How VoIP helps skyrocket your business ROI?
- Last Updated: 18 Jan 23
- 8 min read
A successful business relies on effective communication.
It is three times more likely for companies with good communication practices to excel than competing companies.
Choosing the right business communication system is essential. Voice over Internet Protocol (VoIP) has become one of the most popular options for corporate communication due to its high return on investment (ROI). A VoIP solution will provide businesses with better ROIs in a shorter amount of time.
How exactly does VoIP investment pay off? What are some ways VoIP can improve your business’ ROI?
Let’s start by understanding what VoIP technology is:
What is Voice over Internet Protocol?
A Voice over Internet Protocol system is a form of internet-based communication. VOIP uses an internet connection to make phone calls. You can make VoIP calls from any device (computer, laptop, smartphone, etc.) if it has an internet connection.
VoIP allows communication over the internet by converting audio into data packets. An IP network is used to transfer the data packets to the receiver, then converted back to audio files. A VoIP system is more scalable and easier to set up since calls take place over the internet.
VoIP improves business metrics by offering agility in communication practices and resulting in higher returns on investment.
What business ROIs does VoIP improve?
VoIP offers multiple benefits on the investment in both monetary and non-monetary terms.
1. Monetary Return-On-Investment:
Businesses can reap great financial rewards from using a VoIP system. Businesses can save on upfront and operational costs due to VoIP’s ease of installation and operation. VoIP can reduce costs by 30% to 50% on average.
These ROIs are also immediate, with most companies recovering their costs in less than two years.
How does VoIP increase monetary ROIs for a company?
VoIP replaces the tedious and costly task of setting up a physical communication system resulting in higher savings margins for companies. VoIP communication systems can be beneficial from a financial perspective for businesses in the following ways::
a. Minimal Infrastructure Investment
VoIP uses less infrastructure than traditional phone systems. You can set up a VoIP system using your existing internet connection.
Also, you do not need multiple phone lines, PBX boxes, or phone systems.
Voice-over IP may be run over the same LAN that the company uses for internet access. Companies can also choose softphones instead of IP phones, eliminating the need for phone devices.
A VoIP system requires no on-premises hardware, so businesses have a relatively low capital investment. The upfront costs for a traditional phone system can cost $10,000 or more, including installation fees.
Setup fees for VoIP are minimal or nonexistent because no physical hardware installation is required. Companies can profit from a substantial reduction in CAPEX as upfront expenses are minimal.
b. Low Operational Costs
The running costs for VoIP are lower with minimal hardware. The maintenance costs for traditional phone systems can reach $1000 per month, depending on the type of organization and the service provider. However, monthly operating costs for a business VoIP system are usually between $20 and $30 per user.
The vendor/VoIP service provider usually takes care of the maintenance and upgrades of the VoIP system, saving the company both time and personnel. The subscription charges for VoIP services are low, even less than $20 per user per month. VoIP business systems have very high ROI margins due to their low operational costs.
c. Better Savings on Communication Bills
The price of VoIP phone calls went down with the drastic decrease in data carriage costs. Businesses can save up to 60% when they replace their phone networks with VoIP.
VoIP calls can also be inexpensive because many providers offer affordable international calling plans. When a business has a global network, switching to a VoIP system can significantly reduce long-distance call costs.
d. Minimal Cost for Upsizing or Downsizing
When expanding phone systems, businesses must invest in additional infrastructure and personnel. VoIP, however, has a very low cost for adding and removing communication lines.
VoIP systems offer high returns during a company’s expansion, especially for companies driven by growth. The deployment of new lines is almost instant for cloud-based VoIP systems.
A VoIP system’s immediate and long-term ROI is due to a quick and significant reduction in CAPEX and OPEX, leading to higher industry margins on savings.
A VoIP system can also improve soft ROIs in addition to bringing financial benefits.
2. Non-monetary ROI: Return on Influence
A VoIP solution promotes employee and customer engagement since the internet is agile and offers a range of high-end features. VoIP can help you improve productivity and customer satisfaction metrics by offering calling and messaging capabilities.
How VoIP increases the Return on Influence (ROI) metrics?
Business communications via VoIP are highly flexible for both employees and customers. Cloud telephony and intelligent features enable VoIP to increase customer traffic and engagement in the following ways:
a. Ease in Customer Acquisition
A cloud telephony system simplifies outreach processes. VoIP allows small businesses with low budgets to make international calls, using options like purchasing international numbers.
They can also help businesses quickly generate qualified leads over international calls. VoIP allows you to purchase local numbers in different countries, reducing call blocking and increasing the chances of reaching out to potential customers.
A lot of VoIP solutions also include features like campaign calls that help marketing teams conduct promotional campaigns. Investing in a VoIP system can improve lead generation and conversion metrics.
b. Better Customer Retention
Customer retention is a costly process. It is challenging to maintain customer loyalty in a highly competitive and global market. Businesses can improve their customer retention strategies by investing in VoIP systems.
The majority of VoIP systems are compatible with third-party CRM tools. VoIP makes it possible to gain refined insights using CRM and call data, unlike traditional phone systems, where data is difficult to exchange.
Your calls can be more customized to a customer’s needs by accessing previous client data, for example. Businesses can achieve great profitability and growth by retaining their customers.
c. Improved Customer Service
VoIP systems are dynamic and agile, unlike traditional phones. Most VoIP providers offer multiple intelligent features such as intelligent call routing, interactive voice response (IVR), etc. Companies can streamline the entire communication process by using these features.
Call automation can be an efficient way for companies to handle calls, reducing overall hold times and call processing times. VoIP will increase customer satisfaction, which can lead to better conversion rates and higher profits.
VoIP systems boost ROIs for businesses. You can lower your CAPEX and OPEX costs with VoIP, allowing you to save more money. VoIP systems are easy on the wallet and ensure high-quality calls. They are also quite resistant to network disturbances. As a result, your soft ROI will rise through an increase in lead generation, conversion, and customer acquisition.
Thus you can easily skyrocket your business’s ROI with an ideal VoIP system. However, most VoIP services have flaws, holdbacks, feature limitations, or exorbitant prices. You may not be able to unleash your company’s full potential as a result.
With KrispCall, things are a bit different. KrispCall has become a popular product lately thanks to its simple and clean UI, feature-packed product, and the least expensive pricing.
With KrispCall, you get a highly sophisticated and reliable VoIP cloud telephony service convenient and portable. You can use all the telephony tools on your smartphone or computer with a simple app. The service does not require any special equipment.
You can easily connect with your clients and customers and expand your business abroad in the most hassle-free manner. KrispCall makes it easy to obtain international phone numbers (one or many). You can even get a national or toll-free number without spending a fortune.
KrispCall’s HD audio transmission over the internet, echo, and noise cancellation ensures high-quality communication. Furthermore, there are features that allow you to record and monitor calls, which you can use to monitor team productivity and better understand client needs. SMS and MMS enable users to extend their communication channels even further.
KrispCall’s campaign call, smart dialer, and intelligent call routing are among the other advanced call features to enhance team productivity, ensure high customer service standards and increase ROI. So, if you are willing to maximize your return on investment, KrispCall is an excellent choice.