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What is a Softphone? Benefits and why to use one

Daniel WeissLast updated on July 31, 2024
16 min

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Softphones aren't just a glimpse into the future of telecommunications; they’re actively shaping the present. 

By shifting from clunky desk phones to a streamlined, software-based system, softphones—which are powered by sophisticated internet protocol (IP) technology—offer a smarter way to manage business communications.

Businesses adopt softphones for their flexibility, which supports both remote and hybrid operations. Automated dialing and seamless integration with existing technology streamline operations, enabling teams to collaborate in real time and access essential data during calls. 

Plus, features like call recording and customizable routing improve customer interactions to maintain professionalism and service quality.

Here, we’ll explore everything there is to know about softphones, their benefits, and why so many businesses are implementing these systems into their operations. To sum it all up quickly:

  • Softphones are powered by IP technology and replace traditional hardware phones.

  • Softphones use software that enables users to call phone numbers and use voice communication over the internet.

  • Key business benefits of softphones include improved customer experience, optimized calling, and hybrid working.

  • Cloud-based softphone features include call recording, routing, queuing, and customization.

What is a Softphone?

Softphones enable voice communication over the internet using voice over IP (VoIP) technology. 

Unlike traditional hardware phones that connect to landlines, softphones transmit voice data through smartphones or computers. 

Softphone technology relies on your device's speaker and microphone system to transmit voice packets to the intended recipient. 

These features support remote work and work-from-home setups, allowing employees to ditch physical dial pads and call customers from any of the following:

  • Browser-based interface 

  • Mobile application

  • Desktop application

How Do Softphones Work?

Softphones convert sound into binary codes via a codec, which is then transmitted and decoded back into sound on another computer.

The process is complex, but more important than the tech are the benefits softphones bring to the end user, including: 

  • Assign real phone numbers to your system: Even though softphones operate online, they can be assigned actual telephone numbers and local area codes, which means anyone with a landline or cell phone can dial a softphone. This reassures customers they’re contacting a real business or contact center. Providers acquire these numbers from carrier networks such as Voxbone, Plivo, and Twilio, depending on your location.

  • Retain phone numbers through porting: If you're transitioning from a traditional landline to a cloud-based VoIP service, you can keep your existing phone numbers through "porting." This transfers your numbers between carriers with minimal service interruption—which reduces stress, admin headaches, and potential customer confusion.

  • Be aware of potential call quality risks: Since cloud-based solutions are dependent on internet connectivity, they're susceptible to many of the same problems all internet-based applications experience, namely slow performance due to limited bandwidth.

  • Solutions to common issues are available: Problems such as jitter, latency (leading to choppy or garbled audio), and dropped calls can be mitigated quickly and easily with softphones. Quality of Service (QoS) adjustments can prioritize voice data on your network, and many VoIP service providers offer to configure these settings remotely, ensuring smoother voice communication.

What are Softphones used for?

Softphones are used in many business settings and are favored for their various features that make communication more efficient. Here are some specific use cases:

  • Customer support centers: Softphones are extensively used in customer support settings where agents handle high volumes of telephone calls daily. They integrate with customer relationship management (CRM) systems to provide real-time customer data during calls, improving service quality and response times.

  • Sales teams: For sales professionals, softphones facilitate outbound calling campaigns with features like click-to-dial and automated dialing. This integration with sales automation tools helps streamline lead generation and follow-up processes.

  • Telecommuting: As remote work becomes more common, softphones allow employees to connect to their company’s phone system anywhere. This is essential for maintaining seamless communication between distributed teams and home-based employees.

  • International business operations: Organizations with a global presence use softphones to reduce the cost of international phone calls. Employees can make and receive calls from overseas clients and partners without incurring traditional international calling fees.

  • Conference calls and virtual meetings: Softphones are often used to conduct multi-participant calls and virtual meetings, integrating with video conferencing tools to provide a unified communication experience that supports collaboration across different locations.

Essential Features of a Softphone

Softphones are equipped with various features that enhance business communications. Here are a few features included in Aircall.

  • Toll-free numbers: Quickly set up toll-free numbers within your local area code or internationally, supporting your business operations worldwide.

