Written by: Vivek Jaiswal | Co-founder, Customer Guru
Why CEx technology solution should be booked under INVESTMENTS in the Balance Sheet?
Dear CEO of a Tech Company,
Hope you are doing good! Let me come straight to the point.
As a tech company, your products use technical brainpower – the brilliant developers who create amazing products from scratch. Although invaluable, it comes with a price – the developers’ salary. And therefore, for such companies, the price paid for that brainpower is a cost in the balance sheet.
On the other hand, when technology is procured, CTO’s and Product Heads must consider it as purchasing a new tool. A tool to help achieve the company’s vision. Since this is a tool purchase, (like new and better machinery) its purpose is to help them produce killer products. After all that is the company’s core business! Therefore, I believe, the price for such tools should fall under the investment bracket.
It is an important consideration.
Your product is your strategy and your business. Companies like Apple, Amazon, Zappos, and Oyo Rooms have a laser-like focus on their products and services. Despite being among the biggest tech employers, they invest in technology that helps them make the organisation more efficient and effective in achieving its goals.
If your goal is to improve customer experience and inculcate a customer centric company culture, then you must use a solution that supports your vision. DIY applications such as web-forms/surveys that enable you to ask the “NPS question” and dump the score along with other data into an excel sheet, are free or, at best, “cost-effective.” However, they will not help you achieve your ultimate goal. Often this boils down to a “make or buy” decision. That is, as a technology company, should you build the solution yourself or buy it? After all you have the in-house brainpower! This question is driven by the motivation to save costs. However, the question you should actually be asking is: are you willing to bear the cost of a solution that is solely built for the purpose or, the cost of not achieving your goals? And also, whether you are willing to invest a few months to build it yourself or purchase it right now and get moving towards your goal today?
Using NPS to become a customer centric organisation is a boardroom decision that could change whether price paid for it is a cost or an investment. Do you think it’s a call that you, the CEO, should leave to someone else?