Difference between toll free and local numbers

A question we often receive at customer service: should I register a virtual local phone number or a toll-free 1800 phone number? What is better for business? The answer to this question: it depends.

It depends on what type of organization you are. What are your business objectives? In this article we will provide guidance to come to the right decision for your business.

Importance of leads, competition and projected customer lifetime value

How much is a potential new customer worth to your business? How competitive is your market? And what is the projected customer lifetime value?

An example where a 1800 toll free phone number is a no brainer is a law office. A law office is nothing without new cases coming in every day for the lawyers to work on. There is a lot of competition in legal. And 1 successful case can lead to tens of thousands of Euro's revenue.
It can be argued that a 1800 phone number is an absolute must for a law firm.

Also businesses where calls almost always means a new order merit a 1800 phone number. For example, pizza delivery chains or taxi companies.

Regional versus nationwide

For businesses that operate nationwide, a 1800 phone number makes the most sense. This phone number is not tied to any city or region. It will appeal to potential customers in all parts of the country.

A local phone number, however, kind of limits your business to a certain area. Not very useful if you have ambition to play on a national level.

International

Toll free phone numbers cannot be reached from abroad. Thus, toll free phone numbers are only relevant for national campaigns.

Local phone numbers, however, can be called from abroad, when callers add the prefix of the given country.