How much savings or margin growth would it take to make a difference?
One thing we are always asked by prospective customers is the age old question…
“How much is this going to save us?” or “How much extra margin are we going to generate from this investment?”
Both are good, reasonable, logical, questions and they should be answered before making an investment in a new product or platform. When we are asked, we always try to provide them the data they need to answer these questions for their business. We do this by analyzing their traffic and comparing it with data from similar sized customers operating in similar markets. Then we can tell the prospective customer, “You should expect to realize this amount in monthly savings, or this amount in increased margins.” But we also make sure to ask the follow up question…
“How much do you want to save?” or “How much do you want to increase revenues and expand margin?”
Understanding what a carrier’s goals are is equally important as understanding what savings will be generated by a particular investment. We want to understand our customers’ goals and figure out how we can help them reach their goals as quickly as possible. Whether the goal is revenue growth, savings, overhead reduction, or margin expansion. By knowing our customers’ goals, we can better consider our ability to help.
Oddly enough, however, many times when we answer this question, we don’t get a clear, definitive answer. We get a somewhat anecdotal, but rarely specific, commentary. So, I ask you…
“What would be your goals for investing in a new technology?”
Is it a cost reduction in voice termination? Is it an overall SG&A reduction of X%? Is it increasing gross margin by Y%? Is it growing top-line revenues by Z%?
If you tell us, we can tell you, whether or not we can help you reach that goal.
Our customers are so smart!
‘Til next time my friends,