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What Is a Virtual Phone Number?

by Joe DeBari

Get answers to FAQs on what is a virtual phone number, and discover how they can power your business to work across devices and locations.

Business happens across time zones, devices, and platforms, so the way we communicate needs to be just as dynamic. Enter the virtual phone number—a nimble calling tech that remakes how companies handle voice communications. Whether you're running a fully remote team, expanding into new markets, or simply looking to manage calls better, virtual business phone numbers offer the flexibility and functionality that business professionals need.

What Is a Virtual Phone Number and How Does It Work?

In the past, a phone number was provisioned to work over a single phone line. That line was physically connected from the phone company to the destination (a home phone or business desk phone) by telephone wires. Any calls made to that phone number could only be sent to that specific destination. And in the case of a business phone number, the business would have phone system hardware, such as a private branch exchange (PBX), in the office to configure call routing rules, extensions, voicemail, etc.

A virtual phone number, on the other hand, isn’t assigned to a physical phone device or phone line. Instead, it operates over the internet using Voice over IP (VoIP) technology. That means virtual numbers can be assigned to a wide range of internet-connected devices—such as IP-based desk phones and softphone apps on your laptops and mobile devices. And once assigned, these devices and software applications become phones on which you can make and take calls.

When used with hosted VoIP or Unified Communications as a Service (UCaaS) providers, virtual numbers can be directly purchased from the provider and managed via the web in the service’s admin portal. They can be local, toll-free, or vanity numbers.

What Are the Key Business Benefits of Using a Virtual Phone Number?

1. Route Your Business Calls to Any Device or Location

Because a virtual number isn’t anchored to a specific phone device, phone line or location, a business has greater control and flexibility in how it receives calls. Companies can set the destination of that number and change it in real time without having to wait for the service provider’s technician to attend to the task.

2. Nationwide Reach with a Local Presence

If your business has many customers located in a different city or state, let them call you by dialing a local phone number in their own area code. Virtual numbers make it easy for companies to establish a local presence in a variety of markets. Just purchase the phone number from your provider and assign it to ring phones in your office— even if your office isn't located in the geographic area of the number’s area code!

3. Remote-Ready Communication

Due to virtual numbers operating in the cloud, employees can work from anywhere. Calls can be routed to mobile apps on smartphones, laptops, or softphones, enabling smooth communication across distributed teams—a desired ability for remote colleagues and hybrid employees.

4. Unite Sales or Support Departments in Different Cities or States

For operations with many office branches, these phone numbers can seamlessly unite the separated staff. Instead of incoming calls ringing phones in only one office, a virtual number can be set up to ring phones across separate offices.

How? If you have sales reps in different cities, make the destination of the number a call queue or ring group. Incoming calls to this number will then ring the phones of all reps who are part of the queue or group. Whichever representative answers the call first gets it, regardless of the office they are in.

5. Measure the Performance of Sales, Marketing, or Advertising Campaigns

When running sales or advertising campaigns, it’s imperative that you measure the overall health and success of the efforts. Rather than funneling all calls through your main business line, assign a unique virtual number to each campaign that you are running. That way, you’ll know which campaign moved someone to call just by the number that was dialed. And when the campaign is over, download and review your business’s past call detail records to see how many calls came into those dedicated phone numbers—it can be one of the data points that help you evaluate how successful your efforts were.

Who Should Use a Virtual Number?

Any organization that values flexibility and efficiency should already be using these numbers. This includes:

  • Startups needing to project a larger and established image.
  • Commercial and E-commerce companies managing customer service from multiple locations.
  • Nonprofits operating from various branches and sending staff to distant clients and events.
  • Remote-first teams requiring unified communication tools.

Put the Cloud to Work for You with a Virtual Business Phone Number

As business communication continues to evolve, virtual business phone numbers offer clear advantages: mobility, scalability, and the readiness to meet new business needs—all without the limitations of traditional phone systems. Utilizing this tech is a worthwhile step toward a more agile communication strategy that helps you grow your business with ease.

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