As a business owner, you are always looking for ways to maximize profits. One area that is often overlooked is customer support. Many companies view customer support as a necessary expense, but what if I told you that customer support could be turned into a revenue stream? In this article, I will explain why customer support can be a revenue stream, provide examples of companies that have successfully turned customer support into a revenue stream, and give you practical steps to implement a customer support revenue program for your business.
What is Customer Support Revenue?
Customer support is a vital aspect of any business. It is the lifeline between the customer and the business, and if done correctly, it can lead to customer satisfaction and loyalty. However, customer support is often viewed as a cost center, rather than a potential revenue stream. This is a missed opportunity for many businesses, as customer support can be a valuable source of revenue.
If you think about it, customer support is in a unique position to identify customer needs and offer solutions that can lead to additional sales. For example, a customer may call in with a problem and during the course of resolving the issue, the customer support representative may identify an opportunity to upsell or cross-sell a product or service. This is where CS revenue comes in.
Why Customer Support Can Be a Revenue Stream
Customer support can be a revenue stream for several reasons. Firstly, customer support representatives have direct contact with customers, which gives them a unique insight into customer needs and preferences. This makes them ideal candidates for identifying additional sales opportunities.
Secondly, customer support is often the first point of contact for customers. This means that customer support representatives have the opportunity to create a positive impression and build rapport with customers. This can lead to increased customer loyalty and repeat sales.
Lastly, offering additional products or services during a customer support interaction can increase the lifetime value of the customer. This means that the customer is more likely to purchase from the business in the future, leading to increased revenue.
5 Ways to turn your Customer Support Strategy into a Revenue Stream
1. Omnichannel Support
By using Omnichannel support, you’re offering an excellent customer experience throughout your business. Promote this exceptional support as a unique selling point for your business. Highlight your support team’s expertise and dedication to customer satisfaction in your marketing materials and on your website.
Here are some other reasons for offering Omnichannel support:
- Being available to offer support on multiple channels widens the audience share and hits prospects across as many channels as possible.
- PLG onboarding vs SLG onboarding have different channels and approaches and you need to adapt based on the type of clientele you want to adopt
- Offering integrations with their tools and software to make their own processes easier and also having more addon/upsell opportunities
2. Automation of customer experience
With more automation, omnichannel conversations, and tracking, your agents can improve customer outcomes faster. Reduce tickets, and ticket resolution time, and engage faster and better with your users.
3. Upselling, cross-selling & churn detection
Implement upselling and cross-selling strategies: Train your customer support representatives to identify opportunities to upsell or cross-sell products or services. For example, if a customer contacts you with a problem, your representative could suggest an additional product or service that could help solve their issue.
With FROGED’s Keyword Spotting feature, you can automatically detect any Upsell or Cross-sell opportunities and even detect and prevent Churn. Learn how to use Monitor Live Chats via the Keyword Spotting feature here.
4. Personalized communication (with user behavior data)
Personalize the onboarding experience with behavioral-based campaigns and communication to increase your product engagement. Offer support to your users ahead of time, and increase time to value specific features which can generate new or expansion revenue.
5. Customer feedback
Leverage customer feedback to improve products and services: Use customer feedback gathered through customer support interactions to identify areas for improvement in your products or services. This can help you create new revenue opportunities by developing new products or services that address customer needs.
Also using customer feedback to fuel your review and referral platforms which can in turn be used to generate more revenue.
Common Mistakes to Avoid When Turning Customer Support into a Revenue Stream
Turning your CS into a revenue stream is not without its challenges. Here are some common mistakes to avoid:
1. Pushing Sales Too Hard
Pushing sales too hard can lead to a negative customer experience. It is important to balance sales with customer service.
2. Focusing Too Much on Revenue
Focusing too much on revenue can lead to customer service taking a back seat. It is important to find a balance between revenue and customer service.
3. Not Providing Adequate Training
Not providing adequate training can lead to customer support representatives not being equipped to identify sales opportunities and offer solutions.
Tools and Technology to Aid in Customer Support Revenue
1. CRM Software
CRM software can help customer support representatives to track customer interactions and identify sales opportunities.
2. Chatbots
Chatbots can help to automate customer support interactions and identify sales opportunities.
3. Sales Analytics
Sales analytics can provide insights into customer behavior and help to identify sales opportunities.
Examples of Companies That Have Successfully Turned CS into a Revenue Stream
Several companies have successfully turned customer support into a revenue stream. One example is Amazon. Amazon’s customer support representatives are trained to identify opportunities to upsell and cross-sell during customer interactions. This has led to increased revenue for the company.
Another example is Zappos. Zappos is known for its exceptional customer support, and this has led to increased customer loyalty. The company’s customer support representatives are trained to go above and beyond to meet customer needs, which has resulted in increased sales.
Last but not least is Salesforce. Salesforce has implemented a CS revenue program that includes sales training and incentives for sales.
Next Steps for Implementing a Customer Support Revenue Program
Turning customer support into a revenue stream can be a valuable source of revenue for your business. By training your customer support team to identify sales opportunities and implementing a customer support revenue program, you can increase revenue and customer loyalty. To get started, set revenue goals, create a sales strategy, and monitor results. With the right tools and technologies, you can turn customer support into a revenue stream and maximize profits.
If you need help implementing a CS revenue program, don’t hesitate to contact us for assistance. We can help you to create a customized Customer Support program that meets the unique needs of your business and drives revenue.