Answering Service vs Call Center: Which Is Right For You?

Searching for the best way to handle customer queries? Perhaps you’ve looked into the benefits of answering services vs call centers. They serve the same end goal – helping you answer more customer calls – but they achieve it in quite different ways.

In this article, we’ll explore everything you need to know to help you decide which is right for your business, including:

👉 The scope, value, and costs of both services

👉 The differences between answering services and call centers

👉 How AI is revolutionizing customer service

Let’s get into it…

What is a call center? 

Call centers handle inbound and outbound calls on behalf of their clients. They’re staffed by live agents who provide customer service, sales, and marketing support, helping customers to… 

👉 Resolve problems

👉 Make purchases 

👉 Assist with queries

…and more.

Call centers fall into two main categories: live and remote. 

Live call centers are physical offices where agents work in-person. 

On the other hand, remote call centers are virtually located, meaning agents work from home, a shared workspace, or anywhere else they can access the remote call system. Customers dial a centralized number and are automatically connected to one of the remote agents.

What is an answering service? 

Like call centers, answering services handle calls on behalf of their clients. 

Businesses outsource customer service to these companies rather than having to deal with customer queries in-house – a massive time-sink for smaller businesses that don’t have a dedicated customer support team.

Answering services work in much the same way as call centers, acting as an extension of their client’s team by answering calls, taking messages, and generally delivering a professional experience for callers.

Some answering services are staffed by real people, while others – like Rosie – use AI agents. 

AI answering services are far more cost-effective than human-powered services. They can theoretically answer infinite calls at the same time – unlike human answering services, which can still miss calls if all the agents are busy. Plus you can train them on your business data, helping them understand the specific needs of your customers.

Key differences between call centers and answering services  

While call centers deal with a variety of customer interactions, answering services typically provide a more basic level of support.

An answering service is usually tasked with answering calls, taking messages from customers, and answering basic queries (like what hours the business opens). So the contact is all inbound. 

Call center agents, on the other hand, can have more in-depth conversations – whether around sales, complaints, or support. Depending on the call center, they might handle both inbound and outbound calls.

Answering services can fill a gap for businesses when they aren’t able to take customer calls. Often, the interaction will be more of a stop-gap until the customer can speak to a real human employee.

However, with call centers, the customer’s interaction will often begin and end with a call center agent. Those agents can provide more tailored support, enabling them to have a direct impact on business growth.

Answering services vs call center services compared 

Answering services 

Typical tasks

Answering services are chiefly concerned with picking up inbound calls to businesses. They help to reduce (or, ideally, completely eradicate) missed calls – a big plus given that up to 80% of callers will hang up without leaving a voicemail if nobody picks up the phone.

Typically, answering services only provide basic customer support, such as: 

👉 Answering simple questions

👉 Taking messages

👉 Scheduling appointments

👉 Redirecting callers to a human employee

On average, small businesses miss 62% of calls, so having someone answer even the simplest questions can make the difference between winning and losing a customer.

Service scope

Answering services handle specific customer issues that don’t usually involve complex queries or high-level requests. They generally provide answers that don’t require the in-depth knowledge of an actual business employee, and they wouldn’t sign off on customer queries requiring the knowledge or authority of the business owner or a manager. Where necessary, they can also transfer calls to a human employee.

Higher-quality services can also provide detailed responses to custom questions, making them a popular choice for small businesses that don’t have the budget to pay for a dedicated call center or hire a full-time team member to handle calls. 

For example, property management answering services could answer tenant queries about topics like:

👉 Property showings

👉 Maintenance requests

👉 Rent inquiries

Customer interaction quality

The best answering services learn to adopt their client’s tone of voice. If the company doesn’t have one established, the service will generally strike a neutral tone, while aiming to communicate in a way that keeps the customer happy.

Answering services typically don’t usually use a set script to answer customer queries. Instead, they’ll learn enough about the company beforehand to confidently provide (basic) answers in a way that sounds human (yes, even AI answering services).

Cost

Call answering services in the US typically range from $30 – $2,000 per month. There are often various tiers to choose from, increasing in line with the required level of support. Advanced packages often give the option of higher call volumes and outsourced tasks. You might also be able to pay more for the option of training agents around the specific requirements of your business. 

Expect to pay significantly more for human-powered call answering – even though the service is often lower-quality. For instance, Rosie’s price plans range from $49 – $199 per month 👇

Call centers 

Typical tasks

Call centers handle a range of customer interactions. Agents can make and receive calls, and may also deal with communications via email, SMS, and other channels. Depending on the call center, they might take product orders, process bill payments, answer questions, or pass along information. They may also assist with complaints.

