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Innovation and Functionality Trump Price as UC Differentiators – UC Today Report

Innovation and functionality are the two defining differentiators in the UC industry, eclipsing the likes of price and service, according to a new report from UC Today

Published: November 25, 2024

Grant Murphy

The ‘State of UC 2024: Understanding Industry Trends and Strategic Directions’ report illuminates the primary differentiators shaping competition in the UC market.  

Surveying professionals from across the sector—including vendors, channel partners, service providers and service providers — the report provides invaluable insights into where the industry is heading and what truly matters for success. 

Innovation and Product Functionality Lead the Charge 

Innovation (42%) and Product Functionality (41%) emerged as the industry’s top differentiators. 

This reflects the increasing demand for cutting-edge, agile solutions that can not only meet but exceed customer expectations. 

The survey shows customers seek platforms that allow them to stay ahead of trends, address evolving customer needs, and integrate seamlessly with other business tools. 

Offering basic functionality is no longer enough; businesses are investing in innovative, flexible, and functional UC solutions. 

Comprehensive Product Portfolios are Essential 

Another key factor highlighted in the report is the importance of a broad Product Portfolio (32%). 

A well-rounded product suite enables providers to cater to diverse use cases across industries, from SMBs to large enterprises, providing the flexibility needed to tailor solutions to specific business needs. 

With an increasingly diverse market and complex customer requirements, companies that offer a comprehensive range of products are better positioned to differentiate themselves and expand their market share. 

Download the report in full here   → 

Service Quality and Customer Experience Take Center Stage 

While innovation and functionality are crucial, the importance of solid service credentials (27%) and customer experience (26%) cannot be overstated. 

As businesses continue to prioritise digital transformation, they need more than just robust products—they need reliable, responsive support and engaging customer experiences. 

Ensuring that customers are fully supported throughout their journey has become a key value driver for UC providers. 

The increasing focus on service quality highlights a shift in the industry towards a more customer-centric approach, where support, problem resolution, and ongoing engagement are pivotal to retaining business and building long-term relationships. 

Price Takes a Backseat to Value 

Interestingly, price (15%) appears as a lower priority for decision-makers, indicating a trend where companies are willing to pay a premium for solutions that deliver superior value. 

This aligns with a broader shift in how organisations calculate ROI. Rather than focusing solely on upfront costs, businesses are evaluating how UC solutions can drive productivity gains, enhance collaboration, and improve overall efficiency. 

As such, buyers are favouring quality over cost savings, opting for solutions that deliver tangible business benefits. 

Vertical Market Knowledge and Technical Skills Matter 

The report also highlights the importance of vertical market knowledge (23%) and technical skills (23%). 

As industries become more specialised, UC providers are required to have a deeper understanding of sector-specific needs and regulatory requirements. 

Whether serving healthcare, finance, retail, or other industries, having the technical expertise to implement and manage tailored UC solutions is critical for success. 

This trend underscores the growing importance of industry specialisation within the UC sector, as well as the need for providers to continuously develop their skills and stay ahead of the curve in emerging technologies and applications. 

Download the report in full here   →