It would make a huge difference for a business that makes a humongous volume of calls. When it manages to save some money, no matter how small the amount is, on each phone call, the savings are considerable!
Let’s suppose the business makes thousands of calls every year and if it saves even a few cents on every call, the savings could amount to hundreds of dollars. It could be even more, possibly thousands of dollars even!
As drops of water make oceans, small savings can add up to significant amounts in the future. As legendary Benjamin Franklin said, “Watch the pennies and the dollars will take care of themselves.”
Now, the question comes: how can businesses save money on every call? The answer is through least cost routing.
Depending on which study you believe in, organizations can save in the range of 35 to 50 percent when they leverage least cost routing over their established networks without the need of replacing their existing telephone systems.
Not only that, organizations can overcome several call routing issues by leveraging LCR in their single tenant or multi-tenant IP PBX software systems.
In this blog post, we will discuss the benefits of LCR and the ways it solves common call routing issues. So without any delay let’s get straight into the blog and know more about LCR.
Benefits of Least Cost Routing
Least cost routing (LCR) offers a wide range of benefits for all types and sizes of business organizations. Here are some of those:
1. Huge Savings on Communication Costs
The most obvious benefits of LCR is that it saves businesses a lot of money that they would have spent on phone calls routed through more expensive paths. Even if a business saves a few cents on each call, it would still end up to the tune of hundreds or thousands of dollars every year!
2. High Flexibility
Getting to choose the least expensive path is a massive attribute many businesses would love to flex! Not just that, imagine the flexibility a business has when they are routed to the most cost-effective path as a default option. That’s one of the major strongest points of LCR functionality. It gives businesses massive flexibility.
3. Complete Control on Costs
When organizations leverage VoIP systems equipped with LCR, it gives them greater control! They have power to cut (even eliminate) unnecessary costs. The LCR functionality provides modern businesses with unparalleled control as far as controlling costs are concerned.
4. Competitive Edge
Can LCR provide businesses with a competitive edge? The answer is a resounding yes! This is particularly true for telephony service providers such as Internet Service Providers (ISPs) and Internet Telephony Service Providers (ITSPs). By leveraging LCR, such types of professional service providers can pass on lower prices on calls to their customers.
5. Enhanced Profitability
As former English cricketer Paul Jarvis rightly said, “Starting your own company with a focus on profitability right from the start is imperative.” Contemporary business owners couldn’t agree with him more! When organizations reduce their communication costs heavily, they are much better equipped to enhance their profitability.
Common Call Routing Issues and How LCR Solves Them
When it comes to routing calls in an efficient and cost effective manner, there are a wide range of issues businesses face. Here are some of those:
1. High Costs for International Calls
We all know how expensive international calls are! They can burn a significant hole in many businesses’ pockets and eat up into their profitability. It’s even worse, when businesses end up paying charges on the higher side instead of lower rates.
However, LCR with IP PBX changes this. By picking the least expensive and the most cost-effective path for international calls, it saves businesses a lot of money at the end of every month or year.
2. Lack of Transparency in Call Charges
When it comes to the traditional call routing process, there is a lack of transparency in call charges. Ask any business that uses traditional call routing strategies, and you will find that there is no mechanism to track carrier rates during different times of the day.
However, intelligent LCR with IP PBX software changes this. It comes with advanced analytics and reporting features, which helps in tracking call costs and optimizing call routing strategies.
3. Limited Routing Options
It’s not uncommon for traditional phone systems to have limited routing options compared to their modern counterparts. That’s because the former doesn’t come equipped with sophisticated tech features to route calls efficiently and effectively.
However, IP PBX systems with LCR changes that. By opening up a wide range of routing possibilities, it enables businesses to work with different service providers instead of sticking with one.
4. Inconsistent Call Quality
The call quality in traditional phone systems is not up to the mark. That’s mainly because the technology is not up-to-date. The lack of cost efficacy and consistent call quality is a double whammy indeed!
IP PBX systems that come fitted with LCR not only ensure all calls are routed via the cheapest path available but they also ensure high call quality. LCR is much more than just about saving money. It’s all about exceptional quality and reliability of communication!
Summing It All Up,
Since its introduction, LCR has revolutionized the way contemporary businesses manage their communication costs and ensure cost efficiency.
If you are an entrepreneur or a senior professional in an organization, then you may want to consider what an IP PBX system with LCR could do for your business.
