Why Your Current Contact Center Provider Isn’t Cutting it Anymore

Common Billing Model Misconceptions

Contrary to the widely accepted notion that a term-billing contract guarantees stability and cost-effectiveness, it can initiate a chain reaction that often disrupts the contact center’s operations, hinders regulatory compliance, reveals hidden fees and weakens its competitive position. This surprising correlation adds insult to injury, implying that receiving subpar vendor support is often self-inflicted by choosing the wrong provider and billing model.

The financial dynamics of term-billing models, particularly those involving support clauses, actually incentivize and compel providers to provide minimal aid, often directing you towards voicemail, offshore support or inadequately staffed offshore “help” desks to maintain margins and control expenses.

Term-billing models can lead to compromised vendor support, where time-sensitive queries, training and issue resolution are delayed, placing your organization at risk and impacting your contact center’s customer satisfaction, reputation and profitability.

Moreover, there’s an additional layer to consider, particularly when dealing with vendors that are publicly owned or beholden to venture capitalist funding. These entities often leverage contracts and terms as tools to monetize their customer base — transforming them into value for stakeholders. This practice, while strategic, can have significant implications for customers. It encompasses several key dimensions:

1. Revenue generation: Contracts and terms are designed to generate revenue streams for the vendor, potentially overshadowing the customer’s needs.
2. Long-term commitment: These models aim to secure long-term steady income sources.
3. Upgrades and add-ons: Providers strategically introduce upgrades and add-ons, sometimes as necessities, further increasing revenue potential.
4. Lock-in effect: Customers may find themselves locked into agreements that limit flexibility and choice.
5. Renewal and retention: The focus on customer retention often involves intricate renewal processes and terms. Some of these happen on technicalities without any newly signed agreements.
6. Predictable revenue: Such models ensure consistent revenue projections, serving as a safeguard for the provider’s financial outlook, not always for the customer’s.

Being locked into contractual-based billing and/or paid support inhibits adaptability and degrades the overall service experience. Inflexible terms can bind your organization with unexpected costs and limited scalability over multiple years, further compounding the problem.

Are You Getting the Contact Center Provider Support You’re Paying For?

Do you want someone who is focused on extracting maximum value from you or who is focused on creating the maximum value together with you, in and for your best interest?

Poor support is not merely an inconvenience, it often leads to disastrous results. Your organization may face a range of seemingly minor challenges that stem from a lack of vendor availability and responsiveness. These all too common,  seemingly minor issues can snowball with catastrophic effects that can and will usually manifest at the most inconvenient moments to disrupt business operations. 

Additionally, without consultative support, contact centers may find themselves struggling to keep up with the rapidly evolving landscape of regulatory requirements while being unaware of existing technological solutions that could help them stay relevant and compliant. Not only do they risk falling behind in compliance matters, but they may also miss out on the opportunity to implement new features, advanced communication tools and innovative data analytics capabilities. This lack of guidance and insight often places the contact center at a disadvantage, hindering its ability to adapt, implement innovations and remain competitive. 

A provider’s service philosophy, directly influenced by the vendor’s billing model, can significantly affect your organization’s growth and competitiveness. When your provider doesn’t prioritize your feedback, advice and enhancement requests, it becomes difficult to shape the development of products, services and features that not only address your organization’s current and future needs but also serve as indicators of a company lacking innovation and thought leadership. This misalignment not only hampers your organization’s potential for growth but also inhibits its ability to stay at the forefront of the industry.  

“How did I get here? I even pay for extra support. Doesn’t that guarantee a specific level of service?” 

The prevailing notion of paying extra for what should be basic professional treatment in customer service is not just irksome but deeply perplexing. It challenges the very essence of quality customer service and undermines being “customer-centric.” This belief is disheartening as it suggests that you are required to incur additional fees merely to receive the standard level of professional care your organization rightfully deserves. Such a concept contradicts the fundamental principles of providing exceptional customer service, which should inherently prioritize addressing customers’ needs and ensuring their satisfaction. Instead, it creates a sense of unfairness and discontent, erodes trust and hinders establishing long-lasting, mutually beneficial partnerships.

There is one more thing. The frustration and disillusionment from feeling let down by a vendor’s support model and billing approach can’t be underestimated. It’s more than just a momentary inconvenience; it can be an ongoing, profound daily struggle. Your provider is intertwined with your business ecosystem, and the repercussions of this disappointment ripple through your operations daily for as long as the contractual term lasts. 

A vendor relationship can seem almost adversarial when the only personal interactions become issue escalations and when the best provider support experienced only comes just before contract renewals. Shifting blame and finger-pointing have no place in any business partnership. It most certainly should not be a daily reality.

The realization can make anyone wonder if there’s a way to find a better balance between the product you pay for and the service you receive. 

Finding a Provider and Billing Model That Puts Your Contact Center First

The quality of customer service a company offers is equally as important as the technology it provides. While advanced technology and innovative products may initially attract customers, the level of customer service and support determines overall satisfaction and loyalty to a brand.

