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. 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.
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 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.
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 |
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 |
5 reasons virtual receptionists are best for small businesses
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 they’ll likely dial up your competition next!
Your callers want fast, responsive, personalized service. With a solution like Ruby, that’s what they get—personalized interactions that make their day.
2. Better customer service—and better word of mouth
72% of customers share their 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 the 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 about it, dinging your reputation. You want your clients to recommend your company to their friends saying, “And the best part is… when you call them, someone always answers the phone AND they’re human!”
3. More leads
Calls are an invaluable source of leads. Yet, automated systems miss out on capturing many of those key caller details you need.
Virtual receptionists, on the other hand, are trained to snag all the vital info and customer data —names, contact information, and reasons for getting in touch. At Ruby, we also screen spam calls and help qualify leads based on the information your business provides to us, saving you time and energy.
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 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
Many businesses still use automated call systems or other call answering services 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. If you and your competitor have similar services or products, the deciding factor for a potential client will likely be how they are treated or their customer service experience.
5 reasons virtual receptionists are best for small businesses
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 they’ll likely dial up your competition next!
Your callers want fast, responsive, personalized service. With a solution like Ruby, that’s what they get—personalized interactions that make their day.
2. Better customer service—and better word of mouth
72% of customers share their 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 the 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 about it, dinging your reputation. You want your clients to recommend your company to their friends saying, “And the best part is… when you call them, someone always answers the phone AND they’re human!”
3. More leads
Calls are an invaluable source of leads. Yet, automated systems miss out on capturing many of those key caller details you need.
Virtual receptionists, on the other hand, are trained to snag all the vital info and customer data —names, contact information, and reasons for getting in touch. At Ruby, we also screen spam calls and help qualify leads based on the information your business provides to us, saving you time and energy.
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 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
Many businesses still use automated call systems or other call answering services 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. If you and your competitor have similar services or products, the deciding factor for a potential client will likely be how they are treated or their customer service experience.
When does an automated system make sense?
We’ll be real—automation isn’t all bad. If your business has:
- Extremely high call volume
- Simple transactional needs
- Zero budget for live support
…an automated answering service or AI phone agent might be worth exploring.
But if customer satisfaction, loyalty, and reputation matter to you? A live, friendly voice, like those at Ruby, is a better investment.
If you need help choosing what’s right for you, here’s a quick checklist to ask yourself:
- Do you want to make a great first impression?
- Are you losing leads to voicemail or missed calls?
- Do you care about solid relationships with customers?
- Is your small business ready to grow?
If you’re nodding along, it’s time to stop relying on programmed tech and start offering the kind of experience customers actually want, like those provided at Ruby.
When does an automated system make sense?
We’ll be real—automation isn’t all bad. If your business has:
- Extremely high call volume
- Simple transactional needs
- Zero budget for live support
…an automated answering service or AI phone agent might be worth exploring.
But if customer satisfaction, loyalty, and reputation matter to you? A live, friendly voice, like those at Ruby, is a better investment.
If you need help choosing what’s right for you, here’s a quick checklist to ask yourself:
- Do you want to make a great first impression?
- Are you losing leads to voicemail or missed calls?
- Do you care about solid relationships with customers?
- Is your small business ready to grow?
If you’re nodding along, it’s time to stop relying on programmed tech and start offering the kind of experience customers actually want, like those provided at Ruby.
Ruby and Grasshopper—better together
Ready for some good news? If you’re already using the Grasshopper phone service to manage your business line—you can easily pair it with Ruby’s virtual receptionist solutions for a seamless, professional caller experience.
And for those who don’t know, Grasshopper phone is a virtual phone system designed for small businesses, offering features like call forwarding, voicemail transcription, and business texting through the Grasshopper phone app. It’s a flexible way to keep your personal and business lines separate while maintaining a local or toll-free number for your company.
When you connect your Grasshopper phone with Ruby, you get the best of both worlds: a reliable virtual phone system paired with live, friendly receptionists ready to answer your calls, take messages, screen leads, and even schedule appointments. Whether you’re on the go or in back-to-back meetings, Ruby picks up where Grasshopper leaves off—so every call is handled with care.
If you’re already a Grasshopper user, we can help you get set up. Together, Grasshopper and Ruby create 24/7 business communication that is smarter, faster, and human-centered.
Ruby and Grasshopper—better together
Ready for some good news? If you’re already using the Grasshopper phone service to manage your business line—you can easily pair it with Ruby’s virtual receptionist solutions for a seamless, professional caller experience.
And for those who don’t know, Grasshopper phone is a virtual phone system designed for small businesses, offering features like call forwarding, voicemail transcription, and business texting through the Grasshopper phone app. It’s a flexible way to keep your personal and business lines separate while maintaining a local or toll-free number for your company.
When you connect your Grasshopper phone with Ruby, you get the best of both worlds: a reliable virtual phone system paired with live, friendly receptionists ready to answer your calls, take messages, screen leads, and even schedule appointments. Whether you’re on the go or in back-to-back meetings, Ruby picks up where Grasshopper leaves off—so every call is handled with care.
If you’re already a Grasshopper user, we can help you get set up. Together, Grasshopper and Ruby create 24/7 business communication that is smarter, faster, and human-centered.
Ruby as your customer service representative
Technology is amazing. And prioritizing calls along with channels such as live chat, email, and social media allows you to reach all your customers. But when it comes to real customer service calls, human connection is what matters most.
At Ruby, we believe that small business success starts with meaningful customer interactions. That’s why our virtual receptionist service is built around people, powered by smart tools, and customized for your unique business needs.
Ready to stop missing opportunities—and start turning phone calls into customers?
Check out this guide and get started with Ruby today!
Ruby as your customer service representative
Technology is amazing. And prioritizing calls along with channels such as live chat, email, and social media allows you to reach all your customers. But when it comes to real customer service calls, human connection is what matters most.
At Ruby, we believe that small business success starts with meaningful customer interactions. That’s why our virtual receptionist service is built around people, powered by smart tools, and customized for your unique business needs.
Ready to stop missing opportunities—and start turning phone calls into customers?
Check out this guide and get started with Ruby today!
