Talking to customers used to be simple. Someone would call your business, and you—or someone else at your office—would (hopefully) be there to pick up the phone. But in today’s business world, where phone calls are just one of many ways customers reach out, things aren’t so straightforward anymore.
You might not be able to answer every call or chat yourself—and you probably shouldn’t. The real question is: how do you make sure your customers get the service they expect and deserve, without sacrificing your time, energy, or budget?
If you’re deciding whether to hire a virtual receptionist or rely on an automated answering service, you’ve come to the right place. Let’s break down what each solution does, where they shine, and how to make the best choice for your small business.
Talking to customers used to be simple. Someone would call your business, and you—or someone else at your office—would (hopefully) be there to pick up the phone.
These days, you might not need to answer every call yourself, but you do have to consider more questions:
- What experiences do your callers expect?
- Are you losing customers to voicemail?
- How do you make sure you don’t miss opportunities?
- Do you need your own receptionist?
- Or should you use a remote receptionist (AKA a virtual receptionist) or an automated answering service?
It all comes down to a fundamental question: Do you even need a real person to answer the phone anymore?
After all, with so many customers using channels such as live chat, email, and social media to reach out, phone calls might not seem as important as they once were. And with shortcuts like phone trees and auto-attendants, the phone seems like an easy thing to automate—which is exactly what many businesses do.
On the other hand, people still crave human connection. Multiple studies have found customers would still rather speak to a human when given the choice. Customers’ expectations are higher than ever, and automated phone systems just don’t deliver the warm, friendly, personalized service many of us want.
What should your business do? If you don’t want—or can’t afford—a full-time, in-house receptionist, you have two basic choices:
- An automated phone system (the automated option)
- A virtual receptionist solution (the human option)
Well, first, let’s clarify something: the human option also includes automated technology—technology that enables human receptionists to do their jobs better and faster. We’re not talking about people using rotary phones and relying on handwritten notes. What we’re really talking about is automating your phone entirely versus hiring an outside service to handle your phone for you.
Spoiler: that second option is usually better. We’ve found that it’s often the marriage of technology and the human element that makes the biggest impact. Read on to find out why.
Editor’s note: This article was updated in May 2025 with more information about the difference between automated and human-powered solutions, as well as how small businesses and their customers can benefit from live call answering.
Editor’s note: This article was updated in February 2024 with more information about how small businesses and their customers can benefit from live call answering.
What is an automated answering service?
An automated answering service uses pre-recorded messages, phone trees, or AI-powered systems to handle incoming calls without a live person. You’ve probably interacted with one before.
Does this sound familiar?
- “Press 1 for billing.”
- “Say ‘appointments’ to be transferred.”
- “We’re experiencing higher-than-usual call volumes… ”
This is the kind of system a lot of big businesses and organizations use. And if you’re getting hundreds or thousands of calls per day, it’s probably the option that makes the most sense. These systems can answer business calls, play messages, and transfer calls based on simple instructions. An AI answering service, in particular, has become increasingly popular for its 24/7 availability without the need for human input.
However, small businesses, which make up 99.9% of all businesses, are realizing that even the best AI phone answering service can’t replace a real human connection.
While these tools can answer customer calls, take basic information, and route requests, they struggle with tone, urgency, or complex needs—leaving your customers frustrated. Anyone who has waited on hold while listening to loud elevator music or shouted “Agent! AGENT!” into an empty void, knows how irritating these phone systems can be.
In fact, more than 70% of consumers say they prefer speaking with a person when they need help. So while automation might work for massive companies dealing with thousands of calls simultaneously, the same approach doesn’t work for small businesses that rely on customer connections. Sadly, AI phone answering services just don’t meet the needs—or expectations—of today’s customer.
Hence, while an AI virtual receptionist may sound good, it comes with a major trade-off: no human connection. They lack the warmth and adaptability that customers expect, and for service-oriented businesses, relying solely on AI answering could mean sacrificing your customer trust and brand image.
