Many businesses switching to a Hosted VoIP phone system were compelled to do so because of the very tangible savings the technology can deliver. Do a bit of research and you’ll find a growing mountain of evidence that supports their decision from that perspective. For example:
- Small businesses adopting a hosted VIP solution reduce local calling costs by up to 40%
- Monthly service costs average almost 50% less than traditional copper landlines
- Maintenance fees for simple moves/adds/changes are reduced by an average of over 90% compared to an on-site PBX – with better hosted providers including that in their service at no additional charge
- Upfront costs are dramatically reduced. A local municipality I know saved over $200,000 adopting a hosted solution instead of a premised PBX in their new building
But one of the things that business owners and managers experience AFTER implementing hosted VoIP is that the productivity returns are often even greater than the hard dollars saved.
Recent studies in this area reveal that:
- Unified Communications (UC) saved workers in the office 43 minutes per day due to efficiency of managing their messages
- Mobile workers saved just over 55 minutes daily from that increase in effectiveness of message management
- Switching to hosted VoIP enables more flexibility to allow employees to work remotely and companies that were able to take advantage of that saw 20% productivity increases
- Time saved per employee due to being able to reach co-workers averaged 32 minutes daily using a hosted VoIP phone system due to its many ‘reachability’ features
Depending upon your business and the hosted features you use, the potential for huge gains in productivity are there for the taking.
What That Means to Your Bottom Line
So, how do you quantify all that when deciding to switch to a hosted VoIP communications platform?
Let’s take a look at one example with some round numbers. Let’s say your business has 20 employees and improving your communications by deploying hosted VoIP can ‘save’ 48 minutes a day. Doing the math, that amounts to:
- 20 employees x 48 mins per day = 960 mins or 16 hours ‘saved’ each day
Well, 16 hours is the equivalent 2 employees and @ $40,000 annual salary, that’s $80,000 in additional savings.
Now you can’t exactly add that directly to your bottom line just yet, but what this does represent is the potential to improve your bottom line by that amount or even more! You might be able to avoid hiring additional staff this year – or having to outsource certain projects. You’ll probably serve your existing customers even better, retaining and even growing revenue as happy customers make more referrals. You might even use those ‘found’ resources in sales & marketing thereby growing your revenue more than you thought possible.
So, considering the ‘hard’ savings hosted VoIP delivers is important – but keep in mind that quite often hosted VoIP’s biggest value comes with increased productivity and the possibilities it presents.