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Call Routing: How it Works, Benefits & Best Practices

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Paras Kela

Senior Writer: Paras Kela

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green tickPublished : September 25, 2023

Call routing, a fundamental component of modern telecommunications and customer service strategies, plays a pivotal role in ensuring that calls are directed to the right individuals or departments, enhancing customer satisfaction, and streamlining operations.

Need a reliable and affordable business phone system? Look no further than DialerHQ.

83% of customers expect to engage with the right agent immediately when contacting a company. This makes call routing even more crucial as it directly impacts customer satisfaction.

So let’s learn more about call routing. This comprehensive guide explores the intricacies of call routing, delving into its various types, best practices, and the significant benefits it brings to businesses. Let’s dive in!

Expert Advice

"When implementing call routing, focus on aligning routing rules with your customers' needs and preferences. Customer-centric routing can significantly improve the overall experience and satisfaction levels. Regularly monitor and analyze call routing performance metrics to identify bottlenecks, areas for improvement, and emerging trends. This data-driven approach ensures your routing system remains efficient and adaptable. "

What is Call Routing? 

Call routing is a telecommunication process that determines the path an incoming call should take to reach its intended recipient or destination within a phone network. It is like the traffic management system of a phone system, ensuring that calls are directed to the right destination, whether it’s an individual, a department, or an automated call routing system, like an IVR (Interactive Voice Response) system.

Call Routing

Call routing can be implemented in various ways using call management features and can be highly customized to meet the specific needs of an organization. It is a crucial component of call centers, customer support hotlines, and businesses of all sizes, as it helps in efficiently handling large volumes of incoming calls.

How does Call Routing Work? 

Call routing is a telecommunications process that efficiently directs incoming calls to their intended destinations within a phone network. This system follows a series of predefined rules and criteria to make real-time decisions about where a call should be directed. These criteria may include the dialed number, time of day, caller’s location, agent availability, and caller history.

How does Call Routing Work?

Once these factors are considered, the phone routing system decides whether to connect the caller to a specific department, an Interactive Voice Response (IVR) system, a queue with recorded messages, or voicemail. The call is then connected accordingly, enabling callers to interact with the chosen destination.
VoIP call routing is essential for ensuring that callers are promptly and accurately connected to the right person or department, ultimately enhancing customer satisfaction and optimizing business operations.

What are the Different Types of Call Routing?

Call routing is a versatile system with various methods and approaches to directing incoming calls efficiently. These methods are tailored to meet different business needs and enhance customer service. Here are some of the different types of call routing.

Types of Call Routing

1. Direct Inward Dialing (DID) Routing

DID routing assigns a unique phone number to each individual or department within an organization. When callers dial a specific DID number, they are directly routed to the corresponding destination. This method is useful for businesses with multiple departments or individuals who require personalized access.

2. Time-Based Routing

Time-based routing routes calls differently based on the time of day, day of the week, or specific dates. For example, calls during business hours might be directed to live agents, while after-hours calls are sent to voicemail or an emergency support team.

3. Geographic Routing

This type of routing is based on the geographic location of the caller. It can direct callers to the nearest service center or office, improving efficiency and reducing call handling times. Geographic routing is especially beneficial for companies with a national or international presence.

4. Skills-Based Routing

In a skills-based routing system, calls are directed to agents or employees with specific skills or expertise relevant to the caller’s needs. For example, a technical support call might be routed to an agent with expertise in troubleshooting technical issues.

5. Interactive Voice Response (IVR) Routing

IVR systems use automated menus to interact with callers. Callers select options using their phone’s keypad or voice commands, and the IVR system routes them based on their selections. IVR routing is excellent for handling routine inquiries and reducing the workload on live agents.

6. Priority-Based Routing

Priority-based routing assigns levels of importance to calls. High-priority calls, such as urgent customer issues, are routed to the most skilled or available agents first, ensuring critical matters are addressed promptly.

