With new business solutions constantly making their way onto the market, companies frequently evaluate new products and services. In this process, a deciding factor for transition is often the potential return on investment (ROI). Calculating ROI, however, is not always a straightforward task. These days, return is more than just quantitative, there are "soft" ROI benefits. such as improved productivity and better customer service, that should be taken into consideration.
Today, advances in cloud communications services have made the shift from traditional phone service to a Hosted PBX solution one of the most common service transitions that companies are facing. Let's explore the potential for ROI with a Hosted PBX solution.
Hosted PBX Vs Traditional Phones
Hosted PBX is a phone service that allows users to make calls via an internet connection, instead of using traditional LAN lines. A service provider houses the phone system, and handles all essential technologies that are needed to deliver the services to the customer. Compared to traditional LAN lines, Hosted PBX solutions are equipped with more features, easier upgrades and are generally more affordable.
Quantifying Hosted PBX ROI
The first thing that a company will look at when making the decision to shift services is hard numbers around ROI. To calculate the Hard ROI of a hosted PBX solution, start by determining which costs associated with your current telecommunications solution can be eliminated by transitioning to Hosted PBX. Then, look for areas where your company can save money by transitioning to Hosted PBX. For example, many companies invest in 3rd party conferencing technology that is often included in a Hosted PBX solution. Additionally, several businesses struggle with lost, stolen or damaged telecom hardware during transitions, moves and growth. With Hosted PBX you can eliminate the hardware costs associated with your telecom solution.
Qualifying Hosted PBX RIO
Once you have established the hard monthly savings, consider what your business stands to gain outside of money. Ask how your new hosted solution would benefit your day to day operations over the current solution. To start, consider the features included with Hosted PBX. Are missed calls affecting your customer service capabilities? The "Find Me, Follow Me" feature that is included with Hosted PBX can make sure you never miss a call. Is on boarding new users a long, drawn out process with your current solution? With Hosted PBX it's easy to set up new users and get them online. Do you have employees who work remote? Grant them easy access to your telecom system via the internet.
CapEX VS OpEX
One of the main benefits of moving to a cloud solution is offloading expensive capital expenditures and shifting a portion of that cost to operational expenditures. When calculating the ROI of Hosted PBX, consider that capital expenditures associated with hardware upgrades, support costs and phone service are a thing of the past. With a hosted solution, upgrades and support are outsourced to your service provider. Thus, the costs associated with Hosted PBX become operational, paying your service provider to manage your phone system offsite.
There is a lot to be gained by shifting to a Hosted PBX solution over traditional phones. More than monetary ROI, a Hosted PBX solution has numerous benefits that will improve your employee's day to day operations. Calculating ROI for Hosted PBX does not have to be a daunting task. Use the tips above and, as always, let us know if you need any help!