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Friday, 26 August 2016

Is your SaaS business viable?


If you cannot measure it, you cannot improve it” – Lord Kelvin.


Emergence of the SaaS model has transformed the business model of software sales, in contrast with the conventional way of enterprise sales. The revenue flow is over an extended period (the customer lifetime) and traditional accounting metrics do not cover the nuances of a SaaS business. So what’s different in a SaaS business and what should be the key metrics to be tracked?

Let’s look five key SaaS metrics-

MRR (Monthly recurring revenue) – In SaaS, significant investment is incurred initially, in acquiring the first set of customers - in product development, marketing and sales. However, from the customer’s end, they only pay monthly subscriptions, over the period of usage. For a sustainable subscription based business, companies have to ensure a steady continuous cash flow from monthly subscription.Monthly recurring revenue is the monthly revenue generated from each customer whether the customer is paying annually (i.e. 12 months) or quarterly, one needs to get the equivalent monthly value. For instance if any customers is paying Rs 7500 for 6 months subscription, MRR is 7500 divided by 6 i.e Rs 1250. It should exclude OTC (one-time payment) and any other discounts.
CAC(Cost Acquisition Cost)- It’s the amount spent on acquiring a new customer
CAC = Total Sales and Marketing Cost/Number of new customers acquired.
Specific to a SaaS business, initially upfront investment is incurred in acquiring new customers, whether by deploying sales resources or marketing budgets and in accounting terms company cash flow is predominantly negative. And could take months to make the case flow positive. The faster the business decides to grow, the worse the losses become.




LTV(Life time value of customer) – It is an estimated of total subscription value from an average customer
LTV = ARPA (Average MRR per customer) * Customer Lifetime
ARPA = Sum of all customers MRR/ number of customers


For start-ups LTV > 3x (CAC) and Month to recover CAC < 12 months (source: http://www.forentrepreneurs.com/saas-metrics/)

As shown above CAC is Rs 7000 and MRR is Rs 1000, company cash flow is in negative till month of July. It shows that acquiring a customer puts lot of strain on the company cash flow and if the customer churns before July, it’s a loss to the company. Possible solutions could be to – Lower the CAC or push for a higher MRR.

The above case is just for one customer and as the number of customers increase in the start-up phase the cumulative CAC would multiply and negative cash flow could become unmanageable. A keen view of this metric would be critical during the initial stages of a start-up.

CCR (Customer Churn Rate) - Churn measures the percentage of customers who leave every month. Lifetime value at a product level is directly impacted by the churn % 
CCR = Number of customers who churned in a period / Total number of customer at start of period
If you have a high churn (double digits) then there’s something wrong with the product or customer service.

ARPU (Average revenue per user)-It’s the average revenue received from all active customers.
ARPU= SUM of all customers MRR/ number of customers.
An increasing trend in ARPU is expected, reflecting higher value usage by customers & scaling up of the product.

To continuously track of all these parameters, start-ups can use freely available SaaS service like chartmogul.com or a basic excel.

Ozonetel(www.ozonetel.com) is a SaaS (software as a service) company. We offer cloud telephony solution on a monthly and annual subscription. To help start-up SaaS companies we have made our metrics public and also shared base excel http://ozonetel.com/saas_metrics.html . Just download the base excel and start tracking your metrics.

Written by,
Abhay Kumar


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Wednesday, 24 August 2016

Top 3 objectives of running an efficient call center


Customer calls are a reality in India for all businesses. Customers call on the spur of the moment – to track their orders, complain on quality of goods, to give feedback, to enquire more etc. While the channels of reaching out have increased whether Email, Social media, SMS or Chat, Calls are what most customers choose. In this scenario, each business needs to operate a call center with a published number. Even the government has pitched in and made it mandatory for all online businesses to have a published business number
Now that call centers are a reality for businesses in India, what should be the key objectives of a call center?
Call centers, mostly operate as a “Cost center” and hence need to get it right the first time in choosing the right software, hardware & telecom setup. Upgrades to existing systems are often on the backburner for senior management due to the preconceived view that call centers are a bare necessity and not a tool to boost customer experience.
While there are many steps in achieving optimized call center operations, I have tried to keep the list simple, something which can be easily monitored.

How are you driving the 3 most important objectives of a call center - Sales or Support?

