As businesses strive to provide or improve customer service, many consider answering services as a solution to handle their calls. However, these services often fall short in providing meaningful resolutions to customer inquiries, leading to dissatisfaction and potential loss of business. On the other hand, AI-powered voice agents are increasingly proving to be a superior alternative. They offer real-time solutions, scalable operations, and enhanced accuracy at a fraction of the cost. Let’s explore the limitations of answering services and the advantages of AI voice agents.
So, What’s the Point of an Answering Service Anyway?
Answering services are often marketed as an efficient way to ensure that no customer call goes unanswered. You know, “Missed calls are lost opportunities.” In theory, an answering service seems like a good solution for small businesses who can’t always pick up the phone. I thought the same thing and hired an answering service myself at one point. However, in reality, they function as little more than human versions of an answering machine. Yes, the customer call is answered, but no meaningful resolution is provided.
Typically, when a customer calls an answering service, they are met with a representative who takes a basic message and promises a call-back. The customer doesn’t get the answers they’re looking for, and it’s likely they leave the call feeling no better than if they had left a voicemail. By the time you, the business owner, get back to them—sometimes hours later—they may have already contacted a competitor. Worse yet, being unable to respond promptly, or within normal business hours, can give off the impression that your business is a one-man operation, and not equipped to handle the customer’s needs.
AI Advantage: Unlike answering services, AI voice agents are able do more than just take a message. These systems can be integrated with your Customer Relationship Management (CRM) tools, meaning they can access customer data, respond to inquiries in real-time, and even log customer interactions directly into your CRM. This eliminates the need for you to manually process messages and ensures that customer inquiries are resolved on the first call. Instead of leaving customers waiting for a response, AI agents can immediately provide the information they need or escalate the call to the appropriate team member, enhancing your business’s professionalism and efficiency.
Answering Services Are Expensive
Answering services come with a significant price tag. They need to cover the costs of physical office space, employee salaries, and employee benefits, all while turning a profit. To maintain these operations, they pass high costs onto businesses in the form of service fees. The more calls or extended hours you require, the higher your monthly bill. Additionally, despite these high costs, answering services are handling calls for multiple businesses at once, leading to diminished quality as they juggle multiple clients.
These expenses can be challenging to justify, especially when you consider that answering services don’t necessarily provide immediate resolutions to customer inquiries. In many cases, they merely relay messages that require you to follow up, adding to your workload without alleviating the need for personalized customer service.
AI Advantage: AI voice agents present a more cost-effective alternative. Yes, there is an initial setup fee involved, but once the system is in place, the ongoing costs are significantly lower. AI services typically charge on a low-cost per-minute usage model, often billed monthly, making it easier for businesses to manage their expenses. Importantly, AI agents are infinitely scalable. Whether you receive 10 calls or 10,000, the system can handle the workload without requiring additional staff or increased setup fees. This scalability allows your business to grow without worrying about escalating costs or service quality diminishing over time.
Serving Your Customers on Their Timeline
Providing round-the-clock service through an answering service is not only expensive but often inefficient. While answering services can operate outside regular business hours, this extended availability comes at a premium cost. Even worse, human representatives working night shifts or long hours may become less attentive or make errors, further diminishing the quality of service provided to your customers.
For businesses that want to capture leads beyond the 9-to-5 window, maintaining high-quality service while keeping costs down can be challenging with answering services. Paying for 24/7 coverage through an answering service is simply not feasible for many small or medium-sized businesses.
AI Advantage: AI systems never sleep. They are available 24/7 at no extra cost, ensuring that your customers always receive the attention they deserve. Whether a call comes in during the middle of the night or on a holiday, the AI agent will respond promptly and professionally. This level of service ensures that your business remains accessible and responsive to customer needs around the clock, without having to worry about escalating costs. Moreover, the consistency of AI means there’s no risk of diminished service quality, even during off-hours.
Properly Representing Your Business
Accuracy is critical when it comes to representing your business. Answering service agents often handle calls for multiple businesses, making it easy for them to confuse details, misinterpret service areas, or provide incorrect information. They are likely managing dozens—if not hundreds—of accounts, which increases the risk of errors.
When a customer contacts your business, they expect the representative to have in-depth knowledge of your services, your coverage area, and your products. If an answering service fails to deliver accurate information, it can damage your business’s credibility and lead to lost opportunities.
AI Advantage: AI voice agents are programmed specifically for your business. They are loaded with all the information necessary to handle customer inquiries accurately—from service areas to pricing and service offerings. Unlike human agents who may mix up details, AI systems provide consistently accurate information because they draw from a fixed data set. This eliminates the risk of errors and ensures that every customer interaction aligns perfectly with your brand and services.
First Impressions Mean Everything
Having relied on an answering service during my time running a concrete lifting business, I learned firsthand how damaging poor service can be. The company we used, despite being recommended by an industry contact, was a complete disaster. Not only did we receive complaints about the representatives’ poor attitude, but one agent even told a customer they were “outside our service area”—even though the customer lived in the same city as our business!
When we implemented call recording, we were horrified to hear how unprofessionally some customers were treated. This not only led to negative feedback but set our business back, both in terms of reputation and customer trust. We were forced to intervene and repair relationships that had been damaged by the poor service provided by the answering company.
AI Advantage: With AI voice agents, such incidents are entirely avoidable. AI doesn’t have mood swings, doesn’t get tired, and certainly doesn’t misrepresent your service area. Our AI system always answered calls professionally, delivered accurate information, and treated every customer with respect. Better yet, AI agents never made the kind of mistakes that led to dissatisfied customers. This reliable, polished performance made our company appear more professional and elevated our customer service experience at a minimal ongoing cost.
AI Agents Get it Right
In our contracting business, the AI system we implemented was transformative. Unlike human agents who can make mistakes, misinterpret information, or forget important details, our AI voice agent never missed a beat. It answered every call, provided accurate information about our services, and transferred customer data directly into our CRM, streamlining our workflow.
With the AI in place, we no longer had to worry about miscommunication or lost messages. Calls were resolved efficiently, and customer data was automatically captured and processed, saving us valuable time. By eliminating the need for us to manually follow up on calls and log customer information, the AI allowed us to focus on growing our business and providing better service to our clients.
In conclusion, while answering services may seem like an easy solution for handling customer calls, they come with numerous drawbacks, including high costs, inaccuracies, and limited service capabilities. AI voice agents, on the other hand, offer a scalable, cost-effective alternative that can operate 24/7, provide accurate information, and integrate seamlessly with your existing systems. By utilizing AI, businesses can enhance their customer service, reduce operational costs, and ensure that every call is handled with professionalism and precision.
