Cronus Internet

Study Finds Vast Majority of Retailers Still Have Connectivity Issues

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Introduction to Network Downtime in Retail

 

Network downtime and connectivity issues in retail is the interruption of the network connection that prevents employees and customers from accessing essential services due to server issues. This problem can be caused by a variety of factors, such as hardware failure, software glitches, internet signal issues, or power outages. Network downtime, or internet issues, can have a significant impact on retail businesses, both financially and reputationally. Lost sales, decreased productivity, server connectivity issues, and customer dissatisfaction are just a few of the potential consequences. For example, if a retailer’s server goes down during a busy shopping day due to internet signal issues, customers may be unable to complete their purchases. Network connection issues can lead to lost revenue and frustrated customers who may be less likely to return to the store in the future.

 

Network connection issues also impact employee productivity. If employees face server issues and are unable to access the internet or the systems they need, their efficiency is compromised. This can lead to delayed orders, missed deadlines, and other issues. Apart from financial and operational impacts, signal issues causing network downtime can damage a retailer’s reputation. Customers might lose trust in a retailer that has frequent internet and server connection issues. Retail businesses can mitigate the internet and server issues by:

 

  • Investing in reliable hardware and software

  • Implementing a robust network security solution

  • Conducting regular network maintenance and testing

  • Having a disaster recovery plan for server issues in place

 

By addressing these network connection and signal issues, retailers ensure that their networks remain functional, providing the best experience.

 

The Current State of Retail Networks

 

Retail networks today are confronting an array of challenges and vulnerabilities. Legacy systems, once reliable, now pose potential server and network connection issues. Relying on outdated infrastructure makes them susceptible to internet signal and server issues. Understanding the intricacies of retail networks is vital. A retail network’s foundation rests on its architecture. The complexity of interconnected devices and systems, including point-of-sale terminals, leads to potential network connection issues. To combat vulnerabilities due to outdated hardware and server issues, active monitoring and regular software updates are paramount. Human error can also contribute to internet connection issues, emphasizing the importance of training staff in security protocols.

 

Why Are Retailers Vulnerable?

 

Retailers become vulnerable during network downtimes for reasons such as:

 

  • Inability to process sales due to payment server issues.

  • Difficulty accessing inventory data because of server issues.

  • Relying on network connected security systems which, during downtime, makes them prone to theft.

  • Failing to communicate with customers and employees due to internet connection issues.

 

Network downtime, whether due to server issues or signal issues, can have varied implications based on the business model. Online retailers, for instance, heavily rely on a stable internet connection.

 

Steps to Mitigate The Risks of Network Downtime

 

Retailers can address internet and connection issues by:

 

  • Investing in reliable hardware and software

  • Implementing strong network security to prevent server issues

  • Regularly testing the network for potential network connection and signal issues

  • Preparing a disaster recovery plan for any unforeseen server issues

 

Implications of Network Downtime for Retailers

 

Network downtime is a significant problem for retailers. Signal issues leading to systems going offline can cause immediate revenue losses. Apart from the immediate financial implications, retailers risk damaging their reputation due to frequent server and internet issues. The consequences of server issues and network downtime are extensive, urging retailers to prioritize uninterrupted service and customer satisfaction.

 

Best Practices for Avoiding Network Downtime

 

Network downtime can be a significant problem for retailers, both financially and reputationally. By following these best practices, retailers can minimize the risk of network connectivity issues, and internet issues, and mitigate their impact if it does occur: Invest in reliable hardware and software that can handle your specific business needs, ensuring a stable signal for your operations. This includes investing in redundant systems so that there is a backup system in place if one server fails. Implement a robust network security solution to safeguard your network from cyber attacks, preventing potential internet issues. This solution should include firewalls, intrusion detection systems, and other security measures.

 

Conduct regular network maintenance and testing to identify and fix any potential internet issues before they cause downtime. This includes testing network backups and disaster recovery plans to ensure smooth network connectivity. Have a disaster recovery plan in place to swiftly address server issues in case of a network outage. This plan should include steps for restoring the internet connection and minimizing the impact on the business.

 

Steps to Avoid Network Downtime

 

In addition to these general best practices, there are a number of specific steps that retailers can take to avoid network downtime, ensuring a reliable network connection and minimizing server issues. For example, retailers can:

 

  • Use a cloud-based POS system, reducing the risk of internet issues and signal disruptions, as cloud-based systems are less likely to experience downtime than on-premise POS systems.

  • Use a load balancer to distribute traffic across multiple servers, helping to prevent downtime if one server experiences issues.

  • Use a redundant internet connection to ensure a continuous internet signal. Retailers should have a backup network connection so that they can still operate if one internet connectivity goes down, avoiding potential network connection issues.

  • Train employees on cybersecurity best practices to prevent signal disruptions and server issues. Employees should be trained on how to identify and avoid phishing attacks, further enhancing network security.

 

By following these best practices, retailers can help to ensure that their networks are always up and running so that they can continue to provide their customers with the best possible experience, free from network connection issues and internet issues.

 

Emerging Technologies and Solutions

 

In the face of network connection issues and internet disruptions, retailers are actively exploring a range of emerging technologies and solutions to mitigate signal disruptions and maintain business continuity. One notable innovation is the utilization of software-defined networking (SDN) and network function virtualization (NFV) to enhance network flexibility and resilience. These technologies empower retailers to dynamically allocate resources, reroute traffic, and prioritize critical applications, all while actively adapting to internet issues and signal interruptions. Moreover, active investments in cloud-based disaster recovery and backup solutions are becoming increasingly prevalent, ensuring data integrity and quick recovery when server issues and network interruptions occur.