Improving Customer experience
Much often talked about, but not monitored, is the customer experience. While experience sounds global there are simple metrics like FTR, AHT, TAT which when done right, boost customer delight. Simple questions can help Senior management figure out whether their call center is positively impacting customer experience.
  • What is the trend in FTR? Compared to industry benchmarks
  • What is the SLA on inbound calls?
  • Are repeat inbound callers greeted by their name?
  • Is your call centers IVR too long? Compared to industry trend?
  • Can I track repeat callers who are trying to get through
See how Bigbasket does it 

Tracking customer lifecycle & all touchpoints
In line with improving customer experience, tracking customer interactions via various media becomes critical. A key output of a marketing outreach campaign could be to check whether the business has been able to engage with new customers, to what extent? It’s critical to have all such information in one window to monitor customer engagement and take immediate actions that can boost business.
  • Can your call center executive view all customer interactions in one window?
  • Are you able to run campaigns linked with the lifecycle stage of customers?
  • What is the SLA on responding to comments on social media, say Twitter?
See how Industrybuying does it 

Optimized Agent productivity
With a strong focus on costs and with the objective of driving efficiency & optimization, Agent performance metrics are key to successful operations.
  • How to track efficiency of my agents? – Total talk time, Log-in time, Time to answer calls
  • How to monitor quality of agents? Automated speech analytics to monitor keywords could be a step in this direction.
  • How to identify my top performing agents? For an outbound sales campaign, total talk-time/day could be one such metric, to monitor.
See how Agarwal packers does it

Do you have a technology mindset & would like to know more, visit - Blog.kookoo.in
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Monday, 8 August 2016

Ozonetel launches Cloud Call Center in Dubai

Though we have been primarily servicing customers in India, we have been serving international customers since last year. Most of these customers have come through reference or channels. Being a bootstrapped company, we have always been a little passive in going after new geographies. Our approach has been to conquer one geography before moving onto the next one. And this approach has paid off as we are now the number one cloud call center solution in India.

That said, there has been a lot of demand from inbound queries as well as customers in India to launch the call center solution in the UAE region. We have been following up on all these requests and now we are really glad to announce our launch in the UAE region. We will be running our services out of Dubai.

We already have commits for around $1 Million ARR with around $200K already signed up. So if you have a requirement for a cloud call center solution in UAE, please send your requests to sales@ozonetel.com or provide your details on this form

p.s: Feels good to launch a new geography with customer money :)
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Thursday, 4 August 2016

Business Phone is mandatory for online companies


E-commerce “electronic commerce” or “empowering commerce” or “efficient commerce”-
This expansion of eCommerce clears indicates, e-commerce has evolved in India. According to a recent study paper by ASSOCHAM-Forrester India's e-Commerce revenue is expected to rise from $30 billion in 2016 to $120 billion in 2020, an annual growth rate of 51%, one of the highest in the world.
Even the Government of India has played an active role in making eCommerce a success - Digital India, Startup India, Make in India, initiatives targeted at making India a digital economy.
The flip side of this “eCommerce Saga” is the vulnerability of customers to fraudulent activities by companies due to the low entry barrier tending to compromise on quality customer service.
To make the customer grievance rules more rigid. Govt. of India, the Corporate Affairs Ministry has set new rules for all online business companies under the Companies Act, 2013. All online business companies now have to publish the following information on their website
Corporate Affairs ministry has also amended the Companies Act 2013, which would be applicable to an unlimited liability company, the conversion from unlimited liability to limited liability has been made stricter.
  • After conversion, name of the company should not be changed for one year
  • Dividends cannot be paid unless past debt and liabilities have been cleared. 

The above amendment would be mainly applicable to sole proprietorship firm. Since many new companies prefer setting up a Limited Liability Company, it will not affect the start-up ecosystem.
I believe these amendments would help  make online business (eCommerce) more robust in India.
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About Ozonetel- Ozonetel systems (ozonetel.com) is India’s only full stack cloud communication solution provider. We also provide a professional business phone number to new businesses. Get a phone number.

