How Network Speed Impacts Business Performance

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September 04, 2024

Network data speed and reliable connectivity are vital not only for purely online businesses, but for all types of enterprise. So much business activity, even for brick-and-mortar stores relies on fast Internet connections. Reliably fast Internet speed doesn’t only impact business communication and collaboration. Good connectivity is increasingly vital to keep pace with remote work trends

Many businesses have a geographically scattered workforce, with teams connected purely online. Video calls, video conferences, zoom meetings, and the transfer of files and data are all reliant on Internet access and network data speed.

In short, network speed impacts business performance. But exactly how fast should your connection be? And what can you do to improve it? We’ll answer these questions and look at how Internet speeds can impact your business performance.

Network speed concept

Why Is Network Speed Important for Businesses?

No matter which sector your business operates in, network data speed matters. From network speed reliability in transportation to hitch free sales portals for online retail, public expectations are of quick and seamless connectivity.

As the image below highlights, Internet speeds are increasing globally. People expect connection to be fast, slow Internet speeds are no longer tolerated.

Without good network speed business tasks are slower, and life is more challenging for your staff. Important functions, such as loading webpages, download and upload speeds, transferring files and holding meetings, are seriously affected by low broadband speeds.

The impact is more than mere inconvenience. Sluggish Internet connections leave staff hanging around, which can impact morale. Nobody enjoys their time being wasted, or their work being hampered. Slow Internet speed can also impact revenue, and customer satisfaction.

There are also security risks with unreliable connection, with companies trying to reduce network security risks created by a remote workforce, slow networks can mean data is not protected.

Let’s look in more detail at how slow broadband connections can impact each area of running a business.

Global average Internet download speed

The Impact of Fast Network Speed on Various Business Functions

On average a business requires around 25 Mbps of download speed and 3 Mbps of upload speed to send files and emails, conduct zoom calls and video meetings. 

Slower speed can impact any business, but those that rely on the exchange of online data can be more vulnerable than those who operate via a means such as business VoIP service. But even for companies who operate primarily via phone lines rather than connected devices, most will benefit from faster connection.

Let’s look at the business areas that can be impacted by network speed.

Customer Service

Customer service means responding to clients in a helpful and timely fashion. Network data speed can impact this hugely. 

A faster connection means online communication such as email and live chat function better and give customers the assistance they expect.

Speed also matters for websites and online ordering. According to Forbes 47% of users won’t wait longer than two seconds for a website to load. Long loading times are frustrating and off-putting to potential customers, causing them to look elsewhere for what they need.

A faster connection and hitch-free communication can boost a business and its reputation. In particular because of innovations such as a remote support system for customers.

A person at a monitor

Sales and Marketing

Slow connectivity drags down and inhibits a marketing team from acting with agility and pace. Blogging and posting on social media are valuable tools for marketing, but they rely on network speed. Slow speed impedes the use of analytics to test and measure the success of marketing campaigns in real time.

Likewise, sales teams often chat with customers over an Internet connection, and customers expect shopping platforms and websites to work fast. Shoppers expect an instant response, or receipt for their purchases, delays make people nervous.

Productivity

Slow network speed directly impacts productivity. When business systems are slow, it impacts staff motivation. They say a bad worker blames their tools, but in reality, workers need effective tools to do their best.

The resources essential for employees to effectively operate smart devices in the workplace, including the ability to manage iPads remotely and configure a secure VPN connection, heavily rely on a stable Internet connection.

Working group productivity


 

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Security

Slow Internet can even impact your business’s security. The security to protect online content relies on dependable connectivity.

Sluggish connections are prone to crashing without warning, leaving data vulnerable to loss. Corrupted files and data loss from files that fail to transfer are damaging to your business.

In addition, security updates can be delayed or even fail with slow speeds. This can leave your valuable files and data vulnerable to attacks and cybercrime.

Cybersecurity

Collaboration

Network data speed is also essential for collaboration. From video conferencing, to remote screen sharing, teams, especially with remote participants, need a fast and reliable Internet connection.

