August 3, 2022
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8
min read
A long time ago, recreating a cinema experience at home was a massive project. You had to buy a large screen or projector and set up a complex hi-fi system. You also had to manage a mess of cables and buy physical movies.
Today, internet streaming services deliver those same movies to any device for a simple monthly fee.
Cloud communications providers work just like streaming services. They host and manage business tools at remote data centers and servers. Since the provider handles the infrastructure costs, you simply access the service over the internet. You choose a plan and pay only for what you need.
Cloud players like CINNOX have turned the traditional telecoms industry upside-down. Much like streaming, hosting, and SaaS, the cloud is the new standard. Here is why you should base your company strategy on cloud communications.
What is cloud communications?
Cloud communications is digital communication that uses the internet instead of the traditional Public Switched Telephone Network (PSTN). It includes:
- Live Chat
- Web and Video Calls
- SMS and Email
Modern cloud solutions replace expensive and bulky on-premises hardware. They offer a service that is both scalable and flexible.
Two Types of Cloud Services
There are two main categories of cloud communication:
- CPaaS (Communications Platform as a Service): This provides APIs. These allow businesses to build and tailor their own communication platforms.
- UCaaS (Unified Communications as a Service): This is the focus of this article. It combines many channels into a single, cloud-hosted platform. The software updates automatically with new features.
Benefits of cloud communications
Moving your data and voice communications to the cloud brings several key advantages to your business.
1. Saves money on communications
In the past, improving business communications required high Capital Expenditure (CapEx). Companies spent money on:
- PBX (Private Branch Exchange) systems
- PSTN or VoIP hardware
There were also Operating Expenses (OpEx), such as landline bills and on-site technicians for 24/7 maintenance. Gartner notes that while cloud services might seem expensive initially, they become cost-effective over time. Teams operate more efficiently, and firms save money by moving PSTN calls to VoIP calls.
2. Delivers an omnichannel experience
Customer service can be inconsistent if communication channels are not managed well. Gartner found that 50% of large corporations fail to unify their engagement channels. This leads to:
- Disjointed service.
- Interactions slipping through the gaps.
- Siloed customer data.
UCaaS solutions provide a frictionless omnichannel experience. Customers can interact with your business however they prefer. CINNOX, for example, uses a single platform for:
- Human-led interactions (Chat, web calls, social media, and email).
- Collaboration (Video conferencing and screen sharing).
3. Gives a holistic view of customers
Data silos occur when teams "own" their data and become isolated. Forrester found that 72% of firms struggle to manage multiple CRM systems. Without shared data, you cannot see the entire customer journey.
Cloud platforms remove these silos. They unify real-time and historical interactions into a 360-degree view. With this holistic data, your agents can:
- Anticipate customer needs.
- Increase brand loyalty.
- Improve retention and revenue.
4. Personalises the customer experience
McKinsey found that 71% of consumers expect personalised online interactions. Furthermore, 76% get frustrated when they don't receive them.
Without past insights, every interaction feels like dealing with a stranger. When agents have a unified view, they can make every engagement count. For example, if a customer asks about a specific collection, an agent can send a targeted SMS when a promotion starts. This delights the customer and drives conversions.
5. Enhances productivity and efficiency
Hybrid work is the new reality. Gartner predicts that 74% of organisations will move some on-site workers into permanent remote positions. This makes cloud applications critical.
Cloud platforms like CINNOX improve team synergy. Key features include:
- Unified Chatrooms: See all interactions in one place.
- Remote Collaboration: Share screens and files from anywhere with internet access.
- Smart Routing: Automatically direct customers to the right team member based on their needs.
6. Improves security and lowers risk
If you manage your own system, you are solely responsible for data safety. About 45% of data breaches happen in the cloud, so security is paramount. You must also follow strict laws like GDPR.
To safeguard data, cloud providers use:
- Advanced Data Encryption
- Robust Backup and Recovery Systems
- Proactive Data Protection
For example, CINNOX holds ISO 27001 (Information Security) and ISO 9001 (Quality Management) certifications to ensure global security standards.
7. Better business intelligence and analytics
In the past, collecting data was tedious. You had to export data from different sources and "stitch" it together. Often, the data was outdated by the time you analyzed it.
Cloud communications tap into "dark data" (unstructured data) to help you:
- Optimise team workflows.
- Improve customer experiences in real-time.
- Reduce operational costs (often by 10-25%, according to McKinsey).
By tapping into unstructured "dark" data, CINNOX can help you optimise team workflows and improve customer experiences. In a McKinsey study, a financial services firm used analytics on the journeys and moments that made a difference for customers, ultimately reducing its interaction and operational costs by 10-25%.
8. Reduces your carbon footprint
Traditional communication systems were resource-heavy. Every firm built its own infrastructure, leading to massive duplication. These systems required:
- Large floor spaces.
- Constant cooling.
- 24/7 power monitoring.
Cloud communications are much more environmentally friendly. Accenture reports that switching to the public cloud can cut CO2 emissions by 59 million tons per year. That is the equivalent of taking 22 million cars off the road.
Cloud communications is leading the way
In this post-pandemic corporate landscape, cloud communications is here to stay. The question isn't whether you should adopt cloud communications, but when you should start. For a cloud communications platform that delivers great customer experiences as well as empowering employee experiences, give CINNOX a try now!
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