Monday, December 17, 2007

Proactive Support - Where's the ROI?

In business, except for compliance issues, if something doesn't positively impact the bottom line, you probably shouldn't be doing it. Adding proactive support (using a tool such as ScanSource Virtual Technician) is no different. If SSVT doesn't increase revenue and/or decrease costs, you shouldn't be using it.

So how should you expect to see proactive support impact the bottom line? I believe there are four main ways in which this can be accomplished:

Reducing cost:

Proactive support can reduce the operating costs of delivering support. Your support team should be capable of more efficiently supporting your customers, allowing the same number of people to support more customers.

Increasing Sales:

Perhaps it will surprise you when I say that transforming yourself into a proactive support organization has an even greater impact by increased top-line revenue than reducing costs. But I think I can back it up.

First off all, in a world where there are is a lot of competitive pressure and, when comparing features and benefits of a POS system, you need a competitive edge. Delivering proactive support provides your sales team with that key differentiator.

Secondly, proactive support strengthens your relationship with the customer. Many times, once the sale is made and the system installed, the only contact with the customer starts with the customer calling with a problem. Proactive support can change this.

Finally, and possibly most importantly, is the fact that proactive support, when an integrated part of your support contract, changes the contract from being perceived as break-fix tool to a constant insurance policy. The result? Increased renewals of support contracts.

As you can see, proactive monitoring can both add revenue and reduce costs, making it, on the surface, a simple decision. But as with anything, commitment is required. If you pay for the tool (such as subscribing to SSVT) and don't fully integrate it into your business, all you will have done is add costs without the upside. So along with the decision to integrate proactive support must come the commitment to do it, and to do it right.

No comments: