Costs of different phone answering services (including AI answering services) compared and explained
If you’ve ever missed an important business call, you know how costly it can be. That’s where phone answering services come into play.
But how much do they really cost, and are they worth the investment? You’re not alone in wondering. Finding a reliable and affordable phone answering service is a common challenge for many businesses.
In this post, we break down everything you need to know about pricing models and cost factors to consider when budgeting for a phone answering service for after hours.
We'll compare popular answering services, look at extra features that impact cost, and outline tips to find an answering service that fits within your budget. Let’s get started!
First, what is a Phone Answering Service?
A phone answering service is a professional service that manages incoming calls on behalf of your business. By outsourcing calls to a team of remote receptionists, companies can ensure calls are answered 100% of the time, without the overhead costs of hiring additional full-time staff.
These services can handle tasks such as:
• Answering calls with a personalized greeting
• Taking messages and forwarding them to the appropriate person
• Scheduling appointments
• Providing customer support
Unlike traditional voicemail or automated systems, phone answering services often use real people to interact with your callers, providing a more personal touch.
Why Do Businesses Use Phone Answering Services?
Answer phone calls after hours and during peak call time
It goes without saying that missing a call can mean missing out on a potential client or an important piece of information. A phone answering service ensures that every call is answered promptly and captures crucial information at any time of day or night, increasing your chances of securing new business and maintaining customer satisfaction.
Builds Professional Image
First impressions matter.
Eighty percent of consumers consider the telephone to be important when it comes to communicating with a business. Having a dedicated service to answer your calls can highlight your business’s professional image. It demonstrates that you’re serious about customer service and being accessible to your clients.
Cost-Effective
Hiring a full-time receptionist can be expensive when you factor in salary, benefits, and training. A phone answering service provides a cost-effective alternative, offering professional call handling without the overhead costs associated with additional staff.
Increased Productivity
By outsourcing after hours phone answering, you and your team can focus managing relationships and strategic decisions, increasing productivity by allowing you and your staff to concentrate on tasks that drive growth and revenue.
Flexibility and Scalability
As your business grows, so does the volume of incoming calls. Phone answering services, especially when powered by AI, can easily scale to accommodate increased call volumes, ensuring consistent service without the need for additional hires.
Types of Phone Answering Services
Understanding the different types of phone answering services can help you choose the one that best fits your business needs.
Live Person Answering Services
These services employ real people to answer your calls. Operators are trained to handle calls according to your specific instructions, providing a personalized experience for your callers. They can take messages, transfer calls, and provide basic information about your business.
Automated Answering Services
Automated services use technology like Interactive Voice Response (IVR) to manage calls. They can efficiently handle high call volumes and route calls to the appropriate departments or individuals. However, they lack the personal touch of a live operator, which can lead to high abandonment rates from callers.
Artificial Intelligence (AI) Answering Services
AI receptionists are rapidly gaining in popularity due to their low cost and high customizability. While a live answering operator may be answering calls for as many as 10 or 20 other businesses, an AI answering service works around the clock just for you. And because its AI, it can be trained to comprehend any aspect of your business in a way that meets and exceeds that of a live operator.
Factors That Influence the Costs of Answering Services
Several factors can affect the overall cost of a phone answering service. Being aware of these can help you make an informed decision.
- Call Volume The number of calls your business receives is a primary cost driver. Services often charge based on the number of calls answered or the total minutes used. Higher call volumes typically result in higher costs.
- Service Hours Do you need coverage during business hours only, or do you require 24/7 availability? Extended hours, including nights, weekends, and holidays, usually come at an additional cost.
- Type of Service Live answering services generally cost more than automated or AI services due to the human labor involved. Similarly, specialty services with industry-trained operators may have higher rates.
- Contract Terms Some providers offer discounts for long-term contracts, while others operate on a month-to-month basis. Understanding the terms can help you avoid unexpected expenses and choose a plan that aligns with your budget.
- Additional Features: Extra services such as appointment scheduling, order processing, bilingual support, or integration with your CRM system can add to the overall cost.
