What is Direct Inward Dialing (DID) & How Does it Work?

Direct Inward Dialing (DID) lets callers bypass phone menus to dial a specific number that routes them directly to an individual, department, or extension.

DID is a must-have for businesses that want to simplify their inbound calls to improve the customer service experience, and grant their clients direct access to teams or personnel on the fly. Here’s a rundown of some key benefits:

• Skip IVRs and auto attendants
• Faster and more personalized communications
• Easier call routing and management for customers and your agents

This article will break down what DID is, how it works, ways you can set it up, and why it’s the right tool to add to your call center’s arsenal of customer service enhancements.

• DID Overview
• What is a DID Number?
• How DID Works
• DID vs DOD
• The Benefits of DID
• Get a DID Number
• Who uses DID
• Top Providers
• FAQs

What is Direct Inward Dialing?

Direct inward dialing (DID) is a phone system feature that connects inbound calls directly with a specific user, extension, or voicemail rather than going through an automated routing menu or receptionist.

Businesses access direct inward dialing by leasing business phone numbers from a service provider, then assigning these DID numbers to particular users, queues, or ring groups.

Both cloud-based PBX and traditional landline PBX providers offer DID, but the setup process varies depending on whether your phone system uses VoIP or PSTN.

What is a DID Number?

A DID number is any business phone number that routes directly to a specific phone or user within the company phone network, bypassing IVR menus and self-service routing systems.

If your company uses a landline PBX phone system, your phone provider can assign you local numbers based on your building’s address.

Alternatively, with a cloud-based or hosted PBX system from a VoIP or UCaaS provider, you can purchase local, toll-free, and vanity numbers from anywhere in the world–then assign them to team members.

How Does Direct Inward Dialing Work?

When a user calls a direct inward dial number, the phone system provider routes the call directly to the associated user or phone. This call routing is achieved via either cloud-based VoIP or landline-wired PRI.

DID’s data transmission method depends on your company’s phone system type:

• Cloud-based VoIP system
• SIP trunking with an onsite PBX system
• Traditional public-switched telephone network (PSTN)
• Fax

Direct Inward Dialing with Cloud-Hosted VoIP

With cloud-hosted VoIP and UCaaS, your virtual phone provider handles the SIP trunking needed to receive all incoming calls, whether via PSTN or VoIP. Your provider then virtually routes these calls to the appropriate DID number.

Compared to PSTN, using VoIP for DID provides distinct benefits:

• Global and remote number assignment: Your company can purchase direct dial-in numbers around the world and assign them digitally to remote users in dozens of countries.
• Better sound quality: Most VoIP providers utilize modern codecs that support HD-voice audio quality.
• Flexibility and scalability: VoIP providers offer the freedom to purchase one number at a time or multiple numbers, starting and stopping service within minutes–all from an online interface.

Direct Inward Dialing with IP PBX and SIP Trunking

An onsite IP PBX system undergoes a similar process to facilitate direct inward dialing.

Your VoIP provider receives the PSTN or VoIP transmission, then transmits the digital data to your company’s private branch exchange.

Once your IP PBX system receives this inbound data, it uses the internet to wirelessly transmit the call to the right user’s device. You can purchase phone numbers through your VoIP provider and assign these numbers to local users.

Compared to a cloud-hosted PBX, the drawback of an onsite IP PBX is that, as the end user, you still need to maintain the physical IP PBX box and data switch–which takes time, money, and effort.

Direct Inward Dialing with Traditional PSTN

With a traditional landline phone system, setting up a direct inward dialing service requires leasing and installing copper wires called Primary Rate Interface (PRI) Trunks. As opposed to virtual SIP Trunks, PRI Trunk lines are physical circuits that route analog call data from your provider, through your onsite PBX system, to the dialed user within your telephone company’s network.

Landlines limit your company to using only local DID telephone numbers from your provider and only allow for onsite phone system routing–eliminating the possibility of remote DID calls. Not only are onsite PRI circuits and physical phone lines a hassle to maintain, they also prevent more than 23 agents from making calls concurrently. This leads to more missed calls, longer hold times, and lower first-call resolution rates.

Direct Inward Dialing with Fax

In addition to phone calls, you can also use direct inward dialing to route inbound faxes directly to particular users, computers, and phone numbers.

A VoIP phone system makes this setup quick and simple.

In the number-management or user-management settings within your application interface, select the VoIP numbers you want to have virtual faxing capabilities, then set up fax-to-email for those numbers. Your provider will ensure that all inbound faxes to that virtual phone number reach the user’s email inbox in PDF form.