 

Additionally, edge computing is gaining traction, allowing retailers to process data closer to the source, thereby reducing latency during network issues and maintaining essential operations. These proactive measures collectively bolster retailers’ ability to navigate network connection issues and minimize the impact of internet downtime on their operations. By proactively integrating these cutting-edge technologies, retailers are not only minimizing the impact of network connection issues and internet disruptions but also laying the foundation for a more agile and resilient network infrastructure.

 

Cronus Study of Network Downtime

 

“The Cost of Downtime: Beyond the Bottom Line,” a study released today by Cronus Communications finds that despite advances in infrastructure, the overwhelming majority of retailers still experience unplanned connectivity issues at least once each year. While 72 percent of retailers surveyed indicated sales were lost during network downtime, the study also finds downtime severely impacts customer loyalty, employee productivity, and overall business operations. The study shows that 20 percent of respondents do not have backup connectivity solutions in place in the event their primary source goes down, proving that not all retailers understand the true impact of downtime on their businesses. Of those that do currently have a backup connectivity solution, 78 percent count on cellular LTE technology.

As more and more retailers increase their dependence on internet-enabled technologies to run business operations, the cost of outages is dramatically increasing. When the network goes down, retailers are faced with two options: close immediately, or stay open while waiting for support. The majority of respondents reported when the network is down, it can take up to four hours to get back in service. The majority of retailers surveyed noted they would close within two hours and less than a quarter noted they would stay open the whole day waiting for support. Those retailers that choose to remain open face limited operations that may cost more than revenue earned during the outage. For instance, during an outage:

 

  • 61 percent cannot process credit cards

  • 33 percent cannot manage inventory

  • Nearly three out of four retailers are unable to run loyalty programs

  • More than 70 percent cannot utilize in-store digital signage

  • More than half of retailers see a decrease in employee productivity

 

“While loss of potential sales is the primary consequence of downtime, retailers cannot overlook the negative impact on employee productivity, customer experience and brand image,” said Jason Dorough, Vice President of Sales at Accelerated. “The majority of retailers, 80 percent, understand what is at stake and are implementing failover solutions to provide a stable network connection. Many are finding cellular LTE solutions to be affordable, reliable and easy to implement.”

 

Long Term Impacts of Network Downtime

 

The study also reveals the long-term impact, beyond financials, that downtime has on retailers. Eighty-two percent of respondents noted that network downtime can result in a negative customer experience, with nearly one in three retailers reporting that their brand reputation is damaged during an outage. When the internet is down, employees are left to appease unhappy customers as they’re unable to assist them with basic retail functions. Because retailers often hold personal and sensitive customer data, any downtime they experience presents major security risks as well. The study found that more than half of retailers cannot enable security systems during downtime, leaving themselves vulnerable to data breaches. “Unplanned outages are mostly short term issues for IT, but for a business owner, outages can have long term effects,” said Dorough. “All retailers set expectations with their customers in terms of the level of service they can deliver, so if an outage occurs and the store can’t deliver on those expectations, customers are more likely to bring their business elsewhere or express their dissatisfaction publicly. Because of social media, In a matter of minutes, word about a store’s downtime can reach across the globe. Using a failover solution with monitoring and incident management capabilities prevents retailers from becoming the next headline about a major service failure.” “The Cost of Downtime: Beyond the Bottom Line,” a new study released today by Digi Accelerated Concepts, finds that despite advances in infrastructure, the majority of retailers still experience unplanned connectivity issues at least once a year.

 

The Future of Retail and Network Security

 

Network downtime is a costly and disruptive event for retailers. In the future, retailers will need to take a proactive approach to address connectivity issues and internet issues to minimize the risk of downtime and mitigate its impact if it does occur. Here are some of the ways that retailers can improve network security during network downtime in the future:

 

  • Invest in cloud-based network security solutions to enhance signal resilience and prevent server issues. Cloud-based network security solutions are more resilient to downtime than on-premise solutions. They can also be scaled up or down quickly, which can help retailers maintain network security during periods of high traffic or unexpected events.

  • Use artificial intelligence (AI) and machine learning (ML) to detect and respond to threats, preventing potential network connection issues. Both can be used to detect and respond to cyber threats more quickly and effectively than traditional security solutions. This can help retailers identify and mitigate potential security risks before they cause downtime.

  • Implement a zero-trust security model to prevent unauthorized access to retail networks, even during network downtime. A zero-trust security model assumes that no user or device is trusted by default. This model requires all users and devices to be authenticated before they are granted access to any resources.

  • Segment their networks into different zones. Such as a customer zone, an employee zone, and a payment processing zone, to limit the damage that can be done by a cyber attack during network downtime.

  • Have a disaster recovery plan in place to restore network service quickly and minimize the impact on the business in case of a cyber-attack or other network disruption during network downtime.

 

Additional Things to Consider

 

  • Use a network traffic analyzer to monitor network traffic for suspicious activity. Helping to identify and mitigate potential security risks before they cause downtime.

  • Use a web application firewall (WAF) to protect web applications from common attacks. Preventing attackers from exploiting vulnerabilities in web applications during network downtime.

  • Use a content delivery network (CDN) to deliver static content. Such as images, CSS, and JavaScript files, from servers that are located around the world, improving performance and reliability during network downtime.

  • Have a backup plan in place for critical business applications. Whether through a cloud-based backup solution or a secondary data center on standby, to avoid internet issues affecting operations.

Conclusion

By taking these steps, retailers can help to ensure that their networks are secure and that their businesses can continue to operate smoothly. This includes avoiding network connection issues and internet disruptions, even during network downtime. It’s also important to choose a reliable internet service provider (ISP) to minimize these disruptions further.