the right employee. Unlike automated systems, live receptionists answer calls personally, providing a more human touch and enhancing customer satisfaction.
Virtual Receptionist Services
A virtual receptionist service is similar to live answering services. While live answering agents stick to a basic script and provide customers and clients with some basic information, taking their names or a message. Virtual receptionists perform additional services besides answering calls.
They perform tasks such as scheduling appointments, setting appointments, sending reminders, answering questions, patching calls, and taking messages. Many virtual receptionist services include features like call forwarding, ensuring important calls are directed to the right person.
Virtual receptionists are like personal assistants who work remotely from home or with a company that provides virtual receptionist services. A virtual receptionist service is an excellent choice if your business needs more than a call-answering service. Different providers offer different services, so you need to be aware of the services and features of the provider you pick.
Answering Service Plans and Pricing
When it comes to answering service plans and pricing, there are several options. The most common types of plans include:
- Per-Minute Plans: These plans charge a flat rate per minute of call time. Rates can vary depending on the provider and the level of service needed. This plan is ideal for businesses with a predictable call volume and average call duration.
- Per-Call Plans: These plans charge a flat rate per call, regardless of the length of the call. This option suits businesses that receive a high volume of short calls.
- Package Plans: These plans offer a set number of monthly minutes or calls, with additional minutes or calls billed at a higher rate. Package plans are great for businesses with fluctuating call volumes.
- Custom Plans: These plans are tailored to meet the specific needs of a business, with pricing based on the level of service required. Custom plans are perfect for companies with unique requirements or those experiencing rapid growth.
Choosing a plan that aligns with your business needs and budget is essential. Consider factors such as call volume, average call duration, and the level of service required to ensure you’re getting the best value for your money.
Factors That Affect the Cost of an Answering Service
How much do answering services cost? There is no one-size-fits-all when it comes to answering service charges. Answering services charge based on many factors that we’ll explore here. Understanding the various service prices is crucial for businesses to decide which answering service to choose.
Level of Service Needed
The level of service affects the pricing of the answering service. Sometimes, you only need a live phone answering. You may need to add live chat to provide quality answering service for your website visitors. Comparing these costs to hiring an in-house employee can help businesses determine the most cost-effective solution for their needs.
Number of Calls
The monthly call volume you receive also affects how much you will pay. For most answering services, you pay per receptionist minute. So, you decide how many receptionist minutes you need to be based on the call volume. You probably need to pay for a few receptionist minutes if you’re a small business.
Service Features
You’ll need to check if you need any additional features. You pay extra money for the additional features. With Smith AI, you pay for call add-ons like text and email follow-up, CRM integrations, call recording and transcriptions, booking appointments, etc. They are priced per call monthly.
As for Conversational LLC, you pick 2 add-ons and pay $79 per month. Those add-ons include lead entry, payment processing, and collect call reporting.
Additional Fees
Some service providers provide additional services for additional fees. Those services include CRM integrations, booking appointments, accepting payments, business caller ID for outbound calls, call recording, etc. Some service providers also have a setup fee. Also, you pay for the extra minutes if you exceed the receptionist’s minutes.
How Much Does an Answering Service Cost?
Let’s start by comparing pricing for the many answering services out there. Live answering and virtual receptionists overlap, but let’s see an estimate of how each of the listed services will cost you.
Pricing for Live Answering and Virtual Receptionists
Service prices for live answering and virtual receptionists vary according to the reception minutes. Ruby’s reception plans, for example, cost around $230 per month for 50 receptionist minutes and can reach up to $1595 monthly for 500 receptionist minutes. Posh’s plans range from $114 for 50 receptionist minutes to $884 for 500 receptionist minutes.
Those plans include call handling, integrations, bilingual services, and message management. They are also HIPAA compliant, which makes them suitable for the healthcare industry.
Some companies offer live chat solutions. For example, Ruby’s live chat solutions cost $135 for up to 10 chats and $490 for 50 chats. You can choose either the service or the bundled plan for both services.
