What Is Cloud Communications and 8 Benefits You Need to Know

A long time ago if you wanted to recreate a cinema experience at home, you had to buy a big screen TV or projector, set up a hi-fi system, install a complex mess of cables, and then either rent or buy movies on physical media. For a monthly fee, Internet streaming services now deliver these same movies to any device!

Cloud communications providers, like streaming services, host and manage business communications services at data centres and servers. Because these providers manage all of the related costs and expenses, you simply access the service over the Internet by choosing from monthly or annual plans and paying for only what you need.

Cloud players such as CINNOX have turned the traditional telecoms industry upside-down, in the same way that streaming, hosting and SaaS have. Continue reading to learn why you should base your company strategy on cloud communications and to discover 8 benefits of moving your data and voice communications to the cloud:

What is cloud communications?

Cloud communications is digital communication that uses the Internet rather than the traditional Public Switched Telephone Network (PSTN) network, such as chat, web calls, video calls, SMS and email. What used to be provided by expensive and bulky on-premises infrastructure is now a scalable and flexible communications service.

There are two types of cloud communication services: communications platform as a service (CPaaS) and unified communications as a service (UCaaS). CPaaS provides APIs that allow businesses to tailor their communications platform for their needs. The topic of this article is UCaaS, which combines many channels into a single cloud-hosted software platform that is automatically updated for new features.

Benefits of cloud communications

Moving your data and voice communications to the cloud can bring your business a list of benefits. Let's look at some of them!

1. Saves money on communications

Previously, firms who wanted to improve their business communications spent capital expenditure (CapEx) on hardware like PBX (Private Branch Exchange) systems and PSTN or VoIP phone systems. Plus, there were operating expenses (OpEx) such as landline bills and on-site technicians to ensure 24/7 uptime

Gartner recognised that while cloud services may initially be more expensive than running on-premises data centres, they become cost-effective over time when teams use and operate them more efficiently. Plus, firms can enjoy huge cost savings by moving PSTN calls to VoIP calls with global cloud providers like CINNOX.

2. Delivers an omnichannel experience

Customer service can be a hit-or-miss, depending on how successfully a company manages its communication channels. In fact, according to Gartner, 50% of large corporations have failed to unify engagement channels, resulting in disjointed and siloed customer service as interactions occasionally slipped through gaps.

UCaaS solutions address this issue by providing a frictionless omnichannel experience for your customers, allowing them to interact with your business in whichever way they like. CINNOX, for example, use a single platform to drive human-led interactions across live chat, web calls, social media, email and traditional telephony connections, as well as to collaborate via video conferencing and screen sharing.

3. Gives a holistic view of customers

Data silos happen in your company when teams start owning their data and become isolated from other teams. Forrester recognised that 72% of firms found managing multiple CRM systems moderately to extremely challenging. When data isn't being shared, it would be difficult to get an overview of the entire customer journey.

CINNOX, for example, removes data silos by unifying data from real-time and historical interactions, providing a single view of the customer available to all your teams. With a holistic 360-degree view, your agents are better equipped to anticipate your customers' needs, resulting in increased brand loyalty, retention and revenue.

4. Personalises the customer experience

In a post-pandemic world, McKinsey found that 71% of consumers expect companies to deliver personalised online interactions. And 76% get frustrated when they don't! Without insights about past interactions, each engagement feels like you're dealing with a new customer, not knowing their likes, dislikes and needs.

When your agents get a unified view of the customer journey in CINNOX, for example, they're able to personalise the entire customer experience. If a customer is asking about the latest designer collection, for example, your agent can send an SMS when there is a promotion, delighting the customer and making them an instant fan!

5. Enhances productivity and efficiency

In a post-COVID world, you're likely to adopt hybrid work practices with a mix of teams in the office along with distributed teams. Gartner predicted that 74% of organisations will move around 5% of their typically on-site workers into permanent remote working positions, making cloud applications even more critical.

Cloud communications platforms, such as CINNOX, improve team synergy and deliver better customer experiences. Your teams can see all interactions in a single chatroom and share screens to collaborate from wherever there is Internet access. Plus, customisable smart routing options direct customers to the right team member.

6. Improves security and lowers risk

When you manage your own communications system, you are solely responsible for the safe keeping of your customers' data as 45% of breaches happen in the cloud. You must also follow strict privacy and security laws such as the General Data Protection Regulation (GDPR). Data breaches are definitely not an option here!

To safeguard the data of its customers and their clients, CINNOX uses data encryption, backup and recovery and data protection systems. Furthermore, it received ISO 27001 accreditation for its information security management system (ISMS) and ISO 9001 certification for its Quality Management System (QMS).

7. Better business intelligence and analytics

Previously, you would have had to collect data from different sources and stitch it together to find trends and get insights. Aside from asking your IT department or system administrator to regularly export data, the workflow was time-consuming and tedious, and your data may well be out of date by the time you received it!

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

When businesses previously spent enormous sums of money for their business communications needs, there was resource duplication because each firm built their own communications infrastructure. Furthermore, telecoms-grade hardware needed large floorspaces, continual cooling from the heat generated and 24/7 monitoring.

Cloud communications is more environmentally friendly. According to Accenture, switching to the public cloud can cut CO2 emissions by 59 million tons a year, which is equivalent to removing 22 million cars off the road! Also, data centres for cloud communications are designed and optimised for maximum energy efficiency.

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!