The Hotline Magazine
The Redefinition of Customer Support

Thursday September 9, 2010





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The Evolution of a Publication

Last July, something new came to The HotLine Magazine.  The change brought a new name and appearance, a new focus, and the furtherance of a vision that there is much more to the role of customer support than endless technological break/fix exercises.  Now, six months later, the magazine continues to evolve to reflect changes in the industry.  The current economic outlook is grim.  Layoff notices abound, and contact centers are closing on all sides.  The bleak landscape offers proof of what has

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Recorded Webinar: From Income Streams to SaaS River of Profitability

Which way to turn?  In the current economic climate, the pressure is on.  SaaS CEOs are told on one hand that there are but three paths to growing revenue:  Raise prices, acquire more customers and keep them longer.  Another voice advises that the secret to success in SaaS is to minimize contact with the customer, to make the application itself take over services that would otherwise be done by marketing, sales and support staff members.  There is an inherent conflict; customers that have but li

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Aligning with the SaaS/Cloud Profits-Realization Strategy

In the traditional perpetual-license model of selling software, the manufacturer takes the majority of their profit up front from the sale of the licenses. In the Software As A Service subscription model, that large up-front influx of revenue and profit goes away, replaced by a more predictable monthly membership arrangement. SaaS profit is realized incrementally instead of all at once. There are variances -- some manufacturers require a 12-month commitment and payment in advance while others do

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Creating and Sustaining Profitable SaaS Customer Relationships

The essential key to long-term success for a SaaS company is simply stated: No Churn.  Get the right customers and keep them.  But all too often, Software-as-a-Service companies fall into the bad habits of their traditional-model predecessors by focusing only on acquiring new licensee customers.  The resulting unconscious assumption that all customer relationships will automatically persist and/or be profitable is a huge and largely invisible risk for a SaaS company.   It’s time to ask some poss

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The SaaS Support Forum (TSSF)

The SaaS tsunami has had profound impacts upon the software industry, and it isn't over yet -- especially for Support, where it's just beginning.  While traditional software vendors and their customer contact center teams desperately struggle to keep ahead of the expensive floods of “It’s Broken; Fix It NOW!” calls, Support in SaaS companies is different.  A new era has begun; what was once a despised but necessary evil in the traditional software game is fast turning out to be the key to long-t

More on page 511

By Mikael Blaisdell

Hokusai; Great WaveThe SaaS tsunami is bringing dramatically changed realities to how we view  technology.  While the most obvious aspect of the new profit model is entirely different; the bulk of the Customer Lifetime Value to the vendor is no longer gained at the point of initial sale — that’s just the first step in what will be a profound journey.  The CLV is now the result of an income stream over time, with profit coming incrementally — and only after the acquisition costs for that customer have been recouped and the retention costs included in the calculation.  That single shift, from front-loaded profits-realization to balanced income stream, inherently changes the very nature of the product being sold.  Now the technology is only one aspect of a much larger and more vital whole.  The fundamental basis for the industry has gone beyond code to an ongoing economic connection.  SaaS, for those vendors who want to succeed, ultimately has to be about mutually beneficial relationship and incremental exchange of value.

The Architecture of Enduring Customer Relationships

It’s time to intentionally explore the architecture of customer-company relationships in the SaaS ecosystem, and that’s what Customerium will be about.  Underneath the sea-change in the software industry, despite its essential impact upon the way that software is manufactured, marketed, sold, delivered and supported, old-model patterns, perceptions and practices are still very much present and stifling the success of both vendor and customer.  Customerium as an online resource will speak to the issues, challenges, approaches, tools and best practices of designing and building lasting customer relationships in the new era. Welcome to Customerium.

Comments Are Welcome

Customerium will be an ongoing conversation, and community feedback –including disagreement– is very welcome.  Unlike a blog, comments will not be posted as direct attachments to articles here.  Instead, the Comments button will enable readers to e-mail their reactions and feedback about a particular article privately to the editors for use in either direct response or in future articles — or both.  Privacy and confidentiality will be strictly respected; unless specifically authorized in advance, the names, company affiliations and/or e-mail addresses of commenters will not be published.  Nor will your contact information in any way be provided to anyone else.

There are times, however, when there is a great deal of value to be gained from an open exchange of views between known individuals.  That form of discourse will also be available through links to our discussion forum, The SaaS & Support Forum, on LinkedIn.

Published: January 3, 2009

Revised: February 24, 2010

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