The effectiveness of collaboration on projects can be severely impacted if zoom calls fail, or files can’t be shared. Frustration can build and employees can become demotivated. Collaboration rests on good communication, which is compromised by slow network speed. This impacts business relationships and the success of future projects.

Business members in a conference room

How to Improve Network Speed

We’ve talked about the impact of slow network data speed, now let’s look at ways to improve it.

Internet speed is not a fixed number. In fact, it can start fairly good but decline over time, or vary daily due to network congestion or the time of day. Let’s look at some tweaks and fixes any business can use.

Check Your Internet Speed 

Start by knowing your current Internet speed. Take into account the time of day and check on more than one device.

Next, check that what you’re paying your Internet provider for in terms of speed matches what you’re getting. If not, contact them. It’s worth checking any data caps that were imposed as part of your contract, if you go over what you’ve agreed, the ISP can slow down your connection.

Try Rebooting 

An obvious step, but worth doing. Unplug your device, wait a while (a minute is the minimum) then plug your device back in, and give it a few minutes to be up and running. This simple action can often speed things up.

Scan for Viruses

Scan for viruses and malware regularly. Install good anti-virus and anti-malware software to protect your devices from malicious threats. Cyberattacks slow down your connection as well as endanger your system and data. Make sure anti-virus updates are carried out and configured properly. As with all systems, anti-virus software needs maintenance, at least once a week. Schedule scans and check results.

Check Your Devices

Check the amount of devices on your network. Is it possible you’ve overloaded it? Do they all need to be connected? Review this regularly, make sure there are no unauthorized users or unnecessary devices draining your speed away. 

Use a Wired Connection

Wi-Fi networks are convenient and flexible, but being physically wired to the network is faster and more powerful. Having your devices plugged in, will improve Internet speeds. Use Wi-Fi for when you need to be on the move. 

Clear Your Browser

Clearing your browser can speed up your connection. The browser cache can slow things down and clog up performance. Spring clean your browser cache several times a year.

Upgrade to Newer, Faster Hardware

Upgrade your Computer

Having tried all of the above, changing your hardware may be the next step. Computers age and lose performance over time which can cause slow Internet speed. 

Digi cellular routers

Upgrade or Replace Your Modem and Router

If your computer isn’t the problem, try your modem or router. Consider replacing them with solutions like Digi's enterprise, industrial, or transportation routers, if you manage systems for a commercial operation. Today, these routers are optimized for 4G and 5G networks, offering massive advantages over older systems, in addition to integrated remote management, updated warranties and customer care.

Optimize Your Network Settings

There are a number of strategies for optimizing network settings for better performance.

DNS Caching

Most operating systems do something called DNS caching, it’s an energy saving function in terms of network speed, as it caches IP addresses and domain names. For future requests and searches they are already saved, and don't have to be searched for.

Quality of Service (QoS) 

QoS means controlling traffic on a network, the most critical applications take priority. Some high performing applications are more important than others, for example, video conferencing or streaming data. Using QoS means these can be prioritized. 

Use Cloud-based Networks Instead of On-premises Networks

Moving to cloud-based networks can speed up connection and reduce hardware maintenance costs. Cloud-based networks can also be an easier, more secure way to work with partners and clients. For example, a data clean room allows businesses to collaborate on any cloud, in a secure way. For those interested in what is a data clean room, it may be worthwhile investigating.

Cloud-based networks are more agile and generally faster. What’s more, there’s no need to estimate capacity needs, scalability is easier. A business can access as much or little capacity as required.

Cloud connectivity

Conclusion

Network data speed is a big deal for business. According to Forbes, 28% of business is now conducted online, and this is likely to grow. Having a fast connection can mean your business has the best chance of running smoothly and efficiently. Following the advice above could mean slow network speed won’t hold your business back.

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About the Author

This blog post was developed by marketing team RealVNC.