It seems like a good idea. That is: take a cheap VoIP product, invest in acquiring clients, and then you’re off to the bank.
In reality, this does not happen. Staying in the VoIP industry takes more than just the usual marketing ploy. For one thing, you need a good – if not great – VoIP product to sell. You can’t just sell a cheap one that’s only baby steps away from that of free VoIP services, such as those of Yahoo Messenger or Skype. People expect more. And, they are willing to pay for more.
If you sell cheap VoIP products and pour down precious money to get your customers, you only end up wasting your investments in marketing. The customers that you get will only up and leave when they realize that your service is not even worth the money they pay. This will only end with you pouring in some more to acquire new customers. In business, this is not a good cycle. You should at least be able to retain most of the customers you acquire through your marketing efforts.
In order to retain this customer base, a good VoIP product is necessary. Cheap just doesn’t cut it. Cheap is a waste of time.
The Downside of Keeping your VoIP Services Low
Business people have turned to cheap services in the hopes of keeping their end-product cheap. The cost of acquiring customers is always the killer when it comes to your marketing investments. So, some entrepreneurs turn to cheap VoIPs to keep their rates down, even when they plunk some more money into customer acquisition.
What they fail to factor in is customer turnover. A quick turnover of your client base is not a good idea. This means you only earn profit in the short-term. You earn a proportionate amount from the new clients you bring in – and only from new clients.
If you put some focus on customer retention, then you increase your potential in earning from your cost of acquiring clients. Profits compound, and come from renewals and new signups. This is the better approach to marketing your VoIP services.
Low Price, Lots of Hidden Fees
Likewise, there are those companies that say they have low VoIP service rates when, actually, they’re not. You might be daunted about competing against these companies – how can you, with their prices pegged way below yours, right?
In reality, you are in a better place than these companies. Those that turn to “hidden fees” to make up for misrepresenting their actual costs risk turning off their customers. With all the corporate scandals left and right, people look keenly at the honesty and integrity of the businesses they support. It always pays to be upfront to your clients.
A Good VoIP Product is Crucial
For the best product positioning in the VoIP industry, you need to provide good VoIP services. Quality gets you satisfied customers; and satisfied customers pay.
Of course, you might need to price your VoIP services a bit higher than the rest – factoring your cost for acquiring customers. But, as long as your clients see the value in your service, they will stay.
Matt Larson writes for the VoIP industry. He is currently associated with Alliance Solutions and SIP Phone Report.
Author: Matt W. Larson
Article Source: EzineArticles.com
Beading Necklace
Related Websites -
Some Good Corporate Blogs It has become popular for businesses and companies of all types to express interest in creating a business blog so that they can better communicate with other companies, their customers, and a variety of other target markets out there. By looking at what corporate blogs are doing it right, and...... -
Ecommerce Web Site Design Trends For 2011 Strengthening tactics for 2011 ecommerce are generally built on Magento, this system that outpaced other e-commerce platforms on earth by 2009, according to statistics from Google. Magento offered three flavors: Area (the available source platform), Specialist (with permit fees of $3, 500 yearly) and Organization (license fees run $13, 000/year.)...... - Start up Business Ideas - Some Low Budget Start up Business Ideas These days almost every one is looking for start up business ideas for variant budgets. The reason behind this is very simple: people want to increase their earnings.There could be various start up business ideas. The real art is choosing from so many of them. There are different categories of......
- Facebook Advertising All You Wanted to Know In terms of Web 2.0 programs, Faceboook has come along to dominate all the rest in recent years. More social interaction takes place on Facebook now than ever before, and marketers are taking advantage of that to expose their audience to their business and products. So if you’re an online......
- Selecting A Financial Advisor Today's WSJ has a good piece on selecting a Financial Advisor. Since its a subscription site, here are the highlights.Looking for an adviser? You've got to keep these five pointers in mind.⢠Many advisers earn their keep by collecting commissions on the investments they sell. That means they have an......
Related posts:
[...] This post was mentioned on Twitter by Debt Loan, Cologne Perfume. Cologne Perfume said: Why Selling Cheap VoIP Does Not Work http://bte.tc/c8xJ #RTW [...]