VoIP - Cheap Calls Not Sufficient. Quick ROI Critical To Win Contracts
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Till recently, VoIP service vendors have highlighted cheap global calling rates and low service fees to win contracts from businesses that have become increasingly cost conscious. However, business finance managers do not make decisions based just on per minute cost savings. Small business VoIP service vendors need to work harder - persuading corporate leaders on the fast payback potential of implementing VoIP systems.
Earlier break even for technology costs
Trends show that businesses are looking at technologies that promise breakeven within 6 months - contrary to prevailing industry expectations of six quarters. Though VoIP has made great strides in the last few years, this condition puts a lot of pressure on its service providers. They now must substantiate their claims with fiscal break even information to close deals as financial plans are restricted to projects that show major returns preferably within the same financial year.
Phased completion of projects
Tight clamps on technology spending have made CIOs, CFOs, and IT managers rethink their project roadmaps. Executives no longer make purchases in a single shot but in a phased fashion. Previously, moving to a VoIP system was a gargantuan task involving upheaval in data lines, servers and desk equipment. The situation today is much improved. Interoperable equipment makes it possible for executives to implement modules of a long running project as and when finances are available and business downtime is minimized.
Quantifying benefits of VoIP systems
To measure the gains of installing or upgrading a VoIP system, CTOs have to look at both quantifiable and unquantifiable results. Voice clarity and other useful features are intangible results that contribute significantly to worker productivity. Apart from this, CTOs need quantifiable results that have to be measured in ways that truly reflect their impact. A number of tactics used by CTOs to quantify the performance and cost savings from a VoIP system include:
- Assessing the effect of the time expended in reconnecting dropped calls on a worker’s output in terms of unproductive hours.
- Surveying clientele and evaluating the impact of a clear phone connection on sales that worked out and those that didn’t.
- Comparing the cost of managing a tele-presence suite using VoIP services with {an executive’s travel} bills.
- Distributing the total price of a new VoIP system over the operations and maintenance budget of an existing project over a period of 6 months.
Return on investment (ROI) cannot be measured without considering the true cost of ownership. If a VoIP system manages a break even period of 6 months, business managers can remove a line item from the budget. No CEO can turn a blind eye to such a cost benefit.
VoIP system service providers - Substantiating claims
VoIP service providers have to come up with credible financial information to back up their claims. They need to arm themselves with case studies and facts to prove the actual cost of ownership over the existence of a VoIP system. For example, a system that breaks even in 6 months and does away with expensive maintenance for the next three years wins hands down with CTOs. The budget allocated to the corporation’s business VoIP system can be amortized over 36 months.
As VoIP systems are adopted in offices and homes, service providers will be faced with bigger expectations from customers. Enterprise VoIP system resellers must do their homework and gather necessary financial data to influence prospective buyers of the feasibility of seeing returns in 6 months. This is the only way VoIP providers can win new deals.
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