Benefits of Call Routing

Implementing call center call routing offers numerous benefits to businesses and organizations, contributing to improved customer service, operational efficiency, and overall effectiveness. Here are some key advantages:

Advantages of Call Routing

1. Enhanced Customer Service

Phone call routing ensures that callers are directed to the right department or agent with the expertise to address their specific needs. This leads to quicker issue resolution, reduced call transfer rates, and higher customer satisfaction.

2. Efficient Resource Allocation

By directing calls to the most suitable agents or departments, intelligent call routing optimizes resource allocation. This means that organizations can use their human resources best, reducing idle time and improving overall productivity.

3. Cost Savings

Cost Savings

Call routing can help reduce costs by minimizing the need for extensive call-handling staff. Automated options like IVR systems can handle routine inquiries, freeing up live agents for more complex issues.

4. Scalability

Call routing systems are highly scalable, allowing organizations to adapt to changing call volumes and business needs. As a business grows, it can easily expand its routing rules and accommodate more calls without a significant increase in overhead.

5. Data Collection and Reporting

Call routing systems often include robust reporting and analytics capabilities. This data can be invaluable for monitoring call metrics, agent performance, and identifying areas for improvement in customer service operations.

What Type of Call Routing System is Best?

The choice of the best call routing system depends on the specific needs and objectives of an organization. There is no one-size-fits-all solution, as different businesses have varying customer service requirements. For organizations dealing with complex inquiries and specialized knowledge, skills-based routing is often the best choice, ensuring that calls are directed to agents with the expertise needed.

On the other hand, time-based routing is ideal for businesses with fluctuating hours, allowing calls to be routed differently during various time periods. For those aiming to personalize access for different departments or individuals, direct inward dialing (DID) routing is effective. So assess your business needs before investing in a call routing system for your organization.

Call Routing Best Practices 

Call routing is a critical component of a successful customer service strategy. To ensure an efficient and effective call routing system, organizations should adhere to several best practices:

Best Practices of Call Routing

1. Understand Customer Needs

The foundation of an effective call routing system is a deep understanding of your customers’ needs. Analyze the types of inquiries and issues you typically receive, and tailor your routing rules to address these needs. Knowing your customers’ preferences and pain points will guide your routing decisions.

2. Customization and Flexibility

Choose a call routing system that offers customization and flexibility. Not all calls are the same, and business needs can change over time. A system that allows you to create and modify routing rules to align with evolving requirements is essential for long-term success.

3. Real-Time Data Utilization

Real-Time Data Utilization

Leverage real-time data to make routing decisions. This data might include agent availability, call volume, and customer history. Real-time decision-making ensures that calls are directed to the most appropriate destination at any given moment, improving efficiency.

4. Regular Monitoring and Optimization

Continuously monitor the performance of your call routing system. Collect feedback from customers and agents to identify areas for improvement. Regularly review key metrics such as call abandonment rates, average wait times, and first-call resolution rates. Use this data to optimize your routing strategy.

5. Agent Training

Ensure that your agents are well-trained and equipped with the necessary skills to handle the types of calls they receive. Effective training not only enhances the customer experience but also improves first-call resolution rates, reducing the need for call transfers.


Call routing is a crucial element of modern customer service and telecommunications, and its effectiveness can significantly impact an organization’s success. A well-implemented call routing system not only streamlines operations but also enhances customer satisfaction, leading to higher retention rates, improved brand reputation, and sustainable business growth. So choose the best call routing system to gain a competitive advantage and increase results.

Frequently Asked Questions

Call routing determines where inbound calls should go within a phone network, while call forwarding simply redirects calls to another phone number or extension.

When you route calls, it is directed to a specific destination or recipient within the phone network, such as a department, individual, or automated system.

Inbound call routing is vital for efficient customer service, ensuring that calls are directed to the right place, improving customer satisfaction, and streamlining operations.

Routing calls are based on predefined criteria like dialed numbers, time of day, location, and agent availability, with routing decisions made by the business phone system.

To know the cost of call routing software, Connect with our sales team at [email protected] for more information. To try it for free, you can sign up with DialerHQ.

Updated : November 28, 2023

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