Call Center Software Vs PBX System: What's the difference?

Call Center Software Vs PBX System: What's the difference?

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12 mins read

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Posted on May 15, 2024

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Sundara Perumal

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Businesses need to decide what type of software suits your specific business model. Call center software is a solution that forms the backbone of your customer experience (CX) operations. It links your marketing automation platform, CRM, phone system, and other tools in real time and based on events.

The Contact Center Solutions market size is projected to increase from USD 41.9 billion in 2023 to USD 109.7 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 21.2% during the forecast period.

On the other hand, PBX call center is a telephone network that enables users to make and receive both internal and external calls. PBX solutions function through communication channels like Voice Over Internet Protocol (VoIP) or analog phone lines.

  • The global IP PBX market is anticipated to be valued at US$ 30,821.3 million (approximately USD 30.82 billion) in 2023 and is likely to rise at a CAGR of 10.4%, reaching a valuation of US$ 83,146.8 million (approximately USD 83.15 billion) by 2033.
  • The global IP PBX market is anticipated to grow at a CAGR of 13.5% during the forecast period.

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What is a Call Center Software?

Call center is aset of tools called call center software makes it possible for call centers to interact with both agents and customers. Call center software's primary functions include assigning client calls to the right agent and facilitating effective outbound call processing.

Additionally, it helps in tracking the performance of those interactions, generating reports, and providing insights to improve call center operations.

How Call Center Software Works?

Here’s a quick overview of how the Call Center Software works:

  • The app connects to the Internet and connects a call between two or more parties.
  • The smart device picks up your voice via the microphone and transforms it into digital signals.
  • The app breaks the signals into data packets and transfers them to the other caller.
  • The caller’s device decyphers the data packets and transforms them into audible sound.

The process repeats until the call concludes.

What is a PBX Phone System?

PBXs are phone systems are that allow extension phones in one office link to the phone system in another office. It is perfect for companies with multiple locations because it allows employees in one office to communicate with those in other offices.

Better security and conference calling are two other features of the Cloud PBX Phone System that aren't possible with regular phone lines.

How PBX System Works?

Here's some points are mentioned about the PBX system's functionality:

  • Your customers will be greeted when they call your business and are given a list of options to choose from.
  • They will be able to reach the appropriate agent or department via a menu listing or by dialing the extension or agent’s name.
  • The system will instantly connect callers to the appropriate agent or department by selecting the right option.
  • Members of staff located in a branch office, home office, or out on business can also be transferred to answer them.
  • A PBX can range in complexity, so different equipment can be used. Copper telephone lines are usually used in a traditional PBX.
  • In the case of VoIP, it may be hosted at the enterprise or it could be a cloud-based PBX system too.
  • An IP PBX uses digital phone signals to make calls.

Types of Call Center Softwares

To assist you in selecting the best call center software for your company, our team has put a thorough list of the top options.

On-premise call center software

The conventional on-premise call center software model has all of the equipment and infrastructure accommodated on the company's grounds. Large businesses with strict guidelines and requirements for maintaining high standards of security and privacy are the best candidates for them.

Hosted call center software:

A hosted call center is maintained by third party and is accessed remotely. It removes the requirement for hardware and software installations on-site. VoIP System is used by hosted call centers, which allow calls to be addressed online and is applicable for all kinds of businesses.

Browser-based call center software:

It allows agents of the call center to handle calls, and other communication channels with the help of a browser-based interface. Browser-based call centers use VoIP technology over the internet to make and receive calls. It allows for remote working and flexible staffing options, making it extraordinary choice for all sizes of businesses.

Types of PBX System

There are many types of PBX systems and some of them are discussed below which mainly are mainly useful for small and medium businesses.

Traditional PBX:

Traditional PBX is the older technology which requires a lot of hardware to be kept on the premises of the business because the whole system is maintained and operated on-site. For example, office phones are connected to each other via cable lines, and at the heart of everything sits a physical rack of components that keeps everything up and running.

Digital PBX systems:

Seamless communication is critical for every organization to function efficiently. The digital PBX offers value-added features Like reducing communication costs, increasing productivity, and simplifying business processes with its efficient call management solution. For Small Offices – is a field-proven Telecom system that helps you strengthen business communication.

Onsite IP PBX Phone system:

An IP PBX is a telecommunication device that provides voice connectivity to desk phones within a building. It oversees the outgoing and incoming calls across its telephone network using an internet connection. An IP PBX phone system can make and receive phone calls over the internet while maintaining analog phones throughout the office.

Cloud-based PBX:

A cloud PBX is essentially a hosted digital system, which operates entirely over the internet. The software is maintained in the cloud, allowing users to benefit from all the spontaneous functionality of a PBX system with the added benefit of allowing much more agility and flexibility for employees.

Virtual PBX Phone system:

It is known for having almost no hardware. The only physical equipment you need in the office to work the system is a number of handsets. The rest of the network’s components run in the cloud. You are not limited to a handset in the office, since it is a wireless network. As long as you have an internet connection and a VoIP-compatible device you can access the system from anywhere.

