Today we’re going to get mathematical and look at one way to calculate return on investment (ROI) with a telepresence purchase. There are dozens of ways to find the value of a video meeting system. Hard ROI is the measurable dollar figure that you can produce from money saved or lost in an implementation. Soft ROI is the measurable time, energy, or resources that you can use to determine the value of an implementation. Let’s look at an example of how a consultant might use Vu Telepresence to save money with HD videoconferencing.
In this instance, our consultant has a high value client in another region that he needs to keep. Most of their conversation is over the telephone, but our consultant needs to see his client once per month to keep the relationship strong and to avoid any poor communication, conflicts, or mistrust that may arise from too many emails and not enough face time.
To calculate the return on investment for telepresence in the case of our consultant, first let’s look at the costs of his traditional meeting method: hopping on a flight to be there in person.
The diagram below shows that his costs are $8,160 per year to be in front of his client. Not only is he spending a lot of money on airfare, he’s losing 24 hours of time during travel that he could be using to meet with other clients or build his business.
Now let’s consider the costs when he rents a Vu Telepresence system for both his business and his client. We see that he saves a lot of money on the price of airfare, yet he still gets the face-to-face interaction on videoconferencing. Since telepresence is full HD, they have a lifelike conversation without interference. He also saves many hours of precious time by avoiding the airports. Costs turn out to be $4,960 per year.
We can use this data to find an ROI of $3,200 savings from our telepresence purchase. Our initial ROI calculation includes a yearly telepresence rental for both parties ($1,800 + $1,800). Every additional client will only require one rental ($0.00 + $1,800). This means that if our consultant puts other customers on this same plan the return on investment will be $5,000 per customer.
I encourage you to take out a pen and paper and consider your own business travel requirements. How much are you spending on airfare? How much time are you spending in transit? Do you have high value relationships that you need to support with face-to-face meetings? Calculate your investment and then see how much your return can be if you invest in telepresence.
We’ll continue this ROI series with other business examples. If you have any comments or questions drop a line to firstname.lastname@example.org. We would love to hear your story.