Is Customer Service a Cost Center?
November 3, 2010
We always support our customers the best we can. We’re available via phone, email, in our forum, and on Twitter. We hire the right people, have enough people, and give them the freedom and tools necessary. It comes at a premium and it’s available for all customers, even the free ones.
Traditional business categorizes business groups into cost, revenue, or profit centers. What is customer service traditionally? A cost center. Why? It’s the easiest way to measure customer support is via cost – it’s “too” hard to track revenue. So it’s always being reduced to maximize profit for shareholders, investors or VCs.
What is customer service at FreshBooks? A revenue center. They’re selling the product, reducing churn and marketing the product – good customer service is hard to find so it’s a story worth telling. Customer support brings in revenue.