How much do SaaS companies typically spend on customer support

7.12.2020
Angelica A.
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From terrible to life-changing experiences, what we evoke in consumers can heavily and so simply depend on how we service customers. Customer support alone can make an enormous difference in how a person feels after being serviced. And company culture has a lot to do with that. Yet, beyond just sensitive training, there’s also a question of budget. How much do SaaS companies typically spend on customer support? The problem is quite common for startups. And the solution depends on many variables, which is why we’ll go over ways to best fit a budget for customer service in a SaaS company. 

Why is support relevant in SaaS, especially?

Customer support is crucial for any company as excellent service means happy customers. And that’s great for much-needed customer retention at a minimum. Also, a new customer typically costs about 5 to 10 times more to acquire than to keep. So, when it comes to SaaS, customer success is especially important. That’s one of the few other means through which we can speak and stand for our companies. 

While our apps or software can deliver greatly to any consumer, the slightest trouble, query, or observation will need to be handled beyond AI or computer software communication. And that relationship with consumers in SaaS is established heavily through customer success. It’s as if that area of our business became a representation of our brands. It’s tied to our culture, how we do business, and a lot more! 

Matching tech with human interaction

Very commonly in SaaS, digital programs are complemented by all of what happens via customer success channels. And that image of our business presence is relevant in how we nurture and upkeep our market relations. This has to do with how we treat our investors all the way to how we get back to consumers’ frequently asked questions. Our quality level in handling communications is awfully relevant. 

Bear in mind that SaaS’s customer success includes dealing with customers first-hand. It’s needed to solve any challenges or setbacks as much as required to proactively engage with them. They can help anticipate needs and generate ideal experiences. All this involves solving whatever needs fixing as soon as, and hopefully even before, it happens. 

Customers in SaaS also usually pay with a specific subscription frequency that it’s in our best interest to keep rolling into the long-term. For that to happen, we should deliver excellent results, especially after our software has failed, gone under for whatever reason, or has room to grow. 

In fact, especially for startups in early stages that need to evolve quickly and continuously, clients must be able to rely on guidance, support, and tech assistance to grow along with it. Fortunately, this also means that customer feedback, reviews, and impressions can lend a mending hand as to how we tailor our services.

How much budget to spend in support of SaaS

Different figures can be thrown around regarding how much SaaS companies should be spending on customer support. Yet, there’s no magic number. What we have are aspects to keep in mind when considering how much to spend on a company’s customer success.

First, look up equations. Define with those how much to spend depending on lifetime revenue per customer, for example. Or work on your average revenue per customer, if not. Figure those out. 

Then, think of your human value. How you’ll structure how you service clients matters in financial terms considerably. Many SaaS companies use Customer Success Managers (CSM) as a model and implement customer retention programs. And most certainly devote at least 1 person to do all email, chat, call, or ticket solving as the primary means of customer support. As companies grow or if the size is already larger, full teams with authentic leadership will be required to keep this running top-notch.

Consider how big a role customer loyalty plays in client retention. And optimize that. Also, know your customers awfully well, and learn about the coverage they need. Spend accordingly as much as your budget allows. Be strategic about it all, however. 

Furthermore, consider communication that doesn’t necessarily mean spending a lot of money. The goal is to give clients a great user experience. So, listen to their feedback and keep improving your product or offer to make it clear for clients that their opinion matters.

And in doing so, consider all your possible customer support channels. As this topic’s so expansive and essential, we’ll expand a bit on that next.

Customer support channels

There’s a broad and diverse array of customer support channels in SaaS today. An FAQ section can quickly deal with the most common questions customers have regarding our service. 

Alert of any known bugs as they come up. Publish them on a news feed section of a website, for instance, or create forums to keep users informed of any relevant tech data. Let people know if they’ll need help from an engineer or a technical support agent or specialist to fix any tech errors. 

Consider your sales team, as well. As you’re offering software services, your premium plan might contain some support of some sort. And your sales team can also help as a customer support channel in that sense.

Above all, be creative about your customer support channels. Create some if you can afford it and need it. Think of specialized blogs, relevant newsletters, helpful videos, for example. Or create attentive and interactive webinars, too! There are so many options; you just need to think a bit out of the box or research alternatives. 

Stay on budget as planned

Of course, we know you’re trying hard on the finance side. And we furthermore know how challenging it can be to stay on budget. Yet, it needs to be said; seek to only allocate funds where it’s needed the most. Or merely the most fruitful, too. 

Slidebean, for example, created an app to precisely tackle how much budget goes to waste when startups pay for and use numerous SaaSOps. Monthly solves the lack of SaaSOps platforms for startups. We integrated SSO and GSuite to quickly track the usage of SaaS platforms, which also means smart suggestions so businesses can discover new tools to enhance processes. 

The above opens up the possibility of replacing an existing stack and save money. Rely on Monthly to keep a closer eye on your customer success budget, for example. You can connect accounting software to work emails here, for instance. In that case, you can also easily collect invoices or measure user activity through SSO and G Suite logs. 

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