4 ways PBX is hurting your ROI in the long run.

Wed, Oct 23, 2013 / by Claudio Nespeca

pbx roiTraditional PBX systems have become more than just a technological dead end. Your plain old telephone system (POTS) looks more like a liability as costs accrue and features continue to stagnate with each passing year.

Compounded by the fact that Hosted VOIP technology is consistently advancing, it would seem that companies holding on to their PBX service are doing more damage than they may think.

Listed below are 4 limitations of PBX and Key systems that stunt ROI and add up in costs with each year of use.

1. Budget leakage.
The first point here is straightforward and should be on every decision-maker’s mind: the more cost-effective and efficient Hosted VOIP is, the more harm you are doing by waiting to switch.

Hosted VOIP reduces your investment in two main ways:
  • Initial Expenses - A cloud-based network dramatically reduces the amount of hardware that has to be purchased, installed, and configured.
  • Operational Expenses - Monthly fees, maintenance, network changes, and long-distance charges are all lower than with most PBX and on-premise VOIP systems.
Hosted VOIP saves an estimated 10-30% in total cost of ownership. With 20 or more end-users, that’s a matter of thousands of dollars per year. Multiply it by a few years and you have enough reason to act sooner rather than later.

PBX operational expenses sap investment over time. Instead of improving your ROI, it’s leaking away unnoticed.

2. How many missed calls is too many?
In our opinion—One.

A traditional PBX or Key system has a limited number of lines and call routes, depending on what you’ve paid for. Incoming calls are lost when there are too many, especially if your automated services are outdated or poorly configured. The only way to stay on top of changes in call traffic is to pay for extra lines that often go unused, or add and subtract them as you go, which takes time and money.

Every year some number of incoming calls - potential customers and sales - never reach your representatives. Not all of them are ripe new contracts. But some of them are. How many leads or loyal customers are you okay with missing? Multiply it by years. Why take the chance?

Most VOIP services allow you to prioritize and track call flow and customize automated services. You know exactly where, when, and how calls are being satisfied. No missed opportunities and no guessing.

3. Network knowledge is power.
Hosted VOIP technology allows you to monitor and understand your network in real-time and through broader trends. POTS allows you to… ask your staff to take notes?

By tracking network activity, your company can plan ahead and anticipate seasonal changes in traffic, the need for additional staff, or problems in call-flow. The more data you have - the longer you track your network activity - the more you can optimize for staffing, productivity and call retention.

4. When the PBX ship sinks.
Eventually, VOIP will out-class PBX and Key systems by enough that it will be the leading commercial option. Early adopters will have been reaping the benefits for longer, and will be poised to quickly implement new applications.

In some cases businesses using POTS are doing the opposite. They continue to purchase new equipment or upgrades that are meant to compete with VOIP applications. But these are ‘band-aid’ solutions (at best) since the flexibility of IP-telephony can’t be replicated on traditional infrastructure. It’s just more budget spent on a sinking ship.

Hosted VOIP, on the other hand, is future-proof. the service includes hardware and software upgrades that ensure companies are operating with the best voice technology for a long time to come.

The leading reason that companies stay with traditional telephony is actually hardly a reason at all—complacency. While it may seem like there is always a better time to transition, the best time is definitely sooner.

 

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Topics: Business Phone System



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