So, how can you provide that human touch when you can’t always answer yourself or hire someone full-time? Well, that’s where virtual (live, real, human) receptionists come in—especially when paired with a virtual phone plan like Grasshopper.
With Grasshopper as your virtual phone system and Ruby’s virtual receptionists answering those calls, you get an unbeatable combo of flexibility, freedom, and human connection!
What is a virtual receptionist?
When we say “virtual” receptionists, we don’t mean AI or holograms. A virtual receptionist is a real, live human who works remotely to answer incoming calls on your behalf. Think of them as a seamless extension of your own team—minus the training time and overhead.
At Ruby, our virtual receptionists combine people skills with smart tools to offer personalized service that feels like customer service teams from your office are answering every time. We don’t just answer calls—we make connections, build trust, and capture opportunities.
Some of our favorite features that we know you’ll love:
- 24/7 live phone answering services
- Lead qualification and screening
- Outbound calls and call transfers
- Call routing and forwarding
- Bilingual support in English and Spanish
- Book and schedule appointments
- Manage messages and answer FAQs
- HIPAA-compliant handling for sensitive information
Best of all? Callers never know they’re speaking to a virtual receptionist—they just get exceptional service.
A side-by-side look
Feature | Automated answering service | Virtual receptionist |
|---|---|---|
Human interaction | No | Yes |
Handles urgent issues | Limited | Capable |
Lead capture and screening | Basic | Comprehensive |
Custom greetings | Limited | Tailored |
24/7 coverage | Yes | Yes |
Boosts conversion | No | Yes |
Elevates brand perception | No | Yes |
Helps scale your business | No | Yes |
What automated answering services can and can’t do
An automated answering service is a computerized system that handles incoming calls without human intervention. It typically uses interactive voice response technology to guide callers through pre-recorded options, gather information, and route calls based on programmed instructions.
Calls (or at least the “phone tree portion” of the calls) are handled through interactions with a preset machine. Systems vary but general processes they have in common include being able to:
- Answer incoming calls
- Play pre-recorded messages
- Query callers about their intent (i.e. reasons for calling)
- Transfer calls or play pre-recorded information
This is the kind of system a lot of big businesses and organizations use. And if you’re getting hundreds or thousands of calls per day, it’s probably the option that makes the most sense.
But for small businesses—which are 99.9% of all businesses, by the way—this has the unfortunate effect of irritating and pushing away callers.
As we mentioned above, study after study shows that people prefer talking to people. But you probably don’t need statistics to confirm that fact.
Anyone who’s called with an urgent issue, navigated a slow phone tree, waited on hold, and/or pressed 0 one or a dozen times only to reach an unhelpful machine knows how irritating these phone systems can be.
We live in an automated world, and the phone might seem like an obvious thing to automate, but it’s just not effective. That point of human connection actually means more than ever. With all those ways to research and get self-service answers about a business online, people call because they want to talk to people. They have a question a computer can’t answer, or they want to make sure they can trust the business, or they’re ready to take the next step.
So how can you provide that human touch when you can’t always answer yourself or hire someone full-time? Well, that’s where virtual receptionists come in.
What automated answering services can and can’t do
Automated answering services, also known as interactive voice response systems, are exactly what they sound like. They’re systems, not humans, that “interact” with your callers without help from a person.
Calls (or at least the “phone tree portion” of the calls) are handled through interactions with a preset machine. Systems vary but general processes they have in common include being able to:
- Answer incoming calls
- Play pre-recorded messages
- Query callers about their intent (i.e. reasons for calling)
- Transfer calls or play pre-recorded information
This is the kind of system a lot of big businesses and organizations use. And if you’re getting hundreds or thousands of calls per day, it’s probably the option that makes the most sense.
But for small businesses—which are 99.9% of all businesses, by the way—this has the unfortunate effect of irritating and pushing away callers.
