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Buyer's Guide Page - It's all about Value

Communications Systems Buyer's Guide

It's All About Value

The telephone - it's the first contact point many of your customers will have with your business. With the right system you can improve customer service, save time and money, reduce staff turnover and frustration and even grow your business. The wrong system can be difficult to operate and manage, give a poor first impression, stifle employee productivity, and lead to ongoing costs in time and hard dollars. Few investments can bring as much value to your business as a reliable and easy to use phone system. This Buyer's Guide offers information to help you choose the system that is going to maximize the value to your business.

  1. What can a good telephone system do for my business?
  2. What key things should I keep in mind when choosing a telephone system?
  3. What applications are available for small business?
  4. What questions should I ask my potential vendor?
  5. How are telephone systems sold?
  6. What can I do about security?
  7. What should I expect to pay?
  8. 10 Most Common Mistakes of Purchasing a Phone System

  1. What can a good telephone system do for my business?
  2. Save Money

    It's possible to reduce your operating costs and increase profitability with the right phone system. Here's how:

    • Automated attendants, voice messaging systems, and automatic call distribution (ACD) can be used to free staff from directing calls and answering commonly asked questions.
    • Substantial savings on toll charges can be realized using networking capabilities, including sending voice calls over a data network - a solution known as "Voice over IP" (Internet Protocol).
    • Call centers and wireless office phone solutions can help ensure that staff will never miss a call or an opportunity.
    • A reliable system will minimize service calls and eliminate lost business due to down time.

    Save staff time and frustration

    Getting the task done right is always easier with the right tools. Today's time saving phone features help staff to be more effective and less frustrated.

    • Voice mail can be like having a personal assistant. Calls are answered and accurate messages taken - 24 hours a day. This extends the hours your business is available to your customers, allowing you to compete in an ever-increasing global marketplace.
    • Solutions like calling line identification and paging help your staff answer customer calls more efficiently while providing the personal touch that will encourage repeat business.
    • You can improve communication among branch offices through toll-free Internet phoning and data file sharing.

    All these features are an advantage to your business, but shouldn't be overwhelming to manage. Look for a system that is easy to use and can be virtually self-taught by your employees. Some phones have display windows providing step-by-step directions on how to use a feature while you're on the phone, further reducing the need for intensive training.

    Enhance your company's image

    Competing with other small - to medium-sized business or going up against bigger companies has a lot to do with the impression you make on potential new customers. Professionalism and efficiency must mix with the personal touch that gives you an edge. Your phone system is often your potential customer's introduction to your company. Well-handled calls can mean business, sales, a reputation for top-notch service, or cinching a deal. With today's affordable phone systems, designed specifically to meet the needs of small- to medium-sized business, the playing field has been leveled like never before. Your customers will be impressed with efficiently directed calls, a quick response (even from the field), and 24-hour phone service.

    Grow your business

    Growth is possible when you stay on top of your day-to-day business and free your staff from repetitive and time-consuming tasks. Use their time more efficiently to work efficiently is half the battle and your phone system is crucial. From automating simple tasks like a receptionist's duties to creating your first formal call center to handling real-time orders and service, today's business phone systems offer entrepreneurs the choices and flexibility they need to drive new opportunities and expand their business. Back To Top

  3. What key things should I keep in mind when choosing a telephone system?
  4. Define your needs

    First consider your current phone use?

    • The number of phone sets and users.
    • Types of users - ranging from users with minimal phone set usage requirements and low call volumes to busy call answering positions with comprehensive feature needs.
    • Number and length of incoming and outgoing calls per day - both long distance and local.
    • Most frequently called locations.
    • Peak time for phone use.
    • Frequently used features.
    • Most common frustrations with the existing system.
    • Consider phone line needs for voice, fax and computers.

    Next, think about future requirements?

    • What changes or increases in phone use might occur over the next year or two?
    • Are you adding a branch office?
    • Talk to staff about their needs and highest priority phone features.
    • Ask customers and suppliers for input.

    Review what you have learned and identify?

