Handango Inc.

Customer Service in IT – CRM & SaaS

by admin on Thursday 1 October 2009

Being focused on customer satisfaction is important but at the end of the day you still need to make a profit.  Does having the “super goal” associated with customer service put your business at risk?  Having a super goal to achieve the best customer service possible can put a company at risk in the IT sector.  Most consumers and businesses buy hardware and software based on value.  They see value in something, so they take the initiative and make a purchase.  Value can come in many forms, but two of the most common are pricing and customer relationships.  Typically, people are willing to pay a little more if they are guaranteed good customer service and a great relationship with their business partner – such as the case with companies like Dell.  Adversely, most individuals are willing to accept a less than great relationship with a company so long as the technology products are cheap and as advertised.

Having a goal for customer service can definitely put a company at risk.  The hiring process will likely include more stringent interviews and time management.  Once hired, IT developers and help desk administrators are expected to maintain the standards of high customer service.. however, they will expected to be compensated for it.  Employee pay rates will be higher, and time per call/ticket will go up too.  This might lend to the possibility of having to hire additional developers and administrators, as the current ones are spending significant amounts of time with clients to make sure that everything is perfect.

Customer service goals can end up costing you more time and money in the end – and isn’t good business about the management of time and money?  An example of this might be a CRM solution with a higher price point.  While their SaaS CRM package sells for 20% more than the competitors, their customer service is exceptional.  The problem in businesses producing SaaS software and CRM applications, is that customer service is not always necessary.  There are many options for consumers and businesses, and many of them are simple to understand and implement.   Client interaction and “feel good” service is not always necessary when you are buying cloud software.

This situation could result in customer service leading to higher prices, which ultimately prices a firm out of the market.  Why buy a SaaS service, or opt for CRM support that’s more expensive than competitor’s?  This is the way some look at the issue, especially with a level playing field and similar product offerings.

Customer service, however, can also be very beneficial to overall profits.  Some sectors of the IT industry rely of a good sales/client relationship, and without it, many might not feel comfortable making a purchase.  An example of a company with exceptional customer service is Dell.  Their service is impeccable, but their retail computer prices are fairly high when compared to Acer and eMachinesDell has exceptional communication and a killer warranty.  People tend to “love their laptop,” and enjoy the fact that they feel secure with their purchase.  They would rather spend $800 than $450 on a similar model if it means good parts, good customer service, and a replacement program that is impeccable.  This is an example where customer service over price can lead to higher profits in Information Technology.

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