8x8 Places Renewed Emphasis on Cost Benefits of VoIP

When VoIP adoption hit the mainstream markets — both business and consumer — the primary focus was on the cost savings offered by migrating to IP Communications from traditional PSTN-based telephony. Those cost savings still hold, of course, but of late, many providers and equipment vendors have focused heavily on the features and productivity enhancements enjoyed by VoIP users.

 

However, in light of the current economic climate, it’s clear that most businesses are again placing increased attention on budgets again — the most obvious sign is the in the string of layoffs in general, as well as in the telecom space, in particular. The latest to make major cuts is AT&T (News - Alert), which today said it will be laying off 12,000 employees.

 

Recognizing that trend, 8x8, which provides VoIP services to the SMB market as well as consumers, has made a point of stressing the cost savings it can offer its customers.

 

“With the unprecedented economic challenges we’re all facing, we’ve changed our marketing focus to emphasize price,” 8x8 (News - Alert) Chairman and CEO Bryan Martin told TMC.

 

As part of that renewed cost benefit push, 8x8 has announced a 50 percent cut in its monthly per user fee for its popular Virtual Office business phone service for new customers.

 

Explaining the offer, Martin noted that it makes little sense to sign customers that will have to cancel their service due to budgetary constraints. In a display of common sense, he said it is considerably more beneficial — to both 8x8 and its customers — to let them worry about other aspects of their businesses so they are able to survive this downturn.

 

There is, however, one difficulty, even with the focus on cost savings 8x8 has again adopted, according to Martin, which is that, “Small business owners don’t usually focus on the telecom costs, and it’s hard to get them to do that. Most of them don’t know how much they spend, which means they don’t understand how much they can save.”

 

He added, however, that when owners are presented with a real number, as much as $10,000, it’s hard for them not to pay attention. Thus, when a sales rep is able to lead with a clear cost benefit, it helps make the initial sale.

 

Once they have installed the Virtual Office system and have enjoyed its features and quality — in addition to the savings — the long term benefits become clear as well. In addition to allowing them to eliminate their aging and costly legacy PBX (News - Alert) systems, the Virtual Office hosted PBX solution introduces the benefits of IP-based communications. In addition, because it is a hosted solution, it eliminates the need for extensive in-house management of the communications system, freeing typically small SMB IT staff to focus on other opportunities.

 

The key, ultimately, according to Martin, is that regardless of how the initial sale is made, is service quality, which is why he says 8x8 puts a premium on both the quality of its Virtual Office service, as well as customer service.

 

“We learned early on the hard way, if you offer poor service, it doesn’t matter what cost savings you provide,” he said. “If you don’t provide high quality service, customers will find another solution.”

 

By offering a quality service, and with a renewed emphasis on cost, 8x8 is looking to benefit from what might otherwise be a dismal end to the year. Its discount offer, good through the end of the year, is its way of ensuring businesses have the opportunity to experience the benefits of VoIP without breaking their already shrinking budgets.

 

“We want more companies to experience the business advantages that VoIP communications services like Virtual Office can deliver,” said Martin.

 

If Martin’s bold hope to see the economy rebound faster than most people think — as soon as the first quarter of 2009 — this initiative will pay off in spades for 8x8. Martin noted that while touring his facility today, he saw a direct sales team that was as busy as ever.