    • Number of sets you'll need including special requirements like voice conferencing units in meeting rooms and wireless solutions to support warehouse activities.
    • High priority voice features and capabilities you'll want available on each set.
    • The amount of growth capacity you will need to support your business plan.
    • The availability of additional applications to support changing or evolving business needs.

    Reliability

    Your phone system is your company's lifeline - you can't afford to miss calls or lose data while your system is down. Ask your vendor to discuss the reliability of their solution - and back it up with a guarantee. Trouble-free use of your system, day in and day out, should be a minimum expectation.

    Ease of use

    A huge measure of the frustration staff experience is directly related to the technology they must face in their day-to-day work lives. A phone system can have all the bells and whistles but won't save time or money if it's too confusing to fully use. Nor do you want to spend valuable time in lengthy training sessions. Look for features such as a display window that provides instructions while you are using your phone. Programmable buttons let each user customize their phone to their needs. Life can be made even simpler with phones offering high quality built-in speakers and headset jacks. Some systems have a labeling feature allowing for quick, professional looking labels to quickly accommodate new staff and office changes.

    Cost-effectiveness

    With today's phone systems, you can have big company features with a small company budget. The right phone system should provide a measurable return on your investment. As well as simplifying phone use, special software can save you money by tracking billable activities and generating reports on incoming and outgoing calls. Some systems even have tools to reduce the need for external system maintenance. You don't want your phone system to become obsolete in a year or two either. Make sure you protect your investment by buying a system that can be easily upgraded as your needs change or new features come available.

    Flexibility

    A flexible phone system will protect your investment as you business grows or changes. Flexibility allows you to easily make system modifications, as you need them. Add a call center for a product launch or try a wireless solution that allows the key members of your team to remain available as they move around your premises. Flexibility can also include the capability to quickly and easily change the way your system is programmed. With some phone systems, programming can be done using a PC in your office. This cuts down the need for costly programming administration and allows the users of the system to make changes and optimize available features.

    Easily upgrade for growth

    You want to be able to take advantage of today's quickly changing technology without scrapping your whole system. As your business grows you want a phone system that can grow with you. Look for a phone system with an open architecture that allows for easy upgrading of both hardware and software.

    Applications

    When selecting your phone system, application availability is a key consideration. Some popular applications to consider:

    • Voice messaging - answering systems designed to receive, store and forward voice messages. Some provide integrated auto attendant capability (see below).
    • Automated attendants - can answer incoming calls with a company greeting, or play a list of options to the caller so that a caller can reach the appropriate person, department, mailbox, leave a message, select an alternate language, look for a mailbox in a company directory, or reach your company receptionist. This application can also be programmed to answer the telephone after a set number of rings, when either a live receptionist is unavailable, or the call has come in after hours.
    • Call centers - useful whenever there are several people answering similar kinds of telephone calls and call volumes peak times are greater than your staff resources. Depending on call volumes, call center teams may be informal with only a few of your employees appointed to answer calls or very formal and have many staff designated to the task of call management. Call centers, big and small, can use automatic call distributors to route calls to the appropriate agent or operator.
    • Integrated voice and data solutions - converged solutions integrate the networks that provide voice and data transmissions. Convergence offers significant benefits, including operational simplicity and optimized applications performance.
    • Computer telephony integration (CTI) - combines the capabilities of the phone system with the power of personal computer applications. For example, calling line identification combined with a CTI application would permit a member of your team to see a customer's file and call record on their screen as their phone rings. The customer could then be greeted by name and offered an enhanced level of personalized service.
    • Fax messaging - incoming faxes can be stored electronically in a user's voice mailbox just as a voice message is stored. This allows easy access and retrieval of faxed material, improved privacy and control and reduces the number of fax machines and lines required in an office.
    • Unified messaging - the integration of voice messaging, fax and e-mail into a single "in-box" on a PC to speed communications and message handling.
    • Enhanced features such as video conferencing, auto call directing, and workplace wireless are also important in future growth. Back To Top

  5. What applications are available for small business?
  6. Voice messaging

    Voice messaging systems are designed to take messages but can do so much more?

    • Auto attendant directs incoming calls by providing callers with a list of options, which can include reaching an individual, a mailbox, or a receptionist. Auto attendant can answer calls when the receptionist is busy or provide information like office hours when the business is closed.
    • Visual messaging waiting indication can be provided locally on your phone set or you can be notified of a message at another location or on your cell phone.
    • Voice messages can be seamlessly exchanged with other users at different networked sites or broadcast messages can be sent to specific departments or the entire company to keep your employees informed of business issues or highlights.
    • Unified messaging lets your manage voice, e-mail and faxes from your computer or lap top, locally or remotely.
    • Transfer option to allow callers to transfer to your cell phone to provide ultra fast service.
    • Document important or detailed conversations into your mailbox with record-a-call feature.

    Call Centers

    When there are several people answering similar kinds of telephone calls (at an order desk or reservations office, in a customer service department or technical support center) a call center is the answer. Call centers systematically hold calls in a queue and efficiently route them to your staff. A call center can organize and manage call distribution for as few as two agents to as many as 100+. Systems may have flexible routing and can be customized. For example, you can send VIP callers to special agents automatically; by-passing any hold time or unnecessary prompting for them to have their account information available. Before a call is transferred to an agent, you can have a recorded announcement about a special promotion or new product. (Research has shown that up to 34 percent of callers will ask about a product or service advertised while on hold). A call center will help you answer more calls with the same number of staff, cut long ringing and hold time, increase revenues, reduce costs and improve customer service. Ask about call center reporting software as well to help you manage the peaks and troughs in call traffic.

    Integrated voice and data solutions

    In the future, all voice and data traffic will run on a unified network because of the cost savings involved. The benefits of the future can easily be realized today with an integrated voice and data solution. Reduced operating costs, improved customer service with advanced applications and simplified local or remote network management are all possible today. Integrating the potentially numerous pieces of voice and data communications equipment into a simple, fully integrated communications platform, can mean faster response times and a lower overall total cost of ownership.

    When considering an integrated solution, look for a system with the flexibility to change your needs and a vendor with longevity, a proven record in the industry and a loyal customer base.

    To learn more go to the integrated voice and data solutions section of the Buyer's Guide.

    Enhanced features and capabilities

    You can choose from a range of enhanced features such as:

    • Unified messaging: combine your voice messages, e-mail and faxes into one "in-box" on your PC.
    • Computer telephony integration - combine the intelligence of your phone system with the power of your PC to enable applications like "point and click dialing" or automatic file retrieval based on your customers incoming call line identification.
    • Branch to branch networking - to enable four-digit dialing between locations, the ability to transfer voice mail messages to anyone on the network or the option to have voice traffic carried over an existing data network. Back To Top

  7. What questions should I ask my potential vendor?

    How will my system be planned?

    After you have defined your needs, the next step is to match these needs with the right phone system for your business. Look for a vendor who takes the time to understand your business, short- and long-term goals, your business' competition, the requirements of staff and customers and your budget. Be sure to discuss both existing and anticipated business needs, services, technologies and security requirements. The vendor should suggest a few alternatives for your consideration and clearly explain all the pros and cons of each system.

    How easy is it to upgrade and add new features and capabilities?

    It's key to be able to add capacity as your business grows. Look for a flexible, modular system that can be easily expanded or modified. Some systems offer pre-installed applications that can be instantly enabled with a simple key code. Ask if there is a free trial period for new applications. If the system is linked to your computer network, additional features can be made available in minutes by clicking on an icon on your computer screen. Also ask if the system has remote management capabilities (critical for holding down service cost and providing the best service response time) and supports open standards.

    How are service, maintenance and training handled?

    Commonly, service, maintenance and training are part of the contract when you buy or lease a phone system. Questions to consider or ask a potential vendor?

    • Will you need service available for 40 hours a week or 24/7? What about emergencies? What constitutes an emergency?
    • Does the service contract have performance guarantees indicating response time to trouble calls?
    • Can potential problems be solved remotely or is a site visit required?

