Skip to main content

How Much Does Downtime Really Cost Your Business?


 
Many SMB owners think IT downtime only costs them a few productive hours, but there’s a lot more at stake when your systems go down. Customer satisfaction and loss of brand integrity are just two of the key losses apart from the more evident costs such as lost productivity and a temporary dip in sales.
 
Here’s a few other ways downtime can hurt your business:

1. Customer Loss - Today’s buyer lacks patience !important; They are used to getting everything at the click of a mouse, at the tap of a finger. Suppose they are looking for the kind of products/services that you offer and your site doesn’t load or is unavailable—even if temporarily-- you are likely to lose them to a competitor—permanently.

2. Damage to Brand Reputation - Customers are now using Social media platforms like Facebook and Twitter and blogs to vent their bad brand experiences. Imagine an irate customer who doesn’t know if their card was charged on your site, or not, due to a server error. If it’s your bad day, they could probably be using Facebook or Twitter to share their bad experience, and it could be viewed by hundreds of people, causing irreparable harm to your brand image.

3. Loss of Productivity - When your systems don’t work, this can have a direct impact on your employees’ productivity. Consider a research firm of 200 employees where they primarily rely on internet connectivity to access the knowledge base. If the server hosting the knowledge base is down, there’s a total loss of at least 1600 work hours for one day.

4. Overtime, Repair and Recovery, Compensatory costs - In the above case, imagine the overtime wages the business would have to incur if they were to make up for the work loss they faced owing to downtime. In addition, there’s always the cost of repair—the money the business would have to shell out to fix the issue that caused the downtime and get the server up and running again.

In some cases, businesses would have to incur additional costs to make customers happy. These could include giving away the product for free or at a discount, or using priority shipping to make up for a delayed order.

5. Possible Lawsuits - Businesses could also be at the receiving end of lawsuits. For example, a downtime that has an impact on production, delivery or finances of the customer could invite litigation.

6. Marketing Efforts Rendered Useless - Consider a pay-per-click advertisement that shows up for the right keywords on Google, or an extensive e-mail campaign that your business engages in. However, when the prospect clicks on the link, all they see is an error message - Isn’t that a waste of your marketing budget?

The bottom line—one natural disaster, one technical snag or just one power outage has the power to put you out of business - both virtually and in reality. It’s probably time to think about how you can mitigate the threat of a possible downtime and whether your MSP can act as an effective and efficient ally in this battle for you.



Comments

Popular posts from this blog

Is your Business Safe from Virtual Threats?

    Did you know that 50% of small business owners think their businesses are too small to be targeted by the thieves of the virtual world? Contrary to popular belief, 72% of hacker attacks often happen to smaller firms - firms with less than 100 employees! So how prepared is your SMB? Here’s a checklist to help you find out how vulnerable you are to these attacks.   1. Do you have Antivirus protection? -  An antivirus software program can protect you from threats that originate from emails such as phishing and virus attacks. However, the most striking fact is that 61% of small businesses don’t install any antivirus software! If you are one of them, then it’s time to change!   2. How sturdy is your Firewall? -  A good firewall system protects your computers from the variety of threats that exist in the virtual world. Examples include harmful cookies, viruses, worms and other such malicious programs used by hackers.   3. Do you use a Spam filter? -  Using a simple spam filter for your e

Four ways unified communications can improve productivity Part II

Four ways unified communications can improve productivity Part II In our last blog we suggested that unified communications has value to an organization's efforts to increase productivity. It can facilitate smoother, more efficient collaboration in a 24/7 workspace. Unified communications can Improve the functionality of our 24/7 workplace - The reality of 24/7 availability has been around for a while, and learning to place constraints on that is for another e-guide. However, unified communications can play a role on the 24/7 expectation problem. For one thing, with a single portal to an individual’s multiple communication channels, an employee can more easily communicate across those channels that they are not available and therefore limit expectations for an immediate or timely response when that is not possible. Also, with a unified portal, responding to different channels in off times can be easier and therefore less time-intrusive. Improve client satisfaction - Nothin

Hosted PBX - Is it right for you?

Cloud communications is a hot topic and everyone's doing it.  Is it right for you? It might be.  It's not perfect for every business, but for most it is a great fit.   Cloud PBX, or Unified Communications as a Service (UCaaS) is a cost effective way of delivering advanced communication features to small and medium businesses.   Integration with Outlook and your CRM, instant messaging, video calling, desktop and document sharing, mobile access, call recording, even call centre functionality are all available to anyone.  These features used to only be available to companies with the money to shell out for an on-premise UC system - but not anymore. Why hosted? You are likely already hosting some or all of your data and applications in the cloud.  Many at least are using Office 365.  This is another opportunity to eliminate the capital and maintenance costs of hardware and software running in your office, as well as reduce ongoing costs for analog or PRI connections.  Y