ServiceXRG’s NextGen Support Metrics framework offers a holistic approach to measuring Support’s contribution by focusing on how it delivers value to both customers and the business.
What are Support Costs?
Support Costs are critical inputs for measuring the total financial investment required to deliver support and include staffing, technology infrastructure, training, and other operational expenses. Understanding Support Costs is particularly important in labor-intensive Support environments, where costs can account for up to 15% of total revenue, with variations based on company size and the complexity of support needs.
Support Costs are one of seven NextGen Support Metrics introduced in ServiceXRG’s NextGen Support Metrics.
Why Support Costs Matter
Justifies Investment in Support
Support Costs offer a clear picture of the financial investment in Support, helping leaders justify the allocation of resources. This insight enables Support teams to communicate their value by illustrating how funds are spent to deliver quality customer care and how costs align with business goals.
Identifies Opportunities for Cost Efficiency
By tracking all expenses associated with Support, organizations can identify areas for cost optimization. For instance, the data can highlight the potential savings from investing in self-service and automation to reduce labor costs, allowing Support to scale efficiently without a proportional increase in costs.
Provides a Benchmark for Cost-to-Benefit Analysis
Support Costs serve as a baseline for evaluating the efficiency of Support relative to other business functions like R&D or Sales. While spending in those areas often yields direct revenue, Support’s contributions to customer retention and satisfaction are less tangible but equally crucial. Understanding costs helps leaders evaluate the return on investment in Support activities and make data-informed decisions.
Enables Strategic Resource Allocation
With a clear view of costs, Support leaders can make more strategic decisions about where to allocate resources. If certain areas within Support are driving high costs but delivering lower value, adjustments can be made to balance the budget, focusing resources on high-impact areas that directly benefit customers and the business.
Implementing Support Costs for a Sustainable Support Strategy
Support Costs is an essential part of the NextGen Support Metrics framework, offering insights that enable Support teams to align their financial resources with customer and business needs. By understanding the full scope of Support expenses, organizations can make informed decisions about scaling, resource allocation, and optimizing cost-efficiency. This metric not only keeps Support financially sustainable but also strengthens its strategic value within the organization.
Ready to Evolve Your Support Metrics?
If you’re interested in transforming your Support metrics to demonstrate true business value, Contact ServiceXRG to request access to the NextGen Support Benchmark Toolkit through our website, online chat, or by e-mail.
To Learn more about NextGen Support Metrics read the full report – NextGen Support Metrics for 2025 and Beyond.