Direct Inward Dialing (DID) vs Direct Outward Dialing (DOD)

Both DID and DOD work towards decluttering business calling but in clear and opposite directions as outlined below:

• Direct Inward Dialing (DID) grants outside callers the ability to get to specific internal users or departments, without receptionists or automated menus
• Direct Outward Dialing (DOD) gives internal users the opportunity to place outbound calls directly, without using extra dial codes or using an operator

The Benefits of DID

Below, we discuss the primary benefits of direct inward dialing.

Faster and More Accurate Routing

When someone calls a direct dial number, they immediately connect with the intended user. This process sidesteps tedious and time-consuming self-service IVR menus and live operators.

Plus, vague or misunderstood self-service menu options confuse callers, leading many to reach the wrong destination or queue and forcing additional redirects. A recent study showed that businesses vastly underestimated how many times customers have poor experiences with them by an average of 38%.[*] Don’t be one of them.

Direct dial numbers guarantee the caller reaches their intended destination, especially since agents can use email and text to share direct dial numbers with click-to-call functionality. This eliminates the chances of a misdial.

Flexible Use Cases

By facilitating multichannel communication between customers and agents worldwide, DID numbers support a wide range of Enterprise-level and small-business needs.

Flexible Direct Inward Dialing Use Cases:

• Global numbers: Purchase DID virtual numbers around the world. Adjust your marketing, outreach campaigns, and CRM systems to provide particular direct-dial numbers to specific subsets of customers based on location or language.

• Toll-free numbers: Using toll-free numbers for direct inward dialing lets customers call agents from anywhere in the world–even long-distance calls–at no expense.

• Vanity numbers: A helpful marketing strategy offered by most VoIP providers, vanity numbers let businesses customize their toll-free business phone numbers with specific letters or number patterns (1-800-DOGSIT, etc.).  DID vanity numbers are much easier for customers to remember and help build brand recognition.

• Conference call direct dial: Receive audio-conference direct dial numbers, which the host can share among all conference-call participants for easy access. Purchase personal audio conference numbers, for agents to host ad hoc conference meetings anytime, with hundreds of participants.
• Video conference direct dial: With most providers, video conferences and webinars generate shareable direct dial numbers for participants to dial into video conferences via phone, to listen and speak without video.
• SMS texting: Agents can send and receive SMS messages from virtual DID numbers. Most customers now choose texting over email and phone calls for their issues and 71% of them say they want the ability to text a business back.[*]

Personalized Customer Service

Direct inward dial numbers provide a variety of customer service benefits:

• Personal experience: When a customer gets to bypass a general routing system to connect with an agent directly, it makes them feel like the company accommodates their individual needs. 71% of consumers expect companies to deliver personalized interactions.[*]
• Individualized follow-up: If a customer’s inquiry requires follow-up, they can use an agent’s DID number to reconnect with the same agent they interacted with previously. This strengthens customer loyalty and saves customers from repeating themselves, improving the customer experience while providing agents with fuller call context.
• VIP service: Use direct inward dial numbers to provide faster and more personalized service for VIP customers.
• Language- or location-based services: Depending on a customer’s language or calling location, provide them with direct dial numbers to reach agents whose business hours and language background match their own, to optimize communication.

Improved Internal Communication

Direct inward dial numbers enable team members to call each other with one click inside the phone application’s interface–instead of flipping through a spreadsheet pinned to the wall containing each company user’s name and extension.

Nearly all modern VoIP and UCaaS providers offer instant internal DID calling within their telephony app, allowing agents to transfer and forward calls between numbers.

Cost Reduction

DID is a cost-friendly solution that cuts down on infrastructure and operational costs when used in tandem with VoIP and other cloud-based systems. Here’s how:

• No need for physical phone lines: Companies can assign virtual DID numbers that route over the internet, cutting the need for a separate landline per employee
• Cut down receptionist or operator costs: Direct dialing uses less resource on manually routing calls or managing peak call volumes
• Local call savings: Businesses should buy local DID numbers in the regions they operate to give international customers the chance to make local calls instead of long distance ones[*]
• Shrunken call handling times: More accurate call routing means fewer transfers, shorter calls, cutting down manpower requirements and saving you in the long run

Global Reach

DID helps businesses establish their international presence without the need of building actual physical offices in every country and time zone. Here’s a rundown:

• Unified presence: Even when your teams are scattered around the globe, DID numbers makes your business seem cohesive and accessible across the world
• Support multiple time zones and languages: You can assign numbers per individual location or language and even route calls to the appropriate staff for top tier quality service
• International DID numbers: Get local phone numbers in dozens of countries to assure customers can reach you as if you’re a local business down the road. 42% of customers say they would pay more for a more welcoming and friendly service experience[*]