  • International numbers: Secure local and international numbers in over 100 countries, regardless of where your team is based.

  • Call conference solution: Aircall’s call conference feature improves team collaboration, allowing up to five participants in a single live conference call.

  • Business hours: Customize your availability to ensure you're receiving phone calls only during designated business hours.

  • Voicemail: Create a personalized voicemail greeting for your customers and prospects for times when you're unavailable.

  • Call routing: Ensure every customer reaches the right team member with customized call distribution settings.

  • Interactive Voice Response (IVR): Implement a smart IVR system to direct callers accurately and efficiently on their first attempt.

  • Virtual call center: Manage all your numbers and users from a single centralized location, even if your team is globally dispersed.

  • Real-time analytics and reporting: Provides insights into call volume, call duration, and other key metrics that help manage and optimize team performance.

Advantages of a Softphone System

Softphones amplify operations for your teams on a daily basis, in turn, impacting your company goals and objectives. Here are the key advantages of using these systems for business communications.

1. Next-level customer experience

One of the key features of softphone solutions is its capability to deliver next-level customer experience. This is due, in part, to the level of personalization you and your team can put into the system.

No one likes to be left on hold, but with softphone providers, you can take the pain out of the process and customize the on-hold experience, including personalized messages and on-hold music. You can also bring this level of customization to your call queuing.

2. Integration possibilities

Because a softphone solution exists on your desktop, it can easily integrate with essential business tools to broaden what your sales team can do.

This brings huge benefits, as hardware won't hold them back. The softphone solution can also be integrated with a messaging platform for essential updates and problem solving. And with CRMs, they can access and share vital data like contact information and call logs.

3. Optimized calling

Your sales team's time is of the essence. It's crucial they're spending it delivering memorable customer experiences and not on time-draining activities like searching for customer information in between phone calls.

Softphone providers greatly benefit your calling service with functions like click-to-dial. Power dialers allow you to make calls in quick succession and automatically pull numbers from a webpage. 

4. Scalability

Unlike hardphones, softphone solutions are flexible and far easier to scale to your business needs. This means that if you want to scale your sales operations, add more seats, or upgrade what you can do, the right softphone provider will be able to help.

Your team can scale their performance too, with features like automated call recording and automated transcriptions, which help you reduce admin work while coaching your teams and improving their results.

5. Easy access to call recordings

With cloud-based softphones, accessing call recordings is straightforward. Links to online audio files are automatically generated post-call and can be easily stored or shared for quality assurance or training.

6. Hybrid working

Without a centralized piece of hardware processing your calls, cloud-based softphones enable work-from-home possibilities for positions that would otherwise be in-office only. Using cloud technologies, employees can access your business phone system from anywhere, so long as they have an internet connection on a computer or mobile device.

7. Superior call quality

Internet-based phone services have a reputation for being less reliable or of poorer quality than their hardphone counterparts. 

This may have been true 10 to 15 years ago, but now, improved routers and better bandwidth have largely eliminated delays and unclear speech from VoIP calls.

Innovations like fiber-optic internet and newer cellular data signals mean that IP phone system quality will only continue to improve.

8. Greater security

While phone system security was a common issue with onsite systems, VoIP security shouldn't be a top concern.

Your data and privacy are protected by laws and fail-safe measures. Larger VoIP providers are much safer than your individual onsite phone system. Hosting companies employ security teams of thousands to make sure your data is protected. 

Furthermore, cloud-based business tools are constantly updated to provide the most up-to-date security possible (while legacy hardphone systems aren't).

9. Reduced costs

Setting up a VoIP system allows you to save on initial setup and ongoing operational communication costs. Not only do you require less hardware and infrastructure to support business calling, but you also leverage internet connectivity to eliminate long-distance call charges.

10. Efficient system customization

What used to require hours of work by IT professionals can now be accomplished in minutes with cloud-based systems. This includes adjustments to call routing and other customizations.

Modifying how incoming calls are handled is as easy as changing email settings in virtual softphone systems. Users can efficiently manage call flow, add IVR systems, or customize voicemail messages right from the admin dashboard.