In a competitive marketplace, products and technology offerings are often similar across companies. When customers encounter challenges, need training or have questions about a product or service, the responsiveness, knowledge and empathy of the customer service representatives make all the difference in the quality of the relationship.

Learning from past relationships, it is important to take action and seek out a service provider that is genuinely committed to providing you and your organization with outstanding support with every interaction. If you find yourself in a bad long-term contract with months or years left, it is important to know that you may still have options. The right provider may be able to help with a buyout or split between vendors to satisfy monthly minimums to forge a path forward. The right provider must be seen as a trusted advisor and partner, understanding not only your current needs but also the future landscape and industry best practices.

So, how do you know when you have found “the one”?

An ideal provider can be recognized by having the right billing model, the right people, the right technology and earned longevity.

The right billing model: consumption-based

Adopting a consumption-based or usage-based billing model is key to ensuring ultimate success in your vendor partnership. Instead of the flawed traditional approach of paying for customer service separately, embrace a consumption-based model where you only pay for what you use. This model aligns costs with the actual usage of the vendor’s products and services, providing a powerful incentive for them to deliver top-notch support.

The key difference of having a consumption-based model is that if you encounter any hindrances that prevent you from using the vendor’s offerings, you don’t use the product and the provider doesn’t get paid. It is as simple as that. 

This straightforward principle keeps the provider on their toes, always striving to provide unparalleled products and service to exceed your needs and overcome all obstacles. As a result, you will experience stellar customer service from the onset — cultivating a loyal and satisfied relationship with the provider.

With a consumption-based pricing structure, a vendor has every reason to go above and beyond, offering the best products and support imaginable — putting you in command of a thriving partnership where your success and theirs are intertwined through a shared commitment.

Excellent customer service aside, a consumption-based model offers significant advantages for contact centers. Businesses can achieve cost efficiency and flexibility by paying only for the services used. The model’s easy scalability allows contact centers to adapt swiftly to business needs without additional costs, term commitments or contract extensions. Additionally, transparency in billing fosters trust and enhances the provider-customer relationship. These benefits make consumption-based billing an attractive option, appealing to contact centers seeking to optimize their operations and maintain high-quality service levels.

Simon-Kucher, a pricing and growth specialist firm, stated, “Arguably the biggest strength of this usage-based pricing model is that customers will recognize a stronger correlation between the price they pay and the value they get from your service. And that is a good thing for ensuring customer satisfaction and, ultimately, customer retention.”

The right people: crucial elements

An ideal customer support experience encompasses several crucial elements that cater to the needs of contact centers, regardless of their size, and is enhanced by being part of a consumption-based model:

1. Availability: A support team that is readily accessible when you need assistance or guidance.
2. Responsiveness: Quick and timely responses to your queries and concerns.
3. Redundancy: A dedicated team of specialized members that can step in when needed, providing seamless support even in the absence of a primary contact.
4. Expertise: A team with in-depth knowledge and skills related to your industry and the solutions they support and a track record of successfully handling similar issues and challenges.
5. Clarity in communication: Effective and transparent communication that ensures mutual understanding.
6. Ownership and accountability: A sense of responsibility and commitment to resolving any problems that arise.
7. Thoroughness: A comprehensive approach to problem-solving, leaving no stone unturned.
8. Ability to understand implicit needs: An ability to grasp not only what is explicitly stated but also what might be implied or unsaid.
9. Escalation when needed: The ability to escalate issues to higher levels of authority when required for efficient resolution.

The right technology: vital capability 

If a product fails you, the quality of your support becomes irrelevant; however, beyond that critical point, the quality of customer service offered is just as vital for a growth-oriented partnership as the technology itself. By adopting the right technology, you gain the capability to handle certain tasks independently, reducing your reliance on vendor support and leading to faster and more efficient resolutions. Instead of delays and issue resolution, the provider’s role and focus shifts to a proactive stance, enhancing appropriate product use and providing consultative guidance, engendering and ensuring smooth fulfillment delivery and offering comprehensive training, all of which foster outstanding customer experiences and strengthen the bond between you and the provider. This customer-centric approach, rooted in robust technology, creates a mutually beneficial relationship that drives success and growth for your contact center.

The right provider is demonstrated by a track record of customer loyalty, which speaks volumes about the quality of their products and services. Even without the reliance on binding contracts, their customers are highly satisfied and enthusiastic, as evidenced by longevity and glowing reviews. Beyond just meeting expectations, the right provider goes above and beyond to add value and contribute to the growth of their customers’ businesses. They actively work with their clients and your organization as thought leaders and consultants, offering valuable insights and guidance. This provider-client relationship goes beyond a simple transaction; it is a true partnership built on trust and mutual success. Such a vendor is not just a service provider but a strategic ally that helps its customers manage expenses, innovate and exceed their goals.