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What Is an Answering Service Company?

By Bryan Smith17 min read
What Is an Answering Service Company?

Does your phone ever ring when you're busy? Maybe you're on a ladder or working on a big project. You know that call could be a new customer, but you just can't answer. That's when a caller might try your competition instead.

An answering service company can fix this problem. Think of it as your front desk. It has friendly people ready to answer your phone when you can't. They take messages and answer easy questions. They make sure every caller gets help.

What Is an Answering Service Company?

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Let's imagine you are a plumber. You're fixing a leaky pipe under a sink. Your phone rings. It's a new customer. You can't stop what you're doing, so the call goes to voicemail. Maybe they leave a message. But they will probably hang up and call another plumber. You just lost a job.

This is where an answering service helps. It's a simple fix. Instead of getting your voicemail, a caller talks to a real, friendly person. This person represents your business.

For a small business, this is a big deal. It makes customers happy and builds trust. It makes your one-person shop feel like a big, professional company.

The Core Job of an Answering Service

The main job of an answering service company is to catch the calls you would miss. A real person answers every call quickly and in a friendly way. This can make a big difference for your business and your wallet.

So, what do they do? Their daily tasks include:

  • Taking Good Messages: The agent gets the caller's name, number, and reason for calling. They send this information to you. No more messy notes or hard-to-hear voicemails.
  • Answering Easy Questions: They can tell callers your hours or where you work. This saves you from answering the same questions over and over.
  • Screening Calls: They can block sales calls and other calls that are not important. You only get the calls about real jobs or emergencies.

An answering service does more than take messages. It's a tool that turns missed calls into new jobs. This lets you focus on your work while someone else handles your calls.

This is a big industry. In the United States, the answering service market makes $2.5 billion in sales each year. There are over 1,000 companies that do this. You can find more facts on the telephone answering service market and how it keeps growing.

Understanding Your Answering Service Options

Picking the right answering service is like picking the right tool. You need the one that fits the job. Let's look at the main types so you can find the best one for your business.

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Think of it this way: some businesses just need someone to take a message after work. Others need someone who can act like a full-time helper from far away. Knowing the difference will help you get the most for your money.

Your choice will depend on how many calls you get, how much you want to spend, and what tasks you need help with.

Live Answering Service

A live answering service is simple. A real person answers the phone every time it rings. This gives a personal touch that customers like. It's great if they have an urgent problem, like a flooded room or a broken heater.

This is a great choice for any business that wants a human to always answer. Agents will greet callers, take down their information, and send you the message right away. It’s a simple way to stop losing jobs to your voicemail.

Automated IVR Systems

Next is the Automated Interactive Voice Response (IVR). You've heard these before. It's the "press 1 for sales, press 2 for service" menu. These systems are good for handling lots of calls. They can answer simple questions like your work hours without needing a live person.

An IVR is a good, low-cost way to sort calls. The bad part? It's not personal. It can make customers upset if they have a hard question or just want to talk to a person.

Virtual Receptionist Service

A virtual receptionist is the best option. It uses both people and technology to give you the most help. These are not just people who take messages. They are trained agents who act like a part of your team, but from a distance.

A virtual receptionist can do a lot more for your business. They can:

  • Book appointments right on your calendar.
  • Answer common questions using a guide you give them.
  • Check if new callers are good leads before they talk to you.
  • Know when to send an emergency call to you or your team.

This is perfect for busy contractors and other businesses that book appointments. It’s like having a trained helper handling your calls, but it costs much less than hiring someone in your office. This keeps your business running smoothly, even when you're busy on a job.

To see what a service like this can do, look at all the AI voice receptionist features that are available now.

To help you see the differences, here’s a quick chart.

Comparing Answering Service Types

This table shows the main differences between the types of answering services. It can help you pick the best one for your business.

Service TypeHow It WorksBest ForTypical Cost
Live AnsweringA real person answers, takes a message, and sends it to you.Businesses that need a person to answer calls after hours or when they're busy.$50 - $250 / month
Automated (IVR)A recording guides callers to the right place or gives them simple info.Businesses with lots of calls that need a cheap way to sort them.$20 - $100 / month
Virtual ReceptionistA live person does more, like scheduling and screening calls.Service businesses that want a professional front desk helper.$250 - $1,500+ / month
AI ReceptionistAI answers and handles your calls. Knows everything about your business and is highly versatile.Service businesses that want an affordable and reliable option. Or need help offsetting their front desk's workload.$50 - $250+ / month

The right service depends on what you need. A simple live service might be a good start. But as you grow, a virtual receptionist can be a big help.

