The key to a successful consumer product is the ability to tell someone quickly why they have to have it. To some degree, PhoneGnome fails this test. It takes a bit too much explanation to appreciate it, and there isn’t a nice simple message that applies to everyone and is easy to convey briefly.

Part of the issue is similar to what I call “the Tivo problem” where unless you have TiVo , you can’t rapidly appreciate what it’s really about. There is no simple reference or comparison to something you already do, because it’s really not at all related to “taping shows” a la a VCR.

For anyone that uses PhoneGnome, a statement like “take back your phone” or “makes your home phone service useful again” rings true. But such messages aren’t concrete enough to answer the question “but what does it do?” for the average person.

Ordinary replacement VoIP services have a simple message “phone service for less.” They explicitly avoid talking about any new features or capabilities and simply say “get the exact same thing you know for less money.” They of course very carefully select what they compare against to arrive at that figure, but the point is because they aren’t offering anything really different, new or better, they are able to have a simple message to the consumer. To me, that message is flat, but I have to admit that it is simple and understandable.

When we ask, why is PhoneGnome better, we arrive at an answer like:

VoIP cost savings with landline reliability and the most powerful yet practical and easy to use features in the industry

And then there are several additional sub-benefits that are important to us:

1. NO MONTHLY FEES
2. Keep my phone number without the hassle or risk of transferring the number

Here’s how the three benefits above break down (1. cost savings, 2. landline reliability, 3. powerful yet practical features):

1. Cost Savings

PhoneGnome lets me cut my basic landline service down to a bare minimum while stiill enjoying features I can’t even get from the phone company or even with other VoIP services in many cases. Using PhoneGnome’s honest easy to read call logs (call history), I can know how many local calls I really make and know what plan will be the cheapest. I don’t have to wade through message units, Zone calling, and other ways the phone companies try to obfuscate your actual usage. I also can zap features that the phone company charges a monthly fee for that PhoneGnome gives me free. Based on actual usage data, 89.3% of PhoneGnome owners could reduce their basic landline to the cheapest measnured rate bringing their basic service costs to around $6.00 per month (the phone companies often make it hard to find these plans).

Of course, PhoneGnome also lets me reduce my long-distance bill by using the Internet to make free calls or near-zero cost calls and I can get huge savings on international calls. Based on actual usage, the average PhoneGnome customer, assuming they use the PhoneGnome plans available, would spend $6.88 per month for long-distance calls – in many cases that’s higher than the fixed monthly fee for traditional long distance plans.

Not a single PhoneGnome customer, based on actual usage, would be better off with one of the telco flat-rate bundles (the plans that the other VoIP services say they are cheaper than). Nobody should be on those outrageous plans, unless the peace of mind of knowing your bill will always be $90 is worth the $40-$60 extra it’s costing you each month (the average PhoneGnome user would save $48.75 total per month vs. these plans, based on actual usage).

For those making international calls (about 48% of PhoneGnome users), the average savings over standard telco rates is $1,109.20 per month!

While we’re on the subject, a lot of people think PhoneGnome costs more than a typical stand-alone VoIP service, but are willing to pay because of the added benefits of having a real landline. The fact is, PhoneGnome customers save on average about $8 vs. a typical “substitute” stand-alone VoIP service, even counting the cost for their landline and if they were to pay for PhoneGnome Premium Voicemail. Among those making international calls, the average savings over such VoIP services is almost $100 per month! Of course, in real life, since a large percentage of users would pay for a real landline anyway (whether for real 911, alarm system or because they have DSL), so the actual net savings with PhoneGnome is even greater.

2. Landline Reliability

Beyond the basic reliability factors of having real 911 and having a phone that works when the power goes out or when the Internet is down, I also don’t have to worry about TiVo, DSS, or home alarm systems. And I also get a real local number, with all the local services my neighbors get. I call my kid’s school etc and I know the call is using the local service and reports the right caller ID etc. 800 numbers work, 900 numbers even. Whatever I want to do, I know I have a real landline available whenever I need it and it’s seamless to use – don’t have to dial a special code before I call or ensure I use the right phone. I just dial.

And beyond some other VoIP devices that have a “fall back” landline port, with PhoneGnome, my plain landline calls also get PhoneGnome treatment, so voicemail to email works on those calls; I can even have calls to my landline number ring on Skype etc. So I don’t have to pay for a basic landline that just sits there waiting for the day that I need 911 – I get a landline I can actually use every day.

3. Powerful Yet Practical Features

PhoneGnome has lots of cool features, but for me the most important are:

• Voicemail to email
• Mobile phone integration
• FREE VoIP Calls to all industry standard systems/services
• Skype integration
• Call History

Mobile Integration in this case means (among other things):

• Place calls over your home phone service on your mobile phone
• Answer calls to your home phone on your mobile phone
• Answer calls to your mobile phone on your home phone
• Consolidate your mobile phone and home phone voicemail

Skype integration means:

• Have Skype ring to your mobile phone or other phone; even have Skype calls ring to multiple numbers at the same time
• Make SkypeOut calls from your plain phone
• Place Skype calls using your mobile phone (MobileGnome)
• Consolidate your mobile phone, Skpye, and home phone voicemail

In short, by making calling affordable on your home phone, PhoneGnome makes your plain phone useful again. It lets me reconnect with my standard home phone and remember what I liked about it: Simple, convenient, reliable — and now with PhoneGnome it’s actually affordable too.

So what do you think? Does the message above work as a selling proposition? Are you a web designer or otherwise that might want to help us develop this theme?

This entry was posted on Wednesday, August 2nd, 2006 at 6:55 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.