The ChallengeClient services for a SaaS company must be able to scale quickly while being able to respond to thousands of clients simultaneously, consistently and seamlessly. My challenge was to convert a traditional hands-on support organization to a SaaS support group. The key to any Software As A Service (SaaS) company is to create a single code base that is deployed to thousands of clients. To be successful, software support has to scale with sales only adding support headcount when it is cost effective.
Pulling data on client revenues and support hours from our CRM allowed me to map out which clients were using the most support and to calculate the annualized run rate (how much did we earn vs. how much we were spending on support). These KPIs immediately highlighted portfolio risk with overallocation to a handful of account managers. Using the metrics defined I was able to reorganize the team to minimize risk by reallocating account manager portfolios. I was also able to see our most profitable and least profitable accounts and devise a plan for improving support via automation and intentional negative churn where those clients could not be supported profitably.
The 80/20 Rule
The first step in this process is to evaluate your client base using the Pareto 80/20 to ensure that the top 20% of clients, who provide 80% of revenue are being attended to.
SaaS Support Is Worth The Effort
Converting an organization from traditional support to SaaS support is a large project that affects staff as their job definition and daily duties will change. It also requires retraining clients to take advantage of the new systems in place. This takes time and dedicated resources with executive sponsorship. Successfully implemented SaaS support improves client retention, renewal rates, and overall profitability. It also has a positive impact on job satisfaction levels from your support team as they are no longer handling repetitive tasks and answering the same questions over and over again.