Why go VoiP? Small biz says saving cash top priority

Why go VoiP? Small biz says saving cash top priority
This article first appeared on Best in UC. What motivates small and mid-sized businesses to adopt VoIP technology? While there are a host of benefits centered around productivity and growth, the primary reason for switching remains the same: saving money. This is a trend we see among our new clients every day. But our anecdotal evidence was further buttressed by statistical facts this week, thanks to a survey conducted by VoIP telephone and cloud communications provider 8×8, Inc. The company randomly queried new customers who subscribed to VoIP service between May 1 and August 19. About half of all respondents said they’d switched to VoIP from their local phone company, with the majority expressing concern about reducing expenses as their reason for making the switch. Another 25 percent switched from another VoIP provider. Customers said they jumped to VoIP to:
  • Reduce costs, first and foremost
  • Attract new customers
  • Hire and afford new employees
Concern about reducing business expenses grew throughout the summer months. In August, 55 percent of the company’s new business customers indicated they were “more concerned” about business expenses this year than last, compared to 39 percent of new business customers in June 2011. In contrast, the survey also revealed that “managing and keeping up with business growth” was a top concern for nearly one-third of the respondents. “Generally, summer is not a time when small businesses are focused on their operations, but we noticed a different trend in the July to August timeframe and wanted to see what was behind it,” said 8×8 Chairman and CEO Bryan Martin. “Clearly, the economy remains very challenging for small businesses, and they’re realizing the need to scrutinize expenses and prepare for growth by making the right choices now. We’re obviously very pleased that so many of our customers seem confident their business will grow. That’s not only good news for us as their communications provider, but also a refreshingly positive perspective on the future of the economy in general.” When asked about the driving factors influencing their decision to implement VoIP phone service in their business, 62 percent indicated overall cost savings while 70 percent specified features, 43 percent cited portability and geographic flexibility and 37 percent cited the convenience of having a provder host and maintain the service. “It appears that overall economic conditions may be influencing businesses to look at alternative services such as those 8×8 offers and, in the process of doing so, they are also becoming appreciative of the inherent features and advantages that promote business agility, accessibility and growth,” Martin added. Other recent statistics corroborate 8×8’s findings. A Citibank small business survey found that 49 percent of small business owners are poised for growth when the time is right and another 28 percent are already in growth mode. Earlier this year, an Intuit Inc. survey found 87 percent of small business owners said they saw opportunities for growth in today’s economy. “The fact that the feature set was even more important than the cost savings indicates that businesses are making smart decisions based on what’s truly best for the company, and not only about what will save them money,” Martin said.

Comments are closed

Email Us or Call 1-800-345-4211