However, downtime can have many costs that users don't consider. The real costs of downtime aren't always measured in dollars and cents, but many of them can have an
What Might Have Been
A familiar concept to economists--though not always so familiar everywhere else--is
Downtime creates huge opportunity costs. When employees can't work thanks to a down network or application or anything else that experiences downtime, that business's employees are incurring
Another less quantifiable but still important cost of downtime is reputation. It's well known that more people will tell others about bad service than about good. A 2014
American Express study found that the number of people talking about bad service
A TARP Worldwide study published in Customer Experience 3.0 further noted that bad customer service increases price sensitivity, and makes even a slight undercutting from a competitor seem more attractive. Basically, customers are prepared to pay a little more to get away from bad experiences. Thus, the impact downtime has can affect customer counts, total revenue realized, and total profitability.
Now We're Talking Actual Money
One thing is clear: downtime is too costly to have any more of it than absolutely necessary. From the loss of current customers to the loss of potential customers and the accompanying revenue loss that goes with lost customers, downtime might cost a lot more than most would expect.
MHO Networks has released a Downtime Calculator that will help provide valuable insight into just how much downtime can actually cost. If you don't like the look of that number, then talk to MHO Networks about how to prevent downtime.