Measuring ROI Of VoIP System: Complete Guide

VOIP is a voice-over-internet protocol system. It brings seamless communication to businesses worldwide through the Internet. VoIP can connect you like an office employee if your business is in a remote location.?

VoIP offers businesses a significant return on investment (ROI) because its productivity is far superior to traditional communication networks.

It is revolutionizing communication, and businesses worldwide are adopting it as a necessity.

Mondotalk is following this trend and assisting telecom companies in scaling their businesses.?

What is covered in this post?

1. ROI of VoIP System
2. How to choose a right VoIP
3. VoIP ROI Calculation
4. Stats & Interesting facts about VoIP

However, VoIP fosters a seamless, trustworthy, and reliable communication experience.?

Let's talk about the topics and understand the Points!

VoIP System Cost Savings

• Reduced monthly costs: VoIP often eliminates the need for traditional phone lines, which can be expensive. Instead, calls are made over the Internet, potentially leading to lower monthly bills.

VoIP is a powerful communication system. Here, you don’t need to take over the landline hassles or traditional phone lines. As an internet-based communication network, VoIP reduces costs significantly and offers a cost-effective solution.?

In that case, Different companies offer different levels of cost savings, as not all services are the same. Generally, we can see the companies offer the cost of their VoIP solution which is between 40%-75%. That’s good!

As we look at Australian companies, MondoTalk offers up to 90% cost savings on international calls and provides seamless communication through VoIP. With 20 years of the VoIP industry, It also provides Wholesale CTS.?

However, you are getting the best solution for your communication if you turn on VoIP for your business.?

Factors to Consider Before Choosing a VoIP Service

Technical Factors

1. Network Coverage
2. Signal Strength
3. Bandwidth and Capacity
4. Latency and Speed
5. Reliability (Uptime)
6. Technology Used
7. Infrastructure Quality

Operational Factors

1. Scalability
2. Maintenance and Upgrades
3. Call Routing Efficiency

The efficiency of the call routing system reduces call drops and ensures faster call connections to the destination.?

Disaster Recovery Systems

Robust backup systems and recovery plans ensure minimal service interruption during natural disasters or technical failures.

Data Security and Privacy

You Should secure the system data and protect users' information. Ensure customer confidence and avoid failures.

Customer-Related Factors

Customer Support

Customer support is a very important function of any telecom company. It helps resolve issues quickly and improve customer satisfaction.?

Pricing and Plans

Affordable and flexible pricing plans that cater to diverse customer needs and attract customers for retention.?

Billing Accuracy

Transparent and accurate billing without hidden charges boosts customers' trust.?

Service Customization

Customized services are more important for different industries. I mean, there would be some differences like business or personal plans.?

External and Environmental Factors

Regulatory Compliance

Adherence to telecom regulations ensures the legality and fairness of services. It ensures the telecom companies' regulation and legality of service.

Competition

Telecom companies in competitive markets often strive for better service quality to attract customers. Telecom companies have a great opening to the competitive market and often provide better service for customer attraction.

Environmental Factors

Weather conditions, natural disasters, and geographical challenges can impact the service quality. Should ensure it is perfect.

Innovation

Try to figure out their growth and strength. If the companies are in the innovative poll, then you have a great opportunity to jump on it. That means they work with angel investors to develop their system and get better quality for their customers day by day.

Some other important factors that are dependable to save cost:

• Lower long-distance charges: VoIP typically offers lower charges for long-distance calls. It makes it easy to the international calls rate compared the traditional calls.?

• Reduced maintenance costs: VOIP system is an internet-based connectivity of communication. This eliminates the burden of maintenance. The one reason the cost of VoIP is cheaper than traditional phone systems.Because the system is made based on the software and using the soft internet connectivity.?

• Scalability: VoIP allows businesses to add or remove phone lines as needed easily. It saves the cost of physical lines and increases productivity.

Increased Productivity

• Unified communications: VoIP can integrate various communication tools such as voice, video, and messaging into a single platform. It can streamline communication and improve collaboration among employees.?

• Mobility: VoIP enables employees to make and receive calls from anywhere with an internet connection. It increases flexibility and productivity.?

• Advanced features: VoIP systems often come with features like call forwarding, voice-to-email, and auto attendant which can automate tasks and improve efficiency. Also, the interaction of valuable features in the system that you all are very important to run on it. Like Microsoft team account or CRM.?

Enhanced Customer Experience

• Improved call quality: VoIP technology has an advanced and modern system that can offer high-quality call clarity. It reduces dropping calls and improves customer satisfaction.

• Better accessibility: VoIP offers the best way to reach out to the customer for real somethings that are great for them.

