Cloud Telephony: Top Features + How to Set Up

What is cloud telephony?

Cloud telephony is the technology that enables voice communication to be made or received via the Internet rather than through traditional telephone lines. Unlike conventional phone systems that require extensive hardware and maintenance, cloud telephony operates through a VoIP (Voice over Internet Protocol) network. This means that all the communication infrastructure is hosted in the cloud, enabling you to manage calls, messages and other communications more flexibly and efficiently.  

One of the standout advantages of cloud telephony is its edge over traditional phone systems. Traditional setups often involve significant upfront investments in hardware, complicated installations and ongoing maintenance costs. In contrast, cloud telephony requires minimal initial investment and offers the flexibility to scale up or down based on your business's needs. Moreover, it provides enhanced features such as call analytics, CRM integration and advanced routing capabilities that are often difficult or expensive to implement in traditional systems. 

Cloud telephony vs. VoIP 

Cloud telephony is a future-facing technology stack that unifies and simplifies all customer communications. However, let us first understand what makes it different from VoIP: 

Also Read: On-premise vs. cloud contact center: Which one is better? 

Top benefits of cloud telephony for businesses

The popularity of cloud telephony has surged across various industries because of its unmatched reliability, cost-efficiency and scalability. With cloud telephony, you can easily support remote contact center agents, seamlessly integrate with other cloud-based tools and ensure business continuity with robust disaster recovery options. Let’s check out some of its key benefits: 

🔧 Effortless installation 

Cloud telephony systems are remarkably easy to set up, requiring only an internet connection and minimal hardware, such as VoIP phones. Unlike traditional phone systems, there’s no need for extensive infrastructure like PBX systems or physical wiring. Startups and enterprises alike can quickly deploy a cloud telephony solution and start handling calls without significant IT support. Modern cloud computing solutions can be deployed within days, enabling you to scale effortlessly without being constrained by physical infrastructure. 

📞 Powerful calling features 

Cloud telephony comes equipped with powerful features like call recording, auto-attendant, predictive dialer and call analytics, all accessible via the cloud. These tools not only improve call center efficiency but also enable data-driven decision-making. For instance, sales teams can track calls that convert to sales using analytics, while supervisors can utilize call center recordings to train new agents effectively.  

📉 Lower operational costs 

Your business saves on maintenance and hardware costs, such as server upkeep and traditional phone hardware, since everything runs on the cloud. A mid-sized company could cut phone expenses by switching from on-premises systems to cloud contact centers, eliminating the need for physical phone lines and maintenance. According to Technology Advice, the average monthly plan for cloud telephony starts at just $10 per user per month, which is much cheaper than a traditional phone system. 

📏 Scalable communication handling 

Cloud telephony allows you to easily adjust your phone systems to meet your needs, whether adding lines during seasonal peaks or expanding into new regions. For example, during peak seasons, you can quickly add more virtual lines to handle increased call volumes, ensuring high-quality customer service. This scalability ensures that your business's call abandonment rates remain low even during periods of high demand. 

🕟 Flexible business operations 

Cloud telephony enables employees to make and receive calls from anywhere using internet-connected devices like laptops or smartphones. This flexibility is ideal for remote work environments, allowing seamless communication across a distributed workforce. With 85% of businesses expected to adopt a cloud-first approach by 2025, cloud telephony can future-proof your business. 

5 key features of cloud telephony solutions

Cloud telephony offers some essential features that almost all businesses need. Let’s check out the top five features. 
 
1. IVRs (Interactive voice response)  

IVRs automate call management by presenting callers with a menu of options, such as "Press 1 for Sales," "Press 2 for Support," or "Press 3 for Billing." This system routes calls based on the customer's selection, swiftly directing them to the appropriate department. Properly configured IVRs reduce wait times and enhance self-service, improving overall customer satisfaction. However, a poorly designed IVR can frustrate customers, leading to dissatisfaction and potential loss of business.  

Advanced IVR systems can even integrate with CRM platforms to provide personalized experiences by recognizing returning customers and routing them based on their history.  

Must Read: Top 15 benefits of IVR systems in call centers. 

2. Auto dialers 

Auto dialers automatically dial a list of phone numbers, connecting the call to an available agent only when a live person answers. This feature is commonly used in sales, customer service and outbound call centers to improve efficiency and reduce the time agents spend manually dialing numbers. 

3. Call analytics and reporting 

Call analytics is one of the most powerful tools in a cloud telephony system. It provides detailed insights into call volumes, durations, wait times and other key call center metrics. With real-time reporting, you can monitor performance, identify trends and make data-driven decisions to optimize customer service in call centers. For example, analyzing peak call times can help in resource planning, ensuring enough agents are available when needed most. This feature is particularly invaluable for inbound contact centers relying on metrics to gauge efficiency and service quality. 

4. Call recording 

Call recording enables you to capture and store voice communications for call center quality assurance, training and legal compliance. By reviewing recorded calls, supervisors can identify areas for improvement and ensure that agents adhere to company policies. It's also valuable for resolving disputes and verifying information. However, you must handle recordings responsibly, ensuring data privacy and compliance with legal regulations. 

 Must Read: What is contact center compliance? 

5. Virtual phone numbers 

Cloud telephony provides the flexibility of virtual phone numbers that are not tied to a specific location. You can quickly obtain local or toll-free numbers for various regions, establishing your presence in multiple markets without needing physical offices. Virtual numbers can be assigned to different departments, campaigns or individual agents, making it easier to track the source of incoming calls. This feature is particularly beneficial if you want to expand into new regions. 

How to configure cloud telephony for your business 

Planning to adopt cloud telephony technology? Follow these steps to ensure a seamless setup and optimal performance. 

