VoIP – Inexpensive Calls Not Enough. Fast ROI Critical To Win Contracts
VoIP service providers have been playing on cheap international and domestic calling rates and low service charges to sell the VoIP service to cost-conscious customers. However, top financial heads do not make decisions based just on per minute price savings. Small business VoIP service providers have their job cut out – persuading business leaders on the fast returns of investing in VoIP systems.
Faster break even for technology expenses
Trends show that businesses are looking at technologies that break even within 6 months – contrary to current industry expectations of a year and a half. Though VoIP has made great strides in the last few years, this stipulation puts a lot of pressure on its service vendors. They now must substantiate their claims with financial break even data to close deals as financial plans are limited to projects that show significant returns preferably within the same financial year.
Phased execution of projects
Tight clamps on technology expenditure have made C-level executives rework their project plans. Executives no longer make purchases in a single shot but in a phased manner. Previously, moving to a VoIP system was a huge task involving upheaval in data lines, servers and desk equipment. But today, interoperable equipment makes it possible for executives to implement modules of a long running project according to when funds are available and business downtime is minimized.
Evaluating results of VoIP systems
To measure the rewards of implementing or upgrading a VoIP system, CIOs have to consider both quantifiable and unquantifiable results. Voice clarity and other useful features are intangible benefits that contribute significantly to worker productivity. Apart from this, CIOs need statistical results that have to be measured differently over a cyclic period. A number of schemes used by CIOs to quantify the performance and cost savings from a VoIP system include:
- Evaluating the effect of the time expended in reconnecting dropped calls on an employee’s efficiency in terms of wasted hours.
- Collecting feedback from clients and analyzing the impact of a clear phone connection on deals that worked out and those that didn’t.
- Comparing the expenditure of running 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 system over half a year.
A true picture of the financial returns cannot emerge without considering the actual cost of ownership. If a VoIP system manages a break even period of half a year, business managers can look forward to removing a line item from the budget. Few CEOs would argue with such a lucrative option.
VoIP system vendors – Proving claims
VoIP service providers have to come up with credible financial data to support their claims. They will have to come fully equipped with case studies and statistics to demonstrate the real cost of ownership over the life of a VoIP system. For example, a VoIP project that breaks even in 6 months and does away with expensive maintenance at least three years is a sure winner with CTOs. The budget assigned to the corporation’s business VoIP system can be amortized over 36 months.
As VoIP systems are adopted in offices and homes, service providers must deal with bigger expectations from customers. Enterprise VoIP system providers must prepare themselves with essential financial information to influence prospective buyers of the viability of seeing returns in 6 months. All value-added VoIP service providers must gain this expertise to win contracts. Daljeet Sidhu is the author of this article.
September 10, 2010 | Posted by Stew
Categories:
Tags: