Customer service call centers got their start in the 1960s, and by simply picking up the phone when customers called, provided the most basic version of what we know today as contact centers.
As communication technologies evolved and customer service became more important to all businesses, call centers eventually evolved into contact centers. While traditional call centers are only for phone calls, contact centers expand those channels of communication across a variety of mediums, including online chats, SMS, and more.
The second major distinction between traditional call centers and modern contact centers is the data collection and analysis that takes place, leading to many contact centers now being cloud-based. This blog will explore what cloud-based contact centers are, cloud vs premise-based contact centers, along with the benefits and solutions they provide for customer service departments.
A cloud-based contact center is a contact center solution hosted in the cloud rather than on-premises. This solution leverages cloud computing technology and is easy to scale, flexible, cost-effective, and secure.
On-premises and cloud-based contact centers have the same end goal — to serve customers more effectively. So why do organizations choose to make the switch from on-premises to cloud-based contact center solutions? And why now?
Scalability:
For organizations running complex contact center operations, scalability is the biggest felt difference between the on-prem and cloud-based contact centers.
Premise-based contact center use requires continuous server purchases over time, regardless of usage trends. Even servers with high storage will eventually hit capacity, and the cycle of buying new servers will continue.
A cloud-based CCaaS (Contact Center as a Service) model can be automatically scaled for you by your vendor, so adding to your cloud capacity is a no-brainer during high-traffic times and sustained business growth, allowing for organizations to pay-as-they-go.
This works both ways, since a vendor will also scale back your cloud server capacity based on peak call times and seasonal upticks in business.
Staffing:
On-prem hardwire requires physical storage space and dedicated staff for managing the hardware. As remote work and smaller office spaces increasingly become the norm, many companies cannot justify the space and staff required to store on-prem contact center hardware.
Lifespan:
Hardware lifespan is limited, and upgrading hardware is costly. No hardware replacement is required when using a cloud-based contact center. Instead, your vendor can automatically make upgrades and improvements to your storage solution, so your organization always stays up to date.
Security:
Contrary to what some may think, a cloud-based contact center is actually more secure than on-prem. If your organization uses a provider who is taking the most current and compliant security measures, your cloud-based contact center will excel in security, as well as fully mitigating disaster recovery risk. On the other hand, it requires more staff and complex logistics to keep physical hardware safe and secure in your building at all times.
AI:
It should come as no surprise that AI is making big waves in the CCaaS world. Companies are either implementing IVR (Interactive Voice Response) services for agent support, intelligent flow support, in their contact center strategy, or they are updating beyond IVR to Intelligent Virtual Agents.
CRM Integrations: As competition between CRM and CCaaS providers increases, so does the potential for innovative integration. Partnerships between CCaaS companies and Salesforce, for example, show the potential for native CRM deployment within existing CCaaS solutions.
Personalization:
CCaaS solutions are so advanced that customers now expect personalized interactions from their contact center provider — many may not even realize they’re speaking to a virtual agent to begin with. Customers implicitly know that companies have access to their data and expect it to be used in call center interactions.
Wondering if your industry needs to focus on contact center optimization? Learn from these leading cloud-based contact center industries:
Telecommunications:
The telecoms industry uses CCaaS on a large scale, given their high volume of customers and high number of use cases for self-service. As these organizations become increasingly competitive, there is an incentive to reduce contact center costs, and cloud solutions are key to accomplishing this objective.
Banking and healthcare:
The needs of banking and healthcare customers are varied and often urgent. These industries require extensive compliance and security measures, which can take time and tedious repetitive tasks for call center employees. A cloud solution is ideal for these industries as they provide increased capability and IVR options for multiple levels of demand.
Manufacturing and retail distribution:
Supply-chain-focused organizations require robust contact centers for addressing customer needs, order issues, returns and exchanges, and more.
Cloud-based contact centers come with a variety of capabilities. These will vary based on the provider your organization chooses, but some essential features to be on the lookout for are:
Omnichannel capabilities: As mentioned above, simple call centers don’t cut it for most organizations anymore. Find a contact center platform that has omnichannel capabilities for the places your audience is interacting with the most – WhatsApp, Messenger, and social media DMs are just a few omnichannel options to consider, so your company can show up where your customers already are.
Real-time analytics: Access to real-time analytics from your cloud-based contact center provider will be crucial for BI reporting and quick, relevant decision-making.
Reporting access: Certain vendors have paywall access to contact center data and reporting, which is a major setback for any company. If you are struggling with access, remember that this is your organization’s data. Paying for a cloud-based contact center service means you should always have access to the reporting your organization needs.
Still on the fence about implementing or transitioning cloud-based contact centers? A few of the biggest cloud-based contact center benefits are:
Scalability and flexibility:
A contact center solution that suits your company well now may not be a great fit five years down the road. Migrating on-premises contact center solutions is a huge headache compared to the ease of migration that comes through simple cloud-to-cloud transitions.
Cost savings and reduced infrastructure costs:
While the on-prem versus cloud-based cost comparison will be different for every organization, an on-prem contact center solution is almost always more expensive than a cloud-based solution. Because of their longevity, simple implementation, and ease of access for those who need it, cloud solutions remove the upkeep costs required of hardware and software, as well as storage and staffing costs.
Enhanced disaster recovery and business continuity:
In the event of a disaster, cloud-based contact centers can continue to operate almost uninterrupted as long as your employees have access to the internet, in contrast to an on-prem contact center, which is vulnerable to power outages and physical damage.
Choosing the right cloud contact center software comes down to your organization’s unique needs. Almost every CCaaS provider will meet your contact center needs on a basic level, but we encourage you to truly evaluate every vendor available to determine who will truly be a good fit.
Some cloud contact center software provider options include NICE, Five9, Genesys, and Google CCAI.
Kenway is proud to provide a strategic call center solution approach for customer service oriented organizations. Our focus on strategy, implementation, reporting, and support includes thorough vendor assessments and full digital transformation consulting and support from start to finish.
Rather than hosting a contact center on-premises, a cloud-based contact center is hosted online in the cloud.
Cloud-based contact centers provide solutions for organizations including cost savings, increased security, disaster recovery, advanced reporting and analytics, and flexibility.
Cloud-based contact centers offer greater flexibility, scalability, and remote accessibility, with lower upfront costs and easier maintenance through a third-party provider. While on-premises contact centers offer more control over data and infrastructure, they require significant initial investments, dedicated IT resources, and are less adaptable to rapid changes in demand. The choice often depends on your business's size, budget, and operational needs.