Better accessibility can indeed unlock the potential of VoIP that businesses need to work with such as voice, video, and messaging. So many kinds of features integration is very important on that path.?

• Personalized service: VoIP systems can integrate with customer relationship management (CRM) systems, allowing businesses to provide more personalized service to customers.

Other Benefits

• Disaster recovery: As we know VoIP system is an internet-based communication system. So it’s easy if we do need to recover or restore outdated data. Might be it happened to lose by a disaster.

• Increased flexibility: VoIP allows businesses to adapt quickly to changing needs. It is also expected to be the new location or remote connectivity.?

• Improved collaboration: VoIP can facilitate collaboration among employees, regardless of their location, through features like video conferencing and instant messaging.

How to calculate ROI in communication with VoIP

ROI calculation is an important part of VOIP. Because people are using now many kinds of communication networks for talking or connecting. People also use local lines or landline telephony which is costly. Even not seamless communication.

VoIP can help resolve communication challenges and provide an effective solution. VoIP operates using a SIP trunk over an internet connection. There are no landline needs and also don’t need the hardware cost.?

Mostly the international calls are so cheap on this network. Suppose you are in Australia and your business is in the USA. Then communication is the gold factor for your business's success. That Seamless service, you can get only by using VoIP.?

Now Moving into VoIP should be a perfect calculation of ROI!?

1. Identify Communication-Related Costs

• Current System Costs:
• VoIP System Costs:

2. Quantify Communication-Related Benefits

• Reduced Communication Costs:
• Increased Productivity:

• Enhanced Collaboration:
• Improved Customer Experience:

3. Calculate the ROI

• Total Investment: Add up all the one-time costs associated with implementing the VoIP system. Adding all one-time costs associated with implementing the VoIP system.
• Total Savings: Calculating the total savings over the specific period e.g. 3 years.

ROI Formula: ROI = (Total Savings - Total Investment) / Total Investment * 100%

Example:

If your current communication system costs are $1,000 per month and your estimated VoIP costs are $600 per month, you will also need to make a one-time investment of $2000 for VoIP.

• Monthly Savings: $1,000 - $600 = $400
• Annual Savings: $400 * 12 = $4,800
• ROI over 3 years:

Calculate Total Cost Savings

VoIP can significantly reduce the communication expenses. It helps businesses to specify their work efforts and get better outcomes. Now, break down the cost savings into some specific areas.

a. Savings on Monthly Bills

• . Comparing the traditional phone system costs with VOIP subscription fees. Formula: Monthly Savings = (Traditional Phone Bill) - (VoIP Subscription Cost) Example: $2,000 (traditional system) - $800 (VoIP) = $1,200 savings/month.

b. Reduced Maintenance Costs

• Traditional systems require expensive hardware and ongoing maintenance. VoIP uses cloud-based systems that eliminate the most maintenance costs on time. Formula: Annual Maintenance Savings = (Traditional System Maintenance Costs) - (VoIP Maintenance Costs).

c. Lower Call Costs

• We are seeing lots of opportunities with VoIP. Formula: Call Cost Savings = (Traditional Call Costs) - (VoIP Call Costs).

d. Travel and Office Space Savings

• Video conferencing reduces the need for travel and remote work minimizes the office space requirements.

Example: Suppose your business spends annually on travel and reduces it by 50%. That means savings are $10,000.

Identify Costs of VoIP Implementation

While VoIP is cost-effective, then here are some initial ongoing costs to run an account:

a. Initial Costs

• Setup Fees: Costs for initial configuration or hardware, I mean IP Phone.
• Time/money spent training employees to use the system.

b. Monthly/Ongoing Costs

• Subscription Fees: Recurring costs on the number of users or services.
• Internet Costs: High-speed internet may need to be upgraded for better performance.

Example of Total VoIP Cost for 1 Year:

• Setup: $2,000
• Monthly Subscription: $800 x 12 = $9,600
• Total: $11,600

Estimate Productivity Gains

VoIP enhances employee productivity, which directly impacts ROI. Voip indeed enhances employee productivity. It directly impacts the ROI.

a. Saved Time

• Advanced features like voicemail to email, call forwarding, and auto attendants save time. Example: If VoIP saves employees an average of 10 minutes/day and you have 50 employees.

b. Collaboration Efficiency

• VoIP enables video conferencing and file sharing, reducing project delays and improving teamwork. Estimate Impact: Identify the value of completed projects or faster time-to-market.

Calculate Customer Service Improvements

Improving the communication tools that directly lead the higher customer retention and satisfaction.

a. Reduced Missed Calls

• Features like call routing and virtual receptionists reduce the likelihood of missing calls. Example: If missed calls cost $500/day and VoIP reduces missed calls by 50%, the savings would be $250/day or $91,250/year.

b. Customer Retention Value

• Improved service can increase customer retention rates and its leading to drive more revenue. Example: If your customer retention rate increases by 5% and your annual revenue is $1 million, you gain $50,000 in retained business.

