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The complete guide to a telephone answering service

Bright pink retro phone with a compass dial on the base and a speech bubble saying hello on a textured blue collage background.

Founded in 2000, Moneypenny began as a small team of receptionists and has grown into the UK’s leading answering service provider. With more than 1,000 employees across the UK and US, we support thousands of businesses globally through a unique mix of extraordinary people and advanced technology.

As we’ve grown, our small-business values remain at the heart of everything we do. Whether you’re a start-up or a global enterprise, Moneypenny helps you deliver a professional, reliable and friendly customer experience without the cost of hiring in-house teams.

In this guide, you’ll find everything you need to know about telephone answering services – how they work, why they matter, what they cost, and how to choose the right partner for your business.

What is a telephone answering service and how does it work?

A telephone answering service is a modern, cost-effective alternative to hiring a full-time receptionist. It’s an outsourced solution that ensures every call to your business is answered promptly and professionally.

Your calls are diverted to your provider whenever you’re busy, in a meeting, or out of hours.

A trained receptionist answers the call in your business name, just as if they were sitting in your office.

Calls are either transferred to you or a detailed message is taken and sent instantly via text or email.

You can decide when the service is active – all day, overflow only, or evenings and weekends.

This setup gives you total flexibility and peace of mind that no matter the time or day, your callers are greeted by someone who understands your business.

The key benefits of using a telephone answering service for your business

In today’s always-on world, missed calls mean missed opportunities. Studies show that around one in three business calls go unanswered. For a potential new client, that often means moving straight on to a competitor.

A telephone answering service ensures you:

  • Capture every call and lead
  • Provide 24/7 support for your customers
  • Reduce the number of unwanted or spam calls reaching your team
  • Free up time to focus on core business activities
  • Maintain a consistent and professional image at all times

Instead of relying on voicemail or missing out altogether, you can have every call handled with care and accuracy – giving your business the professional presence it deserves.

Why do businesses outsource incoming calls?

Every organisation has its own reasons for outsourcing calls, but some of the most common include:

  • Organisations want every call to be answered and no opportunity missed
  • Managing high call volumes internally has become too time consuming
  • In-house teams need space to focus on more valuable work
  • Peak seasons and campaigns demand extra support
  • Maintaining a high level of service when staff are stretched is a challenge
  • Companies want every caller to receive a consistent, high quality customer experience
  • Reducing costs and overheads is a priority
  • Customers increasingly expect businesses to be available 24/7
  • It is increasingly important to maintain a competitive edge by offering better responsiveness than rivals
  • Operational resilience so service continues during sickness, holidays or emergencies
  • Flexibility to scale support up or down as the business changes
  • Outsourcing provides reassurance of professional call handlers who represent their brand flawlessly

Partnering with an expert outsourced call answering team brings both flexibility and reassurance. You can scale your service up or down as your business changes, without the risk or expense of hiring permanent staff.

What are the key benefits of an outsourced telephone answering service?

A live answering service does more than pick up calls. It strengthens the way your business communicates, supports your team, and shapes how customers see you. When every caller speaks to a real person who understands your brand, it lifts the quality of every interaction. Here are the benefits that matter most to UK businesses today:

1. How live call answering improves customer satisfaction

Your receptionist answers with warmth, accuracy and consistency, which helps callers feel valued straight away. This creates trust and sets the tone for the entire relationship.

2. The productivity gains of outsourcing call handling

Instead of juggling ringing phones with other tasks, your team gets space to focus. This leads to faster turnaround, better service delivery and happier staff who are not constantly interrupted.

3. The role of professional receptionists in building trust

Even the smallest business can present itself with the polish of a larger operation. A dedicated receptionist gives callers confidence that they are dealing with an organised, established company.

4. Turning inbound enquiries into real opportunities

Live call handling ensures you do not lose potential customers who will not leave voicemails or call back. Your receptionist can qualify enquiries, gather key details and pass warm leads straight to you.

