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

The contact center and omni-channel communications

The contact center and omni-channel communications We’ve talked in other blogs about the value of contact centers over traditional, one - dimensional call centers, but we haven't talked yet about the need for contact centers to be designed on the omni-channel model. This blog explains what omni-channel means and why this is a critical part of the contact center design. Omni-channel refers to a specific model of multi-channel communications. We already know a contact center makes use of many different modes of communications in order to best meet all of your customers wherever they choose to be. But we haven’t talked about the fact that contact centers need to be omni-channel. In the omni-channel model, all of the channels are integrated. The idea here is to allow for cross channel “communication” so that the information and customer data that is accumulated on one channel is immediately communicated to all the other extant channels. The goal: whenever a customer connects on any touc…

The contact center and omni-channel communications

The contact center and omni-channel communications

We’ve talked in other blogs about the value of contact centers over traditional, one – dimensional call centers, but we haven’t talked yet about the need for contact centers to be designed on the omni-channel model. This blog explains what omni-channel means and why this is a critical part of the contact center design.

Omni-channel refers to a specific model of multi-channel communications. We already know a contact center makes use of many different modes of communications in order to best meet all of your customers wherever they choose to be. But we haven’t talked about the fact that contact centers need to be omni-channel. In the omni-channel model, all of the channels are integrated. The idea here is to allow for cross channel “communication” so that the information and customer data that is accumulated on one channel is immediately communicated to all the other extant channels. The goal: whenever a customer connects on any touchpoi…

4 reasons customers prefer contact centers

4 reasons customers prefer contact centers You may have read that call centers are beginning to take a back seat to contact centers, where customers and prospects can interact across a wide array of communication modes. Today we’re discussing four big reasons customers prefer contact centers. As a reminder, contact centers offer customers a variety of communication channels: voice, email, text, chat box, social media, and others. New generations are very familiar with non-voice communication channels and may prefer these channels over voice. People now are accustomed to using non-voice channels for most of their personal and business communications needs. Voice has become a secondary method, at best, for many users.Self-service has become the norm. Customers have become accustomed to self-service options that require no interaction and are available on-demand.Social media has become an important channel of customer interaction. This is a particularly important issue. People use social me…