    You will need some training on the operation, maintenance and management of the system. As well, the vendor should provide reference manuals and user guides. Confirm that there are no other manuals you will need to buy, and that you can reproduce the materials for internal use.

    How reliable is the system?

    Reliability is critical in today's fast-paced, technology-based marketplace. Ask about the reliability of any system you are considering and get the guarantees you need to ensure the system will do what the vendor claims it will.

    How can I protect my investment?

    If you want to upgrade to the new system, ask about what components of your old system can be incorporated, such as phone sets and cabling.

    The best way to future-proof your investment is to ensure your new phone system can be easily upgraded. You want a flexible, building block system so that you can grow and fine-tune it to respond to changes in your business.

    Consider integrated voice and data solutions and get a jump on your competition.

    Also check about what guarantees are offered. Some companies offer up to a one-year customer satisfaction guarantee, which takes the risk out of your purchase.

    What is the system's capacity?

    Ask about the number of port - the number of incoming lines and telephone sets that the system can support. Ask about what's involved to expand the number of ports and at what cost. Ensure that the system you might purchase does not hinder the growth of your business.

    What safeguards are in place in an event of a power failure?

    Ask about an uninterruptible power supply (UPS) so that your system continues to handle calls during a power outage. Most systems can be connected to a battery to give you back-up power ranging from a few minutes to a few hours. Ensure that programming data and call logs will not be lost in the event of a power failure.

    How much space does the system take up?

    Even the most sophisticated small- and medium-sized business phone systems will fit into the telephone closet in a typical office building. Some systems can even fit onto a table or a wall-mounted and take up as little space as a small filing cabinet.

    What is the vendor's background?

    Look for a vendor who has been in business for a number of years and has an established reputation.

    • Ask for a client reference list.
    • Call clients with similar needs to your own and check their satisfaction with the system and service.
    • Find out if the seller offers training and after-installation support. Back To Top

  8. How are telephone systems sold?
  9. You can buy the system, rent it or lease to purchase from a host of resellers offering solutions in your area. Costs for phone systems include the cost for the phone sets, central cabinet, and wiring and installation, training, programming, service and future modifications. Think about financing options. Back To Top

  10. What can I do about security?
  11. Why is voice fraud a concern?

    Hackers can use your long distance service, resell it to others, or change your long distance carrier without your knowledge. Protect confidential information on voice mail and protect your system from nuisance voice mail meddlers. Be aware that once hackers are inside your system they can disable your security functions and make fraud hard to detect. Information about unprotected systems and access codes is easily exchanged over the Internet.

    Why is fax fraud a concern?

    Hackers have routed fax calls to pay-per-minute numbers in other countries resulting in huge untraceable costs for international calls. They have also requested lengthy documents from fax-back servers and then routed the calls to a pay-per-minute number. Remember that any system connected to a vice or data network is vulnerable.

    Why is cellular fraud a concern?

    Hackers can steal long distance services from your cellular system just as they can from your land phone. A radio scanner captures the security numbers that help track your phone charges. The number is then copied onto other terminals. Although digital cellular systems are more secure than analogs, they can still be invaded.

    What can a security plan to do for my company?

    A security plan assesses the risks of unauthorized use of your phone system and identifies security measures appropriate for your business. It's important to balance your security needs against costs and ease of access. You should also consider insurance to limit the impact of any loss.

    What security measures can I take?

    • Regular security audits, including a review of call records, particularly outside normal business hours or exceptions to normal usage including particularly long calls or calls to or from unusual locations.
    • Restrict access to your system through user ID's, passwords or call back systems.
    • Alarms that notify about repeated attempts to access the system.
    • Monitor systems that track usage patterns and traffic.
    • Multiple and overlapping security measures for extra protection and back-up. Back To Top

  12. What should I expect to pay?
  13. What should I expect to pay to get started?

    Prices can vary widely based on the size of your system and the applications you choose to add. Remember that lower up-front costs are no bargain if they mean ongoing repair and service fees or if upgrades mean purchasing a whole new system. Expect to pay between US $300 to $600 on average per user for the core system, plus installation and service fees.

