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Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

author:Chopping wood nets

Editor's note: The content of this article is applicable to the customer service director, VP in charge and boss of software enterprises, aiming to help them build a scientific and perfect service system within the enterprise.

As a link between enterprises and customers, customer service has become the focus of major enterprises in today's increasingly competitive market environment.

What are the changes in the organizational structure of the service sector?

How can traditional services adapt to the new business era through organizational transformation?

How does the service director successfully complete the revenue, cost reduction, customer satisfaction and overseas targets issued by the boss?

How do I choose the right service tool?

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On April 26, Mr. Luo Qunhui, CEO of Jin Wanwei, was invited to attend the "Fearless Evolution • SaaS New Business Partner Conference" jointly organized by Cui Niu Club & Xuan Software Network. At the meeting, Mr. Luo decomposed in detail the indicators of customer service cost reduction, revenue increase and customer satisfaction, as well as how to achieve the set goals in a systematic and refined operation.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

The following content, based on the content of Mr. Luo's speech, hopes to help more software companies to clarify the work of customer service.

Body:

Today, the strategic goals of corporate customer service are being redefined. In the past, the service department is a complete cost expenditure department, keep not to let customers complain, just hold the cost, the business boss will not pay too much attention; now, the bosses are to improve service income, reduce costs, improve customer satisfaction as an important indicator of business operation, and even, the service department to undertake the strategic goal of going to sea.

Responsibilities within customer service are also changing. In the past, the enterprise was generally a VP in charge of finance, human resources administration, information center, and also in charge of customer service center; now, the service department is gradually transformed into a profit center, and the strategic position of the service department has been improved accordingly, and the original service director has been upgraded to the company's service VP, and concurrently serves as the general manager of customer success.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

Why are these changes happening? There are several main reasons:

1. Business model:

In the past, software was mainly sold in the OP model of buyout, but now this method is changing to a subscription model, and the subscription model will inevitably have higher and higher requirements for services.

2. Changes in the external environment

Nowadays, labor costs are rising year by year, competition in the industry is becoming more and more fierce, and at the same time, the demand for going overseas and global layout is becoming increasingly strong.

3. Technology drivers

In terms of technology, advances in artificial intelligence and the development of real-time customer connection technology have enabled us to technically support the achievement of the strategic objectives of the service department.

So, as the boss of a software company, the customer success/service director or the VP in charge, how should you build a scientific service system and do a good job in customer service?

First of all, before carrying out the work, as the person in charge of the service department, you must align the strategic goals of the enterprise and clarify the strategic goals of the service department, whether it is to increase revenue, reduce costs, improve customer satisfaction or go overseas?

A few days ago, when the VP in charge of the Kecheng department of a listed company with an annual revenue of four or five billion yuan came to our company to communicate, he said that when he first took over as the general manager of Kecheng, the instructions issued by the boss were: the revenue will double in the next three years, but the customer service staff cannot be increased, that is, the service cost cannot be increased, and the customer service satisfaction will be increased to more than 98%. At the same time, the service system should support the company's overseas goals in the next few years.

From the above conversations, we can see that the strategic goal of their service department is to double the revenue, but not to increase the cost.

Once you've identified your goals, consider the goal breakdown:

1. Reduce costs

First of all, how to implement the goal of cost reduction. We have to sort out the cost structure of the service department now, according to the more than 1,000 software companies that helped me in the past, 77% of the service cost is labor cost. Therefore, the first consideration in the cost reduction link is how to reduce labor costs, and it is necessary to set a target of how much labor costs to reduce in a year.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

Among the many enterprises we serve, one of the most impressive is that one customer has reduced the cost by more than 60% in the last year by sorting out the cost with us and creating a complete closed-loop service system!

1. Reduce the amount of service: the boss must be clear about the amount of service in a year, if this basic data is not clear, the follow-up work will not be carried out;

2. Improve human efficiency: How many customer problems can your service staff solve in a day? We have studied and compared the two software enterprise customers who have been in competition to help me, one customer service can solve more than 40 problems a day on average, and the other can only solve less than 30, it is conceivable that there will be a big gap between the market competitiveness of the two. We can help you sort out and analyze, find out the corresponding crux of the problem, and the enterprises that need it can call: 4009979858 for detailed consultation.

3. Reduce per capita cost: Reducing per capita cost is not a blunt salary reduction for existing customer service personnel, but through the establishment of service centers or service outsourcing in third-tier or even fourth-tier cities, and the construction of shared service centers through service digital tools to achieve cross-regional service control, so as to reduce per capita costs.

2. Increase revenue

In the service sector of the past, no one asked you to pay attention to the income. At present, more than 80% of the service sector will have a revenue target, and in order to achieve the target, it is necessary to sort out the revenue composition of the existing service sector.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

1. For the SaaS subscription model: For subscription products, increasing revenue is nothing more than improving the renewal rate, renewal rate and the health of the customer's use of the product. Specifically, we carry out scientific decomposition in the detailed course training, and enterprises that need it can call 4009979858 for detailed consultation.

2. For the traditional software package model: that is, the OP model, we need to consider how to improve operation and maintenance and secondary development to increase service revenue. For example, we classify our customers and match them with the corresponding service offerings. Scientific management of customer relationships, long-term sustainable operation, improve customer satisfaction, tap new customer needs, and increase additional income. In addition, it is important to use efficient digital tools to support the collection of O&M service fees.

