The average employee spends 400 minutes a month communicating with colleagues or clients. With so much time spent on communication, why wouldn’t a business owner want the best possible communication system? Cloud-based VoIP is certainly an option, but we understand that you want to see its potential ROI before making an investment.
|“We’re a business too, so we completely understand the value of ROI. That’s why part of our service involves helping you secure solutions that will allow you to make the most of your investment.” – Mike Schoenberger, CEO, Sunco Communication & Installation
In simple terms, VoIP (voice-over-internet-protocol) moves your phone calls from power lines to the internet. Most businesses can receive calls faster, in higher quality, and integrate call information into other systems in real-time thanks to this format.
Stating such benefits is all well and good, but it doesn’t necessarily demonstrate a tangible ROI. If that’s still what you’re looking for, this article is here to help. We’ll go over some specific business benefits of VoIP and discuss how you can calculate your potential ROI.
Benefits of VoIP in The Modern Business Landscape
Enhanced Features & Functionalities
Cloud-based VoIP systems offer advanced features that traditional systems lack. One key advantage is integration capabilities with other cloud services. This seamless integration allows employees to access client information, send emails, and manage calls, all from one platform.
VoIP systems also provide superior call management capabilities. Smart call routing ensures that calls reach the right person or department promptly, which improves customer service. Voicemail-to-email features can also quickly convert voicemail messages to text and send them as emails.
Impact on Workplace Flexibility
71% of Canadian workers state that workplace flexibility is a key factor in their job choices. This trend underlines the growing importance of adaptable work environments. Cloud-based VoIP technology plays a key role in meeting this demand. It allows employees to work from anywhere with an internet connection.
Features such as video conferencing and the ability to route calls directly to mobile devices facilitate effective communication and collaboration across locations. This ability leads to higher employee satisfaction. When employees are happy with their work conditions, they tend to show increased productivity and engagement.
Risk Mitigation & Reliability
VoIP phone systems offer remarkable reliability. Because it operates in cloud-based data centers, it’s less vulnerable to local outages and physical damage. This setup helps ensure that businesses maintain communication even during power failures or natural disasters.
Furthermore, traditional systems often risk losing important call records and client data during system failures. In contrast, VoIP systems regularly back up information and implement strong security measures. This approach keeps critical business information both accessible and protected.
Future-Proofing Your Business
Cloud-based VoIP systems are inherently scalable and can easily adapt to changing needs.You can add new phone lines or features without the need for extensive hardware installations.This adaptability ensures that your business is always equipped with the latest communication technology.
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Additionally, traditional phone systems often charge high rates for international calls. This can be costly for growing businesses with an increasing number of global clients. VoIP offers cost savings for international calls, sometimes even including them in standard service packages. This helps you prepare to expand across borders.
How to Perform a Cost Analysis for Your Potential Upgrade
To conduct a cost analysis, list the total estimated costs for both your potential VoIP and current business phone systems over a fixed period. Then, consider the qualitative benefits, like improved efficiency or customer satisfaction, that each system might bring to your business.
Here’s a quick breakdown of what costs you may consider in your analysis. Price will vary depending on your provider, so placeholder figures X and Y are used in place of dollar amounts.
|Initial Setup Fees
|$X (e.g., wiring, hardware setup)
|$Y (e.g., installation)
|Monthly Service Fees
|$X (e.g., line rental, usage)
|$Y (e.g., subscription rates)
|$X (e.g., analog phones, PBX)
|$Y (e.g., VoIP phones)
|Maintenance & Support
|$X (internal or external)
|Upgrades & Expansion
|$X (e.g., hardware/software upgrades)
|$Y (e.g., adding users/features)
|$X (e.g., system operation training)
|$Y (e.g., staff training)
|$X (e.g., maintenance periods)
|$Y (e.g., during installation)
|Call & Data Charges
|$X (e.g., call rates)
|$Y (e.g., per call/data usage)
|Long-Term Contract Costs
|$X (e.g., locked-in agreements)
|$Y (e.g., service contracts)
Determining Your ROI After The Transition
Once you’ve made the transition, you’ll want to calculate your VoIP ROI. To do so, identify your direct and indirect benefits from using a cloud-based VoIP system. These benefits include any savings and additional earnings. For example, if your new system reduces your monthly phone bill, note down the amount saved.
Indirect benefits are more difficult to quantify, but they’re crucial for a comprehensive ROI analysis. They include improved customer satisfaction due to better call quality, time saved by employees due to more efficient communication tools, and enhanced flexibility in operations.
After you’ve identified dollar amounts for these benefits, you can use the following calculator to get an approximation of your ROI. Please note that this online calculator will likely be approximate and should not be used to make any important financial decisions.
How to Use The VoIP ROI Calculator
- Identify the benefits of using a cloud-based VoIP system.
- Calculate your total costs, which could include the price of the new system and any additional expenses for its implementation and maintenance.
- Enter the estimated total of your benefits into the first field of the calculator labelled Total Benefits ($).
- Input the sum of your costs in the second field of the calculator marked Total Costs ($).
- Click the Calculate ROI button to see your return on investment as a percentage.
Streamline The Cost of Your Transition & Get a Better ROI With The Right Partner
Choosing the right VoIP provider for your business will certainly optimize your costs. However, it’s also a wise choice to invest in a telecommunications partner who can help you make informed decisions.
Sunco Communication & Installation can be that partner. We are an Alberta-based telecoms and IT company with decades of experience helping small businesses in various industries procure the best VoIP solutions for their needs. Our advice can help you experience a better ROI as we can guide you towards a solution that will help you reap the most benefits.
Contact us today to get started.