{"id":3767,"date":"2016-03-31T16:49:48","date_gmt":"2016-03-31T14:49:48","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=3767"},"modified":"2023-08-09T21:02:24","modified_gmt":"2023-08-09T19:02:24","slug":"saas-qa-customer-support","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/saas-qa-customer-support\/","title":{"rendered":"SaaS Q&#038;A: How much should you spend on customer support?"},"content":{"rendered":"<p>Consider how crucial customer success and retention are to SaaS growth and profitability. If your <a href=\"https:\/\/www.jitbit.com\/news\/best-help-desk-software\/\" rel=\"noopener noreferrer\" target=\"_blank\">customer support system<\/a> can help keep a customer happy, engaged, and onboard \u2014 and keep that revenue recurring \u2014 then the money invested in customer support is worth it. Of course it\u2019s also worth it to keep your customer support lean and efficient.<\/p>\n<h1>What&#8217;s normal?<\/h1>\n<p>There\u2019s likely not such a thing as a &#8220;typical amount&#8221; that SaaS companies spend on support. SaaS companies are all different in terms of their size and product offering, as well as the volume and complexity of the questions they receive.<\/p>\n<p>The most useful answer would probably be some comparison between companies as to what percentage of expenditure goes to customer support, though it\u2019s unclear where this data is available. As a point of reference, though, <a href=\"http:\/\/www.totango.com\/customer-retention-cost-report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Totango recommends<\/a> spending 1 to 2 percent of revenue on <em>customer success<\/em> programs. Whether customer support falls under the larger umbrella of customer success in your organization, and how you prioritize those two programs, factors into how you might budget for customer support specifically.<\/p>\n<p>Other factors that impact your customer support budget are below&#8230; followed by some ideas to help lower those costs, too.<\/p>\n<h3>Here are some of the main factors determining customer support costs:<\/h3>\n<ul>\n<li>If real-time channels such as live chat and voice are offered or just email (voice is more expensive than email).<\/li>\n<li>The volume of incoming requests.<\/li>\n<li>The complexity of incoming requests.<\/li>\n<li>The location of the company and its support team: real estate, salaries, all of the costs impacted by the cost of living in a particular city.<\/li>\n<\/ul>\n<h3>And here are a number of ways to reduce customer support costs:<\/h3>\n<ul>\n<li>Track the most frequently asked questions. Then make changes to your product or website so people don&#8217;t need to ask the questions in the first place. e.g.- Put information directly on the corresponding page, change UI so the next step is more intuitive, etc. This makes for happier customers, too!<\/li>\n<li>Make support self-service. If it isn\u2019t possible to make a\u00a0question obsolete through product\/site improvements, then add the answer to your FAQs\/knowledge base. Maintaining a thorough, accurate FAQ is key \u2014 most\u00a0customers would rather find the answer <a href=\"https:\/\/www.zendesk.com\/resources\/searching-for-self-service\" target=\"_blank\" rel=\"noopener noreferrer\">on their own<\/a> than take the time to contact a support member.<\/li>\n<li>Design your site so that users must search your FAQ\/knowledge base before submitting a support request. This tactic is known as \u201cticket deflection\u201d or \u201ccase deflection\u201d.<\/li>\n<li>Maintain an up-to-date library of canned responses to common questions that you support staff can have at-the-ready. This keeps the team more efficient. (If your team uses real-time channels such as live online chat and phone calls, have them send these canned responses as follow-up emails to the customer, too. This reinforces the answer and hopefully the customer will absorb the information better.)<\/li>\n<li>You could move all or part of your support operation to a lower cost region. E.g. the midwest United States, or even SE Asia (for really low cost).<\/li>\n<\/ul>\n<hr \/>\n<p>This answer was originally published on Quora. View the original thread here:<\/p>\n<p><span class=\"rendered_qtext\"><a href=\"https:\/\/www.quora.com\/How-much-do-SaaS-companies-typically-spend-on-customer-support\" target=\"_blank\" rel=\"noopener noreferrer\">How much do SaaS companies typically spend on customer support?<\/a><\/p>\n<h1>Share and follow!<\/h1>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">NEW on <a href=\"https:\/\/twitter.com\/ChartMogul\">@ChartMogul<\/a>: <a href=\"https:\/\/twitter.com\/hashtag\/SaaS?src=hash\">#SaaS<\/a> Q&amp;A: How much should you spend on customer support? <a href=\"https:\/\/t.co\/BApUbxfCzA\">https:\/\/t.co\/BApUbxfCzA<\/a> <a href=\"https:\/\/t.co\/JkJAkpjf0N\">pic.twitter.com\/JkJAkpjf0N<\/a><\/p>\n<p>\u2014 ChartMogul (@ChartMogul) <a href=\"https:\/\/twitter.com\/ChartMogul\/status\/715552895819726848\">March 31, 2016<\/a><\/p><\/blockquote>\n<p><script src=\"\/\/platform.twitter.com\/widgets.js\" async=\"\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A customer support system plays a significant role in the success of a SaaS company. But that doesn&#8217;t mean it needs a significant portion of the budget.<\/p>\n","protected":false},"author":4,"featured_media":3778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1998],"tags":[132,133,124,158],"class_list":["post-3767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retention","tag-customer-support","tag-finance","tag-quora","tag-saas-qa"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SaaS Q&amp;A: How much should you spend on customer support?<\/title>\n<meta name=\"description\" content=\"A SaaS company\u2019s customer support system plays a significant role in the company&#039;s success, but doesn&#039;t need a ton of its budget.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<link rel=\"canonical\" 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