Streamlining customer communication means business owners and teams don’t have to manage every query themselves, freeing them up to focus on their core operations.

Service scope

A call center acts as a central hub for customer interactions, providing support across sales, service, and general assistance. By managing all comms in one place, businesses can easily track customer interactions and maintain organized records.

Beyond answering calls, call centers collect and analyze customer data. This helps businesses gain valuable insights to improve their services and better understand customer needs. In this way, they support business efficiency and success.

Customer interaction quality

Call center services typically rely on scripts to provide consistent, accurate answers. 

These scripts are typically tailored to different customer support scenarios – such as handling a complaint or processing an order. They’re designed to facilitate structured answers that align with company policies and standards, prioritizing consistency and neutrality.

Although agents can converse like real humans, they’ll rarely – if ever – give off-the-cuff responses. Because they stick to the script, they can’t always provide immediate solutions.

Cost

US call center services start at around $26 per hour for standard packages, increasing to $50+ per hour for higher call volumes and/or more specialized assistance. This might include: 

👉 Technical support

👉 Multilingual agents

👉 Industry-specific knowledge

Prices also vary depending on location and availability (e.g. you’ll likely pay more for 24-hour support).

How AI is shaping call center and answering services 

Artificial intelligence is changing the game for call centers and answering services. 

It makes light work of repetitive tasks – so customer service is smoother and faster – and helps route calls more intelligently, analyze interactions in real time, and share valuable insights with call center agents. All of which allows agents and businesses to focus on more complex issues.

AI tools can also help call centers and answering services improve the performance of human employees through real-time analytics and feedback. For instance, it can listen in on calls and identify compliance issues, thereby highlighting opportunities for further training.

But AI isn’t just about supporting human agents – it can even replace them.

AI-powered call handling services are cheaper than traditional human-operated ones, offering affordable, 24/7 support. They can help businesses maximize their ROI on advertising, as responses to ads can be answered around the clock. This improves overall efficiency while still providing a personal touch, even across several calls at once.

The benefits of AI call handling services are appealing to both customers and businesses. After all, who wouldn’t want quicker responses, less downtime, and more consistent customer service?

👉 Interested in other ways AI can benefit small businesses? Check out our in-depth guide to see how AI can help you save time, reduce cost, and grow your business – How AI Can Help Small Businesses

Should you choose a call center or call answering service? 

So the golden question remains: which model is the best fit for your business?

If you’ve got the budget, it makes sense to partner with a dedicated call center. Because call centers can handle a wider variety of calls than answering services, you’re essentially outsourcing your whole customer support operation, leaving your in-house team free to focus on other tasks.

However, if you receive a high volume of calls, you could easily end up paying thousands of dollars a month in call center fees. That’s not really an option for smaller businesses.

Answering services can deal with simpler tasks. So if you just need support with taking messages and book appointments, for example, an answering service could be your best bet. This is more realistic for small businesses looking for basic (yet crucial) support at a comparatively low price point.

For the highest possible value, choose an AI-powered call answering service like Rosie. That way, you get a higher-quality service that’s customized to your business, at a lower price point than a human-powered service. ✅✅✅

The bottom line

Both call centers and answering services can be fantastic options for businesses looking to level up their customer support, capture more leads, and boost employee productivity. If you’re still not sure which model is the right fit for your business, try an AI-powered answering service for free by creating a Rosie account – the first 25 minutes are on us 🤙

FAQs 

What is the purpose of an answering service?

Answering services take care of your calls when your team’s busy, handling things like messages, appointments, and after-hours inquiries. They’re available to provide support and keep things running smoothly, acting like part of your team. Simply put, your customers always get a professional experience, even when you or your team are tied up.

What is the difference between a voicemail and an answering service?

A voicemail is an automated technology that records messages from callers. An answering service is a human or AI agent that takes calls in real time. It can pass on messages from the caller or answer simple questions. It's like having an assistant answering your calls for you – fancy!

What's the best call answering service for small businesses?

Rosie is the perfect call answering service for small businesses. Here’s why:

• It’s cost-effective; Rosie is up to 10x cheaper than traditional answering services 💸

• Rosie is available to take your customer calls 24/7 with no extra cost 🕐

• With the latest AI technology, Rosie learns from your business, so all interactions are on-brand and seamless 🤖

• There are no setup fees, meaning you can start using Rosie on a free trial without giving any credit card details 🎉

Sign up for your Rosie account