As we mentioned above, study after study shows that people prefer talking to people. But you probably don’t need statistics to confirm that fact.
Anyone who’s called with an urgent issue, navigated a slow phone tree, waited on hold, and/or pressed 0 one or a dozen times only to reach an unhelpful machine knows how irritating these phone systems can be.
We live in an automated world, and the phone might seem like an obvious thing to automate, but it’s just not effective. That point of human connection actually means more than ever. With all those ways to research and get self-service answers about a business online, people call because they want to talk to people. They have a question a computer can’t answer, or they want to make sure they can trust the business, or they’re ready to take the next step.
So how can you provide that human touch when you can’t always answer yourself or hire someone full-time? Well, that’s where virtual receptionists come in.
How virtual receptionists compare
When we say “virtual” receptionists, we don’t mean AI or holograms. Virtual receptionists are live customer communication agents who work remotely. At Ruby, virtual receptionists handle our customers’ business calls using proprietary software to help them integrate seamlessly into different companies’ teams throughout the day.
When you use a solution like Ruby, callers never know they aren’t talking directly to someone from your office.
Ruby’s virtual receptionists offer a holistic, integrated, and personalized approach that can drive engagement and boost your bottom line. Our flexible features and capabilities include:
- 24/7 live answering
- Mobile app notifications
- Custom voicemail
- Bilingual English-Spanish services
- Appointment scheduling
- Call forwarding
- Robocall filtering
- Outbound calling
- Lead capture
- Scheduling
- Payment processing
- Webforms
- Number porting and hosting
- HIPAA compliance
- Answering FAQs
How virtual receptionists compare
When we say “virtual” receptionists, we don’t mean AI or holograms. Virtual receptionists are live customer communication agents who work remotely. At Ruby, virtual receptionists handle our customers’ business calls using proprietary software to help them integrate seamlessly into different companies’ teams throughout the day.
When you use a solution like Ruby, callers never know they aren’t talking directly to someone from your office.
Ruby’s virtual receptionists offer a holistic, integrated, and personalized approach that can drive engagement and boost your bottom line. Our flexible features and capabilities include:
- 24/7 live answering
- Mobile app notifications
- Custom voicemail
- Bilingual English-Spanish services
- Appointment scheduling
- Call forwarding
- Robocall filtering
- Outbound calling
- Lead capture
- Scheduling
- Payment processing
- Webforms
- Number porting and hosting
- HIPAA compliance
- Answering FAQs
5 key benefits of using virtual receptionists
1. Increased customer satisfaction
When it comes to calls, the key to customer satisfaction is human connection. More than two-thirds of customers will hang up when they can’t reach a live person. And most of them dial up your competition next!
Your callers want (and deserve) fast, responsive, personalized service. With a solution like Ruby, that’s what they get—personalized interactions that enhance first impressions.
2. Better customer service—and better word of mouth
72% of customers share positive experiences with others. They become loyal cheerleaders for your business. That’s free advertising—and it’s more effective than any other kind of marketing.
So for every caller who reaches a friendly, capable representative, the number of new prospects contacting your company goes up. A human touch, you see, really does elevate customer experience.
In contrast, if someone has a negative experience—like if they can’t get through or they reach an annoying program—there are strong odds they’ll vent to everybody about it, dinging your reputation over an avoidable situation.
3. More leads
Calls are an invaluable source of leads. Yet automated systems miss out on capturing many of the salient caller details you need.
Virtual receptionists, on the other hand, are trained to snag all those vital details—names, contact information, and reasons for getting in touch. We also screen spam calls and help qualify leads based on the information your business provides to us.
4. More business opportunities
Did you know that 93% of customers are likely to make repeat purchases with companies who offer excellent customer service? On top of that, a whopping four out of five customers become repeat buyers after positive phone experiences.
Additionally, there’s the 5% customer retention rule. As Forbes notes, “an increase in customer retention by 5% can lead to a company’s profits growing by 25% to around 95% over a period of time.”
