Should you do it yourself or hire experts? That's the question regarding taking on important initiatives and projects for your business. Similarly, when deciding whether to make lunch at home or buy it, you must weigh the pros and cons. The same applies to your business decisions, including customer service outsourcing through Business Process Outsourcing (BPO).
When it comes to projects that directly impact your customer base, careful consideration is crucial. Customers are the backbone of your business, and customer service is key to engaging with and keeping your customers. Therefore, it's important to make informed choices regarding your customer needs. One such choice is whether to outsource your call center or handle it in-house.
So, what exactly is outsourcing customer service?
It involves delegating some or all services to an external agency or entity. In the realm of customer support solutions, it's common to hire a third party to manage your call center. There are several factors to consider when contemplating outsourcing customer service:
The agency or company you choose.
Scalability and whether you can afford to maintain an in-house team or contact center.
Customer preference and cultural compatibility.
Training and information sharing.
It's worth noting that even companies that outsource a significant portion of their customer service still keep some level of in-house customer support specialists. It's true that Business Process Outsourcing (BPO) carries certain risks, but it can also yield significant rewards.
Now, let's clarify the difference between in-house and outsourced customer support. Customer support has become increasingly complex due to technological advancements and the expansion of customer touchpoints beyond traditional call centers and physical stores. From live chat and AI bots to social media interactions, businesses must ensure seamless and impactful communication with customers.
Having customer support in-house means taking on these responsibilities internally. On the other hand, outsourcing transfers these functions to a third-party provider, with the business still setting goals and expectations for customer support.
In-House Customer Support: Pros and Cons
If you're seriously considering outsourcing, it's essential to be well-informed about the process. Let's delve into some of the top pros and cons of in-house customer support to aid your planning.
Pros:
Job Knowledge: With an in-house customer support team, your center is often just downstairs or a quick call away from your Head of Customer Service. This proximity means your team is among the first to know about any changes to products or services. They can stay well-informed and work closely with you to plan or respond quickly, ensuring effective customer communication.
Immediate Feedback: Your in-house team can reach out to customers promptly and gather feedback firsthand. For instance, if you operate an app or work in telecoms, you can gather information about outages or variables that impact customers, enabling you to respond more effectively.
Hiring top talent: You have full control over building your team, meaning you can seek out the best talent possible for your customer support. You also have stronger quality control.
Cons:
Cost: The expense of maintaining your customer support or call center is a significant consideration. As your customer base expands and your product offerings diversify, the size of your call center also grows. This doesn't even account for the technology required to sustain the center, such as licensing, software, hardware (PCs, headsets), insurance, bonuses, and other hidden costs. Running an in-house call center can be quite costly.
Technology Changes: As mentioned earlier, keeping up with technology advancements is crucial. However, there's also the risk of falling behind in adapting to changes in your industry or customer care technology trends. For instance, two decades ago, a toll-free call center with customer service representatives would have sufficed. But now, customers expect options like live chat, WhatsApp integration, knowledge bases, and self-service features powered by AI technology. Considering the pace of change, it's important to evaluate if you can sustain an in-house call center in the long term, especially considering that customer support generates little to no revenue.
24/7 Support: Meeting technological advancements is one thing, but can you also meet your customers' expectations of reaching you anytime, any day? Availability plays a significant role in customer service, and you may be required to provide round-the-clock support. However, maintaining an in-house call center with 24/7 support can strain your finances and impact business continuity.
Outsourcing Customer Service Pros and Cons
Pros:
Onboarding and Turnover: Outsourcing can alleviate the strain of managing high turnover rates common in customer support and call centers (around 30-40%). It costs significantly more to hire someone than to keep them. By outsourcing, you eliminate the need for extensive hiring processes, business cases for new staff, and the challenges of training and retaining a full in-house customer service team.
Scalability: Outsourcing call center services provide greater flexibility in right-sizing your customer service solutions. You have more options available at a lower cost compared to managing it internally. Scaling up or down becomes easier, and you can leverage the economy of scale and resources of the outsourced call center without the hefty investment in maintaining expensive call center infrastructure.
Cost and Time Efficiencies: Outsourcing allows you to create cost efficiencies and focus on growing your business. Instead of starting from scratch, you benefit from having customer support experts without bearing the full cost of hiring and training them yourself. You can pay for specific projects and leverage multiple platforms, adjusting your customer support strategy with minimal risk and cost. This approach also saves valuable time, which can be allocated to revenue-generating activities or other critical tasks aligned with your organization's expertise, strategic goals, or niche.
Cons:
Lack of Communication: When working with outsourced teams located in different countries, communication can become challenging due to time zone differences, cultural nuances, and language barriers. Clear communication is often easier when your customer support center is in the same building or country.
Security Risks: Outsourcing involves giving an external agency access to your company's data, including sensitive customer information. This introduces a significant security risk, especially for startups, as the agency may also have access to make changes on customer accounts using various platforms. This risk should be carefully considered and mitigated through robust data protection measures.
Mitigating the Cons
If you are considering outsourcing, there are ways to address and minimize the potential drawbacks. By conducting thorough research, due diligence, and selecting a reputable outsourcing partner, you can establish clear communication channels, bridge cultural and language gaps, and ensure data security measures are in place. This allows you to mitigate the associated risks and achieve a customized outsourcing solution that benefits both your business and your clients.
The Case for an Outsourced Centre:
Let's explore a real-life example of Wireless Watchdogs, a wireless management company that faced a challenging decision regarding outsourcing. As their business expanded, they realized the need to enhance their customer service support.
In order to maintain key performance indicators (KPIs) and meet service level agreements, Wireless Watchdogs opted for outsourcing a portion of their operations. However, they were mindful of the potential drawbacks and took steps to mitigate them. They invested in extensive training and support during the transition process.
The outcome of their decision was highly positive. By outsourcing repetitive in-house functions to their external teams, they gained more time to focus on crucial business processes. Additionally, the outsourced company exceeded its service level agreements, resulting in improved customer service. Not to mention, Wireless Watchdogs experienced significant cost savings.
Outsource or Keep In-House?
There are several benefits to keeping your call center in-house, such as maintaining control and having direct oversight. On the other hand, outsourcing can provide peace of mind and access to specialized expertise. Ultimately, the decision to outsource or keep customer support in-house rests with you and your specific business requirements.
Final Thoughts
Making the right choice between outsourcing and in-house customer support is vital for the success and growth of your business. Evaluate the pros and cons, considering factors such as cost, scalability, communication, and data security. Learn from real-life examples, like Wireless Watchdogs, and carefully weigh the potential benefits and drawbacks.
Let Call Serv Be Your Customer Service Outsourcing Partner
Take the time to assess your customer support needs, future goals, and available resources. Consider consulting with experts in the field or seeking advice from industry peers who have faced similar decisions. By making an informed choice and implementing a well-thought-out customer support strategy, you can ensure that your customers receive exceptional service while driving your business forward.
Call Serv is a Caribbean BPO made in-house with the staff and technology to support your inbound call center solutions, sales, lead generation, and other back-office needs. Our team is devoted to helping businesses scale by handling cost and labor-intensive tasks, while they focus on audacious tasks.
Contact us to speak with our team and quote our services today.
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