Glossary

What Is a Answering Service?

An answering service handles incoming phone calls for a business when staff are unavailable, ensuring every call is answered and the caller's needs are addressed.

Answering services have existed since the early telephone era, when operators manually connected and routed calls. Today, the term covers a range of services from traditional human call centres to modern AI-powered systems.

Types of Answering Services

Traditional call centre answering services employ human operators who answer calls in your business name, take messages, and forward urgent calls. They charge per minute or per call, with rates typically ranging from $0.75–$1.50 per minute. After-hours rates are often 50–100% higher.

Virtual receptionist services go beyond basic message-taking to include appointment booking, FAQ handling, and intake services. These can be human-staffed or AI-powered.

AI answering services handle calls automatically using voice AI. They answer immediately, book appointments, answer common questions, and send call summaries. Pricing is typically a flat monthly rate with no per-call or per-minute charges.

What to Look For

When evaluating answering services, consider:

  • Can it book appointments, or only take messages?
  • What are the after-hours rates?
  • How are urgent calls escalated?
  • What industries does the service have experience with?
  • How is call data handled and stored?
FAQ

Frequently Asked Questions

What is the difference between an answering service and a call centre?

An answering service handles calls on behalf of a business, typically for message-taking, basic inquiry handling, and urgent call routing. A call centre is a larger operation handling higher volumes, often including outbound calling, customer support, and sales. Answering services focus on inbound call coverage for small and medium businesses.

How much does a business answering service cost?

Human answering services typically cost $200–$600/month for a small business (25–100 calls/month). AI answering services cost $59–$150/month flat, regardless of call volume.

Can an answering service book appointments?

Traditional answering services generally focus on message-taking. Virtual receptionist services and AI answering services include appointment booking as a core feature.

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