CUSTOMER
RELATIONSHIP MANAGEMENT
- An Offshore 'Customer
Support' Perspective for Software Product Vendors/Service Providers
-
by Siva Venkat
Vice President of SRM Systems & Software
INTRODUCTION
Development and marketing of a product involves a lot of research,
manpower resources, infrastructure, technology, market reach and
the money for investment. The size of each of these basic requirements
will vary depending on the scope of the product. A product with
limited scope could be developed in a short time and would involve
limited resources. Products for ERP, Supply Chain etc, have a
very large scope and take greater planning, time and resources.
But development and marketing of a product are not the only factors
that help a Software Product Vendor remain competitive. Another
major factor is Customer Support. In other words, after a product
is delivered and installed, Customers expect proper maintenance
services. For example, when a Customer identifies a problem/bug
in the product, he/she expects a quick response from the Vendor.
Delays leaves the Customer frustrated and may be a cause for suing
the Vendor or dumping the product. So, for a Software Product
Vendor, it becomes imperative to provide, fast support to the
customer and forms an important part of Customer Relationship
Management (CRM).
CUSTOMER SUPPORT
For a Software Product Service Provider, Customer Support Services
could cover both the End Customer as well as the Product Vendor.
Support to Product Vendor directly could involve development of
extensions, Migration and Alpha Testing etc. Support to End Customer
(on behalf of the Product Vendor) could involve First, Second
and Third Level Support. The first level is the hotline support.
In this support, Customers are allowed to raise their product
based problems by calling the Vendor directly. These direct calls
can be made to specifically dedicated phone numbers that are attended
to by multiple operators. These operators, based on the product
identified, would re-direct the call to the appropriate On-Call
Support Team. In some cases, the answers are immediately provided
to the user while in other cases, these are logged on the computer.
The logged on cases are then picked up by the regular Support
Team who then analyze the problem and provide a solution to the
customer. These solutions can be in the form of:
· A simple clarification on the usage of
the product.
· A work around in case the product does not meet the User's
specific need.
· A temporary bug fix.
In short, what is achieved in this process is
a quick response to the customer's need. Sometimes, there could
be a delay in providing a solution to the customers but the fact
that the vendor is
immediately attending to his/her requirement will
go a long way in giving a comfort feeling to the customer.
OFFSHORE CUSTOMER SUPPORT
Having emphasized the important of Customer Support, we now look
at the advantages of providing such a service from an offshore
facility. Listed below are some advantages that a Product Vendor
could benefit from:
· Greater (Global) Coverage
· Improved Service Levels
· Increased Time Coverage
· Backlog Management
· Better focus on high priority Customers
· Attrition rate management
· Competitive Cost
Greater (Global) Coverage
Assuming that the Vendor is based in one part of the globe (for
eg: the US) and also that the Vendor has customer's all over the
world, a offshore support facility which is geographically located
on a different part of the globe, would provide the support service
required for this part of the globe. So with the Vendor handling
one half of the globe, the other half can be handled by the Offshore
facility to provide global coverage to the vendor's Customers.
Improved Service Levels
This is another major advantage to the Vendor. For instance, a
Customer might report a problem during the closing hours of the
Vendor's day. Under normal circumstances, the vendor might take
a minimum of twenty-four hours before he gets back to the Customer.
But with a Support Center at an offshore facility (located in
a different time zone), the problem can be passed onto them for
a fix. For eg: The closing hours in the US would be the starting
hours for Brunei. Hence, though a customer would have reported
a problem in the late hours of the previous day, a solution could
be made available to him/her the very next morning. This support
is particularly advantageous when service levels with quick turnaround
time is committed to the client.
Increased Time Coverage
Sometimes a customer who does not fall in the Vendor's time zone
(for eg: US Vendor with Customers located in the far East and
in the Asia Pacific region) may have a need to talk to the Support
Center. This may not be possible, as the US offices would be closed.
The Customer would then have to choose an appropriate time slot
(which would be outside his normal working hours and might also
attract an overtime cost for the Customer) to match with the working
hours of the US center. But with an Offshore Support Center (facility),
the Customer has quick access to talk to a support person.
Backlog Management
Many Product Vendors find it difficult to cope up with various
issues identified by its Customers. This amounts to a large backlog
and is a cause for dissatisfaction to the Customer. Some of the
reasons for the backlog could be:
· Additional Product Features
· Euro Issues
· Location based Extensions
· Complex Bugs involving the OS or other tools
Though many of the Vendors claim that their product
works on specific platforms (O.S), issues could arise because
of platform upgrades (reasons that are not directly product related).
This could cause a steep increase in the number of support requests
made. Also, whenever a new Product Version is released, in which
new functionalities have been added to the base product, or when
specific modules are included to handle say the Euro issue or
when country based extensions are introduced, these would also
cause a substantial increase in the number of support requests
made. Hence, for one reason or the other, the service requests
could get piled up, which brings down the impact of the Support
Center. To meet such a need, an additional support center that
works across a time zone would be a great boon in bringing down
the backlog.
Focus on High Priority Customers
Most Vendors provide special support services based on service
levels, and special rates are charged based on the service level
provided. In such situations, the Vendor could provide fast responses
by working twenty-four hours using both the onshore and offshore
Support facility (assuming that the offshore facility is located
in a different time zone). Alternately, the Vendor can focus on
such high priority customers while the offshore support team could
take up the low priority issues.
Attrition Rate Management
Response to Customer also depend on the having the right people
for the right job. Sometime Vendors face a situation when its
Support team member leaves the Organization. This will definitely
have an impact on its service levels. Such situations can be resolved
by re-locating personnel from the Offshore Support facility.
Competitive Cost
Choice of offshore facility is to be made taking into consideration
the time zone advantage, availability of infrastructure, people
as well as the Cost. In certain countries, its possible to have
a large support team as compared to having a similar sized team
in the Vendor's country.
OFFSHORE SUPPORT MODELS
Different Operational Models could be followed to provide support
from the offshore facility. Some of them are given below:
· To provide Second Level Support to all
End Customers. (Please see the diagram shown).
· To provide Third Level Support to the Vendor
· To provide First Level Support (Call Center) to Geography
Region based End Customers
· To provide Support at all three levels
CONCLUSION
Now that one has understood the work content in Customer Support,
the need for the same (as a key element for Customer Relationship
Management) and the advantages of offshore service, Product Service
Providers could look forward to seeking such an opportunity in
their respective product service areas. One could first develop
the knowledge base, make the customer's realize the benefits of
offshore support and explain how it can provide such a support.
One could also develop web based tools to help strengthen their
pitch and to state how they are well positioned to provide such
a support.
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