It Still Works…Optimizing Cellular Phone Bills
Strategies for Reducing Costs and Enhancing Efficiency Employee Blog Post – Lee Newman, Executive VP and Co-Founder of OVATION
When we first started OVATION back in 2002, we thought we may be able to help companies organize and understand what they were paying for regarding their cell phone bills, and ultimately, help them save money by choosing the right rate plans and features for their users. Coming from the wireless industry and experiencing the onslaught of constant changes in billing rate plans and promotions, I quickly learned that the average customer had challenges keeping up with it all.
If wireless billing structures were hard for customers to understand and something that those of us experienced in the business needed proprietary software to keep track with, it certainly created a gap or “niche service offering” for us to offer businesses that invested in mobile phones.
We were so confident there was a need for help in this area that our initial Audit and Optimization service came with a 10% guarantee…if we were unable to find at least a 10% savings improvement, we would complete the project for FREE! Well, in all our years of providing our core service of optimization, there have been very few instances where we did months of tedious work to not earn payday.
Let’s face it, companies rely heavily on cell phones for communication and collaboration more than any other device. But those phone bills can add up quickly, impacting the bottom line. So, it’s important to find ways to cut costs and boost efficiency.
Here are some tips to help optimize cell phone bills:
- Analyze Usage Patterns First things first, understand how employees use their phones. What are their usage patterns? Look at call durations, data usage, and text messaging. You can get this info from your carrier billing statements, but you may also need specialized tools or software to make the billing data easier to analyze.
- Choose the Right Plan Picking the right cell phone plan is key. Service providers offer various plans, from unlimited data to shared data pools. Companies should evaluate their usage patterns and choose a plan that fits their needs. Regularly review and compare plans to ensure they remain cost-effective. And remember, usage patterns change, so when we say regularly, we mean every month if possible. Some companies think that by having an unlimited plan they are “optimized” when in reality, unless everyone is a mega voice and data user, they are overpaying by likely 20% to 30%. Right sizing by Effective Rate Per Minute (ERPM) by user still works. Monitoring cell phone plans is like managing a household budget. Just as you need to regularly check your expenses and adjust your budget to ensure you’re not overspending; you need to frequently review your cell phone plans to make sure they are still the most cost-effective option for your usage patterns. In a household budget, you might find that certain expenses fluctuate month-to-month, requiring you to reallocate funds or find savings. Similarly, with cell phone plans, data usage and service needs can change, necessitating regular comparisons and adjustments to avoid unnecessary costs. Neglecting either can lead to financial inefficiencies and missed opportunities for savings.
- Implement Usage Policies Establishing and enforcing cell phone usage policies to help control costs is key. Create guidelines that define acceptable usage, like limiting personal calls and restricting data-intensive activities during work hours. If they know usage is being monitored, employees will be more likely to pay more attention to how they are using their phones.
- Utilize Cost-Management Services Cost-management services can provide valuable reporting tools, experienced staff, best practices insights and control over cell phone bills. These vendors can monitor usage, allocate costs to different departments, provide detailed usage reporting (even to end users so they are aware the company knows their usage) and identify areas where savings can be made. Implementing such services ensures that companies have a detailed understanding of their expenses and can take proactive measures to continually optimize costs.
- Encourage Wi-Fi Usage Encouraging employees to connect to Wi-Fi networks whenever possible can significantly reduce cellular data usage. Ensure that Wi-Fi is available in the workplace and educate employees on the benefits of using it. Larger companies use Mobile Device Management (MDM) software to manage devices to ensure users are connecting to their company’s Wi-Fi when possible and prevent unauthorized network connections.
- Evaluate and Control International Usage Companies with employees who travel internationally, evaluating international usage is crucial. International roaming charges can be exorbitant, so it’s essential to have plans that cater to global connectivity needs. Service providers offer various international options, and you must plan ahead.
Here’s a scenario that happens too often that could have been completely avoided: Your employee travels to Mexico for business, checks into the hotel and watches a movie on what they thought was the hotel’s Wi-Fi. Only to find out they were using cellular minutes once the bill shows up 60 days later. Mitigating these costs with international carriers is nearly impossible and we have seen costs range in the $180k to $400k range in data use and misuse for a single event. Ouch! Please be sure to read our blog with more tips on how to manage roaming costs for international travelers.
- Periodically Review and Adjust I will say it again: Optimization is an ongoing process because usage patterns constantly change. Companies should regularly review their cell phone bills and usage patterns to identify new opportunities for savings. This proactive approach helps maintain control over expenses and can help prevent unnecessary overspending by as much as 30%.
- Monitor Employee Compliance Implement monitoring systems to track compliance and address any deviations. Regular feedback and reinforcement of policies can help maintain a cost-conscious culture within the organization.
Can’t See the Forest for the Trees Optimizing cell phone bills is a multifaceted process that truly never ends. By adopting these strategies, companies can effectively reduce their cell phone expenses, enhance operational efficiency, and ultimately improve their bottom line. In fact, not following these tried-and-true practices is like not seeing the forest for the trees. And those will be the trees they cut down to make paper to print your big phone bills.
And our belief that we will find at least 10% or more improvement on any given project, after all these years, still rings true. HAPPY OPTIMIZING!!!
Lee Newman is the EVP and one of the Co-Founders of OVATION. Lee has over 35 years of experience in the wireless industry and 23 years with OVATION helping businesses manage their mobility programs. Contact OVATION for assistance planning and implementing your 2025 wireless mobility cost-saving initiatives.
