How much does website downtime cost your business?

How much does website downtime cost your business?

If you are Amazon, a 40 minute website outage costs $4.72 million in lost sales (based on the August 2013 outage). A five-minute website outage cost Google a half-million dollars.  If outages can happen to the largest technology companies, they can happen to your business. Most of the SMBs that ACE IT Solutions works with won’t feel quite the same impact from a broken website, so what is the downtime cost for the typical SMB?

Even if your website goes down for a few minutes, it can have a negative effect on your brand, your business’ reputation and your income. The impact of a website outage will have different financial results depending on your business models and how much customers rely on website access for purchases or services.  The Internet is all about immediate gratification, people tend to “want it now”, whether it is information, a product or a service. How long will your customers wait before they take their business elsewhere? Depending on the stickiness of your industry, client loss will not happen immediately and could happen months or years from the time of the incidents.

Downtime can be even more problematic when it comes to reputation. A down website can add a big question mark when it comes to your your business’ reputation and credibility. Diminished confidence can cost much more in the long run than a one-time loss in sales.

Compliance regulations often mandate availability, reliability and privacy of confidential data. If failure to comply with compliance regulations could lead to substantial fines.

Don’t overlook the human resource impact. Downtime makes your employees less productive, causing stress while trying to resolve internal technical issues and coping with external pressures brought on from clients and customers wondering what happened to your website. Even after the website returns to normal operation, there is cleanup work to be done on the technology and customer relations front.

What can you do to prevent website outages?

ACE IT Solutions offers website management solutions to help businesses improve up-time, safeguard revenue and gain a competitive advantage. Our website monitoring services are designed to increase uptime and reduce the total cost of ownership by delivering value-added services that increase the performance and reliability of your website.

Contact ACE IT Solutions at 646-558-5575 to set up a consultation where we will work with your business to evaluate its various systems and functions to understand your level of risk tolerance.