Great ROI Comes from Great Value, Not the Cheapest Solution
Amidst worrying economic trends kicked off by the Covid pandemic, especially the very tempered hopes now of speedy recovery, an unmistakable trend of lowering customer support standards has emerged that threatens to make end-user experiences worse and positive business growth almost impossible. Success continues to be too narrowly defined as only to do with short-term profits. A focus must be redrawn toward the big-picture goals of customer satisfaction and long-term business viability.
“You get what you pay for” is a cliché and, yet, we must chant it nowadays like a mantra because it is at dire risk of being forgotten. It is a fundamental truth that cost-cutting is ill-advised when shoring up critical business functions. And nothing is more critically important than post-sale customer support. The safely assumed centrality of tech in all transactions only increases the possibility of customer alienation from a lackluster support setup.
Self-evident as the above may sound, a confluence of the startup mindset, social media ascendance, and the Covid economic shock has made support an afterthought for too many companies. Cost efficiencies are sought and (supposedly) attained by highly competitive prices derived through globalized workforces, and lengthy contract commitments avoided by short-term and even month-to-moth service agreements. It all amounts to a sugar high, though, as forces beyond anyone’s singular control continue erasing profit margins, the very reason support systems were sacrificed. A fun Google game to see how one may reach a live support rep at the banner tech companies is perhaps the parody we need to wake us up.
The remedy is a return to common sense. In the Web 2.0 era, “disruption” experiments backed by Wall Street billions with 99% fail ratios are not business models mere mortals can imitate. Most companies operate under unchangeable economic laws of limited cash, supply-and-demand, and profit-and-loss. The intense pressure on consumers and end-users to be happy with lackluster support is a negative development and can be countered by a sharp refocus on value—that is, the right mix of steady customer satisfaction, cost controls, and business continuity. Put simply, the cheapest solution can very much become a poison pill that destroys the faith of a loyal customer base.
The best way to recognize great value is to ask three (3) simple questions:
- Can our customers happily live with this setup?
- Can our books sustain the cost without sacrificing customer support?
- Is this a growth-positive arrangement or are we on our own trying to figure out ROI?
Only if all answers are a resounding Yes! do you have a worthwhile solution. In a challenging economic environment as we currently have, anything less will not move the needle in your favor.
Bill Saqib
Co-Founder, McCord Telematics – GoMcCord
November 4, 2022