The True Cost of a Phone System Failure

Phone System Failure

Companies today rely upon their communication infrastructure for their daily operations. Phone systems are the backbone to many businesses, allowing for the communication between employees, with prospective clients, and to service existing clientele. It only stands to reason that the failure of these phone systems can have tremendous consequences for a business that go beyond the cost of the repairs themselves.

Business Interruption and Opportunity Costs

When your telephone service goes down, you can’t do business — and that means cash flow stops. This can have ramifications that go beyond simply forfeiting revenue. You may need to take on additional loans, cutting into your revenue well in the future. You may not be able to invest in upgrades to keep your business growing, ultimately dampening your revenue for the future. Business interruption and opportunity costs can represent a significant set back in your growth potential.

Loss of Customer Faith and Poor Customer Retention

Customers can’t give you business if they can’t get in touch with you. Clients who cannot connect with you will often move on to competitors — and they may never come back. As any business owner knows, customer retention is far less costly than customer acquisition. The goal should be to provide your customers with the best quality of service every single time, and this is something that can only be achieved through reliable communication.

Equipment Replacement and Repair Costs

The most direct cost involved in a phone system failure is the repair and replacement of the equipment. Consistent upgrades are often far less costly than total equipment failure, which can cause significant damage to other involved parts. Moreover, emergency repairs are often more expensive than simply performing routine maintenance as needed. When your telecommunications equipment goes down, you need it repaired now — not when it’s most convenient to the repair company.

Operational Costs and Staff Time due to Phone System Failure

Even though your business may not be bringing in revenue, it’s still expending overhead. Your offices are running and your utilities are getting paid even though you aren’t making any money. Additionally, your staff members will be struggling to communicate with clients and each other without a phone system. All of this adds up. It isn’t just that you aren’t gaining revenue — you’re also still paying out expenses.

Obviously, it’s important for a company to do all they can to avoid phone system failure. For many businesses, this means transitioning to newer technology — such as VoIP solutions from Altigen  — and having backup systems and redundant failover solutions in place. Maintenance agreements, regular servicing, and needed upgrades are required for a stable phone system.

Concerned with the health of your current phone system?  Call us at 301-682-9972 or e-mail and we will be glad to help.