Tuesday, September 4, 2007

How do software companies justify expending money for Customer Service?

The problem:
Let’s face it – if you are running a small to midsize software company, your resources are precious and they are best used in building a competitive solution; keeping it competitive with new features and functionality; and fixing the bugs that creep into the code occasionally. Add to that mix the resources necessary to market, sell and install your solution – and there are very few cycles left over for supporting your growing customer base. At first, this is not a large problem, but as your products mature and your customers become more savvy in using your solutions. You see more demands from your customers – more questions, more problems, more data to track – and things start falling through the cracks. You add more resources to customer support, but this doesn’t completely fix the problem. More and more you are having to use your development and implementation resources to stay on top of customer issues. What are you going to do?

The choices:
1. Well, you are a software company after all -- why not develop your own customer service solution? As you think about this several problems pop into your thought process – 1) it will take resources from your development team, 2) this is not an area of expertise within your company, and 3) it will continue to take away resources as it needs changes, fixes and updating.

2. You could outsource your customer support. After thinking about this for three and half seconds, you decide that this is not an acceptable answer.

3. You could purchase a customer support solution. You are reluctant to purchase software. You build software, you don’t buy it, right? Plus, the needs of a software company to support their customers are more specialized than what you are aware of being available. Then you get two calls in one morning from long term clients that are less than happy because of the lack of communication and responsiveness they are experiencing with issues that they had reported last week. You decide that it is time to make this a priority. You start looking at potential products. You are surprised at the number of customer support and help desk solutions that are available. Your hopes are buoyed. This turns out to be temporary euphoria, as your research shows that there seems to be a mix of either complex, expensive solutions or low cost, low function, inflexible products. It is very confusing.

The decision:
You decide that option #3 is your only viable choice. But, only if you can find a company that specializes in customer support; builds a flexible, but robust product; and will continually update it with new functionality. In other words, a company just like yours. You will let them be the experts in customer service, while you concentrate on keeping your clients competitive by enhancing your solution. And, if you can find the right company – one like yours – their product will make your customer service a differentiator. It will be one of the reasons that your customers choose you and stay with you. After all, that’s what your solution provides to your clients. You feel better.

Narrowing the field:
You’ve made your decision. Now all you have to do is find the company that makes the best solution for your business. You have found a few companies that seem to meet your needs as far as the functionality that you are looking for, but their features vary and their price tags are quite different. It is tempting to go with the low cost solution, but you want to be wise in making your choice since this is a long term commitment and you have decided that customer support will be an integral, strategic part of your business. You have an idea.