    In addition to the hardware, there are additional costs for voice, video and Internet service. Voice and video services are usually about US $20- to $50-per-month, while Internet access may cost US $30 per month and upward, depending on the speed of the service. Back To Top

10 Most Common Mistakes of Purchasing a Phone System

  1. Using a non-local vendor

    Looking for a vendor for their equipment, a bank contracted with a large, nation-wide provider to service their network. Even though the vendor advertised "nation-wide coverage", it was later discovered that they used sub-contractors to fill the voids is their service area. Making matters worse, rarely were the same technicians sent to service the account. As a result, service was spotty at best.

    Many nationwide vendors subcontract work; much of which often goes to the lowest bidder with little consideration for technical competence. Always make sure vendors have a local office with not only sales, but technical and support staff too.

  2. Failing to plan for future needs

    When a medical office bought a new phone system 3 years ago, to save money, the company insisted on getting a 16 phone system. After three years they ran out of space and additional staff had to either share phones or go without. They looked at expanding the system, but the new system would not support their older voicemail, forcing them to upgrade both their phone system and voicemail.

    Capacity planning is deliberately buying more hardware than you need. This includes more lines, phones, and voicemail capacity. Doing this, you won't have to fund a serious upgrade when your system reaches its half life. This forethought adds about 10% to the cost of the system. Compared with a new system or serious upgrade, the 10% upfront is a bargain.

  3. Buying Grey Market equipment

    After comparing local prices for their first phone system, a small Minnesota based printing firm ended up ordering their new system on the Internet from a California company. Upon having a local technician unpack and review the "new" system, it was discovered that the system didn't have the current release of software and the software it included was not for the United States market, making for some strange dialect for the system's auto attendant recordings.

    To make matters worse, one of the system components failed. A quick call to the manufacturer confirmed that the equipment was sold on the grey market and the warranty was therefore void. The hidden costs in what appears to be a good deal make savings negligible. Buying from a manufacturer's authorized dealer helps ensure you are getting what you are paying for.  More information...

  4. Buying used/refurbished equipment

    A local church was outgrowing their current phone system. They believed they got a bargain on a used system from an office that had just out grown it. When they contact a local vendor to have the system installed, they found that it did not support the high-speed telephony connection they had wanted. The cost to upgrade it was almost $10,000. In the end, they could have purchased a new system for less than they spent for used equipment.

    Used equipment often appears to be a good value but comes with several hidden costs such as:

    • Shorter life span
    • Higher maintenance costs
    • Missing features/needed features not supported
    • Upgrade costs
    • Limited support

    While used and refurbished equipment was once a viable option, the relatively low cost and efficiency of a new system is hard to beat.

  5. Using Unlicensed/Unauthorized Vendors

    A bank's network was failing constantly. An inspection of the phone closet revealed a bird's nest of wires of different sizes, shapes and lengths. Additionally, the cabling guy had jammed RJ-11 voice plugs into the many RJ-45 sockets in the patch panels. Not only were the connections poor, but they were falling out constantly. To remedy the situation, the cabling guy had jammed toothpicks in each socket to hold the connectors in place.

    In another case, a real estate office was having strange issues with their "new" auto-attendant and voice mail system. Their current "phone guy" couldn't figure out the problem so they contacted a factory authorized vendor to take a look at it. It was discovered that their previous (unauthorized) vendor sold them "new" equipment that had been previously installed. A day of resetting and reprogramming the system cleaned up the issues.

    It is not difficult or expensive to be licensed and factory authorized. Typically it involves:

    • Passing competency exams
    • Obtaining insurance
    • Obtaining a performance bond
    • Providing a "Certificate of Good Standing" from the Office of the Secretary of State
    • Commit to ethical business practices

    If a vendor will not (or can not) make a commitment to obtain a license, can you trust them to provide your business with timely, quality work?

    NOTE: You can find out if a prospective vendor is licensed by visiting your State Board of Electricity. In Minnesota, go to: http://www.electricity.state.mn.us/E_contrs/TSC/LicensedTechnologySystemContractors.pdf.   To find out if they are factory authorized, visit the equipment manufacturer's web site.

