SME Guide to Cutting Costs

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SME Guide to Cutting Costs In a tough climate, identifying areas to reduce spend and boost productivity is an essential step in ensuring your business stays profitable. This guide is designed to help small and medium-sized companies understand how an overhaul of their telecommunications could deliver some immediate cost savings and longer term efficiencies.

VoIP in a nutshell Put simply, VoIP (Voice over IP) is voice calling technology that replaces traditional telephone equipment with a service that uses an internet connection to route inbound and outbound calls. Hosted in the ‘cloud’ by your chosen service provider, VoIP technology offers a flexible, adaptable

and cost-effective communications solution that is widely considered to be future-proof. Many businesses have found that switching to VoIP has had a significant impact on their operations, helping them to cut costs, improve productivity, deliver better customer service and operate more profitably. Here are some of the things you can expect when you make the change:

Direct cost savings As you’d imagine with any major systems change, there is an initial outlay to consider when converting your communications to VoIP. However, you’ll soon find that those early, one-off costs are mitigated by some quick wins in terms of direct savings.

Line rental

Equipment and hardware

Because they are hosted in the cloud, VoIP systems don’t require physical ISDN lines. Typically, the cost of line rental is halved, plus there are no maintenance fees or engineer call-out charges to factor in. Installation and set-up costs are low and your communications package will flex as your business requires it. Usually, a quick call to your service provider is all that is required to add or remove lines; and in some cases you can do it yourself online. You only pay for what you need, so you won’t be shouldering the cost of extensions that aren’t in use.

With a VoIP system, there is no need for high cost, specialised or proprietary hardware that requires frequent updating. With all communications routed via the internet, desktop handsets become redundant as calls can be made and received through a PC, smartphone app or other device. Where traditional handsets or headsets are still required, existing equipment can usually be integrated into the new environment; alternatively lowcost, VoIP-compatible options can be bought or rented from your provider.

Typical savings: Line rental, maintenance charges, installation of additional extensions.

Typical savings: PBX capital cost, desktop equipment upgrades.

Direct cost savings Call charges

The majority of companies moving to VoIP find that their monthly phone bills fall dramatically. Although variable by service provider, internet call tariffs generally tend to be lower and significant savings can be made on ‘internal’ calls to extensions on the same service package – even long distance – which are usually free. With an app that enables a smartphone to act as an extension of a desk phone, international charges from mobiles are slashed to the normal rate; and to keep bills under control, outbound dialling restrictions can be set up to prevent calls being made to expensive locations. Typical savings: Reduced monthly bills, free internal calls, low-cost international calls.

Administration

With most VoIP providers, all your business communications needs can be packaged together into a single, unified solution. Along with core inbound and outbound calling, this could include auxiliary audio and video conferencing, instant messaging, voicemail, a virtual receptionist and automated call forwarding. A single monthly bill, accessible online at any time, makes it easier to control spending and manage cash flow – plus you’ll reduce management fees on multiple service contracts. Typical savings: Management fees for multiple contracts, administrator time.

Travel expenses

For a business whose employees travel regularly, a package with built-in audio and video conferencing can deliver additional savings. Costly and unpredictable spending on hotels, fuel, train and airfares is vastly reduced when teams move their meetings online, and with high definition sound, clear video and reliable, secure connections, remote conferencing is just as productive without the associated expense. Typical savings: Fuel and company vehicle expenses, train and airfares, hotel costs.

Productivity improvements Direct cost savings aside, investing in a cloud-based communications solution can deliver huge improvements in efficiency and productivity, with long term benefits for your business as a whole. Using VoIP technology and its associated services, smaller companies have the potential to operate like a large organisation at just a fraction of the cost. React as your business flexes

Deliver world-class customer service

Perhaps one of the most rewarding features of VoIP for growing companies is that it is instantly scalable. As soon as you decide to expand, take on new staff, reshuffle your team, bring in freelancers or reduce capacity to address the unique peaks and troughs of your business your service can be adjusted to fit. It’s quick, easy and immediate – with no need to wait for engineers to install additional hardware.

There’s nothing more frustrating for your customers than struggling to get hold of you on the phone, but with a VoIP system you need never miss a call again. Use a virtual receptionist or automated call forwarding to reroute calls to alternative extensions, or manage expectations with recorded messages out of hours. Have your team respond to voicemail more quickly by emailing any messages direct to their inbox and you’ll start to minimise any loss of business through poor communication. Your provider should also give you online access to call tracking and reporting, enabling you to gather valuable insight into your customers’ behaviour.

Potential benefits: Greater control over growth, communications in step with your business.

Potential benefits: Customer loyalty, increased call handling capacity, greater customer insight.

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A streamlined, unified communications

If you’re thinking of offering remote working as an option for your employees, cloudbased communications can ensure that they contribute as much, if not more, to their role no matter where they are based. Without the hardware and infrastructure required for a traditional telephony solution, any space with an internet connection can become an extension of the office. Many remote workers enjoy a better work/life balance, less stress, fewer distractions and improved focus; read more about how companies can benefit from this growing trend here.

system that links your team on a single platform means that everyone works more efficiently. Businesses that have made the switch to VoIP report that staff collaborate more closely and make decisions faster, for example using tools like instant messaging. With improved call handling, customer issues can be identified and resolved quickly, allowing teams to return to the job at hand. And with fewer equipment maintenance issues, IT staff can concentrate on business initiatives rather than outdated communications infrastructure. Potential benefits: Improved productivity,

Potential benefits: Reduced overheads, a happier and more productive workforce, access to a larger talent pool.

faster issue resolution, resources freed up to deliver growth.

VoIP can make a big difference to SMEs and their short- and long-term profitability. For a more in-depth look at how services like these are implemented, download our white paper or contact us to get started with a free trial below.

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