If you’re skillful and lucky as an entrepreneur or small business owner, you may find yourself with an enviable problem: You have more inbound calls than you can handle yourself. Each call is a potential sale. You want to provide the best customer service. But if you answer every call personally, you may end up neglecting product development, long-term strategy, or other things only you can do for your business. With customer service expectations growing higher as time goes on, it’s imperative that modern-day businesses are able to keep up with the demand. You need to not only know how to choose the right answering service for your business but also make sure that the service can deliver a positive experience on a consistent basis.

In fact, a recent study from Exploding Topics highlighted that 86% of consumers were willing to leave a business following only 2 poor customer service experiences. It’s never been more important that you’re not only able understand how to choose the right answering service for your business but also make sure that the answering service option you do choose can deliver a positive experience on a consistent basis.

In this blog we’ll cover:

  • How much does an answering service cost?
  • In house, outsourced or specialized
  • How to choose an answering service
a business man in an office trying to figure out how to find the best answering service for him

How much does an answering service cost?

First things first, you’re probably wondering how much an answering service costs. The honest answer? It varies and can depend both on the provider and the plan that you choose. Generally speaking, though, there are two main types of plans – per call or per minute.

For those that are looking for the best value option, per minute usually offers the best representation of both quality service and time spent on each customer. If you opt for a ‘per call’ plan, however, you could run the risk of inadvertently factoring ‘hang ups’, ‘prank calls’ or even wrong numbers into the service that you pay for.

Always check the terms and conditions of the service that you choose: some providers don’t discriminate against the types of calls they receive and will charge you the same amount regardless.

At AnswerConnect we offer flexible minutes based pricing, designed to accommodate any business size. Our contracts aren’t fixed because we know that things change. Upgrade or downgrade your plan at any time. Find out more about the plans we have on offer?

Answering service pricing: per minute vs. per call

Factor to ConsiderPer-Minute PricingPer-Call Pricing
Billing AccuracyImprove billing accuracy by charging according to the real-time duration of calls. This ensures you pay only for the precise time and effort invested in each interaction.
Charges a fixed rate for each call, regardless of duration. This can potentially result in less accurate billing for varied interactions. This may not reflect the time and effort invested in different call lengths and complexities.
FlexibilityOffers flexibility as businesses pay for the exact time spent on calls. This accommodates varying call durations and unpredictable call patterns.May lack flexibility. The fixed rate per call might not account for fluctuations in call durations or account for instances of low-value calls. It can account for a predictable pricing structure, however.
Value for High Call VolumeCan be cost-effective for businesses with high call volumes. Per-minute rates may decrease with increased usage.May become less cost-effective for businesses with high call volumes. The fixed per-call rate may not scale proportionally with increased usage.
GranularityProvides a more granular approach to pricing. Businesses pay for the actual time invested in handling calls.Offers less granularity, as fixed per-call rate may not differentiate between length of calls & more valuable interactions.
Suitability for Varied Call TypesSuited for businesses with varied call types and durations. Offers a dynamic pricing model that adjusts to specific needs.May pose challenges for businesses with diverse call types. Fixed per-call rate might not account for variations in call complexity and value.
TransparencyOffers transparency, as charges are directly tied to the time spent on calls. This allows businesses to understand and manage costs more clearly.May lack transparency. Fixed per-call rate may not provide a clear correlation between the cost incurred and the actual effort invested in handling different types of calls.
Risk for Low-Value CallsCarries less risk for low-value Businesses are billed based on the actual time spent, ensuring that the cost aligns with the value derived.Poses a risk for low-value calls. Businesses are charged a fixed rate, resulting in paying the same amount for calls that provide little or no value.
Adaptability to Call PatternsAdapts well to fluctuating call patterns and varying call durations, offering cost predictability while accommodating changing business needs.May be less adaptable to changing call patterns as the fixed per-call rate may not align with shifts in call volumes. This can lead to inefficiencies and suboptimal cost management.


Answering service options

Choosing the right type of answering service for your business is like trying on a new pair of shoes. It pays to get it right – otherwise things can get uncomfortable pretty quick. With various options available, from the friendly touch of live answering services to the tech-savvy vibes of internet services and the ’round-the-clock availability of automated solutions, there’s something for every business. Why does it matter? It’s about finding that sweet spot where your business thrives, customers are happy, and you have the freedom to focus on what you do best.

Live answering services:

Live answering services offer a personalized approach to call handling based on your company’s own guidelines. With a dedicated team managing your calls, you can trust that familiar voices will represent your business. These services extend beyond call handling, including message taking, appointment setting, and a touch of customer support. Suitable for a variety of business types, live answering services are designed to handle diverse call volumes efficiently.

Virtual answering services:

Tailored for businesses thriving in the online realm, Internet Answering Services meet the unique needs of e-commerce or web-only ventures. Ideal for those with a significant online presence, these services include features such as live web chat, order processing, and addressing web inquiries. While live answering services may be enough for some web-only businesses, internet/online answering services offer additional features crucial for successful e-commerce operations.

Automated answering services:

Automated answering services provide a 24/7 presence without the need for human intervention at all hours. This option includes automated messages or menus, helping callers navigate and find information. Suited for companies receiving numerous calls seeking basic information, the option to combine automated and live answering services offers flexibility, allowing callers to leave messages for later follow-up.

Call center services:

Designed for businesses handling high call volumes, Call Center Services are ideal for peak seasons, lead generation, or supporting existing receptionists and customer service representatives. These services ensure prompt attention to customers by employing multiple agents, particularly beneficial for businesses spending extended periods on the phone, such as qualifying leads, taking orders, or assisting customers. Call centres may not represent the same commitment to quality and care that smaller answering services possess, however.


Recommended Reading ? : How Can Your Business Can Benefit From a 24/7 Live Answering Service?


In-House, outsource, or specialized?

An executive, sole proprietor, or entrepreneur’s time is often best spent off the phone (though personally handling some customer service can yield great insights). Once you’ve decided to hire some help, the big question is: should that help be inside or outside your organization?

In-house receptionists can provide great service for walk-ins (if you have them) and a good one can learn to understand the ins and outs of your business almost as well as you do.

Problem is, a full time employee only works about 40 hours a week. Even if your business isn’t open longer hours, your business opportunities can come any time—24 hours a day, 7 days a week, 365 days a year.

The term “outsource” can conjure up images of low quality. And there are certainly subpar live answering services on the market. There are advantages to contracting with an outside provider for your customer service phone calls, emails, and chats. You can have the best of both worlds by avoiding the low-quality providers and hiring live answering specialists to help you with your inbound leads.

Hiring a specialized answering service to take your calls has some important benefits:

  • Scale. A good service can grow with you, in increments of minutes, not hours.
  • Cost. Round-the-clock coverage from in-house employees is expensive.
  • Expertise. Some people change their own motor oil, but most of us appreciate the speed and convenience of leaving it to the experts.

Once you’ve decided to explore what a live answering service can do for your business, it’s time to choose one. Here are a few criteria you can use in evaluating your options and making a decision that’s right for you.

Answering Service Agent Taking A Call

How to choose an answering service

For many businesses, hiring an answering service is an affordable, effective solution. There’s just one problem—how do you choose from the many options out there?

Choosing an answering service, as with any other vendor or service provider you work with, is complicated. Ultimately, the decision has to work for your particular situation. Because we have experience in what good looks like, we’ve created this short list for you.

Still, there are some basic criteria anyone can use to choose an answering service that’s right for them:

  • Quality
  • Options
  • Technicality
  • Customization
  • Working Hours
  • Human or Non Human
  • Call Recording Features
  • HIPAA Compliant
  • Remote Capability

Quality

Test the service by calling as a “mystery shopper.” If your candidate can’t offer this, move on. Quality takes many forms, but two things to look at are accuracy and attitude. When the service takes a message, does the message come through? Is the information in the message correct? A misspelled name or badly transcribed phone number can stop your sales in their tracks.

Getting things right is half the battle. But the real test of a service is how it makes your callers feel. Empathy and professionalism are critical—don’t settle for less.

Options

Do you need order management? Appointment-taking? Make sure the service you’re testing can do what you need them to. If all you need your live answering service to do is take messages, fine. But be sure to ask about other services they may provide as well.

Get Technical

As you shop around, don’t be afraid to ask specific questions about a live answering service provider’s performance. Here are a few to start with:

  • What’s your average hold time?
  • What’s your average time-to-answer?
  • What’s your abandonment rate (how many callers hang up while on hold)?
  • How do you compensate your live answering agents?
  • What’s your employee turnover rate?
  • Can you provide access to all my call data?

Custom Scripts

In live answering, a script is an invaluable guide for maintaining consistency and the right tone for your account. But you never want the person answering the phone for your business to sound like a robot. Your live answering service provider should have the ability to customize your script according to your specifications, and to make changes as needed. The attention an answering service puts into making your script tells you a lot about the care they’ll take in answering your calls.

Hours

If your calls come on weekends or at night, but your service is only Monday – Friday and 9-to-5, what’s the point? The best answering services are available 24/7/365—whenever you need them. And they are flexible enough to evolve with your business as you grow.

IVR

Your main goal in working with a live answering phone service is probably to have your calls answered by a human being. Still, don’t overlook the value of a good, well designed IVR (interactive voice response) system. An IVR can provide basic information, such as your address and hours, without using your live answering plan minutes. An automated system can also help route your calls to the right department or person within your organization. Just make sure that it isn’t too hard for your callers to reach a real person when they want to.

Call Recording

Not all businesses need or want their calls to be recorded. Call recording can be a useful tool for quality assurance, but can also be off-putting for some callers. Whether you choose to record your calls or not, it’s a good idea to find out if the live answering service you’re considering has the ability to do it.

HIPAA

If you’re a doctor, dentist, or other health professional covered by HIPAA (the Health Insurance Portability and Accountability Act), you’ll need a HIPAA-compliant service. To keep patients’ medical records confidential, your service has to be able to pass on messages to you securely.

Remote Work

When all your answering service’s agents are clustered in one building, it only takes one power outage, snowstorm, or other event to knock them offline. Single-location companies may also struggle to cover business hours in other time zones. Not only that, but the carbon footprint of all those agents driving to that one location can be considerable.

Don’t put all your eggs in one basket. There’s a better way. With a remote work model, providers of services like live answering can spread agents across time zones and even around the world. That way, no one outage, whatever the cause, can interrupt your live answering service.

Your business, your choice

Ultimately, you know best how to choose an answering service for your business. And, of course, making that decision is just the beginning. Keep an eye on the live answering service provider you choose, over time, to be sure you’re getting what you pay for.

A great live answering service, one with the options and expertise you need, can be a tremendous boost to your business. More sales, fewer missed leads, and more time to focus on growing your business are all within reach. 

Take the next step

Looking for a reliable, professional and trustworthy service? AnswerConnect has been voted the best US answering service by Forbes and have a Trustpilot rating of ‘Excellent’. We’re used across the US by businesses of all sizes to help manage with high call volumes, provide after-hours call services and much more. Streamline your customer service capabilities today.