Exceptional quality customer service is a critical factor for your company’s success. However, it’s also a challenge, with numerous communication channels and daunting potential costs.
An in-house customer service team is expensive, but ticket volume can rapidly swell to unmanageable levels. As your business grows, the demands on your customer support team must keep pace.
Customer satisfaction is crucial to your bottom line, so you can’t afford to simply let them wait or ignore calls altogether. Hiring a full in-house team is costly, but there’s an alternative: outsource your customer support.
Pros and Cons of Outsourcing Customer Service
Outsourcing customer support is an increasingly prevalent decision in small businesses, and it’s just as valuable to large companies.
Why outsource customer service? It removes the cost of an entire in-house department and comes with a host of benefits.
Let’s examine the details of outsourcing customer service, the pros and cons, and your potential next steps.
Why Outsource Customer Service?
Outsourcing business processes such as customer support is part of what is known as business process outsourcing (BPO). This is when business owners contract their customer service to third-party outsourcing service companies who handle it on their behalf.
It’s a viable choice for businesses of all sizes. While the cost savings and other benefits are extremely valuable to small businesses.
When asking yourself “Why should I outsource customer service?”, it’s important to examine the pros and cons before making a decision.
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Benefits of Outsourcing Your Customer Service
One of the biggest pros of outsourcing customer support is that it removes the cost of an entire in-house department.
This means you avoid the cost of hiring and training staff, as well as salaries, benefits, workspace, and equipment such as hardware and software.
Properly Trained Agents
Another of the customer service outsource advantages is that the customer service agents at an outsourcing company are well-trained professionals dedicated to providing support.
This makes for a top-notch customer experience, and that’s a major boost to customer retention and brand reputation as well.
More Time To Focus on Your Business Operations
Outsourced customer service also means a reduced workload for your internal staff, so you can focus on your core activities.
This enables you to put more energy and resources into your offerings and business-critical processes. This translates directly into more robust and successful operations overall.
Demand-Based Customer Support
Coverage is worth considering as well. If you need or want to provide 24/7 customer support, an outsourced team can handle that level of demand as well without placing commensurate financial weight on your payroll.
There are certainly many arguments in favor of outsourcing. However, it’s also important to consider the other side of the coin.
The Dangers of Customer Service Outsourcing
When you hand control of your customer support to another company, naturally, there are risks. Most people have had a negative customer support experience or two, and sometimes that comes down to a poorly-selected outsourcing vendor.
Lack of Brand or Product Knowledge
Another potential concern is knowledge. Third-party representatives aren’t on the front lines of your business and are naturally not as familiar with your products and services as your in-house staff.
This may not be too much of a factor if you’re primarily outsourcing simple services like live-answering and message-taking. The same can be said for other tasks that can be handled with minimal knowledge of the actual product or service
However, processes like customer retention and complaint management require more in-depth familiarity with your business and offerings.
Enforcing Secure Data Management
Some businesses involve handling sensitive data such as credit card information, names, and addresses. By nature, outsourcing customer support can mean a third party handling that information, and this can raise security concerns.
Sensitive information needs to be handled with utmost security, and you need to be just as confident in that as you want your customers to be.
Offshore Outsourcing Issues
Although many companies choose to keep their customer service local, others may go the international route via offshore outsourcing. While this does offer cost savings, there are some risks involved.
For example, foreign workers may encounter language barriers when dealing with your customers. They may also observe different national holidays, which could seriously affect your business or production schedule.
However, it’s important to note that the dangers of customer service outsourcing can be mitigated all at once by selecting the right outsourcing partner.
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What to Look For in an Outsourcing Partner
When you’re considering who to go with, it’s very important to scrutinize their track record. Ask them to provide references, if necessary.
This helps to ensure that you’re choosing a company that values your customers and your reputation as much as you do and has a proven record of top-notch customer service.
It’s also important to interview them about their technical security measures, practices, and training.
Ensure you’re partnering with a company with motivated staff who can handle the level of knowledge and expertise you require – whether that’s simply taking messages or providing in-depth technical support.
Should You Outsource Your Customer Service?
The answer depends on your individual context and needs.
On the one hand, if your business is growing at a rapid rate, to the point where having an in-house customer service team may be prohibitive, outsourcing your customer service could prove beneficial.
However, it’s also important to take note of the risks involved with going this route. When examining potential customer service outsourcer partners, be sure to take their knowledge, track record, and data management skills into consideration.
All things considered, there are many customer service outsource advantages, and they outweigh the cons considerably. Outsourcing customer support not only saves money for your business, but it also allows your operations to expand with ease.
With a reliable outsourcing company in your corner, you can rest assured that you’ll always be equipped to provide the best customer support.If you’re unsure whether outsourcing your customer service is the best decision for your business, the experts at Triton Technologies are here to help. We can provide the insight you need to determine what the best move is for your business. Contact us today to learn more.