Wednesday, 9 February 2011

How much do your calls really cost - part 2

In part 1 of this series we looked at the Bundled Tariff solution provided by telecoms suppliers and why they are maybe not such a good idea unless you can use the allowance to its maximum.
In part 2 we shall look at the Capped Call Tariffs

Capped Call Tariffs are like a mini-bundle per call. The benefits seem appealing: you limit your call costs which means you won’t get any nasty shocks. When you look at your itemised calls, you’ll be able to spot the occasional capped calls. You think: ‘Great deal!’ You won’t see many capped calls but just enough to know the plan is working.

Lets illustrate why a Capped Call Tariff may not be the great deal you think it is by taking extracts from a couple of clients to demonstrate what a call profile looks like and which I dare say you will be totally unaware of.

Number of calls by duration

What you see from this graph is that a significant number of calls last less than a minute. On the profile above, you can see that the average call duration was slightly less than two minutes .

The current cap on local and national calls is anywhere between 5p and 10p. Telecoms service providers therefore appear to give massive perceived value and in return ask for a rolling 24-month contract. That’s fair isn’t it?

Let’s look at the Capped Tariff versus a 0.8p/min tariff. This simple graph illustrates why the Capped Tariff should send alarm bells ringing. Let’s say this is your account and you’ve made a total 5,494 calls during the month.

If you had the Capped Call Tariff, you might look at your itemised bill and see lots of capped calls and uncapped calls, and you’d probably feel warm inside, believing you had a great package. However, with the graph, you can see that of the 5,494 total calls made, you’d have only benefited from 290 of them or 5.2%. A whopping 94.8% of all your calls have cost you more. In essence, the 5p Capped Call Tariff would have worked out at 2.85p/ minute versus 0.8p a minute – that’s 256% more expensive.

Capped Call Tariff Tip

Know your call profile and analyse the benefits (if any) that a Capped Call Tariff will give you. Unless you know for certain that you will benefit, don’t go anywhere near a Capped Call Tariff – it will cost you significantly more.

In the next blog we will look at the Call Centre First 90 Seconds Free Tariff and what this means for your businesses.

Part 1 | Part 2 | Part 3

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