Running a business in Australia today means keeping up with customers who expect fast and reliable communication. For many small and medium-sized businesses, managing every phone call can be overwhelming. That is why choosing the right answering service has become an important step in making sure customer enquiries are handled professionally.
This guide is designed to help beginners understand what answering services are, how they work, and what to consider when selecting the right option. It also provides insights into both traditional and AI answering services, along with practical details like cost, limitations, and long-term value.
What is an Answering Service?
An answering service is a professional communication solution that manages incoming calls on behalf of a business. Depending on the service, it can handle tasks such as answering basic customer questions, transferring calls, booking appointments, or even resolving simple issues.
The two main types of answering services are:
- Traditional human-operated services – These involve call centre staff who pick up the phone and follow scripts or instructions provided by the business.
- AI answering services – These use advanced voice recognition and natural language processing to provide automated responses, available 24/7.
According to the Australian Communications and Media Authority (ACMA), missed calls remain one of the most common customer complaints about businesses, especially in retail and service industries. An answering service directly addresses this challenge.
How to Start an Answering Service for Your Business
Getting started with AI answering service solutions is easier than many people expect. Most services are subscription-based, meaning you can sign up, set preferences, and have it running within a few days.
Steps to get started include:
- Assess your needs: Think about how many calls you typically receive each day and what kind of support customers usually want.
- Choose the type of service: Decide whether you prefer a traditional human-operated service or an AI answering service.
- Set up scripts and workflows: Provide the service with clear instructions, common FAQs, and escalation rules.
- Test and refine: Run the service for a trial period and monitor call quality to make adjustments.
A report by Deloitte suggests that Australian businesses adopting automation in communication see productivity gains of up to 20 per cent, especially when they combine AI services with traditional support staff.
What is the Average Cost of an Answering Service?
The cost of an answering service varies depending on the type and the level of coverage.
- Traditional services: Prices generally start at around AUD 1.50 to AUD 2.00 per call, or flat rates ranging from AUD 200 to AUD 600 per month depending on call volume.
- AI answering services: These are usually subscription-based, often between AUD 100 and AUD 300 per month for small businesses, with unlimited calls in some packages.
According to a 2023 survey by IBISWorld on call centre operations in Australia, businesses that invest in communication support see higher customer retention and improved response rates, making the cost worthwhile.
What are the Disadvantages of Answering Services?
While answering services provide clear benefits, there are also some drawbacks to consider:
- Lack of personalisation: Traditional services may feel scripted, while AI services may not always capture subtle customer emotions.
- Additional costs: For small businesses with very low call volumes, the cost might outweigh the benefit.
- Training needs: Human operators require regular updates to stay aligned with business changes, while AI systems need proper configuration.
- Escalation challenges: Not every query can be resolved at the first point of contact, meaning calls sometimes need to be forwarded, which can slow down resolutions.
According to the Australian Competition and Consumer Commission (ACCC), timely and accurate responses strongly shape customer satisfaction, meaning even small inefficiencies can impact the experience.
What is a Professional Answering Service?
A professional answering service goes beyond just picking up calls. It provides a polished customer experience that reflects the standards of the business. This may include:
- Custom greetings and scripts tailored to the brand.
- 24/7 availability so customers never feel ignored.
- Multi-channel support such as SMS or email follow-up.
- Integration with booking systems and CRMs.
Medical clinics, law firms, trades, and real estate agencies in Australia often use professional answering services, where missed calls can mean significant lost revenue.
Research from the University of Technology Sydney (UTS) shows that businesses with professional communication systems enjoy higher trust levels from customers, leading to longer-term relationships.
Related Article : Virtual Receptionist vs AI Receptionist: What’s the Difference?
How Much Does an AI Answering Service Cost?
AI answering services are becoming more popular due to their affordability and reliability.
Most providers offer tiered plans based on business size:
- Small businesses: Around AUD 100 to AUD 150 per month.
- Medium businesses: AUD 200 to AUD 400 per month with additional features such as CRM integration.
- Enterprise solutions: Custom pricing, often combined with analytics and multilingual support.
Unlike traditional services, AI answering systems can handle unlimited calls without fatigue, which means scaling up is cost-effective. For businesses with tight budgets, this makes AI a competitive option.
A report from CSIRO’s Data61 division notes that the adoption of AI in customer service is expected to grow by 40 per cent in Australia over the next five years, driven by demand for cost savings and round-the-clock support.
Tips for Choosing the Right Answering Service
When comparing providers, keep these factors in mind:
- Availability: Ensure the service can provide coverage during peak hours or 24/7 if required.
- Integration: Look for services that connect with your existing booking, payment, or CRM systems.
- Customisation: Check whether you can create personalised scripts and escalation processes.
- Cost structure: Compare flat rates versus per-call pricing to see which works better for your budget.
- Scalability: Consider whether the service can grow with your business.
Final Thoughts
Choosing the right answering service is an important decision for Australian businesses that want to improve communication and customer satisfaction. Traditional human-operated services bring a personal touch, while AI answering services offer affordability and availability at scale.
Both options have pros and cons, and the right choice depends on the size of your business, the industry you operate in, and the volume of calls you receive.
By carefully considering costs, limitations, and long-term benefits, businesses can ensure they select an answering service that supports growth, strengthens customer relationships, and provides a professional first impression.
As technology advances, AI answering services are likely to become more common across Australia, but human-operated services will remain valuable in industries where empathy and complex communication are key. For most businesses, a blended approach may provide the best results.
