2024 Study Highlights the Impact of Poor Employee Collaboration on Business Success

Rhea-AI Summary

A recent study by Forrester Consulting, commissioned by Vonage, reveals the significant impact of poor internal collaboration on business performance. 49% of respondents reported that poor collaboration negatively affected customer experience, while 40% noted reduced employee productivity. The study highlights that businesses are seeking integrated communications solutions to improve efficiency, enhance customer experiences, and reduce costs.

Key findings include:

• 38% of businesses lost customers due to ineffective internal collaboration
• 53% aim to improve operational efficiency and productivity
• 48% seek to reduce costs
• 45% state current collaboration tools require more time and money to maintain

The study suggests that cloud-based solutions like UCaaS and CCaaS can help businesses overcome these challenges by providing multiple communication channels under a single vendor platform.

Positive

• Vonage's Forrester study identifies market demand for integrated communication solutions
• 53% of businesses aim to improve operational efficiency and productivity
• Cloud-based solutions like UCaaS and CCaaS offer potential for improved collaboration and cost savings

Negative

• 49% of businesses report poor collaboration negatively impacting customer experience
• 40% of respondents note reduced employee productivity due to poor internal collaboration
• 38% of businesses lost customers due to ineffective internal collaboration
• 45% state current collaboration tools require more time and money than expected

49% of Businesses Show Poor Collaboration Experiences Negatively Impacted Customer Experience

Business leaders share insight into what they need to better communicate and collaborate internally and externally

HOLMDEL, N.J., Sept. 24, 2024 /PRNewswire/ -- In a study conducted by Forrester Consulting on behalf of Vonage, new insights have emerged demonstrating the significant effects of inadequate internal collaboration on organizational performance. The data reveals that businesses plagued by siloed departments and ineffective communication suffer substantial declines in both productivity and profitability. Consequently, businesses are searching for integrated communications solutions for more efficient operations, better customer experiences, and cost savings over the next year. The study was commissioned by Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson (NASDAQ:ERIC).

According to the findings, when asked how poor internal collaboration experiences impact their business:

• 49% of respondents found that it has negatively impacted their customer experience
• 40% say it has reduced employee productivity
• 38% reported that ineffective internal collaboration actually costs them business.

When asked about business goals, 53% of respondents reported that they are looking to improve operational efficiency and productivity, while also improving the customer experience. 48% of respondents are seeking to reduce costs. These two important objectives are often at odds, as companies strive to differentiate their customer experiences - while controlling costs.

This new data serves as a wake-up call for organizations to reevaluate their collaboration strategies and invest in resources that will strengthen internal teamwork and communication.  Fostering a culture of open communication and utilizing integrated collaboration and communications technologies is crucial to enhance employee engagement and drive business objectives.

The study notes that solutions do exist on the market today, but it's crucial for businesses to find the right partner with the right solutions. Organizations can turn to cloud-based communication solutions, like Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS). These offerings provide access to multiple communications channels such as voice, video, chat and SMS, to increase productivity and customer experience, all under a single vendor platform.

As decision-makers are searching for more cost-effective and better-performing solutions to upgrade their current siloed capabilities, there is both an appetite and intent to connect their UCaaS and CCaaS solutions.

"The landscape of work is evolving, and companies must recognize that seamless collaboration is no longer a luxury but a necessity to thrive in today's competitive market," stated Joy Corso, Chief Marketing Officer for Vonage. "Businesses are looking for communications solutions to enable better collaboration, productivity, and internal and external engagement."

Corso continues, "Unfortunately, we've found that 45% of these respondents state that their current collaboration tools require even more time and money to maintain versus relying on these solutions to simplify processes and reduce business costs. This study confirms that with a single-vendor combined UCaaS and CCaaS solution, businesses can take advantage of reliable communications, secure operations and more cost-effective capabilities. We believe Vonage solutions, like Vonage Fusion, provide the tools that businesses can use to help enhance customer experiences and improve business outcomes."

Businesses can read the full results of the Forrester Consulting study for more insights and take an interactive quiz on how to unlock the value of combined communications.

Source: Have your UCaaS/CCaaS Cake, And Eat It, Too; Combine Core Technologies To Unlock Better Value, Security, and Quality of Communications - A Forrester Consulting Thought Leadership paper commissioned by Vonage, June 2024

About Vonage

Vonage, a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage's Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging, AI and Verification into existing products, workflows and systems. The Vonage conversational commerce application enables businesses to create AI-powered omnichannel experiences that boost sales and increase customer satisfaction. Vonage's fully programmable unified communications, contact center and conversational commerce applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or remotely - providing the flexibility required to create meaningful engagements.

Vonage is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia and is a wholly-owned subsidiary of Ericsson (NASDAQ: ERIC), and a business area within the Ericsson Group called Business Area Global Communications Platform. To follow Vonage on X (formerly known as Twitter), please visit twitter.com/vonage. To follow on LinkedIn, visit linkedin.com/company/Vonage/. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.

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SOURCE Vonage

FAQ

How does poor employee collaboration affect business success according to the 2024 Vonage study?

The study reveals that poor employee collaboration negatively impacts customer experience (49% of respondents), reduces employee productivity (40%), and leads to lost business (38%).

What are the main business goals identified in the 2024 Vonage study?

The main business goals identified are improving operational efficiency and productivity (53% of respondents), enhancing customer experience (53%), and reducing costs (48%).

What solutions does the 2024 Vonage study suggest for improving business collaboration?

The study suggests cloud-based communication solutions like Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS), which provide multiple communication channels under a single vendor platform.

How does the 2024 Vonage study impact Ericsson (ERIC) stock?

The study, commissioned by Vonage, a part of Ericsson (ERIC), identifies market demand for integrated communication solutions, potentially positively impacting Ericsson's business in this sector.