Web & Video Conferencing Savings and Return on Investment (ROI)
The following is a general overview of web and video conferencing return on investment (ROI). Beyond the
overview shown here, feel free to contact us for
an ROI checklist, standard ROI calculator, or a comprehensive analysis (Excel document) tailored to your
application. You can further edit the spreadsheet and fine-tune it for your needs.
What is ROI?
Return on investment is a performance measure, often used to evaluate an investment. It is calculated by taking the sum
of total savings (or benefits) less all related expenses, divided by the investment. The result is usually expressed as a
ROI = (savings – expenses) / investment
There are more authoritative resources on this subject, the remainder of this page will focus on its use in web and video
Video Conferencing Applications & Savings
The most typical saving is travel reduction. A standard ROI model easily compares the cost of in-person meetings for
sales and customer training staff, versus meeting online. The savings figure is the difference between travel and other
in-person expenses, versus meeting online.
Sample applications and financial benefits (savings) include:
Net savings between in-person meetings, versus meeting online
Benefits of being able to present and meet with more customers
Financial benefit of accelerating the sales cycle (which otherwise is extended while waiting for customer presentations
and working meetings)
Financial benefits of improving reach and frequency of training Programs. This many include better product adoption,
customer retention and loyalty
Improving call resolution times with desktop sharing & remote control. Solving more problems on the in-bound call
Reduce costs of expensive mistakes in product launch, major project reviews, and other inter-office team meetings
The total relevant investment for this type of calculation is usually the sum of the hardware and software (or online services
involved). In addition, start-up costs such as training are included. If there are any additional start-up costs relevant to your
organization, they should be included too.
The ROI Calculation – Areas to be Careful
calculation is straight forward, but depending on your scenario, there may be a couple areas to watch out for. Costs that are
equivalent between alternatives and sunk costs should be excluded. In theory, there is nothing you can do about the latter. Be
careful not to double-count any savings or expense. Bandwidth is a tricky subject, in most cases, it is not included, because the
existing network is being used. In others, additional bandwidth may be required. For example, full-screen video for boardroom
conferencing, in which case new Internet connections are required specifically for this application, and these additional costs
Please contact us for a custom ROI analysis, we can adapt the
generic worksheet shown above for any customer-specific scenario.
Video Conferencing Break-Even
A closely related topic is break-even. This says, for example, that if your investment is recouped in savings by the end of the
second month of implementation, the time to break-even is two months. This can be very handy in
video conferencing customer applications where often the first
saved cross-country or trans-Atlantic flight pays for an entire system.
In addition to "hard dollar" returns, there is also the topic of subjective, or "soft dollar" benefits. The
following are examples of soft-dollar benefits that may apply to your organization:
- Improve business continuity - key staff stranded by airport closures, bad weather and so on, can still make scheduled
meetings via online conferencing server
- Improve telework - dramatically improve communications capabilities to select staff that work from home and/or from small
- Improve employee benefits and morale - providing state-of-the-art online meeting tools can motivate staff and boost morale.
In addition, for employees that travel for long durations, reconnecting with friends and family during off-hours video conferencing
sessions can be a nice benefit at no incremental cost to their employer (Nefsis has no usage based fees).
- Document vendor promises - record vendor presentations and major project reviews. Note: this is a customer-discovered
- Reduce expensive mistakes - use visual tools in web & video conferencing sessions for major project reviews across teams
of people separated by multiple offices. These tools can reduce very expensive mistakes. Nefsis has many engineering/project management
customers that use Nefsis for this purpose. If this benefit can be quantified, then it can be used in a "hard dollar" ROI
- Green initiatives - web and video conferencing support green initiatives and greenhouse gas reduction efforts.
Schedule a Live Video Conferencing Demo
haven't seen the latest in web and video conferencing, click here
to schedule a live demo. See high quality video conferencing using standard PCs and existing Internet connections, right from your own
desktop! In addition to live demos, we would be happy to provide an ROI checklist, standard or comprehensive worksheets such as those