  6. Not investing in technology when good applications are apparent

    A local office with 8 salespeople was looking at upgrading their current communications system. An option suggested by their vendor was the implementation of Computer Telephony Integration (CTI). This technology would allow each salesperson to use their PC to quickly dial from their contact task list. Also, using caller ID, incoming calls would "pop" the account information and notes to the screen on their PC. The CEO of the company said they couldn't afford the extra $1600 investment.

    Now, using conservative estimates, let's look at what a small extra investment does to the bottom line:

    Average time (in seconds) saved per call with CTI 5
    Number of calls per salesperson per day 100
    Work days per year 260
    Total number of seconds saved per year 130,000

    Multiplying this by eight salespeople totals just over 288 hours. Using a conservative figure of $25 per hour as a cost of each salesperson (wages, taxes, training, benefits) we get a total of $7,222.22… a 451% first-year return on a $1,600 investment! CTI is one technology that improves efficiency, reduces fatigue and eliminates mis-dialed calls. If you have a good application for technology, take a good look at it before you make a decision - you don't want to overlook one of the best investment opportunities your business will have.

  7. Not investigating the details

    An insurance agency was looking for a small phone system for their office. After reviewing several systems, they narrowed down their selection to two systems with similar capacities:

    System A System B
    Price $4,256 $3,470
    Number of lines 4 4
    Number of Phones 16 16
    Voice Mailboxes 10 12

    Both systems were made by reputable manufacturers, had good local support, and appeared to be very comparable. They almost purchased "System B" since it was less of an investment until they found the following details:

    System A System B
    Voice mail ports 4 2
    Maximum mailbox capacity 180 minutes 10 minutes
    Maximum number of mailboxes 40 12
    System storage capacity 540 minutes 120 minutes
    Transfer calls to cell phone Yes No
    Record Calls Yes No
    Unified Messaging Support Yes No
    Web Browser Management Yes No

    Ample voice mail storage, the ability to record calls, and the ability to have a caller transfer to the agents' cell phone was important for the agency. A little research into the proposed systems revealed some rather large disparities.

    Choosing the right communications system is critical for your business. All the options and terminology can be a little daunting, especially with attempting to do an "apples to apples" comparison. Before making any final commitments, make sure you investigate the detailed differences between systems.

  8. Failing to obtain passwords and documentation

    All of the quality systems currently in production have web browser and/or a Graphical User Interface (GUI) making administration easy. If you have the documentation and passwords, you can administer your phone system changes yourself rather than paying for a technician to visit your office.

    It is very common for vendors to take the administration documentation that is included with the system. Also, many will change installer password without notifying you, making it impossible make any changes to the system without paying for a technician. Make sure your vendor provides these… at no charge.

  9. Buying off brands

    Remember the Yugo? For those that don't: In 1985, the Yugo went on sale as the cheapest car sold in the United States. Mechanical problems including premature engine failure, bad brakes, poor transmission, and faulty electrical systems plagued the little cars. Making matters worse, dealer service was terrible. In 1989, Yugo America went bankrupt.

    As with any product or service, companies that lack quality rarely capture significant market share. The companies that provide a good value generally do well. These rules also apply to phone systems. The recent market share snapshot for small and medium digital communications systems is shown below.

    Nortel, Inter-Tel, and Avaya have dominated this market as a result of the quality of their products and dealer networks. The remaining manufacturers at the other side of the chart have not performed as well - many as a result of poor product performance, mainly limited features and reliability issues.

    To help bolster confidence in their products, some of the lower-end vendors have started offering extended warranties. Use caution when purchasing any extended warranty. Why? After a system is installed and running properly - any issues that arise are seldom covered. Making matters worse, labor is not covered under the extended warranty, so you still have to pay for a technician to replace the component covered under "warranty."

  10. Shopping by Price

    Price is always a consideration… but consider your business' current and future needs first. Remember that lower up-front costs are no bargain if they mean ongoing repair and service fees or if upgrades mean purchasing a whole new system. Back To Top



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