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.

about the author

FreshBooks is the #1 accounting software in the cloud designed to make billing painless for small businesses and their teams. Today, over 10 million small businesses use FreshBooks to effortlessly send professional looking invoices, organize expenses and track their billable time.

Freshly picked for you
Make the Most of Your Business Expenses: What You Need to Know About Depreciation New: Advanced Payments Meet Media Suite, a Web Design and Development Studio That Uses Accounting Software to Save Time and Support Their Growing Business Bidsketch Guest Post: The Benefits of Persuasive Pricing on Your Proposals Calling All LA Small Business Owners! You're Invited to the #imakealiving Event Master Project Management: Closing Deals and Delivering Amazing Projects [Free eBook]
Sign up for the FreshBooks Blog Newsletter