Lately, there's been a lot of debate about whether or not we're in (or about to enter) a recession. Whatever comes, many businesses are looking at ways to weather the changing economy.
It makes sense to investigate cutting costs and perhaps to keep the status quo by not moving forward with operational upgrades or changes at this time. That said, holding off in all areas may not be as sound a decision as you may think when it comes to staying afloat and growing stronger in the current business climate.
Automating some processes or implementing changes that benefit customers and employees alike may sound counterintuitive to tightening purse strings. But sometimes, doing so actually helps and may even be necessary to weather the approaching storm and build momentum for the future.
Can cloud communications save your business money during an economic downturn? The simple answer is, in most cases, yes. Of course, every company is different, so your communications support partner should understand your current solution and your future objectives completely so they can recommend the best path forward.
Below, let’s explore some of the typical areas your enterprise may save money when adopting a cloud-based telephony package:
Real Estate: On-Site PBX vs. Cloud
A cloud-based system doesn't require a physical location. On-prem PBX hardware and equipment take up space that may be better allocated elsewhere.
Additionally, the upkeep of older equipment can be costly, especially as the industry moves away from this type of technology, making it challenging to find a provider or the necessary parts for repairs and maintenance. And if you find someone, they may charge quite a bit for their services since the market is rapidly shrinking and technicians are jumping ship in favor of cloud companies.
IT: Easier Management and Administration
Administratively, cloud platforms are easier to manage than their PBX counterparts. Updates, including security protocols, are performed automatically by the vendor. Adding reps, allocating extensions, changing passwords, and running reports generally happen at the click of a button from an administrator's dashboard.
In fact, many companies don't use their IT staff very often for these functions once they migrate to the cloud; management can easily perform the tasks without having to wait for IT. You'll save on personnel resources since IT teams won't need to worry about equipment, maintenance, or day-to-day administration and can focus their energies elsewhere.
Automation: AI Boosts Customer Experience and Employee Efficiencies
You might have heard about AI (Artificial Intelligence) and how it's revolutionizing many industries. Telephony is no exception as AI interfacing gets more sophisticated. Because of this, customers are getting more comfortable and confident about using self-service options when they don't necessarily need to speak to a live person.
Interactive Voice Menus (IVR), call routing, and chatbots can offer customizable options for getting callers to the right end destination the first time. Self-service account requests or identity verifications before a live call with the appropriate team member gives clarity to every interaction.
Either way, the ability to free up staff for customers means they'll be able to handle more complex calls with more first-call resolutions, ultimately saving payroll.
Reporting: Analytics Give Insight and Uncover Needs
Cloud-based communications platforms offer an array of reporting tools so supervisors can quickly answer complex business operations questions. This data helps streamline employee capabilities, identify patterns and training opportunities, and outlines where you spend the most dollars, so you can make informed decisions that impact your bottom line.
Smarter reporting will help you identify:
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Which of my employees are suited to take specific types of calls?
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What staffing levels are optimal, and at what time of the day?
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Is one department overtaxed while another isn't as productive?
Reliability: Cloud Platform Agreements Guarantee Uptime
We've all experienced being on a call with a business and not being able to hear the person on the other end, or worse, having the call drop. Not exactly a ringing endorsement for stellar customer experiences.
Cloud-based communications platforms offer exceptional call quality. Additionally, these systems are super reliable for a few reasons:
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Uptime Contract Guarantees: Reliability is built into your contract! Vendors promise a specified amount of time that your system will be functional or "up"; if they don't provide it, they have to pay you according to your agreement.
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Data Centers: Since you don't have to house equipment onsite, there must be some equipment somewhere, right? Vendors use secure data centers, which are basically big warehouses that store dedicated servers for their clients.
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Redundancy: Vendors do everything they can to ensure they meet the standards outlined in their agreements, including adding backup data centers for redundancy. That means if a situation occurs (a natural disaster, for instance) and one data center goes down, your system defaults to the backup, so your business is not disrupted.
Retention: Lower Attrition and Build Brand Loyalty
The bottom line? Happier customers and less stressed employees mean you won't lose them when you need them most. While losing customers is never good, it's especially detrimental during an economic downturn where they may be more apt to go elsewhere. And losing an employee means having to embark on a costly recruit and replacement journey.
Overall, there are some expenditures when you move to a cloud-based system. Still, they are typically less expensive and more beneficial to your company's operations in the long run than an outdated on-prem PBX, economic downturn or not.
Would you like a cost comparison for cloud versus your legacy PBX? We can help! Feel free to reach out with any questions.
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