> In-house Tier-1 support is a luxury they can't afford.
You're only looking at the cost side of the equation. The question isn't "what does good support cost," it's "does good support generate enough value that users will pay for it."
As somebody who has paid for Flickr premium for years, I signed up because they delivered a lot of value. That included innovative features and a great relationship with the community. Their feature flow has been weak for years; if they screw up the community relationship via shitty support, then I'm certainly done with them.
No matter how many MBAs try this approach, you can't cut your way to a better business.
You're only looking at the cost side of the equation. The question isn't "what does good support cost," it's "does good support generate enough value that users will pay for it."
As somebody who has paid for Flickr premium for years, I signed up because they delivered a lot of value. That included innovative features and a great relationship with the community. Their feature flow has been weak for years; if they screw up the community relationship via shitty support, then I'm certainly done with them.
No matter how many MBAs try this approach, you can't cut your way to a better business.