Time to Fire Your IT Provider?

I recently heard about a small business that spent over $20,000 to upgrade its technology. The deliverables: New products and the installation of those new products. Did the client get their money's worth!?

A rule of thumb: Don't spend more than half of your IT budget on maintaining the status quo (e.g. keeping up the phone system, network, hardware, software etc.). Spend your budget on projects that move the needle.

Due to the rapid evolution of technology, your in-house IT director or your outsourced IT provider may be putting your business at a competitive disadvantage. How do you know if you should be seeking a better IT solution?

There is a not-so-subtle difference, with HUGE implications for your business: An IT Custodian "maintains" and "upgrades" your existing technology. An IT Leader reviews your business goals and produces a platform that drives those goals. An IT Leader executes solutions to improve collaboration between business partners and better serve customer needs. In terms of traditional IT services, businesses can't afford to ignore the potential of cloud computing (42% of medium-sized businesses have already done so... Read Article Here). But the real opportunities lie in web and mobile applications.

Your customers expect you to make doing business easy, which includes: Making relevant information available to them, offering secure online ordering and payment and being transparent about your products, services and customer service failures. I know transparency sounds a bit Kumbaya, but I suggest you get on board. The old days of mean-spirited corporations shoving products into customer shopping carts are over. Today's consumer has more clout, more information and higher expectations than ever before. Your business can achieve these expectations by developing the right tools.

Tools

A customer relationship management system allows streamlined data collection. One primary application of this data is for customer segmentation, which is the process of splitting your customers into categories based on their preferences for more targeted marketing.

Inexpensive data analytics allow you to monitor various customer satisfaction metrics: Do customers respond to your marketing calls to action? Are you wasting the time of prospective customers by proving non-relevant info?

Scheduling appointments, completing applications and subscribing for information are tasks that both you and the customer dislike. A web developer can make these tasks painless for everybody. And speaking of time wasting, your employees will appreciate their increased productivity resulting from business info at their fingertips.

Do the world a favor and stop the "push" marketing. Due to a lack of technology, many companies resort to direct mailing, telemarketing and email spamming, which are ineffective and risk alienating customers. By utilizing a broader technology platform for marketing you can allow narrow subsets of the market to approach you, whereupon you offer them appropriate info. Developing an interactive customer/prospect experience is the crossroads between marketing and technology.

Sometimes it's not necessary to fire the IT provider. After all, you have top accountability for driving business growth and profitability. First, make it your priority that IT solutions are innovative and drive business value. If IT continues producing commodities (e.g. network support) you know it's time to hire an IT Leader who will champion your technological competitive advantage.