Ozonetel is  Deloitte fast 50 technology company, we cater to the communication needs of over 1000 enterprise customers in India - HDFC Life, RCom, WIPRO, GE, Shaadi, Agarwal packers, United spirits, BNP Paribas, DHFL PR America, just to name a few.
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Wednesday, 20 July 2016

Cloud, a boon for small businesses

Gone are the days when IT infrastructure like ERP, CRM etc. could only be used by large enterprises. The emergence of cloud is a boon for small and medium businesses. Today SMBs can easily avail most IT services, with a minimal financial impact. Cloud based solutions suit small businesses for multiple reasons: A “pay per drink” OPEX model, flexible to use,  very scalable, and easy to upgrade. Amazon Web Services exemplifies this. It is now trending to be a $10 billion revenue business in 2016.
Today, most IT product and services are available as a Cloud based offering. Let’s look at a few solutions.
Cloud Storage: Also called “online store" wherein data is stored on cloud, and it’s accessible to authorised users from any location as long as you have an internet connection. Few benefits are greater accessibility and a good backup. Solutions range from Google Drive to Dropbox and Microsoft Onedrive.
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Cloud ERP: An ERP Solution makes operations streamlined and efficient across finance, customer service, sales, manufacturing and human resources. It helps to manage all activities of business. Traditionally, the domain of SAP and Oracle, new solutions such as NetSuite, Microsoft Dynamics and even SAP Hana are disrupting the model.

Cloud  Office 365: We all are aware of MS Office suite.  Office 365 is Office suite on the cloud. This eliminates the need to have an exchange server and it is very easy to deploy with zero maintenance cost.
Cloud CRM: A CRM solution is a must for better customer service and sales management. From a world of Siebel and SAP, this space has evolved the fastest with large and small providers such as Salesforce, Zoho and Sugar.
Cloud Telephony: For a SMB to create a basic communication solution like a telecalling facility or a small customer service centre,  they would need a traditional solution which, in addition to telecom resources would also need hardware based technology. With cloud telephony,  companies can start any communication service without hardware from the likes of Avaya, just by paying monthly subscription fees (SaaS). Five9 and Talkdesk in the US and Ozonetel in India are few companies that support clients in their telephony operations by providing cloud based software.
As the title of blog states, cloud-based solutions that are on demand are a boon to small businesses.

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Sunday, 17 July 2016

What is Cloud Telephony?


What is cloud telephony
Anyone who wants to start a career in Cloud Telephony or wants to use it, is always curious to understand the basics of Cloud Technology.

So, what is Cloud Telephony?

I would like to share my knowledge about this emerging technology, I will cover the basic architecture of cloud telephony and its advantages.

Cloud Telephony is a data communications technology where all communication applications, switching and storage devices are hosted at the service provider’s premises, Any business willing to adopt this technology,  has to pay only the monthly charges and get access to full-fledged (i.e. IVR, Recording, Analytics & many more) telephony service on traditional phone, mobile or system i.e. desktop, laptop or tablet.

If we want to understand the Cloud Telephony, let’s first understand the Legacy PBX (Private Branch Exchange).


Legacy PBX Architecture

From the above picture, it is clear that for setting up a normal PBX, any organization needs
·                     A dedicated PRI line
·                     PRI Server & card

PRI is the standard for providing telecommunication services to businesses. It is based on the T-carrier (T1) line in US and Canada, and the E-carrier (E1) line in Europe. The T1 line consists of 24 channels, while an E1 has 32.

It’s a physical line terminating on the customer PBX, 24 channels means a PRI line can simultaneously receive/send 24 calls, but only 23 of these channels is used to carry the voice calls and 1 channel is used for signaling.

A PRI Card / Interface is required to terminate the PRI circuit on the PBX.

If you want to have an IVR on your PBX, you need an application server, completed PBX solution and an IVR server.

Now, if any company wants to set up a 2-15 seater call center, the company needs complete PBX setup that is mentioned above, and a complete call center solution from legacy call center solution provider, which makes the whole set-up very capital intensive.

Now, let’s look at the Cloud Telephony solution:

Anyone who wants to start a career in Cloud Telephony or wants to use it, would be curious to understand the basics of Cloud Technology.   So, what is Cloud Telephony?  I would like to share my knowledge about this emerging technology, I will cover the basic architecture of cloud telephony and its advantages.  Cloud Telephony is a data communications technology where all communication applications, switching and storage devices are hosted at the service provider’s premises, Any business willing to adopt this technology,  has to pay only the monthly charges and get access to full-fledged (i.e. IVR, Recording, Analytics & many more) telephony service on traditional phone, mobile or system i.e. desktop, laptop or tablet.  If we want to understand the Cloud Telephony, let’s first understand the Legacy PBX (Private Branch Exchange).   Add caption  From the above picture, it is clear that for setting up a normal PBX, any organization needs • A dedicated PRI line • PRI Server & card  PRI is the standard for providing telecommunication services to businesses. It is based on the T-carrier (T1) line in US and Canada, and the E-carrier (E1) line in Europe. The T1 line consists of 24 channels, while an E1 has 32.  It’s a physical line terminating on the customer PBX, 24 channels means a PRI line can simultaneously receive/send 24 calls, but only 23 of these channels is used to carry the voice calls and 1 channel is used for signalling.  A PRI Card / Interface is required to terminate the PRI circuit on the PBX.  If you want to have an IVR on your PBX, you need an application server, an IVR server.   Now, if any company wants to set up a 2-15 seater call center, the company needs complete PBX setup that is mentioned above, and a complete call center solution from legacy call center solution provider, which makes the whole set-up very capital intensive.  Now, let’s look at the Cloud Telephony solution:     If you look at the above picture, you can easily make out that the complete setup is managed by the Cloud Telephony Solution provider.  The Cloud Telephony solution provider maintains PRI Lines, IVR server, application server, SIP truck, call recording, CTI, reporting & analytics module etc.   Compared to the legacy solution, in Cloud telephony you don’t have to buy anything or manage any hardware or software. Whether you need a basic IVR or you want to setup a full fledged call center, you just have to pay the monthly charge for the service you are using.  Main Advantages of Cloud Telephony solutions are: • Easy & Faster deployment: You can start a full-fledged Call Center, within a few hours even on your mobile phone • Zero Capex: There is no investment in any hardware or software  • Scalability: Businesses can easily scale up or down the number of seats, to meet immediate and seasonal demands • Customization: The solution is customizable, businesses can build the solution according to their specific needs • Integration: With Cloud based Contact Center solution, integration to various back-end systems like CRM solutions, ticketing systems and analytics tools is lot more simple if the platform offers open APIs compared to legacy solutions • Omni-channel solution: The Cloud Call Center enables businesses to connect to their customers via multiple channels i.e email, text SMS, voice SMS, call and social media • Easy to upgrade: The legacy Call Center Solution is inflexible and complex to upgrade, but with Cloud Call Center solution, upgradation  is quite seamless.  • Distributed Call Center: With Cloud Call Center  solution, businesses  can easily set up Call Centers at multiple locations and can manage all locations from a centralized location • Call Monitoring: The monitoring of customer calls and recording is a basic feature of the Cloud based Call Center solution. Businesses can monitor calls from anywhere at any time, advanced monitoring features like Call barge-in is also provided by pioneers like Ozonetel • Reporting & Analytics: Lot of reports, dashboard & real time analytics are provided, which help in taking informed business decisions  The architecture shown above, is just the basic solution of Cloud Telephony. The Cloud telephony is a very flexible solution, it can be highly customized to fit the organization need.  ________________________________________ For more, please visit us over the web at www.ozonetel.com or just click here


If you look at the above picture, you can easily make out that the complete setup is managed by the Cloud Telephony Solution provider.  The Cloud Telephony solution provider maintains PRI Lines, IVR server, application server, SIP truck, call recording, CTI, reporting & analytics module etc.  
Compared to the legacy solution, in Cloud telephony you don’t have to buy anything or manage any hardware or software. Whether you need a basic IVR or you want to setup a full fledged call center, you just have to pay the monthly charge for the service you are using.

Main Advantages of Cloud Telephony solutions are:

  • Easy & Faster deployment: You can start a full-fledged Call Center, within a few hours even on your mobile phone
  • Zero Capex: There is no investment in any hardware or software
  • Scalability: Businesses can easily scale up or down the number of seats, to meet immediate and seasonal demands
  • Customization: The solution is customizable, businesses can build the solution according to their specific needs
  • Integration: With Cloud-based Contact Center solution, integration to various back-end systems like CRM solutions, ticketing system and analytics tools is lot more simple if the platform offers open APIs compared to legacy solutions
  • Omni-channel solution: The Cloud Call Center enables businesses to connect  their customers via multiple channels i.e email, text SMS, voice SMS, call and social media
  • Easy to upgrade: The legacy Call Center Solution is inflexible and complex to upgrade, but with Cloud Call Center solutionupgradation  is quite seamless.
  • Distributed Call Center: With Cloud Call Center  solution, businesses  can easily set up Call Centers at multiple locations and can manage all locations from a centralized location
  • Call Monitoring: The monitoring of customer calls and recording is a basic feature of the Cloud based Call Center solution. Businesses can monitor calls from anywhere at any time, advanced monitoring features like Call barge-in is also provided by pioneers like Ozonetel
  • Reporting & Analytics: Lot of reports, dashboard & real-time analytics are provided, which help in taking informed business decisions
  • The architecture shown above is just the basic solution of Cloud Telephony. The Cloud telephony is a very flexible solution, it can be highly customized to fit the organization need.   
Written By
Abhay Kumar