Typical Pricing Models For Live Answering Services
When it comes to live answering services, pricing can vary, but most companies who do live answering offer some type of monthly service fee, plus an additional fee for the actual time operators spend handling your calls. Some services charge a flat fee per call answered and others charge per minute.
| Provider | Base Package Includes | Base Package Monthly Fee | Additional Per-Minute/Per Call Rate | Type of Answering Service |
|---|---|---|---|---|
| Smith.ai | 30 calls per month | $285 | $10.50 per additional call | Live Person |
| Ruby | 50 minutes per month | $235 | $4.70 per additional minute | Live Person |
| Dialzara | 220 minutes per month | $99 | $0.48 per additional minute | AI Answering Service |
| AnswerConnect | 200 minutes | $350 | $2.50 per additional minute | Live Person |
| Posh | 0 minutes per month | $65 | $2.20 per additional minute | Live person |
| PATLive | 75 minutes per month | $235 | $2.25 per additional minute | Live Person |
| ServiceCenterPro | 0 minutes per month | $199 | $1.59 per additional minute | Live Person |
| AnswerHero | 50 minutes | $79 | $1.89 per additional minute | Live Person |
Hidden Costs To Watch For:
Setup Fees
Some providers charge a one-time setup fee to configure your account, create custom scripts, and integrate their system with your business operations. Make sure to ask about any initial costs upfront.
Holiday and After-Hours Charges
Services provided during holidays or outside of regular business hours may incur additional fees. If 24/7 coverage is essential for your business, ensure you understand these charges.
Additional Services Fees
Features like bilingual support, emergency dispatch, or detailed call reporting might not be included in the base price. Clarify which services are included and which cost extra.
Overage Fees
If you’re on a monthly plan with a set number of minutes or calls, exceeding that limit can result in overage fees. These charges can be significantly higher than your regular rates.
Contract Termination Fees
Long-term contracts might offer lower rates but could include hefty fees if you decide to cancel early. Review the contract terms carefully before committing.
Is an after hours answering service worth it?
Investing in a phone answering service can offer a substantial return on investment (ROI) for your business.
Enhanced Customer Satisfaction
Prompt, professional call handling improves customer satisfaction. Happy customers are more likely to become repeat clients and refer others to your business.
Increased Lead Capture
By ensuring every call is answered, you capture more leads and opportunities that might have been missed otherwise. This can directly impact your sales and revenue growth.
Cost Savings
Outsourcing call handling - especially to an AI answering service - can be more cost-effective than hiring full-time staff, especially when you consider salaries, benefits, and training costs. You only pay for the services you need.
Improved Productivity
With calls managed externally, your team can focus on their primary responsibilities without frequent interruptions. This can lead to increased efficiency and better overall performance.
Professional Representation
A quality phone answering service acts as an extension of your brand. They can enhance your professional image, which can positively influence customer perceptions and trust.
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Common Misconceptions
Understanding the realities of phone answering services can help dispel some common myths.
“It’s Too Expensive for Small Businesses”
While there is a cost associated with phone answering services, the potential ROI often justifies the investment. Many providers offer scalable plans suitable for small businesses with limited budgets.
“Automated Systems Are Just as Good”
Automated systems can handle basic tasks but lack the personal touch of a live operator. Customers often prefer speaking to a real person, especially when they have complex inquiries or concerns.
“I Don’t Receive Enough Calls to Justify the Cost”
Even a few missed calls can lead to lost business opportunities. A phone answering service ensures that every potential customer is acknowledged, which can make a significant difference in your bottom line.
“My Business Is Too Unique for an Outsourced Service”
Many phone answering services offer customizable solutions tailored to your specific needs. Operators can be trained with scripts and information unique to your business, ensuring they represent your brand accurately. An AI answering service instantly retains any information you provide it, making it the best overall solution for after hours phone answering.
Conclusion
Understanding the cost of phone answering services is essential for making an informed decision that benefits your business. While there are various factors to consider, including call volume, service hours, and additional features, the advantages often outweigh the costs.
By ensuring every call is answered professionally, you enhance customer satisfaction, capture more leads, and present a polished image to the world. Whether you’re a small business owner looking to grow or an established company aiming to improve efficiency, a phone answering service could be the solution you’ve been searching for.
Embracing a phone answering service can be a strategic move that sets you apart from the competition. By carefully assessing your needs, understanding the costs involved, and choosing a provider that aligns with your business goals, you can make a decision that propels your business forward.
For personalized advice and to explore how a phone answering service can benefit your specific situation, don’t hesitate to reach out. We’re here to help you make the most of every opportunity that comes your way
Ready to ensure you never miss a call again? Contact us to learn more about how our phone answering services can elevate your business.
