This post was most recently updated on September 14th, 2022
Managing customer support in today’s dynamic marketplace can be challenging. These days, business executives have to decide whether to outsource or keep it in-house. There are certainly advantages to both paths. For instance, if an in-house solution is implemented, day-to-today processes can be more effectively managed, and if a small company does not really need an expanded workforce to manage customer service, an outsourced solution could be made more attractive to them. In this article, we are going to put some highlights on the benefits of outsourcing customer service.
Nevertheless, there are many compelling reasons to choose outsourced customer service as an alternative to in-house customer support. In this article, we’ll discuss 7 key factors you should consider when choosing your customer support solution. Let’s have a look:
Effectiveness of Cost :
When you think about it, it only makes sense that businesses would be able to save significant amounts of money each year by outsourcing customer service operations to third parties. As the outsourced customers vendor already have
- In order to effectively handle customer service needs from any given client, the necessary infrastructure has to be available.
- The trained personnel have to be ready to assist when needed.
- The processes are optimized so that trial and error can be minimized.
Going with the outsourced option eliminates these huge costs in time, money and resources that would be associated with implementing an in-house solution.
Enhancing Scalability :
The cost-effectiveness of outsourced customer support goes hand in hand with the flexibility of scaling your business quickly depending on the current and projected needs of your business. Imagine, for example, a company that expects a 50% increase in call volume during peak season. What options are realistically available for meeting this need if the company is committed to an in-house solution?
- If the company maintains the current size of its customer support staff, it will frustrate and alienate its customers;
- If it hires more staff and expands their infrastructure, it will incur heavy costs.
As a result of outsourcing support, you won’t have to worry about scaling operations on your own. The vendor would handle the heavy lifting for you, using all his resources and experience.
Best-in-Class Technology Access :
Those who offer outsourced customer support know how important it is to meet (and even exceed) customer expectations. Studies have found that 60 percent of customers don’t want to wait on hold for longer than one minute when they call into customer support centers. Customer support vendors that provide world-class service ensure that processes are in place to minimize average wait times (AWT), such as providing dedicated QA auditors to coach agents on optimal call routing.
Increase in Customer Loyalty :
As a company approaches its customers with care and resolves their issues within a reasonable timeframe, it gains in the field of customer loyalty. It is true that the customer is the king of any business, therefore he should be treated as a king. Outsourcing partners play an important role in handling all customer service concerns and thus improving customer loyalty. Customer loyalty is something that every company can swear on as a means to success and profitability.
Increase in Revenue :
It has been found that 84% of companies that strive to improve their customer experience report an increase in revenue as a result of their efforts. The next major battleground for corporate leaders is the customer experience. Conversely, businesses that do not address their customer experience are falling behind their competitors.
Rather than focusing on product quality or even pricing, many customers prefer to consider how a company treats them when deciding whether to purchase from them again in the future. To earn higher profits for your company, you need to give your customer support its due. A service provider can help you accomplish this.
Tackling Risk Management :
In terms of the benefits, organizations can receive from outsourcing their customer service, risk management is by far one of the most popular ones. It is their skills, technology, and infrastructure, along with their knowledge of market risks that make BPO companies able to help you manage market risks. With the resulting risk management, businesses can focus on the core aspects of their business, leading to increased market share.
Customer service outsourcing should be evaluated against its risks and benefits before deciding whether to outsource your business. Everyone seeks cost efficiency, but this cannot be the sole motivation for outsourcing. It is very important to analyze the entire scenario with all the pros and cons of outsourcing because it can affect your business decision and also mould your business.