Step 1: Assess your business needs 

Before you begin, you must comprehensively understand your business's communication needs. Consider the size of your team, the nature of your calls (inbound outbound or both) and any specific features you require, such as IVR, call recording or CRM integration. This thorough understanding will ensure you don't overlook critical factors when choosing the right cloud telephony solution. 

Step 2: Select the right service provider/vendor 

A dependable cloud telephony service provider is essential for your foundation. Such providers deliver the infrastructure and services required to manage your business communications effectively. 

Ask for clarifications about their average uptime or how they handle data security and compliance. Ensure the provider meets your business's unique needs and has transparent pricing models without any hidden fees. A reliable provider can offer robust features and excellent support, while a subpar choice might result in service interruptions and higher costs. 

Step 3: Set up your phone system 

Once you’ve chosen a provider, setting up your phone system is next. This typically involves creating user accounts for your team, assigning virtual phone numbers and configuring your phone menus. Most cloud telephony platforms offer user-friendly dashboards that make it easy to customize these settings. You’ll also need to set up any additional features like call recording, analytics or auto dialers according to your business needs. 

Step 4: Configure call routing 

Call routing ensures that incoming calls reach the right person or department promptly. Start by mapping out your business’s call flow and identifying key customer touchpoints such as sales, customer support and technical assistance.   

Configure your cloud telephony system to route calls based on criteria like caller location, time of day or agent availability. Utilize features like automated attendants and skill-based routing to streamline the process. Proper call routing minimizes wait times and enhances customer satisfaction by connecting them to the most qualified agent quickly.   

💡 Pro Tip 
 
Use dynamic call routing features to adapt to real-time conditions, like peak call times or high-traffic days. This flexibility helps manage call volumes efficiently and ensures consistent service quality.   

Implement fallback options to route calls to alternative departments or voicemail when agents are unavailable. Besides, if you use a conversational IVR, as suggested above, it can automatically redirect route calls to the right agent per their subject-matter expertise. Learn how Sprinklr’s conversational IVR software works. 

Enable Effortless Customer Journeys with Conversational IVR 

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Step 5: Integrate with existing systems

Integrating cloud telephony with existing CRM, helpdesk software or ERP systems is crucial for seamless operations. Integration allows for seamless data flow between your telephony system and other platforms, enabling a more unified and efficient workflow. For instance, when customers call, their information can automatically appear on the agent’s screen, improving response times and personalization.   

Also, linking telephony with the contact center CRM system can automatically log call details, making customer history and preferences tracking easier.   

Step 6: Test the system 

Before fully rolling out your cloud telephony system, it’s crucial to test it thoroughly. Conduct test calls, check the call quality and ensure all features work as expected. Test scenarios, such as call routing during peak times, to identify potential issues. Involve your team in the testing process to gather feedback and make any necessary adjustments before the official launch. 

Step 7: Train your team 

Proper training is essential to maximize the benefits of cloud telephony systems. Start with comprehensive onboarding sessions that cover system navigation, call-handling features and integration points. Provide ongoing training to supervisors on advanced functionalities like analytics and IVR management.  

Role-playing scenarios also play a crucial role in training agents. They provide a practical understanding of the system's features in real-life scenarios, ensuring agents feel confident and well-prepared. Regularly updating training materials as new features and updates are rolled out keeps them up-to-date. 

Step 8: Monitoring and optimization 

Once your cloud telephony system is up and running, continuous monitoring is essential for ensuring optimal performance and maximizing its benefits. Here are some key areas to focus on: 

• Call quality: Monitor metrics like call clarity, jitter and packet loss to ensure a high-quality customer experience. 

• Agent performance: Track call center agent performance metrics such as average handling time, first-call resolution rates and customer satisfaction scores to identify areas for improvement. 

• Customer feedback: Regularly collect and analyze customer feedback to understand their satisfaction levels and identify pain points. 

• System performance: Monitoring system uptime, call volume and resource utilization is essential to ensure optimal performance and avoid potential bottlenecks. 

What are the drawbacks of cloud telephony?

While cloud telephony offers many benefits, it also has some drawbacks. Note the following:  

Reliance on internet connectivity 
Cloud telephony depends heavily on a stable internet connection. Any disruption can lead to poor call quality or service outages, which can impact business operations.  

Dependence on service providers  
While cloud telephony offers flexibility and scalability, it's important to note that you may have less control over the underlying infrastructure compared to on-premises systems. This means you'll be relying on your service provider for hardware maintenance and updates, which represents a significant shift in responsibility.  

Ongoing costs 
While cloud telephony often reduces upfront costs, it can lead to ongoing expenses accumulating over time. Monthly or annual subscription fees and charges for additional features or services can add up, especially for larger organizations. It’s important to carefully evaluate pricing models and consider long-term costs when selecting a cloud telephony provider.  

Compatibility and integration challenges  
Although cloud telephony systems offer integration capabilities, connecting them with existing business tools or legacy systems may be challenging. Compatibility issues can arise, leading to additional costs or the need for custom development.

As you navigate an increasingly competitive business landscape, anticipating and adapting to change is paramount. While cloud telephony provides a solid foundation for modern communication, forward-thinking organizations are looking beyond traditional solutions to embrace the transformative power of artificial intelligence.  

Sprinklr Service offers a comprehensive suite of AI-powered contact center tools designed to elevate customer interactions and drive business growth. From conversational IVR and customizable chatbots to advanced conversational analytics, Sprinklr empowers you to deliver exceptional experiences and achieve your strategic objectives.  

By investing in Sprinklr Service, you're not just adopting cloud telephony but securing a future-proof contact center solution that can evolve with customer expectations and market trends. Don't settle for the status quo—schedule a demo today to discover how AI-powered contact center solutions can help you exceed your goals. 
 

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