3. Increase the income of value-added services: can it provide customers with more professional training or consulting services, and can it obtain income through ecological product cooperation...... are all areas of value-added services.

Through the above strategies, managers can basically calculate how much revenue the service department can increase scientifically.

3. Customer satisfaction

Customer satisfaction is generally conducted through a sample survey, and users are asked to rate our services in the past year in the form of questionnaires. Customer satisfaction can be decomposed into four dimensions: response speed, problem solving speed, satisfaction in the service process, and handling of customer complaints. After understanding these situations, we can then consider the goal increase, such as how to increase from 95% to 99% in the past?

The average response time is no more than a few minutes

The problem resolution rate should be no less than a few minutes

Satisfaction with the service process cannot be less than a few stars

No more than how many complaints can be made

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Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

After the above secondary indicators are determined, they can be optimized and implemented through some key actions, combined with service tools, performance appraisal, etc. Because of time reasons, we will not expand too much here, you can call 4009979858 for detailed consultation, and you are welcome to have in-depth exchanges with us offline.

After establishing the goals and key measures, in order to ensure the effective implementation of the goals and strategies, it is necessary to make in-depth adjustments and optimizations to the organizational structure, job responsibilities, performance indicators (KPIs), core processes, rules and regulations, and corporate culture, and use digital tools as auxiliary means to ensure the accurate implementation of the strategic plan at multiple levels.

Let me briefly talk about some landing-related content.

1. Subdivisions

Help me serve more than 1,000 software companies in the past, although they belong to the same industry, but they are also very different. Later, we further decomposed the software enterprises into 12 sub-groups based on the dimensions of service providers (enterprise scale, product and service form, product charging model), and combined with the client dimensions (number of customers and customer enterprise size). Different subdivisions have different landing methods and goals for customer service.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

For example, although our top customers Kingdee Group, Glodon and Booz Software are all listed companies, their needs are completely different;

The needs of waist customers such as Laiye Technology, Ellinger, and Tiancai Shanglong are also different, while the needs of small and micro software enterprises with less than 10 employees in the service department are also different. Therefore, we have corresponding methodologies for the above 12 subgroups.

Here, I would like to share with you the customer service methodology of a large software company.

2. Organizational structure, job responsibilities and core KPIs

In general, the first-level departments of the service center of large enterprises include service delivery centers, customer service centers, and digital tools. Among them, there are first-line customer service group, second-line customer service group, customer service training group, quality inspection group, and product improvement group under the delivery center. There are customer manager group, customer training group, customer planning group, etc. under the customer success center.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

After the main structure is divided, it is enough to correspond to the key actions in the three goals we mentioned earlier, assign the key indicators to each corresponding department, and clarify the responsibilities and KPIs of each corresponding position.

3. ITR process

In terms of process, we will create a "customer-centric" end-to-end ITR process, which is characterized by connecting customers, internal first-line customer service, second-line customer service and product research and development to efficiently and collaboratively solve customer problems.

In the process of software enterprises, I believe that everyone is very deeply touched, for example, the problems raised by customers, after registration, the later solution may be far away, and the customer does not have any perception. The ITR process should be completely customer-centric, and the problem solving process should be able to notify customers in real time, and provide timely evaluation and feedback on services in real time. For another example, when we charge for operation and maintenance services or secondary development, the customer does not recognize it, in fact, it is the lack of the process of customer demand-evaluation man-hour - customer confirmation - problem solving - customer reconfirmation.

From the perspective of service management, the "customer-centric" 360-degree comprehensive continuous operation is also in this process.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

4. Relevant systems

There should be two systems for the service department, one is the internal performance and compensation system, and the other is the SLA system for external commitments to customers. At present, we have helped more than 1,000 software companies to reduce costs, improve efficiency and increase revenue by sorting out the architecture, processes and key actions that can be improved, and solidifying the implementation through tools.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

5. Corporate culture

One is the customer-centric service culture, and the other is the empowerment culture of teaching people to fish, which can be organized and adjusted according to their actual situation, and will not be elaborated too much here.

6. Selection of service tools

Through digital tools, the above structures, systems, processes and other requirements are supported. When selecting service tools, enterprises should meet the following needs:

Customer access channel integration: Integrated integration of omni-channel customer access, covering telephone, online, email, remote assistance, WeChat, DingTalk and its own software.

Multi-role integration: All roles (customer, first-line customer service, second-line support, etc.) can be operated on a unified platform to achieve an integrated service experience.

Integration of internal system docking: The data integration of internal systems (HR, finance, R&D, sales, marketing, etc.) is seamless to ensure the smooth flow of information between multiple systems.

Artificial intelligence technology: support artificial intelligence technology, so as to reduce costs and greatly improve service efficiency.

Leave traces of the whole process: complete record of the whole service data, laying the foundation for in-depth data mining.

Flexibility and scalability: The system has flexible scalability to adapt to internal structural adjustment, process optimization and scale expansion.

It is recommended that you consider the above six characteristics when choosing a service tool.

Dry goods record | SaaS New Business Partner Conference Lao Luo: How can software companies improve service operating profits?

Because of the time, I will share so much here, and for more details, you can consult the national account manager of Jin Wanwei or call the 4009979858 for in-depth discussions offline, thank you!

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