5. Staying responsive during busy seasons and staff absences

Whether you are dealing with holiday absences, seasonal surges or campaign spikes, the service scales instantly. You stay responsive without the cost or risk of hiring.

6. Supporting customers outside traditional business hours

Many callers reach out in the evenings or at weekends. With live 24/7 coverage, you stay available whenever customers need you and never miss time-sensitive enquiries.

7. The financial benefits of using a telephone answering service

You remove the expense of recruitment, salaries, training and sickness cover. You get premium customer service for a fraction of the cost of a full-time receptionist.

8. Why managing call flow leads to smoother operations

Fewer interruptions mean more clarity and momentum. Calls are filtered, unwanted calls drop dramatically, and you stay in control of how and when calls reach you.

9. Making smarter decisions with call analytics

With call data, message logs and reporting tools, you can spot trends, understand your audience and make smarter decisions about staffing, marketing and customer engagement.

10. A flexible setup that adapts as your business grows

Need overflow support only? Full coverage? Temporary help during a busy project? Your configuration can change at any time, so the service always fits your workflow.

A telephone answering service becomes a reliable partner that helps you deliver great customer experiences, protect your reputation and keep your business running smoothly even when things get hectic. It is a simple way to create more time, more opportunities and more confidence in how you communicate.

Which types of businesses benefit most from a telephone answering service?

The short answer: almost all of them. From sole traders to global corporations, businesses across every sector rely on professional call answering. Some of our typical clients include:

Whatever your size or industry, a flexible service helps manage your time better and ensures your callers always reach a friendly, knowledgeable voice.

Don’t just take our word for it. Read our case studies to find out more about the different types of businesses we support here at Moneypenny.

How much does a telephone answering service cost?

Understandably, there are many online searches each week for “affordable answering service” and for “how much does an answering service cost?”. In regards to the cost, there’s no set answer, and the price varies.

Generally, there are two ways a provider will charge for their service; either by the number of calls you receive, or the duration of those calls in minutes. Each provider will have a different price per call or per minute.

Typically, you will select a package based on the number of calls or minutes you expect to need on a monthly basis. This can be tough to figure out if you’ve never thought about this, which is why at Moneypenny we offer all prospective clients a free 7-day trial, so they can experience our full service and see exactly where and when they need support.

How do Moneypenny charge for their service?

Our service is charged for on a per minute basis, offering a range of schemes based on the amount of minutes you use. Get your quote now to find out what plan package is right for you.

Are there any long-term contracts?

No – all of our smaller schemes (inclusive of 150 minutes and below) have a minimum contract length of three months. Thereafter, we require one month’s notice to close your account from the date of your next invoice. For our larger schemes, we require either a six or twelve-month commitment (depending on the volume of inclusive minutes) with three months’ notice to terminate your account. This may not be the case with other service providers, so make sure to check before you make your decision.

What’s the difference between a telephone answering service and a virtual receptionist?

The two terms are often used interchangeably. Both involve real people responding to your calls and representing your business, but a virtual receptionist may provide extra features such as:

  • Appointment scheduling
  • Order taking or payment processing
  • Handling detailed customer queries
  • Liaising with multiple departments

Essentially, a telephone answering service focuses on managing calls efficiently, while a virtual receptionist can take on broader administrative or client care duties. The right choice depends on how much support you want and how complex your calls are.

How do I choose the right telephone answering service for my business?

Choosing the right partner is essential because the people responding to your calls are often the first impression of your brand. A great provider does far more than pick up the phone. They help you protect leads, support customers, and keep things running smoothly when you’re busy.

Here is how to make the right choice:

  1. Look for dedicated receptionists Find out whether you get a small, consistent team who learn your business or whether your calls go to a large shared pool. Consistency usually means a better caller experience and easier conversations.
  2. Check where the team is based Location shapes understanding. Receptionists who know your market, time zone, and customer expectations can represent you more naturally and confidently.
  3. Review the service options Don’t stop at basic call answering. The best providers offer a wide range of solutions that grow with your business. Look for 24/7 cover, overflow support, message taking, call transfers, voicemail management and flexible routing as standard. Beyond this, great partners deliver added value through services like live chat, AI voice agents, appointment booking, call tracking and integration with tools such as Microsoft Teams. These added extras help you handle more enquiries, improve visibility across your communications and create a smoother and more impressive experience for customers across every touchpoint.
  4. Understand the technology Ask whether there is an app or online dashboard. A good tech setup lets you update your availability, manage messages, control call routing, and view call history without hassle.
  5. Consider the culture fit Listen to how they sound. Do they match the tone of your business? Do they take the time to understand how you want callers to feel? A provider who mirrors your values creates a seamless experience for your customers.
  6. Read the small print Check contract length, notice periods, call charges, out of hours fees, and any extras that could surprise you later. Transparency is a sign of a reliable partner.
  7. Look for a genuine partnership The best providers act like an extension of your team. They care about your callers, adapt as your business grows, and free you up to focus on what you do best.
  8. Consider future growth and innovation Choose a provider that is investing in new tools, smarter routing, and better tech. A forward thinking partner will be ready to support you with new features and more efficient workflows as your business evolves.
  9. Look at their experience in your sector Some industries need very specific handling. Check whether the provider has experience with businesses like yours and whether they understand the common queries, jargon, and risks in your field.
  10. Understand their onboarding approach Smooth onboarding says a lot about how organised and professional a provider is. Ask how long setup takes, how they collect information about your business, and how they train the receptionists who will be speaking to your callers.
  11. Check their security and data protection standards Even simple messages can contain sensitive information. Ask how they store data, who has access to it, and what safeguards they use to keep your customers safe.
  12. Look at reviews and real client outcomes Case studies and testimonials show how well the provider delivers, not just what they promise. Look for client stories that sound similar to your situation.
  13. Assess how easy they are to communicate with You want a partner who responds quickly and clearly when you need something, whether that is updating call scripts, pausing the service, or asking for extra support during a busy spell.

Need help finding the right service for you? Why not check out our Top tips for engaging a phone answering company blog for more information.

Will a telephone answering service handle all my business calls?

There are a number of ways you can work including:

  • All calls answered – You can choose to divert all calls to your service provider, this is great as it gives a seamless customer experience and helps your business appear bigger and more professional.
  • Overflow services – You can set up your divert to only activate when your lines are busy internally. This is a great option if you have in-house resource to answer calls, but want to ensure your customers are not left on hold, or worse, put through to voicemail.
  • Out-of-hours support – Some businesses don’t operate 24/7, but their customers still call in the evenings and over the weekend. An answering service is an affordable solution to provide your customers with a 24-hour service that meets all their needs.
  • Ad-hoc support – Many businesses choose to use an service on an ad-hoc basis, passing calls through whenever they are in meetings or busy working on projects. This allows you to maximise your time and efficiency.
  • Temporary cover – If you know your business is coming up to a busy period, or your in-house receptionist has recently left the business, you can hire a service provider to cover your calls for a temporary period until you’re back on your feet.

The important thing is that they are flexible enough to satisfy the unique requirements of your business. You don’t want to be tied into long-term contracts and receive invoices that will mean spending thousands of pounds a month, if you only want them to answer calls when you’re unavailable.

What happens outside normal business hours?

This can vary depending on your provider and the service they offer. At Moneypenny, we offer a 24-hour answering service, where we answer calls on your behalf every day of the year, even during the holidays like Thanksgiving and Christmas.

As standard, your calls will normally be diverted to a professionally recorded voicemail system outside of your usual business hours. Moneypenny, however, have the capacity to answer your calls 24 hours a day, 365 days a year with our dedicated 24/7 team.

