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Cost comparison against voice charges to mobile phones

Field Engineers: An engineering company with a 42 field engineers reduce call costs on replaced mobile calls by a minimum of 67.47% per year. 

By replacing some of the telephone calls to each engineer with SMS Text Messaging the saving potential is a minimum of £6,695.50 pounds per year (depending upon mobile network). 

This figure does not include the additional savings associated with entering data from the call into the dispatch system and the people time saved making and receiving the call. 

Other potential advantages include offering the customer their full attention without the interruptions of receiving calls that may or may not be associated with that particular customer. This provides the benefit that the engineer can offer their current customer their full attention -  finishing the call sooner and recognising the customer as an important client.

Calculations
Each engineer visits on average six customers per day and receive calls from their dispatch office providing allocation of next customer call, issue details, status updates on available spare parts ordered for customers and other calls. They receive on average ten calls per day.

The analysis and assumption made for this business case was that only 50% of these calls will be replaced by a SMS Message and each replaced phone call lasts only one minute.

This results in a total of 105,000 telephone calls to the engineering work force per year, with an estimated 52,500 replaced by SMS messages (50% of the total). The total cost of the replaced voice calls is between £9,923 to £11,902 depending upon mobile network used.

The engineering company purchases the minimum number of credits to replace these calls with SMS messages - total cost £3,227.50 (one 50,000 credits pack, two 1,000 credits packs and one 500 credits packs)

Example using costs from cheapest BT to mobile network day tariff

Notes: All comparisons are based upon the BT call charges to mobile phones dated 29th May 2003 and are based upon the following assumptions.

1. Call to mobile user lasts one minute (can be longer if the recipient is not ready to write down information being communicated)

2. Call rates are in pence per minute. Minimum call charges or set-up fee apply. The prices in these examples are for example only and are subject to change. Every effort is made to ensure that the price comparisons are correct but if you require information on cost savings then please contact us at solutions@websetters.co.uk for details.

3. Information to be communicated is contained within one SMS message.

4. No consideration is made of the real people costs that can be saved in phoning the recipients which is often takes be longer than sending a SMS message. This is especially so if a number of mobile workers or clients need the same information. Each has to be phoned individually while a single SMS can be distributed to many recipients.

5. No consideration is made on the further savings or increased business that can be achieved through communicating with people in a cost efficient and reliable manner