Calculate the ROI For Your New Video Conferencing System

Posted by ET Group on December 13, 2023


Calculate the ROI For Your New Video Conferencing System

With hybrid work being embraced across many industries, high-quality video conferencing has become a must for efficient communication—but before investing in this technology, it helps to know what kind of financial returns you can expect from it.

While the costs of different video conferencing solutions vary, there’s a fairly straightforward way to estimate the ROI a new system offers before you purchase it. Below, our team at ET Group will walk you through the factors you should consider in your calculations so that you can make an informed decision about how to proceed.

Calculating ROI: A Simple Formula with a Few Tricky Variables

At its core, ROI is a percentage that represents the net gain of an investment versus its initial costs. The formula is straightforward:

ROI = (Total Benefits – Total Costs)/Total Costs x 100

The challenge lies not in the math involved, but in comprehensively and accurately assessing what factors constitute the ‘Total Benefits’ and the ‘Total Costs’. Below, we explain each of these in detail so you can fully understand the implications of investing in new video conferencing technology.

IT professionals upgrading business network to allow for new video conferencing system.

Breaking Down the Costs of Video Conferencing

An effective video conferencing system comes with a range of costs, depending on your existing infrastructure and the functionality your organization needs:

On-site team members in meeting room using video conferencing technology to collaborate with remote team members and save costs.

The Benefits of Video Conferencing Technology

Although a worthwhile video conferencing system requires an initial outlay and comes with ongoing expenses, it also brings a wealth of benefits that help offset these costs. These include:

Using the ROI Formula in Context

Given the costs and benefits outlined, let’s imagine how these could feed into the ROI formula above:

To provide some perspective, let’s use a hypothetical medium-sized company as an example. This company has:

Example Costs

Total Costs = $20,000 + $30,000 + $15,000 + $10,000 + $10,000 + $15,000

Total Costs = $100,000


Benefits Tally = $100,000 + $100,000 + $50,000 + $50,000 + $30,000 + $40,000 + $30,000

Total Benefits = $894,231

Now, applying our formula:

ROI = ($894,231 – $100,000) / $100,000 x 100 = 794.23

ROI= 794.23%

Keep in mind that these numbers are entirely hypothetical, and intended to highlight the potential long-term returns video conferencing technology can provide. For a more detailed idea of how your specific organization could benefit from implementing this kind of system, we recommend reaching out to our technology consultants for a detailed plan and a personalized estimate.

Graphic of team using video conferencing system to watch presentation explaining company growth.

Video Conferencing: A Critical Long-Term Investment

Investing in a video conferencing system has the potential to provide significant financial benefits in the long run, but it’s also an excellent way to improve your organization’s culture. The right technology can help you streamline your operation, improve collaboration among your team members, and move with more agility when faced with critical decisions.

As an increasing number of businesses move towards hybrid and remote work, investing in a video conferencing system is also an important part of future-proofing your organization. Contact ET Group to find out how we can help you stay ahead of the curve with a custom hybrid workplace solution that helps your people do their best work and provides a measurable return on investment over the course of its lifespan.

Frequently Asked Questions about Video Conferencing ROI

How often should I reassess the ROI offered by my video conferencing system?

Given the pace of technological evolution, it’s advisable to reassess the ROI of your video conferencing system every 2-3 years. This ensures you’re leveraging the latest features and helps identify areas where newer solutions might provide better value. Regular reviews will ensure your system remains cost-effective and meets the evolving needs of your organization.

Is negative ROI for video conferencing systems possible (& how can I avoid it)?

Before investing in any new technology for your business, it’s important to make sure the costs outweigh the benefits to avoid negative ROI. Factors that could contribute to negative ROI for video conferencing systems include:

To avoid these issues, it’s vital to plan and implement your new system with experienced professionals. Our team at ET Group provides consulting and training for your team to maximize the effectiveness of your new system and eliminate these risks.

Is employee training for new video conferencing systems always necessary?

While modern video conferencing tools are designed for ease of use, it’s essential to recognize that comfort with technology can vary among employees. Training ensures that all team members can use your system to its fullest potential.

Even if your team members are familiar with such tools, the specific features or integrations of your new system may require brief training sessions. The goal is to ensure seamless communication and collaboration without technical hiccups so that you can enjoy the best possible value from your investment.

What costs and benefits are most relevant for my company when calculating ROI?

Each organization has unique needs. While we’ve offered a general breakdown of potential costs and benefits above, it’s crucial to consider your company’s unique factors, such as:

Consulting with our technology specialists at ET Group is the easiest way to arrive at a more specific estimate of the ROI you can expect from upgrading to a new video conferencing system.

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