For more, please visit us over the web at www.ozonetel.com or just click here for free demo.
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Friday, 8 July 2016

Chat with our customer & industry leader



We are doing a special "Founder series" on how Cloud communication tools have helped startups & new businesses in managing their business communications. This month's guest is Mr Sachin Shinde, founder & CEO, Sanvi Softtech Pvt Ltd.



Sachin Shinde| Founder, CEO, Sanvi Softtech Pvt Ltd

What problem does your business solve?
We work in the IT industry to fulfill client needs like web hosting, designing etc. We provide unique and innovative services. Ozonetel has helped us a lot in this to provide customer support to our clients.

What was the Toughest decision for you, as a CEO/Founder
Decision to shift the company to singapore. Decision is taken but in process due to taxation of Indian Govt.

How important is timely & communication with customer to you
Scale of 1 to 10

It's obvious 10 . 

Specific benefit that you have got by using Cloud Agent Lite product?

All the mentioned below features but specially highlighted one.
- One published number for all business communications
- Setup a professional Welcome message, Route calls to right dept. - Give a BIG company feel to our setup
- Setup an intelligent phone system with Zero capex and installation from our end
- I want a telephony solution where I don't need to invest any money and pay as I use
- Any other 

Would you suggest this kind of a solution for other start-ups?
Yes sure i have already referred this service to my friend. He is using it 

How would you rate Ozonetel's customer support team?
Sure it is  10. Actually I do not remember the last time i made a call to customer support of Ozonetel, because your services are so user friendly that i do not need to contact support every time. I am happy with this.

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Thursday, 7 July 2016

Bank Advisory - Improve loan related enquiries using Intelligent & Interactive Voice Responses


Financial institutions, specifically Banks, would easily be one of the largest recipient of inbound calls. Customers are most comfortable once they have spoken to someone at the bank related to whatever query that they might have – Lost a card, Need a loan, Need to activate internet banking etc.I recently activated my internet banking and was happy that my bank, ICICI did not need me to call someone and gave all the information on the website and the sign-up was seamless. ICICI has known to be a more customer centric organization, though wait times on weekends even at their call center is usually high.
On a whim, I decided to test out how efficient Banks are, in providing loan information, as I myself am looking to get a 2 wheeler loan.
Here are some interesting findings of trying to call the Top 10 banks in India

  •  The median wait time to reach an agent is 75 seconds. One national bank had a faulty Toll free number that didn’t work.


Suggestion – Changes can be done in the IVR message length, Optimization of message at each node to reduce this wait time. Use of Speech recognition, even on a limited basis, would significantly reduce the wait times.


  •  Most banks have a standard IVR which prompts user for language choice and then starts a secondary menu.



Suggestion – 2-3 level prompts is the optimal for information to be received via a call. 5-6 prompts typically frustrates customers and also results in longer wait times. A key intervention here would be to identify existing & repeat customers linked with information from the CRM, and skip a couple of prompts in the IVR. Example – if I am an ICICI customer and I call, the system should automatically identify me and skip the language prompt & the standard balance enquiry message. They can decide to further personalize this interaction & directly connect me to an agent.

  • Only 6 out of 10 banks had a single published Toll free number, Out of which 5 were Nationalized banks. This shows a clear trend of call cost reduction by either redirecting customers to call a local number within their region or direct them to a centralized phone number. Also, 1st level of classification for callers is being done by routing such calls to a different set of phone numbers and NOT a single published number.

      Steps which can help in Improving this customer experience can be
o   Schedule fallback options when agents are busy rather than play “All agents are busy ….”
o   If call is not from an existing customer’s number, it should be treated with high priority and reached back to. Here its important to have an integrated solution – IVR, CRM, Overall call center solution.
o   Automated touchpoints can be seamlessly embedded in the call center solution – Intelligent IVR, Speech recognition, Schedule call backs – all of which go a long way in creating customer delight.


Written by
M V Sandilya 

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