Final ROI Calculation

Combine all cost savings and productivity gains, then subtract the total VoIP costs. Use the ROI formula:

Formula:

ROI (%) = [(Total Savings + Gains) - (Total VoIP Costs)] ÷ (Total VoIP Costs) x 100

Example:

• Total Savings + Gains = $91,250 (missed call savings) + $62,500 (productivity gains) + $10,000 (travel savings) = $163,750.
• Total VoIP Costs (Setup + Annual Subscription) = $11,600.
• ROI = [(163,750 - 11,600) ÷ 11,600] x 100 = 1,311%.

Track and refine

• Monitor Call Data: Use analytics tools provided by the VoIP system to track call volume, missed calls, and response times.

Key Considerations for Communication ROI:

• Focus on Communication-Specific Metrics: When you calculate the ROI, you should prioritize the metrics that are directly connected to your communication activities such as call costs, meeting expenses, and employment productivity-related costs.?
• Quantify Intangible Benefits: Quantifying intangible benefits that improve collaboration and its impact on call quality.
• Consider Long-Term Benefits: VoIP systems often offer long-term benefits such as increased flexibility and scalability.

By carefully evaluating these factors, businesses can determine the potential ROI of switching to VoIP and make an informed decision about their communication needs.

Interesting Facts About VoIP:

VoIP is Over 25 Years Old

• The first VoIP call was made in 1995. This time it was considered as a modern technology. Then evolving for decades and now it's highly advanced. The broad facilities of this system are very much touching for any business.

Calls Can Be Made Without a Phone

• It’s 100% true that VoIP doesn't require a traditional phone. Calls can be made using:

?VoIP Saves Up to 90% on International Calls

• International calls through traditional telecom can be expensive. VOIP routes do this over the internet which is cheaper and more productive.

VoIP Supports Video

• It's great to discuss VoIP which supports video conferencing. It supports platforms such as Zoom, Microsoft Teams, and Google Meet.

Popular Apps Use VoIP

• ?Popular apps like Skype, Facebook Messenger, or Zoom are built as follows on the VoIP technology. It always users to make calls over the internet.

VoIP is Eco-Friendly

• However, the physical infrastructure wasn’t there like copper wires. VOIP has a lower environmental impact than traditional telephony.

VoIP Can Be More Secure

• When properly implemented, VoIP can use encryption to protect calls, making it more secure than traditional phone lines that are easier to tap.

It Powers Smart Devices

• As an internet-based communication system, VoIP powered the smart access of devices like Amazon Echo and Google Nest that enable smart home control.

Scalability is Effortless

• VoIP allows for the addition of new users or phone lines with just a few clicks. It makes businesses scalable and perfect for growth.

VoIP Works with AI

• Many VoIP systems now integrate AI-powered tools to automate their system. Specifically voice recognition, virtual assistants, and advanced call analytics.

VoIP Works Even During Power Outages

• With backup power systems or mobile devices, VoIP systems can keep working even during outages, offering greater reliability for emergencies.

It’s Used in Space

• VoIP technology is used by the astronauts in the international space station to make calls back on Earth.

VoIP Handles 10 Billion Minutes Per Day

• Billions of minutes are used daily for talk. VOIP is one of the great systems that is operating with its system.?

Businesses See Huge Savings

• Companies that switch to VoIP. It saves up to 60% on communication costs.?

Integration with CRMs

• VoIP integrates with CRM tools. It allows businesses to track calls, manage leads and provide personalized customer service.

Caller ID is Fully Customizable

• VoIP systems allow businesses to customize their caller ID. It can be mentionable to their brand location and name for better recognition. It perfectly localizes the customer.?

It Supports Remote Work

• VoIP systems allow employees to work from anywhere in the world. They should connect with a phone system which is VoIP. VoIP helps employees to stay connected and work flexibly.

VoIP is Future-Proof

• 5G internet connectivity makes calls faster and clearer to communicate. It’s ongoing and improving soon.

As an internet-based communication system, it drives the potential ROI. It’s specifically cheaper than the traditional phone lines.?

Note: This content was created based on our research. Please get in touch with us if you would like more details. On how many aspects were obtained.

Author

This is Mahfuzur, a MondoTalk team member contributing to the development of the Sales and Marketing department. We walk off, going deeper into VoIP and Figuring out the Outstanding Opportunities.

Stay with our newsletter update, We are continuously working on VoIP innovations to enhance communication solutions for businesses worldwide.