With these numbers in mind, every business should make customer satisfaction a priority—especially service-based businesses, where a single interaction can lead to a four- or five-figure sale. Virtual receptionists make that happen without burdening you or your team with answering phones 24/7.
5. Standing out from the crowd
For whatever reason, many businesses still use automated call systems that are proven to frustrate, inconvenience, and ultimately drive away callers. While that may not be the best move for them, it presents a major opportunity for you.
Those companies are handing you a perfect way to stand out from the pack when you deliver extraordinary customer experiences over the phone with virtual receptionists.
5 key benefits of using virtual receptionists
1. Increased customer satisfaction
When it comes to calls, the key to customer satisfaction is human connection. More than two-thirds of customers will hang up when they can’t reach a live person. And most of them dial up your competition next!
Your callers want (and deserve) fast, responsive, personalized service. With a solution like Ruby, that’s what they get—personalized interactions that enhance first impressions.
2. Better customer service—and better word of mouth
72% of customers share positive experiences with others. They become loyal cheerleaders for your business. That’s free advertising—and it’s more effective than any other kind of marketing.
So for every caller who reaches a friendly, capable representative, the number of new prospects contacting your company goes up. A human touch, you see, really does elevate customer experience.
In contrast, if someone has a negative experience—like if they can’t get through or they reach an annoying program—there are strong odds they’ll vent to everybody about it, dinging your reputation over an avoidable situation.
3. More leads
Calls are an invaluable source of leads. Yet automated systems miss out on capturing many of the salient caller details you need.
Virtual receptionists, on the other hand, are trained to snag all those vital details—names, contact information, and reasons for getting in touch. We also screen spam calls and help qualify leads based on the information your business provides to us.
4. More business opportunities
Did you know that 93% of customers are likely to make repeat purchases with companies who offer excellent customer service? On top of that, a whopping four out of five customers become repeat buyers after positive phone experiences.
Additionally, there’s the 5% customer retention rule. As Forbes notes, “an increase in customer retention by 5% can lead to a company’s profits growing by 25% to around 95% over a period of time.”
With these numbers in mind, every business should make customer satisfaction a priority—especially service-based businesses, where a single interaction can lead to a four- or five-figure sale. Virtual receptionists make that happen without burdening you or your team with answering phones 24/7.
5. Standing out from the crowd
For whatever reason, many businesses still use automated call systems that are proven to frustrate, inconvenience, and ultimately drive away callers. While that may not be the best move for them, it presents a major opportunity for you.
Those companies are handing you a perfect way to stand out from the pack when you deliver extraordinary customer experiences over the phone with virtual receptionists.
Virtual receptionists or automated answering service: What’s right for your business?
As we mentioned at the top, virtual receptionists simply outperform automated answering systems. But that doesn’t mean they’re the right fit for everyone. If upfront savings are more important than customer experience, or if your business has a very high volume of calls that can be handled through self-service, an automated answering system might suit your needs better. But for small and growing businesses, especially in service-oriented industries like legal, home services, financial services, and healthcare, virtual receptionists are a must.
And at the end of the day, if customer service is important to you, then give ‘em what they want: a way to talk to a live, courteous, helpful representative—instead of a robot.
Ready to learn more about how to turn callers into customers with virtual receptionists? Check out this guide.
Virtual receptionists or automated answering service: What’s right for your business?
As we mentioned at the top, virtual receptionists simply outperform automated answering systems. But that doesn’t mean they’re the right fit for everyone. If upfront savings are more important than customer experience, or if your business has a very high volume of calls that can be handled through self-service, an automated answering system might suit your needs better. But for small and growing businesses, especially in service-oriented industries like legal, home services, financial services, and healthcare, virtual receptionists are a must.
And at the end of the day, if customer service is important to you, then give ‘em what they want: a way to talk to a live, courteous, helpful representative—instead of a robot.
Ready to learn more about how to turn callers into customers with virtual receptionists? Check out this guide.
