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5 reasons why start-ups should adopt cloud telephony today

5 reasons why start-ups should adopt cloud telephony today
19 Dec, 2021

As India witnesses its start-up boom, it has emerged as the third strongest start-up ecosystem in the world.  A critical focus for any start-up is to build and maintain a strong customer rapport for which it must rely on technology. In 2021, several cloud-based technologies gained prominence, one being cloud telephony, which is a phone system that is operable via an internet connection and is commonly known as a voice over Internet Protocol-based, or VoIP-based hosted PBX (Private Branch eXchange) solution. It enables enterprises to move their legacy business phone services to the cloud and streamlines business communications and growth.  

Relying on a centralised telephonic system for customer engagement is not a new practice. From restaurants and hospitality, to ecommerce, from education to banking, almost all sectors have a call centre or team of agents to address customer queries and requests. However, during the Covid-19 lockdowns, digitalization of businesses accelerated, and a number of businesses and call centres migrated to the cloud. Given the growth, cloud telephony is expected to reach USD 52.20 Bn by 2027 at a CAGR of 13.28% over the forecast period 2020-2027. 

One of the big benefits of cloud telephony was that it allowed teams to work remotely, but it also allowed businesses to expand rapidly, as they could hire remote teams and streamline workflow effortlessly and cost-effectively. 

Here are five reasons why businesses, especially start-ups and SMBs must continue to invest in cloud telephony. 

Easy to install 

Setting up the cloud telephony system within a business takes less than an hour as compared to the PBX or EPABX (Electronic Private Automatic Branch Exchange) systems that would take days. Cloud telephony can be seamlessly integrated into the existing business calling system and there are (almost) no software and hardware requirements or infrastructural investments required. Cloud telephony just requires a seamless internet connection, laptop or mobile device, to operate and manage different activities within the system;  

Multiple device support to manage high volume calls– Cloud telephony is especially relevant for start-ups scaling up, as they witness quick growth and high volume of calls from customers. Imagine, a retail start-up, with online and offline stores, managing hundreds of customer queries every hour. They need a seamless call management system to route queries to relevant teams across the country.  With a customised cloud telephony set up, the customer can input their pin code on the IVR, and they can be routed to the relevant call centre/live agent. Hence, the start-ups can scale up efficiently, and manage high volume calls. Just create an account, pay for a month, and within a couple of minutes, you can easily avail of its services, such as inbound or outbound call services.  

Reduce costs and increase revenue

A critical business imperative for start-ups is to drive down costs and still successfully scale up. Cloud telephony can reduce operating costs for businesses by 58% because of limited infrastructural requirements. Further, it brings features such as toll-free numbers and virtual numbers, and streamlines customer engagement, which overall increases lead conversion. Cloud telephony also reduces repetitive tasks for employees, thereby increasing their productivity. And today, having a centralised system, with a toll-free number also makes start-ups look more legit and professional.  

Data analysis and security 

From registering the data automatically to organising them in a different section, cloud telephony can effectively organise a huge call activity log. Using the customised dashboard, start-ups are able to interpret and analyse the information gathered from the interactions with customers, and make almost real-time decisions which are data-backed. This could include identifying potential/ genuine leads, track customer requests, and automate processes further. It also ensures that no customer call is missed, and all needs are addressed. Further, as data is stored on cloud servers, it maintains uninterrupted service and ensures data security. 

Builds trust and loyalty through seamless engagement 

Trust building is one of the most vital factors for start-ups and SMBs. Cloud telephony brings many benefits for start-ups such as providing Toll-Free Numbers or TFN, custom IVR services, and instant on-call query resolution services which goes a long way in building customer trust and loyalty. Inbound call centre features also improve customer experience through features such as personalised greetings, custom hold music, and personalised discussions based on historic data. Outbound call features help in managing large volumes of customer data and engaging with them through personalised texts/ calls, all in one go and without high investments. These activities go a long way in building customer trust and loyalty .

Bottom Line 

Cloud telephony is one of the most efficient tools to streamline the business to grow and become agile. Start-ups and SMBs can potentially reduce wait time for customers by up to 33%. Apart from enabling and adopting remote work ideology, cloud telephony leverages the business's data security, productivity, and communication quality.  

Vishwadeep Bajaj

Vishwadeep Bajaj


Vishwadeep Bajaj is the chief executive officer of ValueFirst, a communications-as-a-service provider.