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November 2, 2023
5.5 min
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3 Reasons Fast-Growing SaaS Companies Should Outsource Support

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Fast growth and SaaS (Software as a Service) are practically synonymous. Even in today’s volatile market, it’s not uncommon for SaaS companies to experience 40%+ annual growth. To accomplish this kind of growth, companies rely more on customer retention and expansion revenue. 

These strategies align with the ongoing shift in the SaaS industry toward customer-centric business models and long-term relationships with clients. This is due to their cost-effectiveness, reliability and the value they offer in terms of increasing customer lifetime value (CLV) and enhancing overall business performance.

So, how do you retain customers and expand those accounts with upsells, cross-sells and add-ons? Start with consistently outstanding customer support.

Fast-growth SaaS companies often lack the internal resources to do this well. So, they turn to an outsourcing partner for customer support to keep internal teams focused on their core business and product velocity.

But what is outsourced customer support? It’s a one-stop shop for customer support effectiveness. Outsourced customer support gives you external backing to free up your time and resources to focus on strategic initiatives like innovation, enabling you to manage costs better and improve your customer experience (CX).

So why should you consider outsourcing your support? That’s what we’re here to answer. Read this blog to discover how outsourcing your SaaS support can help your business grow faster. Plus, get examples from a ServiceRocket customer who reaped the rewards of outsourced support. Let’s go!

#1: Outsourcing Allows You to Focus on Strategic Initiatives

Outsourcing customer support can free up time to focus on strategic initiatives and enable the reallocation of resources to tackle prioritized projects. For instance, outsourcing support services to regions outside your current timezone can increase your customers' available support hours. This allows even small SaaS companies to deliver to large, global customers. It also reduces expenses as it is costly to set up a new entity in a region that doesn't have a current presence.

Example from Our Customer: Docker

With tech-enabled support from ServiceRocket, Docker was able to: 

  • Fill the immediate gap of support coverage hours in APAC
  • Stabilize EMEA hours coverage
  • Drive faster onboarding and training to support Docker customers with experienced support engineers

The Results 

  • Improved the first response time by 79% (from 0.77 days in Oct 2022 to 0.16 days in Sept 2023)
  • Extend ServiceRocket’s support service to dealing with customer onboarding issues in addition to technical support issues
  • Gave their support engineers more time to focus on strategic projects 

#2: Outsourcing Helps You Manage Costs Effectively

Mergers and Acquisition

Outsourcing customer support can help you manage costs in several ways. For example, your support costs (tech infrastructure, salaries, benefits, etc.) double when merging or acquiring another company. Because of this, considerable time and resources must be spent strategically integrating support systems, processes and product documentation. You must continue providing outstanding support and answering customer questions to get ahead. 

By outsourcing your support, you can confidently budget for the current and future years. Costs unavoidably tend to rise (inflation, increased cost of labor, etc.). Still, they grow predictably this way; your budget is managed efficiently regardless of the fluctuating demand, and your customers get great CX.

Uneven Demand

Uneven support demand is a challenge that can change depending on the time of day, day of the week, time of the year and the product or service being offered. The effect can manifest in multiple ways, such as overstaffing during periods of low demand,  understaffing during periods of high demand, or having high ticket volumes in one region and low volumes in another. All these make it challenging to produce a consistent level of support quality, which can cause customer frustration and increase employee stress and burnout. 

Unfortunately, there is no “home run” solution to solve the problem of uneven service demand. But, a series of hits equating to singles or doubles can help alleviate the difficulty. For instance, investing in self-service support channels like chatbots, technical documentation, knowledge bases and FAQs can reduce the number of issues that make it to your support team. 

In addition, self-service options reduce your customers’ reliance on support. This alleviates your need to maintain a large, underutilized staff and allows customers to get answers quickly. Self-service options also enable support engineers to focus on more complex or unique cases that take longer to solve than Level 1 or Level 2 issues.

The best solution for managing uneven demand is outsourcing your support needs because of the ability to deliver varying levels of service to match the demand. If you do not have the technical expertise to accomplish setting up self-service channels in-house, partnering with a support provider (like ServiceRocket) will give you access to the latest technology coupled with the expertise to guide you through implementing that solution and increased capacity for your more valued employees to work on more strategic initiatives. 

Example from a global SaaS Customer:

With tech-enabled support from ServiceRocket, our customer was able to: 

  • Set up ServiceRocket as their primary customer support team for Asia and New Zealand
  • Give their support engineers more time to focus on other regions and projects (i.e., technical documentation building, chatbot, etc.)
  • Consult on support resource allocation per region to funnel tickets by region vs. globally

The Results 

  • Managed cost more effectively and saved on overtime pay
  • Reduced long support shifts and gave employees a better work-life balance
  • Reduced the individual ticket allocation for each support engineer

#3: Outsourcing Provides Better CX

Outsourcing support can give your existing team time to focus and resolve Level 3 or 4 support issues that require more skill and expertise with less interruption. This enables your outsourced support partner to quickly and efficiently resolve the lower level (0, 1 and 2) issues with the same level of quality and empathy that your team would provide while simultaneously increasing ticket volume capacity.

Example from our Customer: Preset

With tech-enabled support from ServiceRocket, Preset was able to: 

  • Improve “time to respond” by 11% in 3 months (from 84% to 95%)
  • Decrease “average time to close” by 30% (from 20 days to 14 days)
  • Increase overall ticket volume capacity by 25%

The Results

  • Higher C-SAT scores
  • Reduced churn
  • Higher ARR and MRR from contract renewals

Are You Ready to Outsource Your Support?

All SaaS companies should consider investing in an effective and scalable technical support partner. Are you ready? ServiceRocket’s Tech-Enabled Support team is here to help.

At ServiceRocket, we offer more than just tech support; we provide tech-enabled support, which aligns human talent, processes and tech resources to build smoother workflows that minimize friction. With tech-enabled support, your customers get the best experience every time.

To see our Tech-Enabled Support in action, download our case studies to discover how we enabled our partner’s global growth. To learn more about how ServiceRocket can help you deliver support that enables fast growth, schedule a call!

Find out how ServiceRocket’s Tech-Enabled Support empowers fast growth.

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