30 Apr Recognizing When It's Time to Say Goodbye to Your Legacy Software
In a perfect world, we all want the latest technology. The latest software that comes with all the bells and whistles to make our lives easier. In the real world, which is often far from perfect, it's not that simple.
For starters, transitioning to a new system is never easy, especially when you've been using the same one for years. Your team is familiar with it, and you've come to understand exactly why and how it works for your business. It's not perfect or new, but it’s get the job done. For some businesses, this is enough. But, there comes a time when it’s necessary to look at your legacy software and think about how cutting it might be your smartest move.
Why Legacy Billing Software is Costing You Money
First, let’s all just acknowledge that installing and implementing new software is expensive. It isn't just the cost of the software itself. There’s also training and the inevitable loss of some revenue while working through the learning curve. For many businesses still using legacy software, the cost factor alone is enough to make them strengthen their grip even tighter.
But, it's also important to talk about what legacy software is costing you daily.
Let's start by looking at the fact that 59% of companies with legacy billing software have significant friction with customer billing disputes. This is the exact spot where churn is most likely to happen, and legacy software is often what opens the door for your customers on the way out.
Churn isn't the only area where legacy software is costing your business. Here are a few difficulties that businesses frequently have with legacy software that slowly eat away at their bottom line.
- More often than not, it requires excess hardware to properly function. This means you're holding onto outdated, inefficient technology that serves no other purpose in your business.
- It costs more to train new employees. While you might think you're saving money by avoiding the costs associated with training your entire team on new software, you should also be thinking about the new hires you’re bringing in. Many of them will already have experience with newer software, which means you’ll need to spend extra time training them on an outdated system.
- You’re not able to add in new technology. It’s impossible to incorporate new technology if it isn’t compatible with the system you’re already using. Holding onto legacy software means you’re not able to optimize new technology that could save your company money or help generate more revenue.
- Maintenance is impossible. Solving issues with legacy software isn’t as easy as picking up a phone and contacting support. This is because support no longer exists. You’re left with choice of tracking down someone who can help you with outdated software or handling the issue yourself. Both come with a hefty price tag.
Moving into the Future
Holding onto legacy software isn't as much about being stuck in the past as it is being unable to move into the future. Sure, it might be working just fine, but you're limited in how you can adapt.
Take mobile usage for example. Mobile compatibility is becoming a huge factor in competitiveness. If you're not built to cater to the mobile consumer, someone who is will come in and sweep them off their feet. Yet, most legacy software isn't mobile compatible, and this causes a huge disconnect between you and the optimal user experience.
Legacy software also slows down your ability to compete. What happens when you've updated your service or product line and you're ready to implement a new pricing structure? Most businesses would prefer to introduce a pricing structure in 4 weeks or less, but 71% with legacy software are unable to get it accomplished.
That’s time and revenue wasted. Legacy software can rob you of the ability to remain flexible and stay competitive.
At some point, you need to let go. Even a system that you have loved and has served your business well should be replaced by one that does better. Legacy software slashes your competitiveness, compromises your customer’s security and makes it incredibly difficult to move forward and grow your business.
It’s time to look ahead and move into a new billing system that will encourage growth rather than stagnation. There’s no question that with change comes challenges but cutting your legacy software opens the door to new opportunities, which we promise you’ll love.
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