Best Practices: Reducing Broadband Subscriber Support Costs

45  Download (0)

Full text

(1)

Best Practices: Reducing Broadband

Subscriber Support Costs

Matt Looney

Director of Business Development, SecurityCoverage

September 30, 2013

(2)

Outline

1.  Malware: source of significant HSI support costs

2.  Outsourcing: cost/benefit, efficiencies gained

(3)

Malware: Key Challenges

•  Viruses, trojans, spyware, and adware all cause

significant slowdown

•  Severe viruses can damage hard disks, causing

data loss and in some cases identity theft

(4)

Customer’s Point of View

(5)

What Happens When…

(6)
(7)

Industry Trends

7  

Value-added PC security/ antivirus offerings

(8)

Why?

Value proposition

(9)

0%   2%   4%   6%   8%   10%  

Current  Helpdesk  Account  –  Example  A  

Madison  -­‐  No  SecureIT   Madison  -­‐  SecureIT  Onboard  

Case Study “Example A”

(10)

Case Study “Example B” 0%   3%   5%   8%   10%   13%   15%  

Current  Helpdesk  Account  –  Example  B  

(11)

Conclusion

Don’t get stuck paying extra for malicious attacks on your subscribers. Mitigate some support

costs before they happen by standardizing security software to your subscribers!

(12)

Outline

1.  Malware: source of significant HSI support costs

2.  Outsourcing: cost/benefit, efficiencies gained

(13)

Outsourcing – What Do We Mean?

(14)

Reshoring Trends

•  Real wages in Asia: +7.1% to +7.8% each year

from 2000 to 2008 1

•  Senior managers pay in emerging markets now

matches or exceeds pay in US and Europe 2

•  Offshoring benefits have begun to dry up

(15)

Reshoring: Services & Manufacturing

(16)

Should You Outsource Tech Support?

1.  Are most of your technical support calls basic “level 1” troubleshooting – unplug jacks, e-mail settings, gateway/DNS settings, etc.?

2.  Can a trusted vendor access your billing database

and modem provisioning systems remotely? (via web login or RDP, for example)

3.  Are you spending more than $2.00/sub on

technical support? (excluding truck rolls)

(17)

How Does Outsourcing Benefit Me?

Economies of Scale

(18)

Economies of Scale

1.  Outage support

2.  After hours / Off peak

3.  Human capital

(19)

Supporting During Outages

•  Death, taxes, and outages

•  Impossible to staff for, predict, or notify

•  Resulting call spikes cause lengthy hold times,

CSAT liability, poor Service Level

•  Vendors offer supplemental or “on-demand”

coverage without fixed costs

(20)
(21)

Supporting During Outages

(22)

After Hours / Off-Peak Times

•  Technical support no longer a “9 to 5” function

•  Staffing in-house requires absorbing fixed costs

•  PT techs can be costly to hire, train, retain

(23)

Human Capital

•  Tech skills may be

hard to hire in your labor market

•  Right combination of

tech and “soft skills” hard to find

(24)

Human Capital

•  Vendors often located

in helpdesk-rich labor markets

•  Recruiting, training,

and retention

programs can take years to master

(25)

Re-Allocating Resources

•  Re-allocate talent to revenue generating

activities (e.g. B2B sales)

•  Get highest ROI on each team member

•  Opportunity cost of technical support

•  Hard FTE cost of technical support

(26)

Benchmarks

Call Center Benchmarks

Call In Rate 13% to 15%

Average Handle Time (minutes) 11 to 14

(27)

Cost Efficiencies

Ratio

Fixed costs : Profit 1 : 1

(28)

Hard Cost Comparison Scenario

Technical Support Ticketing & remote access software Telephony Labor & admin.

(29)

Scenario: 10,000 Subscribers

29   Monthly calls (13% call-in rate) Average Handle Time (AHT) FTEs required (2.75 calls/hour)

Avg. cost per FTE (BLS: West) 1,300 14:00 3.5 $ 4,886 In House Labor 17,101 Telephony 750 Software 2,250 Total cost $ 19,351 Outsourced $0.85 per min. 15,470 Savings/mo. $3,881 $1.75 per sub. 17,500 Savings/mo. $1,851

(30)

Benchmarks

Call Center Benchmarks

Call In Rate 13% to 15%

Average Handle Time (minutes) 11 to 14

(31)

What Are The Drawbacks?

Risk / Reward

(32)

Potential Drawbacks

1.  Give up customer touch points

2.  Regional dialect / accents

(33)

How to Evaluate a Vendor

•  Always do a site visit

•  Listen to calls, both

recorded and live

•  Require remote

access capabilities

(34)

How to Evaluate a Vendor

•  Ask for documented

“Scope of Support”

•  Do they subcontract

or “farm out” calls?

•  Review their hiring

practices, training programs/process

(35)

Outline

1.  Malware: source of significant HSI support costs

2.  Outsourcing: cost/benefit, efficiencies gained

3.  Out-of-scope support – cost vs. opportunity

(36)
(37)

Answer

•  On average, there are

5.7 devices

per broadband connected home

•  That’s more devices

than people…

37  

(38)
(39)

“I Support Everything…”

39  

The guy I talked to last time fixed my wireless printer for me. Why can’t you fix my tablet?!

(40)

Premium Tech Support Services

•  Premium tech support

services: rapidly growing business

•  Turn additional costs

into revenue opportunities

•  Give your customer

the support they need

Premium  Tech   Support:    

$6.2B  business   (U.S.)  by  2014  

(41)

Growth Sector: $11.8B by 2015

(42)

Pricing Models

Per incident •  Sell at point of pain/trouble •  High initial revenue •  No recurring revenue •  Charge between $49 - $149 per task Prepaid annual subscription •  Higher price point will decrease close rates •  No monthly churn •  High annual churn •  Charge $170-$300 annually Monthly subscription •  Higher close rates •  Takes longer to build significant revenue •  Monthly churn a factor •  Some will “game system” •  Charge between $15-$30/mo. Both monthly and per-incident •  Optimized close rates •  Offer both depending on customer preference

•  For best results

charge an ETF •  Usually best

(43)

Keys to Success

•  Remote access capabilities deliver higher

service level, improved CSAT

•  Support the environment, not the device

•  Offer ongoing communications, including training

and tips

•  Bundle with other Value-Added Services

(44)

Key Takeaways

1.  It makes good business sense to offer virus and

malware protection to your subscribers

2.  Outsourcing your support can save you money

and even improve the customer experience, as long as you carefully select your vendor

3.  Premium technical support packages can

deliver new revenue, consistent experiences, and set clear support demarcations

(45)

Questions

Figure

Updating...

References