Pricing for Automated Answering Services
As for automated answering services, RingCentral, for example, charges $30 per user per month for the core plan and $45 per user per month for the ultra plan. The core plan includes IVR or interactive voice response, SMS and MMS, unlimited domestic calling, etc.
As for Gensys, plans range from $75 to $150 per month and include a secure IVR, configuration of voice call flows, recording interactions with high quality, IVR minutes fair-use policy, data storage, etc.
How to Choose an Answering Service Provider?
Choosing an answering service provider depends on your business size, business needs, budget, and what the service provider offers.
Here, we’ll share some factors to consider when choosing answering service providers.
Reputation and Reviews
On their websites, answering service providers praise their services and promise their clients excellent service. However, when picking a service, you shouldn’t rely only on what answering service providers say on their websites.
As a business owner, you should look for online reviews to see if the answering service fulfills its promises, if customers are happy about the service, and whether there are any complaints. Of course, you will find complaints. But are they issues you can live with or deal-breakers? Reviews online can help you decide which answering service suits your business.
Service Features
Do you need a live answering service or an automated service? Would you also like to add live chat? Different services offer different features and solutions. Ruby provides a live chat solution, but Posh only offers a live answering service.
As for automated answering services, you may need a voice recognition solution to make it easier for your clients when they call.
Integrations are also necessary. You would like a service provider who offers integrations with your preferred software. You may also check if the service provider offers CRM integration. Also, you may need bilingual services if you have callers from various countries.
Pricing models
Answering service pricing models differ, but they fall into three main categories. Let’s explain each category and which one best suits your business needs.
Per Minute Billing
This is a standard billing method. You’re charged per minute. The provider calculates the service cost according to how many minutes they spend with your customers on the phone or how long the calls are.
Most plans are based on receptionist minutes. You receive a certain number of minutes for a certain amount of money, and if you exceed those minutes, you’re charged for every extra minute used. It’s a fair method; always try which plan suits you better. Posh and Ruby both use this billing method. Per-minute billing is suitable for businesses with a known average call duration, which usually is short.
Per Call Billing
In this pricing model, you’re charged for your business’s total number of calls. The more calls you receive, the more money you’ll pay. One disadvantage of this pricing model is that users will pay for the wrong numbers, increasing the cost of the service.
Smith.ai uses this billing method. Users are charged $255 monthly for 30 calls and up to $1170 monthly for 180 calls. If you exceed the allotted number of calls, you’ll get extra money for every additional call. The per-call billing is suitable for those who receive few phone calls.
Per Unit Billing
One billing method used is per-unit billing. In this method, you’re charged per call, message, call transfer, and other tasks related to managing one phone call. Thus, you’re not restricted by call duration or volume.
Patientcalls, a specialized medical answering service, uses the per-unit billing method. They also use the per-minute and per-call methods. They adjust their pricing according to the business needs. This per-unit billing method helps you save money upfront if you expect longer call durations.
Maximizing Your Savings
To maximize your savings when using an answering service, consider the following tips:
- Choose a Plan that Aligns with Your Needs: Select a plan that matches your call volume and service requirements to avoid overpaying for unused minutes or calls. This ensures you’re only paying for what you need.
- Monitor Your Call Volume: Monitor your call volume to ensure you’re not exceeding your plan limits, which can result in additional charges. Regular monitoring can help you adjust your plan as needed.
- Take Advantage of Custom Plans: If your business has unique needs, consider a custom plan tailored to meet those requirements. Custom plans offer more flexibility and better value.
- Look for Providers with No Hidden Fees: Be wary of providers that charge hidden fees, such as setup fees or cancellation fees. Always read the fine print to avoid unexpected costs.
- Consider a Month-to-Month Contract: Avoid long-term contracts that can lock you into a plan that may not meet your changing business needs. Month-to-month contracts offer more flexibility and allow you to adjust your plan as your business evolves.
These tips can maximize your savings and get the most value from your answering service.
Conclusion
We hope this article has helped you decide how to handle your business calls. Whether you choose automated or live answering, you now know the factors you should consider to get quality service. Small, medium-sized, and even large companies can now easily decide how to pick the best service, what to look for, and how to avoid hidden fees.
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