Discover Aircall’s cloud-based integrated phone system and see your team’s time savings add up. 

How to set up a Softphone System

Setting up a softphone system is straightforward. Once you've picked a softphone provider or selected a VoIP solution like Aircall (where a softphone service is included), getting set up really is as easy as “1, 2, 3.”

  1. Download the softphone provider file, following instructions from your IT team.

  2. Click on the file to begin the installation.

  3. Double-click on the softphone provider icon to launch the service.

There’s virtually no installation time and your team can get started right away. Softphone providers like Aircall also provide extensive online knowledge centers where your team can watch training videos to learn the basics and dive deeper into the features. 

Most softphone systems are user-friendly and integrate with other tools your team might already use, making the transition smoother. Live support is available for more complex issues, ensuring your team always has the help they need.

It might be a case of not running before you can walk, but when your team is ready, the possibilities of softphone solutions can help them develop new skills, enhance their autonomy, and share skills with their colleagues. This will all contribute to them delivering a next-level customer experience.

How to switch to Softphone Software from other systems

Switching to a softphone solution from other legacy systems is simple, particularly if you're adopting a cloud-based phone like Aircall.

Unlike hardphones, no specific hardware is needed for new systems, which work in browsers or via apps. However, investing in laptops or portable devices is wise if remote work is a goal.

  • A note on equipment: Your users need quality headsets and microphones. Although VoIP softphones can use any device's audio systems, call quality improves with headsets tailored for IP calls. The Jabra 40 is an excellent entry-level option for teams transitioning to VoIP.

Transferring numbers when switching to a softphone application

Many new cloud-based phone users worry about downtime when switching. 

“Will I have to switch phone numbers? Will our customers be unable to reach us?”

Luckily, transferring your number to a softphone service is another example of how easy this process is.

Number porting is a process involving four parties: you, your current provider, your new provider, and a network carrier.

The bad news is that you'll need to fill out some paperwork. The good news is your new phone provider will do the vast majority of the heavy lifting.

Normally, all you need to provide is:

  • The name of your current phone provider

  • The name of each number's account owner

  • A full address associated with each number

  • A copy of the last bill for each number

If you can provide each number's CSR (Customer Service Record), this document will contain most of the necessary information. This will greatly expedite the process.

From there, the new cloud-based phone provider will handle all interactions with your legacy phone system. Porting requests will be scheduled with a carrier (e.g., Voxbone or Twilio). This ensures your numbers are officially active and accessible.

Remember, while the process is simpler in many ways, porting numbers takes time. Requests with carriers must be scheduled at least eight days in advance. This timeframe—plus the time needed to collect the necessary information—means you should budget at least two weeks for the full transition.

How to choose the right Softphone Provider for your business

Despite the multifunctionality of softphones, some providers won't deliver everything you need. Some may also hide the feature you're really after behind a pricey membership plan beyond your budget.

When choosing the right softphone solution, ask yourself the following questions to ensure it's a collaborative partnership from the get-go.

Do they offer an integrated service?

A great softphone service integrates with other software and apps. That's not to say that your softphone app won't upgrade your sales or support operations on its own. However, by opening the door to integrations, you can take your sales processes in new and exciting directions.

It could be a question of software and apps you already have as a part of your tech stack. It could also be that your softphone provider is the first step in taking your business in a new and improved direction. The important thing is that it's possible.

Do you want your softphone provider to be able to draw customer data from a CRM system? Or if you're focused on a customer's purchase history, an eCommerce integration is essential. Internally, you might want to implement call recordings and transcriptions into your training or even share quick updates via a team instant messaging system.

Aircall integrates seamlessly with popular CRM systems, eCommerce platforms, and team messaging apps, facilitating a dynamic and efficient workflow. For example, Aircall’s integration with Salesforce or Shopify allows real-time access to customer data and purchase histories, to help streamline customer interactions and enhance sales strategies.

The sky's the limit when it comes to integrations, so don't limit your possibilities with a softphone service that isn't able to integrate.

Will they be a true partner for your business?

When choosing a softphone app provider, you need to ask whether they are likely to be a true partner for your business in the long term.

