According to recent studies, a whopping third of IT managers are planning to bring in cloud-based solutions to their organizations. Access to cutting-edge technology and the ability to combine various communication methods, like text messaging and video calls, are some of the reasons why 36% of IT managers are planning to switch to unified communication solutions as soon as possible.
When asked why they are not switching to unified communication solutions sooner, 23% of organizations mentioned cost as the main reason. But what if I told you a unified communication solution can reduce your costs while boosting your ROI?
The 2 Ways Unified Communication Boost ROI
Switching from traditional alternatives to cloud-based communication solutions will allow for two types of savings.
Soft Savings:
Soft savings are the amount of dollars saved in a monthly, annual, or system lifetime basis. Soft savings calculations include concepts like:
Reduction in Upfront Cost Investment
Reduction in Monthly Communication Tools Costs
Reductions in Transaction-Based Costs
Hard Savings: Hard savings are the direct financial savings for an organization or individual. In other words, it refers to concrete ways in which money is saved through specific actions or changes in processes, systems, or practices. Some examples of hard savings gained through the implementation of unified communication systems are:
Financial Benefits of Subscription-Based Pricing Structure
Lower Information Security Risks
Improved Business Agility
Happier Employees and Customers
In addition, switching to unified communications solutions enables you to reduce costs like on-site visits and updates.
Understanding both hard and soft savings is crucial to understand the true ROI of your new unified communication tools.
Hard Saving Factors to Consider When Calculating ROI on Unified Communications
Lower Monthly Bills
One of the amazing benefits of choosing UCaaS is that you can see benefits from the first month in terms of dollars paid for services and subscriptions like:
Reduced costs for local, long-distance, and international calls
Reduced access costs
Savings on communication tools via bundling
Lower IT Infrastructure Costs
Stop worrying about server management, hardware investment, additional rent for your IT infrastructure, and more! UCaaS (Unified Communication as a Service) virtualized software and cloud-based nature will reduce all your maintenance costs while enhancing your communication.
Tool Consolidation
With unified communications, you will be able to centralize and manage all your communication tools in the same place. This results in the elimination of redundant apps, duplicated subscriptions, confusion, and more!
In fact, case studies have revealed that companies that adopted unified communications to reduce unnecessary expenditures have saved up to 25% in costs.
Remote Working Capabilities
UCaaS allows organizations with remote workers, contractors, and/or with multiple locations to significantly reduce travel expenses, rent, and services while enhancing their communication through tools like video conferencing, audio conferencing, and file sharing.
Soft Saving Factors to Consider When Calculating ROI on Unified Communications
Enhanced Business Communication
Stop wasting time on finding missing emails or calls! UCaaS is designed to support your business communication by allowing you to switch between all your apps in a single platform.
Just log into your portal from your phone, tablet, laptop, or PC and enjoy all the features of your unified communication solutions.
Better Operational Expense
The “up-front” cost savings between UCaaS and traditional alternatives can be massive, especially if your organization is able to invest the money into research & development, marketing, or other areas that lead to meteoric growth.
Mobility
The implementation of remote and/or hybrid work models has resulted in increased productivity, employee satisfaction, and competitive advantages.
Increased Service and Customer Satisfaction
Switching to a unified communications solution will allow you to give your customers a seamless, hassle-free customer experience. Organizations that have adopted UCaaS have experienced:
Improved customer service
An increase in first-call resolutions
Faster response to customers
An increase in client satisfaction
A Harvard study revealed that organizations that increase their customer retention by just 5% increase profitability by averages of 25-95%.
How Can You Calculate The ROI of Your Unified Communication Solution?
Calculate The Yearly Cost of Your UCaaS Solution
Create and estimate your upfront costs and recurring costs such as:
Installation costs
Equipment (Headsets, Phones, etc.)
Software Licensing
Monthly estimated bills for users
Monthly estimated bills for additional features
Calculate The Total Cost of Savings Through Hard Costs
Include all the savings gained through hard costs.
Software and Subscription savings
Phone and internet bill savings
Travel savings
Cabling, infrastructure, and installation savings
Divide Total Savings by Total Cost
Imagine your organization has the following costs:
Initial investment: $20,000
Monthly recurring bills: $3,500
This number will result in a yearly cost of 50,000
Now, you need to add the potential hard-cost savings. Let’s imagine the potential savings is $34,000
Then, divide savings by investment and you’ll get the percentage of ROI.
Total Cost of Ownership: 50,000
Total Hard-Cost Savings: 34,000
Divide $34,000 / $50,000 = .68
Now multiple .68 x 100
.68 x 100 =68%
Total ROI from UCaaS = 68%
How Much ROI Will My Organization Get?
Estimating the real cost of unified communications can be a complex task. To obtain a much more realistic estimation you need to measure and understand the potential impact of UCaaS on clients, staff, customers, productivity, business satisfaction, and mobility.
BTI has more than 35 years in the communication, IT, and security industry. Our unique methodology, partnerships, and vendor-agnostic approach allow us to deliver a customized, low-cost, future-proof solution that matches your specific business needs and industry requirements.
Contact BTI today to start a conversation about your organization’s business needs so we can work together to boost your ROI and design the perfect solution that takes your business to the next level.