Benefits of outsourcing customer service go far beyond cost savings. It offers a range of benefits for businesses of all sizes, particularly when it comes to operational efficiency, cost savings, and enhanced customer experience.
One of the biggest decisions customer support executives often have to make is whether to outsource customer support or keep it in-house.
Of course, there are advantages to both paths. For instance, an in-house solution allows for closer management of day to day support processes, and some small businesses don’t really need an expanded workforce to handle customer issues.
However, there are many compelling benefits of outsourcing customer service. This article discusses key benefits you should consider when deciding between outsourcing support and keeping it inhouse.
Let’s dive in!
1. Outsourcing customer service saves money
Many businesses have found that outsourcing customer care operations to a third party vendor saves them a significant amount of money each year. If you think about it, it only makes sense that this would be the case. Outsourced customer support vendors already have:
- The necessary infrastructure to handle most, if not all customer support needs from a given client
- Reduced overhead cost of managing customer service team
- The trained personnel on hand to provide adequate coverage
- Businesses save on salaries, benefits, and office space, as outsourced customer support teams often operate in lower-cost regions, providing a more cost-effective solution.
- The streamlined processes to maximize efficiency without trial and error
Implementing an in-house solution would likely require a big investment in time, money and resources — whereas going with the outsourced option avoids those huge costs.
2. Outsourcing brings scalability to customer care
Along with cost-effectiveness, outsourced customer support offers the ability to quickly scale your customer support operations according to current and projected business needs.
For example, imagine that a company’s call volume is projected to increase by 50% during peak season. If the company is committed to an in-house solution, what options to meet this need would realistically be available?
- The company could maintain the current size of its customer support workforce, and risk frustrating and alienating its consumer base, or…
- The company could hire more staff and expand their infrastructure, incurring heavy costs in the process.
With an outsourced solution in play, you wouldn’t have to worry about scaling support operations on your own. A third party vendor, with all the necessary resources and experience, would do the heavy lifting for you.
3. You get access to specialized skills with outsourcing
Training is a key component to any successful customer support strategy. Agents must have the technical expertise to navigate company software and deliver effective solutions to the customer. At the same time, they must follow best practices in customer service to provide an exceptional experience — one that will keep the customer loyal to the organization.
Training customer service agents in specialized technology requires a massive investment from their employer. If you decide to go this route in-house, you may have to deal with major growing pains, not to mention serious distractions from your company’s core mission.
On the other hand, outsourcing technical support allows you to gain the benefits of a highly specialized workforce without having to pay the upfront costs. That’s a big win for your business!
Outsourced support providers often have experienced and trained agents who specialize in customer service, ensuring high-quality interactions with customers.
Many outsourcing firms offer agents who are proficient in multiple languages, allowing businesses to cater to a global customer base without the need to recruit multilingual in-house staff.
4. Get access to specialized technology and processes with outsourcing
Reputable outsourced customer support vendors understand the importance of meeting (and even exceeding) customer expectations. For example, studies have shown that almost 60% of customers that call into support centers are not willing to wait on hold for longer than one minute. Therefore, a world-class customer support vendor ensures that processes are in place to reduce average wait time (AWT), such as the presence of dedicated QA auditors that coach agents on how to minimize “dead time” between calls.
Many outsourcing firms integrate the latest AI-driven technologies, including chatbots, CRM systems, and advanced analytics tools, to enhance the quality and efficiency of customer support.
Outsourced providers often have sophisticated data management systems that track customer interactions, providing insights into customer behavior and service quality.
In addition, the vendor will leverage best-in-class technology to maximize operational efficiency, like WizDom, a virtual coach and chat assistant powered by AI. Outsourcing companies that synergize functional technology and efficient processes in these and other ways can offer their clients an unmatched customer support solution.