How Answering Services Help Your Business Grow

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If you own a small business, you'll see the benefits of an answering service right away. It's not just about taking messages. It helps you make more money and look more professional. This helps you build a stronger business.

The biggest win is simple: you stop missing calls from new customers. When you're busy at a job, you can't always answer the phone. Every missed call is lost money that goes to another company. An answering service stops that.

Instantly Boost Your Professional Image

Think about it: how your phone is answered is a customer's first impression of you. A friendly, professional voice on the phone builds trust right away.

Your one-person shop will sound like a bigger, well-run company. This makes new customers feel good about choosing you. It shows you are organized and care about their time.

Save Money and Get Your Time Back

Hiring a full-time person to answer phones is very expensive. It can cost thousands of dollars each month. An answering service company does the same job for much less money. It's a smart choice for your budget.

But what's even better? The time you get back. Instead of the phone pulling you away from your work, you can focus on the jobs that make you money.

This means you can finish jobs faster and help more clients. You can grow your business while knowing your phone calls are being handled. This is very true for companies in the home services industry, where your time on a job makes you money.

When you use a service for your calls, you are buying back your focus. You can work on important tasks and know your customers are being taken care of 24/7.

The call center market is huge, which shows how important these services are. The market was valued at $352.4 billion**. It is expected to be worth over **$500 billion by 2030. This is not a small service; it's a key part of how businesses grow today. You can find more business phone statistics that show this.

Making Sense of Answering Service Pricing

Figuring out how an answering service company charges can be tricky. You want a plan that fits your needs without paying for extras you don't use. The goal is to find a plan that matches your number of calls so you don't get surprise bills.

Some price plans are better for businesses that get lots of short, simple calls. Other plans are a good fit for companies with fewer calls that last longer.

Let's look at the three main ways these services charge for their work.

Common Pricing Models Explained

You will almost always see one of these three payment plans. Each one is made for a different type of business.

  • Pay-Per-Minute: This is the most common way. You are charged for the time an agent spends on the phone for you. It's a good choice if your call times change a lot.
  • Pay-Per-Call: This is simple and easy to predict. You pay one flat price for every call they answer. It doesn't matter if it's a short call or a long one. This is great if you want your bill to be the same each month.
  • Monthly Retainer: This is like buying a package. You get a certain number of minutes or calls for one price each month. If you use more, you just pay a set rate for the extra time.

The best price plan isn't always the cheapest one. It's about finding the plan that fits your business perfectly. This way, you're not wasting money on minutes or features you don't use.

Picking the wrong plan can cost you money over time. To see how small problems can affect your budget, take a look at our money leak report.

Watch Out for Hidden Fees

Besides the main monthly price, you need to look out for extra fees that can show up on your bill. Not every answering service company is clear about these. It's smart to ask what other costs might be included.

A few common fees to ask about are:

  • Setup Fees: A one-time cost to create your account and program your call instructions.
  • Holiday Charges: Some services charge more for taking calls on big holidays.
  • Call Patching: This is an extra fee for when an agent needs to connect a live call to you or your team.
  • Reporting Fees: You might be charged to see your call information and reports.

Always ask for a full list of all possible charges. A good company will be happy to explain every cost. This way, you know exactly what you’re paying for. No surprises, just good service.

How to Choose the Right Answering Service Partner

Picking the right answering service is important. These people become the voice of your business. They are often the first person a new customer talks to. It’s like hiring a new helper. You need someone who is professional, reliable, and understands your business.

To get it right, it helps to use a simple checklist. A few key steps will help you find a partner who will represent your business just like you would. This means every caller has a good experience, and more calls turn into paying jobs.

Look for Industry Experience

First, do they have experience with your type of work? An answering service for plumbers knows a burst pipe is an emergency. A service for a lawyer's office knows that keeping secrets is very important.

Don't be afraid to ask companies if they have other clients like you. If they do, it's a good sign they know your business. They will know the right words to use and how to handle common questions. A partner with experience won't need much help to get started.