Scalability

DID enhances your business’ ability to grow by making it a snap to expand or adapt your phone systems as your team and clientele base expands. Consider these benefits:

• Instantly add or remove numbers: Your provider’s dashboard will allow you to get new DIDs or discard unused ones with no need for hardware changes
• Support for remote and hybrid teams: Assign direct lines to remote employees, contractors, or departments regardless of their location to accommodate your workers wherever they go
• Foolproof onboarding: New hires can be set up with direct numbers in minutes, avoiding the bottlenecks of traditional telecom setups
• Adaptable call flows: Scale up or down during seasonal spikes or business changes by adjusting routing rules and reallocating DID numbers instantaneously

How to Get a DID Number

Setting up your DID numbers is simple with most cloud-based business phone systems. Here are the most crucial first steps:

Step 1: Choose a VoIP or UCaaS Provider

You will need a provider that includes or supports multiple DID numbers in your plans.

What to Look For:

• Included DIDs: Most leading providers (like RingCentral, 8x8, and Nextiva) already include one DID per user
• Global availability: Be sure you can buy local numbers in the service regions and countries you plan to operate in
• SMS support: Some DID numbers can send and receive texts, but be sure to check
• Easy number management: Your provider should include a user-friendly dashboard to allow you administrators to assign and manage numbers speedily

Step 2: Buy your DID Numbers

Once your account is up and running, you can assign and/or buy DID numbers using the provider’s portal. Most providers automatically assign a direct number when you create a profile.

Admins can add more numbers as needed per departments, campaigns, or locations. Some even offer vanity and toll-free numbers for additional branding or accessibility needs.

Step 3: Understand Regulatory and Regional Restrictions

DID availability and set up rules across countries and regions are not the same at all. Some counties (like Japan or Germany[*]) require local businesses before assigning a number.

You should note DIDs, especially the toll-free or international ones, cannot be used to initiate or call emergency services. And of course, ensure you comply with each country’s local consent requirements if you plan to record any customer calls conducted on a DID.

Step 4: Review Pricing and Expected Costs

DID numbers tend to be low-cost when bundled with VoIP subscriptions. As stated earlier, most users automatically get 1 DID. Additional numbers tend to cost anywhere from $1 to $10/month depending on number type (local, international, toll-free, etc.). Vanity numbers often come with a one time setup fee and a higher monthly rate, something to keep in mind.

Who Uses DID and Why

DID numbers have different use cases across industries. Here are hypothetical but practical examples of how different organizations leverage DID to deliver top shelf customer experience:

SaaS Sales Teams: One Number per Rep

Scenario: A SaaS company decides to assign a unique DID number to each sales representative.

Reasoning:

• Allows potential clients to reach reps directly without going through a phone menu
• Gives the chance for the team to follow-up via SMS or email with click-to-call links
• Aids in call tracking and analytics by associating calls with individual reps

Result: Speedier sales cycles and more personalized outreach for overall improvement in their conversion rates.

Healthcare Clinics: Direct Routing for Patients

Scenario: A clinic assigns different DIDs to departments (think appointments, billing, and nursing) in an attempt to streamline the calling process.

Reasoning:

• Cuts down wait times and transfers for patients in need of care
• Assures that sensitive calls are routed to the appropriate staff
• Integrates with HIPAA-compliant VoIP systems for secure communication and customer trust

Result: Smoother patient interactions and more efficient front-desk operations, saving lives and money at the same time.

Remote or Global Teams: Local Presence, Worldwide

Scenario: A remote-first company purchases local DID numbers in key international markets to expand their reach and service newer regions.

Reasoning:

• Customers in various regions can call a local number, improving trust and brand recognition
• Calls are then routed by time zone or language preference to best accommodate needs of the caller
• Fortifies a unified business presence without physical offices and keeping your workers active and connected anywhere

Result: A stronger global reach, better customer accessibility, and an opportunity to expand the business beyond its domestic and established regions.

Call Centers: Personalized Customer Experience

Scenario: A support team assigns DID numbers to agents or departments to build a personalized customer experience that feels authentic.

Reasoning:

• Gives customers the chance to reconnect with the same agent easily and build a connection
• Offers VIP customers a faster, more direct experience that makes them feel valued
• Cuts down on the need for tedious call transfers and repetitive explanations

Result: Higher customer satisfaction, more efficient support staff, loyal customers and upsell opportunities.

Top Providers That Offer DID

Most modern VoIP and UCaaS providers offer Direct Inward Dialing as part of their service. This is either included with user licenses or available as add-ons. Below is a comparison of popular providers and how they handle DID numbers:

FAQs