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What is an Answering Service?

March 14th, 2025 | 5 min. read

By Aaron Boatin

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What is an Answering Service?
8:52

Ever find yourself juggling calls while trying to focus on what really matters? Maybe you've missed a call from a potential client, or you've heard the frustration in a customer's voice after being put on hold for too long. Trust me when I say that you're not alone.

What I've found in in the last 30 years helping businesses is that using an answering service pays for itself 10 times over. Leads get captured, customers are delighted, sales get closed. All a fraction of the cost of adding staff.

It can be hard finding a solution, but that's what this blog is for—because missed calls hurt your business is more ways than you know.

Did you know that 85% of people don't call back into a business if they don't pick up their call?

Today, effective and reliable communication is necessary for every business. And that's where answering services save the day.

But what exactly is an answering service? What can't they do? How much do they cost? And, are they right for your business? In this blog, I'm going to be answering all of those questions for you so you can be better informed when deciding choosing an answering service for your business! And without wasting any more time, let's get into it.

What is an Answering Service?

An answering service is a company that handles a business' entire call handling process. They do things like gather lead information, escalate calls to staff, and set appointments on behalf of the business.

A great answering service is really more than just a person picking up the phone. They ensure every call is handled in the most professional, friendly, and efficient way. Because a great answering service understands that a positive first impression is essential to growing a business.

What Exactly Can Answering Services Today Do?

Gone are the days of simple message taking. Today's answering services offer a comprehensive suite of tools designed to enhance your business' customer service experience. The best ones also offer integrations to make your partnership with the answering service that much smoother.

Here's a closer look at some of the incredible things answering services can do for your business:

Patching Urgent Calls to Your Team

Imagine a potential client calling with an urgent inquiry. Instead of being met with a voicemail, they're connected directly to the right person on your team. Every answering service out there can do that for your business. That way, your caller will get the immediate attention they deserve.

Detailed Message Taking (The Right Way)

Missed calls don't have to mean missed opportunities. Answering services capture all the essential details, from names and contact information to the nature of the call. Essentially, they can capture whatever it is you want them to from your caller. This allows you to follow up promptly and professionally, ensuring you get the speed-to-lead.

Schedule Appointments for You

Managing appointments can be a time-consuming task. Answering services can handle scheduling, freeing up your time to focus on what really matters—growing your business. They can even send reminders to reduce no-shows!

Answering Frequently Asked Questions

Answering services aren't quite virtual assistants. So, complex questions from your callers can't be answered by the agent, because they're not you. But, if you receive simple frequently asked questions, you can provide a list of the QnA to the answering service. So when your callers ask your business things like "What are your business hours?",  they'll get accurate information immediately! Providing callers with quick and accurate answers to common questions enhances their experience and reduces the burden on your team.

Bonus: What Great Answering Services Do

A great answering service understands that your business is the star of the show. To prove this, they prioritize your needs through things like:

What an Answering Service Isn't

It's important to clarify what an answering service isn't. It's not a one-size-fits-all solution, and it's not a substitute for strategic planning. It's a tool that, when used effectively, can significantly improve your communication and customer service.

Here are a few common misconceptions:

Answering Services Aren't a Replacement for In-Depth Product Knowledge

While they can handle common inquiries and FAQs, expecting an answering service to have comprehensive knowledge of every intricate detail of your business without a steady stream of calls isn't realistic. They excel at handling frequently asked questions, but for highly specialized inquiries, they'll typically connect callers to your team.

Answering Services Aren't Typically Used for Telemarketing

Although some providers may offer telemarketing services, it's not the core function of a professional answering service. Their primary focus is on handling inbound calls, providing exceptional customer service, and ensuring seamless communication.

You can always schedule a conversation with your answering service to see if your business is a good fit for what they do.


How Answering Services Benefit Your Team and Customers

Answering services play a dual role, serving both your business and your customers. Here's some of the ways they do that.

How Answering Services Help Your Business

  • Improved communication: Make sure every call is answered quickly and professionally, boosting your brand's reputation.
  • Enhanced customer service: Deliver a consistently positive experience for your callers, so you build a brand your callers trust.
  • Increased efficiency: Allow your team to concentrate on core business tasks, increasing their productivity and your profitability.
  • 24/7 availability: Capture leads and respond to inquiries around the clock, so you're always growing your business.
  • Detailed reporting: Gain valuable insights into your call volume, customer interactions, and   overall communication performance.

How Answering Services Help Your Customers

  • Prompt and professional service: Ensure their inquiries are addressed quickly and efficiently so your callers stay happy.
  • Keep your callers up-to-date: Provide accurate and timely answers to common questions to empower your customers.
  • A human, personalized experience: Make them feel valued and heard and build stronger customer relationships!

Which Industries Benefit from an Answering Service? 

Answering services are a valuable asset for really every kind of business. However, some of the industries that particularly benefit from answering services include:

Healthcare Providers

Doctors' offices, clinics, and hospitals rely on answering services to handle patient calls, schedule appointments, and provide after-hours support, ensuring patients receive timely care.

Professional Services

Law firms, real estate agencies, and financial advisors use answering services to manage client calls, schedule consultations, and ensure timely communication, building client trust.

Service Companies

Plumbers, electricians, and HVAC technicians benefit from answering services by capturing after-hours calls, scheduling service appointments, and providing emergency support, ensuring customer satisfaction.

Small, Medium, and Large Businesses

Any business that wants to improve its communication, enhance its customer service, and maximize its efficiency can benefit from an answering service.


Remember, Answering Services Work For You

More than anything else, remember that the answering service you work with is there to serve you. It shouldn't be causing you headache by messing up your call handling procedures or by reaching the wrong people in your team. 

If you're shopping for an answering service, consider reading our article on the 7 tips to help in choosing an answering service.

And, if you've seen an answering service offering a free trial, you may want to read about why free trials aren't the pro it seems to be.

Lastly, learn about the costs that go into answering services along with the average price for them in 2025.

Happy shopping! And if you ever need a reliable answering service, consider our family-owned answering service for your business. You can learn more about how our premium service grows your business with you.

Aaron Boatin

Aaron Boatin is President of Ambs Call Center, a virtual receptionist and telephone answering service provider. His passion is helping clients' businesses succeed. Melding high tech with high touch to provide the best customer service experience for clients is his core focus.