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The Problem with Service Tiers

By startdig | IT Services Perth | 0 comment | 9 July, 2018 |

Many of the traditional managed service providers (MSPs) still use the service tier model to provide their offerings to their clients. These are usually classified as Bronze, Silver and Gold and each serviced is tiered based on how much a client decides to pay.

Like most matters, the service tier started out with good intentions. Similarly, to health insurance, the service tier was created on the basis of pay for what you can afford. 5-6 years ago, you could use a fax machine to send and receive order confirmation while waiting for someone to fix the internet. Today, it is a much different story.

So what’s wrong with such service offering you might be wondering? There are problems from both the clients’ and IT provider perspective and so we’ll be addressing both.

Client’s Perspective

From a client’s perspective, the problem is inequity. Think about how a cabin crew treats you based on your travel class and how the service (boarding times, access to drinks and food, attendants care etc.) differs with each class. Similarly, one’s MSP service status determines the support they receive and its quality. For example, my business is on Silver status hence to our MSP provider, it’s not as important as businesses who are in the Gold tier. Because I’m not in the high priority as a Bronze tier customer, my entire business can expect to wait 4 to 6 hours to have someone look into any of our issues. On top of that, the helpdesk support isn’t as friendly as it is for a Gold customer.

Moreover, such model has a fixed allocated hour per month. Because of that, it’s not uncommon a business will be told, “sorry sir/madam, you have used up your monthly allocated hours. We will have to charge you from now,” when trying to work with their service provider to resolve an issue. Not only is this disappointing to hear, it can also be the start of a billing dispute if not handled properly.

Just like a health insurance policy, there is a list of coverage based in the tiers. This presents another issue because most clients don’t know what is covered and what isn’t covered. Very recently iQuest had a chat with one of our newer clients who just out after 2 years of being a Silver member that their backup retention only lasted for 2 weeks.

On the other hand, platinum clients are paying a premium but sometimes are under serviced. This happens because their agreement is signed on the management level, not an organisational level. Employees on both sides are confused due to the complexity of the tier system.

IT Provider Perspective

From the helpdesk perspective, it is difficult to properly render services. Time is often wasted in identifying clients, determining if a service is chargeable or not, how much time is left for this month’s quota and so worth. During this time, it’s common for frustration and resentment to grow because the client just wants a solution to their issue.

Furthermore, administration of these policies can be a nightmare at times. Some of the potential headaches of administration include MSPs employees rendering the wrong services to clients, checking through incorrect timesheet entry and experiencing billing disputes with clients.

What Is iQuest’s Approach?

At iQuest, we want simplicity for us and our clients. So, we’ve created a model that offers a simple flat retainer fees per month with simple exclusions. We offer:

  1. Every client is a Gold client
  2. Unlimited Helpdesk Support from 6.30am to 6.30pm
  3. Dedicated System administrators and angineers
  4. Hands on Approach
  5. Single contact for all your IT requirement
  6. Melbourne and Perth coverage capabilities
  7. Our knowledge for the betterment of our clients’ business
  8. Well trained IT professionals who are friendly, understand IT issues and resolved in a timely way
  9. Proper escalation procedures right through to the directors of iQuest

Any service rendered outside of these times and days will be chargeable excluding any scheduled maintenance agreed in the agreement. Our Projects are quoted and charged separately at iQuest in which our clients know what is and isn’t covered. This makes life easier for both our clients and iQuest’s staff.

If you and your business want to explore our service offering, iQuest can be contacted at Pietro Bertolini: 6208 6543 or 0403 517719 or pietro@iquest.com.au or through Anderson Chong: 0419600470 or andchong@iquest.com.au.

Service Tiers

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