5. Outsourcing frees up time to focus on core competencies
No matter what industry you’re in, your customers are the lifeblood of your business. Nevertheless, customer support may not be one of the core competencies of your company. For example, SaaS companies routinely outsource customer support. These companies specialize in creating and selling software. Instead of spending limited management time and money on building a support team, the company can choose to outsource it. The time and money saved can be reinvested in building a better software.
By delegating customer support to experts, internal staff can concentrate on tasks that directly drive business growth and innovation.
The beauty of an outsourced customer support solution is that you can maintain your focus on what your company does best, without sacrificing customer satisfaction in the process. Even better, this can happen without a huge upfront investment of resources!
6. Another benefit of outsourcing customer service is increased revenue
Customer experience is the next major battleground of the corporate world. Research shows that out of the companies that work hard to improve their customer experience, 84% report increased revenue as a result of their efforts. Conversely, businesses that ignore or neglect customer experience are lagging behind their competitors.
The truth is, many customers focus on how a company treats them as the main determinant in whether to purchase from that business in the future, as opposed to product quality or even pricing. If you want your company to earn higher profits, then you must give customer support its rightful due. In fact, an experienced outsourcing provider can turn your customer support from a cost center into a profit center.
7. Outsourced customer service increases customer loyalty
When you partner with customer support experts, you’ll also increase the loyalty of your consumer base. For instance, a classic Harvard Business Review study found that Customer Effort Score (CES) is the strongest predictor of future customer behavior. In other words, the easier a transaction is for a customer, the more likely he or she will give the company repeat business.
By leveraging outsourced support to eliminate key points of friction in customer interactions, you’ll build trust and confidence in your users. In turn, you’ll find yourself with lower customer churn and a more loyal customer base, and a higher volume of repeat transactions.
8. Outsourcing improves customer experience
Many outsourcing providers offer around-the-clock support, ensuring that customers can get help whenever they need it, improving overall customer satisfaction.
Outsourcing firms often provide support across multiple channels (phone, email, chat, social media), allowing businesses to meet customers where they are and enhance their experience.
Faster Response Times: With a dedicated team of customer support professionals, outsourced providers can ensure quick response and resolution times, reducing wait times for customers.
9. Outsourcing customer service improves risk management
Outsourcing firms are typically well-versed in regulatory requirements for data privacy and security, ensuring compliance with relevant laws (e.g., GDPR, CCPA). This reduces the risk of data breaches and regulatory fines for the business.
Many outsourcing providers offer Service Level Agreements (SLAs), ensuring that customer support performance is measurable and consistent. This provides businesses with more control over service quality.
Outsourcing allows businesses to test customer support in new markets without having to commit to setting up an in-house operation, reducing the risk associated with expansion.
Outsourcing customer support can ensure uninterrupted support during emergencies or unexpected events (e.g., natural disasters, staff shortages), as external teams can continue to provide services remotely.
10. Outsourcing increases efficiency
Outsourced teams typically operate with well-defined processes and key performance indicators (KPIs), ensuring that customer support runs efficiently and effectively.
Outsourcing providers are often contractually bound to deliver on specific metrics like first-call resolution rates, customer satisfaction (CSAT), and average handling time, ensuring a high level of service.
11. Outsourcing reduces time to market
Outsourcing customer support allows businesses to quickly set up a functional support team without the need to go through the lengthy process of hiring, training, and infrastructure development.
Outsourcing providers often have pre-trained agents who can start providing support immediately, making it easier for businesses to launch new products or enter new markets without delays in customer service.
12. Get global reach by outsourcing customer support
Outsourcing firms, particularly those with global operations, offer businesses the ability to provide support in multiple time zones and languages, enabling businesses to serve international customers seamlessly.
It’s true that there are a lot of moving parts when it comes to an outsourced customer support solution. However, with the right partner by your side, you’ll be able to reap major benefits from going this route. At GlowTouch, we’ve built our reputation on offering world-class customer support outsourcing solutions to a wide range of clients. If you’d like to learn more about how we can help you reach your business goals, reach out to us today.
