Tech support companies unfazed as Telstra launches new IT support service

Fast-growing tech support SMEs Geeks2U and eNerds say they are unfazed by Telstra’s decision to start its own premium support service, believing their emphasis on personal customer service and an established market presence will give them an advantage.

The comments come as Telstra chief executive David Thodey announced the new program on radio yesterday, saying customers will have access to phone based support for about $59. As reported by the Financial Review, for about $269, customers can have a rep come to their house and install equipment, set up wireless networks and configure a range of systems, including game consoles.

Thodey reportedly said the new service will launch with up to 100 staff and will cover 70% of the country, and is part of an effort to simplify the company’s structure and improve its flagging reputation for customer service.

Telstra was contacted for comment this morning, but SmartCompany was told there is no more information available at this time. The service is expected to launch next month.

Geeks2U founder and chief executive David Hancock says the new service won’t hurt those companies already claiming to offer a high level of customer care, which is an area that Telstra has struggled with.

“I think we’ve led the industry in this type of customer service. We’ll continue to focus on that, and really, I don’t think you can go too far if you just retain that focus on the customer experience and keep them satisfied, that’s what this type of business is all about.”

The company, which has over 140 contractors nationwide, uses a customer satisfaction survey for each visit. Customers rank their attendant out of 10 for a range of criteria, with Hancock investigating any issues constantly appearing on surveys.

“The only reason we’ve been able to grow as well as we have is because of those customers coming back again and again, and of course, referrals are a great source of new business because it doesn’t cost us anything.”

The computer tech industry is extremely fragmented. There are very few major players, with thousands of smaller operations controlling their local areas.

As a result, eNerds founder and chief executive Jamie Warner says it will be difficult for Telstra to break into a market where customers are largely happy to stay with their current providers if they offer a high level of service.

“If they are happy, and you are doing a good job, and they have everything they need, then they won’t change, and that is the challenge Telstra has in entering the market. Of course they have an existing client pool, but there are so many different telecommunications providers out there.”

Warner, whose company focuses on business-to-business tech support, says SMEs distinguish between their telco provider and those companies offering IT support. As a result, he believes Telstra has a challenge on its hands.

“The tech support offering is all around the relationship, and also, a lot of companies tend to see an internet provider and a tech support provider as two different things. As long as they are happy with their level of care, then they are unlikely to change.”

“If they are targetting customers in this space, it has to be about customer satisfaction and that relationship.”

Telstra has previously said this year it will focus on improving customer satisfaction, especially in its mobile division, as it competes with smaller telcos and suffers from a drop in fixed-line broadband and telephone services.