The basic economics of the SaaS model inherently push vendors to run “lean and mean,” which requires close attention to operational profitability in every aspect of the organization. Though the impact of that reality may be delayed by VC/investor funding, the elemental reckoning cannot be avoided forever. The cumulative effect of day to day operational profitability management will ultimately determine…
In any organization, Power Follows Money. One of the principal reasons why the Customer Support/Service department is low on the corporate pecking order is the lack of clarity about its contribution to overall company profitability. That needs to change. Start by producing a verifiable Cost Per Operational Minute value, and build your profitability picture from that beginning.
The costs for maintaining the training inventory for the company's customer contact center are seldom if ever tracked or reported. As a result, senior management's ability to make financially sound decisions regarding the center is hampered. This is the seventh article in the "A Contact Center Primer" series for executive management teams. While directly applicable to all technology companies, the implications for Software As A Service companies will be significant.
The Customer's Metric is the vital one for customer contact call centers, especially in the SaaS (Software as a Service) world. Companies that do not focus their strategy and operational decision on maintaining customer relationships will not succeed in their profitability goals.