Not sure you need support out-of-hours? We’ve put together a blog post to help you out – Do I need a 24/7 call answering service?

How does a telephone answering service know who’s calling?

When you sign up, you’re given a unique forwarding number. Any calls made to that number instantly appear on the receptionist’s system, along with your company profile. The Moneypenny receptionist can then greet the caller in your business name and handle the conversation according to your instructions.

It’s seamless for your callers – they’ll never know the call wasn’t answered in your office!

How would Moneypenny receptionists answer calls for my business?

It all begins with onboarding. Moneypenny take the time to learn about your company, preferred greeting, tone of voice, and any key details you want shared.

For example our Moneypenny receptionist team will:

  • Answer with your chosen greeting
  • Ask relevant questions
  • Transfer calls or take messages as instructed
  • Send messages instantly via text, email or even via Microsoft Teams!

Each Moneypenny receptionist is trained to sound warm, capable, and knowledgeable, providing callers with a great impression every time.

How to manage your calls with an answering service app or portal

Modern telephone answering services provide intuitive tools so you are always in control. With the Moneypenny app and online portal, you can:

  • View calls and messages in real time.
  • Update your availability or divert settings.
  • Access call stats, trends, and caller locations.
  • Keep your receptionist updated wherever you are.

This transparency gives you the confidence that your customer communications are running smoothly, even when you are not at your desk.

What makes Moneypenny’s telephone answering service stand out?

Moneypenny has evolved far beyond traditional call answering. Today, we’re the go to partner for businesses that want to deliver brilliant customer conversations across every channel, including phone, AI receptionist, live chat and more.

Our difference lies in the combination of extraordinary people and market leading AI technology. With more than 1,000 receptionists and specialist agents in the UK and US, we act as a seamless extension of your business, representing your brand with warmth and professionalism 24/7.

Here is what sets Moneypenny apart:

  • Real people at the heart of every interaction: a trained Moneypenny PA who specialises in creating exceptional first impressions, protecting leads and ensuring your callers always speak to someone professional and well-informed.
  • AI Voice Agent: ultra realistic AI with emotional intelligence and smooth, human like flow, with the option to escalate instantly to a real receptionist whenever needed.
  • Outsourced Switchboard: a scalable receptionist resource managing and fielding calls around the clock, ideal for multi site or hybrid teams.
  • Lead Management: dedicated PAs qualifying and converting inbound leads, updating your CRM in real time and ensuring no opportunity is ever missed.
  • Managed Live Chat: gold standard people and AI technology handling website chats that convert browsers into buyers, following your exact scripts and tone.
  • Multichannel Customer Service: expert agents delivering integrated support via phone, email and chat for a joined up customer experience.
  • Social Media Management: trained professionals representing your brand voice online, handling replies, engagement and enquiries with care.

Together, these services mean Moneypenny can cover every communication touchpoint your business has, giving you one trusted partner for phone, chat, and digital engagement.

Whether you need overflow support, full outsourcing or a mix of live agents and AI, our solutions scale effortlessly as your business grows. We make sure your customers always reach a real, confident voice, wherever they get in touch.

That is why Moneypenny continues to lead the way in blending human connection with cutting edge AI technology, giving businesses of every size the power to sound polished, professional and always available.

The business case for a telephone answering service

Running a business is full of distractions, but your customers should not feel the impact of that. When every call is answered quickly, warmly and professionally, it changes the way people see your brand.

A telephone answering service is more than just a backup plan. It is an investment in better communication, calmer workdays, and stronger customer relationships.

If you are ready to find out how it could work for you, explore Moneypenny’s free trial and see the difference our receptionists can make from the very first call.

We give you amazing people and technology:

Telephone
Answering

Your own PA to look after calls, qualify leads, book appointments, and lots more.

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Live Chat

Gold standard people and technology to handle chats on your website.

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Lead Management Service

Our team of PAs capturing every new enquiry and qualifying them during the call.

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