Support funding levels range dramatically based on many factors including the size of the company, the type of product being sold, and the rate of growth of the company or specific product line being supported. Are you under funded?
Support funding levels range dramatically based on many factors including the size of the company, the type of product being sold and the rate of growth of the company or specific product line being supported. The right level of funding for Support is best determined by measuring the return the company receives from its investment in Support.
Support funding levels represent an investment a company makes to deliver support, Support should provide a return for this investment. The return may be measured in terms of satisfaction levels, service level performance, or financial terms such as profitability. The chart below offers industry average funding levels by median company revenue. Use this as a guideline to determine if your Support funding level is in line with industry norms.
Are you Over Funded?
Yes, it happens. Are you experiencing hyper-growth? Are your services highly profitable? Are you keeping customers very happy and as a result are they buying more and renewing subscriptions? All is well but watch your margins and/or for a potential slowdown in future revenues.
If you are over funded and still under delivering, then it is time to do a deep dive and figure out where spending is going and find out why you are not getting a better return. It may be time to update tools, skills and or practices (possibly some staff “realignment”).
Are you Under Funded?
You need to make the case that incremental spending will have a positive impact on the business. If you promise higher levels of satisfaction or net recurring revenue be prepared to forecast how increased satisfaction will enhance overall company financials (improve renewals, stem attrition, Net RR etc.). Regardless of how higher levels of funding will be used, be prepared to illustrate the return from this investment.