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Profitability of the support contracts
May sound like a very basic question, but I am wondering how others are managing the profitability of the support contracts ? Obviously support agents are not dedicated to one contract so their time and therefore costs are distributed unequally over number of contracts, and multiple agents per contract. Is there a sustainable method to monitor these costs ?
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This is an example of Activity Based Management. It is generally recognized as the best approach but has been too complex for most of us to implement. I am wondering if there are new practices here supported by digital transformation that can make ABM more practical.
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Tracking support related activities and assigning them a cost can provide information such as cost per support case (if this your main cost), which should also include other activities, admin activities, training, infrastructure costs etc. and compare it to the revenue brought in. Some customers will definitely open a higher number of support cases than others but I'm guessing that at the end of the day you'll be more interested in the aggregate number.
I hope this helps.
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Thank you @Steven Forth , @Jaime Farinos , this helps
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Thank you @Steven Forth , @Jaime Farinos , this helps
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