Check Their Technology and Training

A great answering service uses modern tools that make your life easier. Can they connect to your calendar and book appointments for you? Can they send you messages by text, email, or an app? These are not just cool tricks. They are features that save you time and keep you organized.

Technology is a big deal now. The market for smart answering services is expected to grow from $17.05 billion to $49.8 billion by 2031. This big growth shows how important tech is for good service. You can find more call center statistics on cmswire.com to see where the industry is going.

You also need to ask how they train their agents. Good training is what makes callers feel happy instead of frustrated. Here are a few questions you can ask:

  • How long is your training for new agents?
  • Do you keep training your agents?
  • How do you check call quality?

A company that takes good care of its people will take good care of your customers.

The right answering service partner works like a part of your team. They should have the right experience, tools, and trained people to make every caller feel important. This will help your business grow.

Always Ask for a Free Trial

Last, the best way to know if a service is a good fit is to try it. Most good companies will offer a free trial. This is your chance to see how they work before you sign a contract.

During the trial, pay close attention. Are they professional? Are the messages they take correct? Are they easy to work with? Trying it out for yourself is the best way to feel sure you’ve found the perfect partner to help your business.

Setting Up Your Answering Service for Success

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Starting with an answering service company is easy. It's not a big, hard project. You can be set up and catching more calls very quickly, usually in just a few steps.

The first thing you’ll do is set up call forwarding. This is a simple feature on your phone that sends your calls to the answering service. You can have it send all your calls, or just the ones you miss after a few rings. It's up to you.

Once that’s done, you are ready to go. The next step is to make sure the agents sound like they work for you. For that, you need a call script.

Creating Your Simple Call Script

A "script" might sound stiff, but it's not a set of words they have to say. It's more like a simple guide. It gives the agents the information they need to handle calls well and represent your business.

This simple guide helps make sure every caller gets the same friendly service. It tells the agent how to greet callers, what information to get, and how to answer the most common questions.

A good script only needs a few key things:

  • Your Greeting: How do you want them to answer the phone? It could be something like, "Thank you for calling Mike's Plumbing, how can I help you?"
  • Key Information to Gather: What information do you need from every caller? Usually, it's just their name, phone number, and why they are calling.
  • Frequently Asked Questions: What questions are you tired of answering? Give them simple answers for things like your business hours, where you work, or what jobs you do.

Think of your script as a playbook for your remote helper. It gives them the confidence to handle calls just like you would. This makes the service feel like a part of your business from day one.

With a good script and call forwarding set up, your new answering service company is ready to start. You can finally stop worrying about the phone and get back to your real work, knowing your customers are in good hands.

Common Questions About Answering Services

Thinking about hiring an answering service is a big step. It's normal to have some questions. Getting answers to these questions will help you feel good about your choice. Let's go over some of the most common ones.

Can the Service Actually Book Appointments for Me?

Yes, and this is one of the best parts. A modern answering service does more than take messages. It can fill up your calendar. They can connect to the calendar you already use, like Google Calendar, Calendly, or another app you use for work.

You just give them access and set the rules for what jobs they can book and when. This means a new customer can call, find a time that works, and get put on your schedule. You don't have to stop what you're doing. The appointment just shows up on your calendar.

This turns your answering service from a message-taker into a real helper. It books your jobs for you, keeps your schedule full, and makes sure you don't lose a customer just because you couldn't get to the phone.

What Happens if an Agent Can't Answer a Caller's Question?

This will happen sometimes. Even with a good script, a caller will ask a tough question. A professional answering service company is ready for this. They have a plan, and you get to help set it up.

You decide how they should handle different situations. For example, you could make a few simple rules:

  • For hard technical questions: The agent takes a good message and tells the customer an expert will call back soon.
  • For a real emergency (like a burst pipe): The agent knows to transfer the call right to your cell phone or to your on-call helper.
  • For questions about prices: The agent can get the job details and tell the caller you will call them back with a price.

This way, you know every call is handled correctly, no matter what the question is.

How Do I Know My Customer Information Is Kept Secure?

Giving customer information to another company is a big deal. Any good answering service knows this. Good companies make security a top priority. They have strict rules to keep private information safe.

Before you sign up, just ask them about their security. A good company will be happy to tell you how they store call recordings, protect customer information, and keep their computer systems safe. This gives you peace of mind that your business and your clients are safe.

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