Hosted PBX:

A hosted PBX is a cloud-based, virtual PBX phone system that provides secure, dependable phone service to an organization or company via an Internet connection rather than a privately managed call controller or server that you own and operate yourself. Hosted PBX systems do not require hook switches that connect and disconnect traditional phone calls, copper wires, landline phones, or Public Switched Telephone Networks to operate.

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Features of Call Center Software

Call center software offers various advanced features to your businesses. Here are a few of them to consider:

Interactive voice response (IVR):

An IVR system is an electronic voice menu that helps customers to decide which agent they want to be connected based on their needs and queries.

Skill-based routing:

Call centers can rank their agents based on their abilities.

Call recording:

Incoming and outgoing calls get recorded and stored in a cloud-based environment for retrieval.

Computer telephony integration (CTI):

CTI connects the functions of your smart phone with your computer.

Desktop notifications:

Desktop notifications always helps you with a pop-up notification, when you receive a call or when a call is transferred to you.

Power dialers:

It automatically dials stored phone numbers from a selected list.

CRM integrations:

It is a powerful tool designed to streamline customer interactions and enhance agent efficiency. By consolidating data from prior interactions, including contact details and past purchases, it empowers customer service representatives to better serve customers.

Call whispering & live coaching:

During live calls, supervisors can join and “whisper.” This means the agent hears the coaching, but the caller is unaware anyone else has joined.

Warm calling & transfer:

With warm calling, you can quickly reach out to people who have already shown an interest in your product and have previously been in touch with your company.

Call center analytics:

You can improve team performance and make data-driven changes to your workflows.

Features of PBX System

If you consider choosing on-premises system, here is the tip for you: many phone systems do not support certain advanced features that your business requires in this competitive world. Here are few of the to consider:

Call Recording:

Call recording records all your interactions with customers, store, and use it for further training purposes. Many PBX phone systems may charge you additional income for reacording all your calls.

Call Routing:

It is one of the best PBX phone system features as it efficiently routes incoming calls to the appropriate agents or extensions.

Call Masking:

This is one of the most important pbx phone system feature that allows your managers to join and train your agents on an ongoing call without letting the customer know or interfering the call.

Interactive Voice Response systems or auto-attendant of PBX system acts like a virtual receptionist by answering all your incoming calls with an IVR menu before routing the call to agent.

Voicemail Transcription:

When your agents or busy or not available at the moment, this feature allows to send or receive messages in terms of voicemail. They can listen to them whenever they are back to their work.

Digital Portal Management:

This feature addresses phone-related tasks like establishing SIP trunks, building a call routing path, setting up a ring group, and creating a new headset extensions.

Reporting and Analytics:

This tool provides the real-time data and information about how many calls are answered, how many are re-routed, how many are in the queue, and the status of your agents.

Conference Calling:

Many types of PBX phone system has this feature that enables multiple participants to join a virtual meeting easily.

CRM integrations: Most of the PBX systems enables your phone system to integrate with CRM software and various business tools.

Benefits of Call Center Software

Here are a few benefits of call center software to your businesses that improve productivity with 100% customer satisfaction guarantee.

  • Call center software ensures timely responses to customer queries, enhancing the overall customer experience and satisfaction.
  • By providing full-time service and managing various queries efficiently, call center software helps optimize productivity for call center agents.
  • Investing in call center software reduces the need for employing multiple customer agents, resulting in cost savings while providing beneficial features 24/7.
  • Call center software automatically directs and responds to calls in a professional manner, contributing to a positive perception of the company's professionalism.
  • With a 24/7 customer center call service, businesses can engage with potential customers effectively, leading to more leads and closed deals.

Benfits of PBX Phone System

Below listed are some of the benefits of a PBX phone system, from streamlining internal communication to enhancing customer service.

  • PBX makes talking inside the office easier. You don't need to call outside for every office phone.
  • Centralized control as it allows all incoming calls to be accessed through a single number.
  • You don't need a person to answer calls. Features like auto attendant helps callers find who they need to talk to.
  • Flexible call routing ensure that calls can go to different phones if someone isn't there to answer.
  • You can see who's calling and how much time they spend on the phone to make sure things are working well with the help of call monirotring feature.

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Which Phone System Suits your Business Needs?

When you are deciding between call center softwareand PBX systems, it is very crucial to think about what your business needs. Both can help you with communication and sales objectives.

Cloud PBX systems are good for large scale businesses to manage all the communication solutions. It also lets your business to remove or add users, as well as add or remove telephone extensions and lines whenver needed. All these process do not require any investment in purchasing additional hardware.

On the other hand, call center software is more flexible for small scale businesses and can change with your needs. It's also cheaper and lets your team work from anywhere. It has cool features like smart routing and ways to see how things are going, which can make your business run smoother.

So, make tha smart and better choice for your businesses that offers flexibility, reduces upfront costs, and sclaes up or down along with your business needs.

If you're still in confusion, you can try the TeleCMI's best call center software and cloud PBX system which gives you free trail for ten days. If you think which one of them will suit your business, after checking with the free trail, you can continue with TeleCMI products.

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Sundara Perumal

With over 3 years in the B2B space, I’ve been helping businesses improve how they connect with customers and grow their online presence. At TeleCMI, I specialize in driving growth through next-gen call center software and smart business strategies.

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