Outsourcing is having certain jobs done outside of a business instead of having an in-house department or employee handle them. This strategy is a good one for your business if you’re able to save money, free up resources, and lower stress. Some tasks that are outsourced include graphic design, accounting, payroll processing, and more. One very important task that’s being outsourced more and more is customer service.
Outsourced support doesn’t have to mean working with a cheap call center that follows an inflexible script. There are outsourcing companies that act as an extension of your in-house team and can benefit your business.
Outsourcing customer service is not necessarily about cutting corners - it's about doing your best to fulfill the customer service needs of your customers, leaving them with a positive experience. Outsourcing allows you to hire contract workers off site rather than full-time employees. This means you don't have to pay a fixed salary and offer benefits like healthcare and overtime.
Are phone calls, social media messages, and emails being left unanswered regularly? If you don’t have the funds, space, or equipment to bring on a customer support team, the decision to outsource customer service can be a good one. We’ve put together both the pros and cons of outsourcing customer service.
Outsourcing can be an excellent choice for your small business. Here are good reasons to outsource.
Companies use outsourcing to cut labor costs, including full time salaries, overhead, equipment, and technology. You’ll also save money on the amount of liability insurance you have to pay and you’ll avoid the risk of being sued by an employee.
With the increase in global business, you might need agents available at alternative times. Depending on the call center firm you go with, agents could work for your business around the clock or have hours outside of the regular Monday to Friday 9 – 5. Shoppers are active in the evenings and on weekends too and you don’t want to leave them hanging.
Do you cater to customers who do business in a language other than English? Bringing on a call center that offers multilingual support can give your company a positive reputation and increase your customer base.
According to research of 1,000 companies by SuperOffice, the average response time to a customer service request is 12 hours and 10 minutes. That’s simply too long for customers in need of support. Even worse, 62% of companies do not respond to customer emails at all. Customer frustration can quickly cost you a sale or earn your business bad online reviews. Shorter response times are seen as a big positive when dealing with a business.
When you team up with a company focused on customer service, you’ll have access to the latest response technology and customer service resources you might not have been able to afford.
When customer service is outsourced, you'll have time to focus on important aspects of your business. Recruitment, training, and customer service staff management will be off your plate. You can concentrate on business building strategies like beefing up marketing, inventory expansion, or forming business partnerships. Less work and stress is good for you and your bottom line.
Outsourcing does have some disadvantages for a small business owner. Here are things to look out for.
You might be required to sign a Time and Materials contract, a Fixed Price contract, or a Target Cost contract. If you’re not familiar with the ins and outs of a contract, you can find yourself in trouble. Hiring a legal expert to review can be costly.
What an outsourcing company considers good service may not align with your company’s mission and commitment to customer care. That’s why it’s important to know the type of training agents receive when your company is onboarded.
Outsiders might not have the passion your in-house team shares for your products or services. The customer service representatives should know the problem you solve with your products and services and how it benefits the customer. You’re improving the customer experience and anyone interacting with them needs to be aligned with that goal.
Customer service agents may not be subject the same background checks that your employees are. Confidential or sensitive information may be less secure.
Once you’ve determined that outsourcing your customer service operations is a good strategy, it’s time to research companies. Keep in mind:
Companies that outsource customer service should have benchmarks in place. Don’t just “set it and forget it”. You should be able to track the success of your customer service outsources by tracking these metrics:
For in-depth information on success measurement, visit the Playvox blog: The 10 Best Metrics To Measure Call Center Agent Productivity.
The SmartBiz Small Business Blog contains many articles to help you understand in-house customer service and convey it to an outsourcing company: