Company
Date Published
Author
Bobby Pinero
Word count
1213
Language
English
Hacker News points
None

Summary

A key strategic investment for businesses is providing great conversational customer support, which is no longer optional but essential to business survival. Supporting customers costs money and can be a significant component of profitability for SaaS companies. The costs associated with providing support are known as Cost of Goods Sold (COGS) and include hosting, third-party costs, customer onboarding costs, and support team costs. To calculate your support spend, consider pricing, economies of scale, and your position in the market, as larger customers will churn less but cost more to acquire. Conversational customer support can be a profit center by converting free trial users into paying customers, preserving customer relationships, and distinguishing your brand from competitors through excellent service. A customer-first culture builds value by retaining customers, transforming them into advocates, and delivering a competitive advantage.