This can depend on the customer support a softphone provider offers and whether you and your team feel supported during the onboarding process and while using the system. 

Ask yourself about scalability, too. It could be that the phone lines your softphone provider offers from the start are just what you need, but what about in the future? Picture where you want your business to go and consider whether this softphone provider can get you there.

Psst: Check out what G2 users have to say about Aircall’s customer support during onboarding and beyond.

Is the software compatible with your business?

We might assume that all softphone software providers are compatible with existing tech. Aircall is compatible with all major operating systems and devices, but that’s not true for all providers.

Ask your team to do a quick straw poll to find out which OS they use. From there, you can see if the softphone provider you want meets their needs. While the setup might be hassle-free, throwing a new device into the mix for your sales team won't be.

Many softphone providers also offer free trials—like Aircall’s 7-day free trial. Use these as an opportunity for you and your team to get hands-on and make sure it's the right solution.

Another factor you want to consider is cost. It could be that a free version is enough for your team or the price plan with all the features you need is way beyond budget. Ask your team what functionalities are essential to help you decide what's worth paying for and what isn't.

Do your protocols match?

While softphones are mostly easy to understand, there's one area that demands particular attention, and that's protocols.

Protocols are how data is processed and transferred over any given network. To ensure a conversation can happen, both endpoints need to use the same protocol. Despite “protocol” serving as the last letter of VoIP, it's actually an umbrella term for several protocols required to transfer voice and video calls.

When it comes to choosing a softphone solution, you need to ensure your softphone protocol is the same as your VoIP provider's protocol.

If you've chosen a cloud-based calling software like Aircall, then rest easy. Your softphone and VoIP provider are one and the same. But if you've gone for two separate providers, you'll need to check if their protocols match. Otherwise, you won't be able to make calls.

You can read more about protocols over on Aircall's VoIP Protocol FAQ.

Why Aircall is the smart choice for your Softphone needs

Making the switch to a cloud-based customer communications system like Aircall may seem daunting, especially if it's on short notice. But really, it's one of the easiest and wisest decisions you'll make. 

The transition is straightforward, offering immediate and significant benefits such as enhanced scalability, flexibility, and improved team collaboration. With seamless integration, continuous updates, and reliable support, Aircall ensures your business communications remain modern and efficient.

If you're curious about the process and want to know more, reach out to the Aircall team.

Discover Aircall’s cloud-based integrated phone system and see your team’s time savings add up.

Frequently Asked Questions about Softphones

What is the softphone Mitel?

Mitel is a well-known provider in business communications, offering a softphone app that functions as a virtual phone on your computer. This software provides DTMF, two-way audio, and a graphical interface on your screen, making it a contender for business travelers. 

With Mitel's softphone, employees can access their business phone system from anywhere using just their laptop, tablet, or other portable devices, ensuring connectivity and productivity while on the move.

What is a physical phone vs. softphone?

A physical phone is a traditional handset used for making calls, typically connected via landlines or cellular networks. It includes hardware like a dial pad, receiver, and physical buttons. 

In contrast, a softphone is a software application that mimics the functionalities of a phone on a computer or mobile device. It uses the internet to make and receive calls, requiring only a headset or built-in speakers and a microphone. 

Softphones offer greater flexibility and integration with other digital tools compared to physical phones.

What are the disadvantages of softphones?

Softphones, while offering flexibility, depend heavily on a stable internet connection, which can lead to issues like dropped calls or poor quality if bandwidth is insufficient. They also require powered devices to operate. 

Additionally, they necessitate compatible hardware like headsets and can involve a learning curve for users unfamiliar with digital tools.

What is the best softphone service?

Aircall is widely regarded as one of the best softphone services available. It stands out for its user-friendly interface, CRM phone integration (along with other essential business tools), and exceptional reliability. 

Aircall offers features that improve team collaboration, such as shared call inboxes and tag-based call organization. With its powerful analytics and customer support, Aircall provides businesses with the tools to manage their communications efficiently and effectively, making it a top choice for companies looking to optimize their phone systems.


Published on May 5, 2020.

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