Customer service is a critical part of any business, but it can be costly to keep in-house. One way to reduce costs is to hire a customer service provider. Despite being a great money-saving solution, it does present some potential risks. Read more about the pros and cons of Outsourcing Customer Service and make better decisions for your business.
About outsourced customer service
Outsourced customer service is the contracting of a company’s customer service operations to an external service provider. The most common type of outsourced customer service is call-center support, but it can also include back-office support, email support, social media support, and live chat plugins.
There are several reasons why companies outsource their customer service operations. The most common reason is to save money, as it is usually cheaper to outsource customer service than to maintain an in-house customer service department. Outsourcing can also help companies to improve their customer service quality and efficiency, as well as free up internal resources to focus on other areas of the business.
There are both pros and cons to outsourcing customer service, so it is important to weigh them before making a decision.
Pros of Outsourcing Customer Service
Here are different ways business owners can benefit from outsourcing their customer support:
1. Saving Resources
An outsourced customer service provider can help you save on resources by reducing the need for an in-house team and taking on some or all of the customer service tasks for your company. This can free up your employees to focus on other tasks, and it can also save you money on customer service training and support.
2. Creating Better Coverage
Outsourcing customer support can help you create better coverage by providing additional manpower to cover more hours of operation, providing additional customer service training to their employees, and by offering a higher level of customer service than you could provide on your own.
3. Removing the Staffing Concerns
When you outsource your customer service, you are essentially hiring a company to handle all of your customer service needs for you. This means that you do not have to worry about staffing and recruiting a full-time customer service staff, as the company you hire will take care of all of that for you.
4. Focusing on the Task at Hand
By providing you with a team of customer service representatives who can consistently handle your customer service needs. This will allow you to focus on other aspects of your business, such as marketing and product development.
5. Potentially Increasing Customer Satisfaction
By outsourcing customer service, you can improve the quality of your customer service by ensuring that all customer service tasks are handled by a professional team with the latest in customer service skills.
6. Better Risk Management
There are a number of ways in which outsourcing customer service can provide better risk management. One way is by providing a buffer between the company and the customer. This can help to protect the company from any potential liability issues that may arise.
Cons of Outsourcing Customer Service
Outsourcing customer service can be a great way to save money, but it can also lead to some big problems.
1. Disconnection from brand
One of the biggest issues with outsourced customer service is that it can be very difficult to build a rapport with your customers.
The customer service reps that are hired to work for the company may not have the same level of commitment or connection to the company’s brand as employees who are directly employed by the company. This can lead to a lack of enthusiasm and dedication to providing quality customer service, which can reflect poorly on the company’s brand.
In addition, when you outsource customer service, you are essentially handing over control of your brand to someone else. This can lead to customers feeling like they are talking to a faceless corporation, rather than a real person.
2. Rigid call center contracts
One of the cons of outsourcing customer service is that the contracts are often very rigid. This can make it difficult to make changes to the agreement or to get out of the contract entirely if the relationship is not working out. It is important to be aware of this before signing any outsourcing agreement.
3. Quality of customer care
There are a few potential ways that call center outsourcing may affect the quality of customer care. One is that the company providing the customer service may not have the same standards as the company they are representing. This could lead to lower quality customer service.
Additionally, if the customer service representatives are located in a different country, there may be language barriers that make it difficult to communicate with customers. Finally, if the customer service representatives are not well trained, they may not be able to effectively help customers with their problems.
Another big issue is that outsourced customer service representatives may not be as knowledgeable about your products or services as you would like them to be. This can lead to frustrating conversations for both the customer and the representative.
4. Still Requires Supervision
Customer service outsourcing may help to save your business money, but it will still require supervision from your business side. You will need to make sure that the customer support representatives are providing excellent customer service and that they are following your company’s policies. You will also need to monitor the call center’s performance to make sure that they are meeting your expectations. This alone is a hefty responsibility that your business will still have to carry.
5. Less Quality Control
When you outsource customer service, you are essentially giving up control of the quality of that service. This can be a good thing or a bad thing, depending on your perspective. On the one hand, it can free you up to focus on other aspects of your business. On the other hand, it can mean that the quality of your customer service suffers.
There are a few ways to mitigate this risk. Be sure to thoroughly vet the company you’re outsourcing to. Make sure they have a good business reputation and that they’re able to meet your standards and company values. Also, set clear expectations with the company. Let them know exactly what you expect from them in terms of quality. Yet, stay involved. Check in with the company regularly to make sure they’re meeting your expectations.
6. A Communication Barrier Between Departments
When a company outsources its customer service, it can have a negative effect on the communication between departments. The customer service department is often seen as the face of the company, and they are the ones who deal with the customers on a daily basis. They are the ones who are responsible for handling customer complaints and queries.
If the customer service department is outsourced, then the communication between the customer service department and the other departments can become strained. This is because the customer service department will be dealing with the customers on a daily basis, and they will not be able to get the same level of communication with the other departments.
This can lead to the customer service department feeling isolated from the rest of the company, and this can have a negative effect on the way that they do their job.
7. No Brand Loyalty and Possible Security Risks
When you outsource customer service, you may have no brand loyalty and possible security risks. The company you outsource to may not have the same commitment to your brand as you do. They may also have less stringent security measures in place, which could put your customers’ data at risk.
Is outsourcing good for customers?
Some customers may find that outsourcing provides them with better service or products, while others may find that it decreases the quality of service or products. Ultimately, it depends on the specific company and customer relationship.
When done right, outsourced customer service can be a cost-effective way to provide a high-quality customer experience. It can also free up your staff to focus on other areas of the business. Make sure to choose wisely who you outsource your customer support to!
What do I need to know before hiring customer service providers?
To ensure that your outsourced customer service is as successful as if it was provided by in-house employees, there are a few things to keep in mind. It is important to select a third-party provider that will be a good fit for your company. Make sure to consider the provider’s reputation, labor costs, and ability to meet your customer service needs. Here are a few steps to follow:
- Clearly define your expectations and objectives for the service.
- Choose a vendor that has experience in providing customer service for businesses like yours.
- Establish communication channels between your staff and the vendor so that you can quickly resolve any issues that may arise.
With careful planning and execution, outsourced customer service can be a valuable asset to your business.
How to Make Your Outsourced Experience Better
If you’re looking for ways to make your outsourced customer service experience better, you’ve come to the right place. Here at Visionary Solutions, we know a thing or two about providing excellent customer service, and we’re here to share our secrets with you.
With our team of expert customer service, you can expect:
- Improved communication between you and your customers
- Faster resolution of customer issues
- Increased customer satisfaction
- And much more!
Don’t settle for anything less than the best when it comes to customer service. Contact us today to learn more about how we can help you create a better experience for your customers.
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