Handling customer services is a massive pain for many companies. Imagine catering to a bunch of customers with different problems. A surge of customers may also overwhelm your in-house services. What should you do now?
If you’re considering outsourcing customer services, you have come to the right place. This article will discuss the benefits of outsourcing, so stick with us until the end.
What Is Customer Service Outsourcing?
Customer service outsourcing means enlisting a third-party company to manage customer service tasks. Call center agencies usually provide outsourced customer service. They take care of all the surveys, complaints, and other needs your company’s customers may require.
Most companies outsource customer service on a regular or seasonal basis. For example, travel accounts can peak during certain seasons, so companies try to ramp up customer services by outsourcing them to other companies.
Learn more about Customer Service Outsourcing.
11 Reasons to Outsource Customer Service
Now that you know how customer service outsourcing works, you might think about how it can help your business.
Here are some of the benefits of outsourcing customer service:
1. Cost Efficiency in Operations
Hiring in-house customer service employees requires renting an office, buying equipment, paying taxes, and paying employee benefits. Outsourcing your customer service eliminates those costs, allowing you to allocate the funds to other projects.
Outsourced customer service providers already have the necessary equipment. They will also take care of their employees’ benefits and taxes, so you do not have to worry about these costs.
2. Adaptability and Flexibility During Peak Seasons
Do you need help hiring workers at your peak times? Outsourcing customer service may be beneficial for you. The agility and flexibility of third-party customer service give you many benefits when outsourcing customer service.
Surprise workloads, especially during peak seasons, can slow down the work and reduce the efficiency of your in-house CSR. Meanwhile, outsourced customer service can scale up your business on demand, thus providing it with more flexibility and adaptability in demanding situations.
3. Multilingual Support
Multilingual support in your customer service can make your business reach global. You can help the English-speaking community and customers who are more proficient in other languages.
What’s more, you only need to do customer service training instead of focusing on language training for your potential outsourced employees. Once they understand customer service, they can immediately cater to your customers’ needs.
4. Access to Expert Solutions
Outsourcing your customer service will give you access to experts who can work on areas outside your niche. The technical experience guarantees they know what they are doing and will help bring your business to the top.
Another benefit of outsourcing customer service is expanding your talent search. Sometimes, the expert solutions are outside your area, so you need to expand your search area. Outsourcing can help you find those hidden talents and acquire the expert solutions you need.
5. Better Customer Retention
Outsourced customer service professionals possess field expertise to help you retain your customers. Therefore, you do not have to worry about your customers getting angry about your company’s services. This will also increase the chances of customers being loyal to your company because the outsourced experts are helping them resolve their issues.
Since they are already experts in handling customers, you can focus on optimizing those business goals for your company’s growth. This can also generate more leads for your business, leading to more customers flocking to your brand.
6. Time Efficiency
You do not want your customers to wait an hour before an agent answers their concerns. Outsourcing customer service can give you the personnel needed to handle your customers’ issues without wasting time.
Having outsourced customer service can shorten waiting times for your customers. Short waiting times result in your customers getting quick answers and resolutions to your customers, thanks to outsourced customer service.
Here’s a list of the best outsourcing practices to boost your business’s efficiency.
7. Better Quality Control
Having customer service providers that are not experts in the field may lead to a slip in your quality control. You do not want your customers to be angry about your services. An outsourced customer service provider can help you improve your customer service.
To ensure work quality, you can outsource quality analysts (QAs) to monitor your outsourced customer service provider. QAs can provide weekly, monthly, and yearly reports on work quality.
This way, you can closely monitor what needs to be changed and what should be kept about how your outsourced customer service handles customers.
Find out the benefits of quality assurance outsourcing here.
8. More Efficient Data Reporting
Another benefit of outsourcing customer service is more efficient data reporting. Getting the pulse of your customers is vital in today’s business. You can reach customer trends by hiring personnel to gather customers’ desires for your services.
Today’s trends are constantly and quickly changing, so having fast and keen eyes is essential in making your business thrive. Data gathering and analysis are time-consuming, so it’s better to let the experts gather and report for you.
9. Better Access to Newer Technology
Gaining access to newer technologies for customer service is excellent. However, time and money constraints may hinder acquiring these new techs.
The solution? Ask for help from an outsourced customer service provider.
Creating chatbots, VPNs, apps, and other customer service software can be costly if you use in-house services. Outsourcing these tasks to your customer service experts will be more affordable. Once the software is created, it can increase the efficiency of your customer service without compromising its quality.
If you’ree looking to hire customer service representatives but not sure how many agents you need, this article can help you decide.
10. Refocus on the Company’s Competencies
Giving your all to every branch of your business looks remarkable, but you can lose sight of your targets and goals. Outsourcing customer service can help you put your focus on your expertise.
Allocating your time to your goals can allow you to strategize how to get more customers for your business. You can also check what needs to be reworked in your business to retain your loyal customers. Let the experts in customer service do their job; outsourcing them is the best way to do it.
11. Better Risk Management
The risk of losing a business due to poor customer service handling is an expensive mistake. Outsourcing customer service can help your business handle customers better.
Another benefit of outsourcing customer service is stability. A stable business can make investors flock to your company. Fortunately, outsourcing customer service gives you that stability.
Additionally, business stability equals a lower risk for your company to go bankrupt.
LinkedIn also lists the Reasons Why Outsourcing Customer Service Is Advantageous.
Is It Better to Outsource Customer Service?
Whether or not it’s better to outsource customer services will depend heavily on your business decisions. Outsourcing offers many time and cost savings, but you should consider the consequences it may cause your business.
Remember, outsourcing is meant to help you with customer service operations, only partially replacing them. Your outsourced services should not stop your in-house customer service operations. Most benefits outweigh the risks, but carefully decide before outsourcing your customer service operations.
Not sure where to outsource? Here’s a list of the best outsourcing companies to help you find your next remote worker.
What Are the Risks of Outsourcing Customer Service?
As with most services, outsourcing customer services has risks. Here are some common drawbacks of outsourcing customer services. Spoiler alert: some of its benefits also have drawbacks.
1. Loss of Customer Trust
If you handle a reputable company, customers expect top-notch services catered to them. Outsourcing your customer service to third-party providers may result in less stellar services to your customers, thus losing loyal and potential customers.
Outsourcing customer services can help lessen call waiting times. However, your customers can be more confused if their queries need to be answered appropriately by your outsourced provider. This issue may give the impression that your services slipped, making potential customers avoid your company.
2. Your Company is Not a Top Priority
Third-party customer service providers often have multiple clients on their hands. They cannot focus on one company, so you may be left out if you outsource your customer services.
Stay with your in-house customer service if you are genuinely hands-on in providing outstanding customer service.
3. Possible Security Breaches
Confidential files can be leaked when you outsource customer service because you entrust your brand to others. You do not want third-party services to expose your customers’ information, sensitive business files, and trade secrets.
Thoroughly research the most trusted customer service operator. Even if you hire them, monitor their activities to ensure that they are not giving away vital data that can breach your company’s and your customers’ privacy.
Read this article to find out How to Overcome the Challenges of Outsourcing Customer Service.
Outsourcing Your Customer Service Has Benefits and Drawbacks
It takes a lot of effort to trust customer service to someone else. But you want to grow your business. Losing focus on your business goals can stress you out in the long run, so should you let others handle your customer service?
The benefits of outsourcing customer services heavily outweigh the drawbacks. It’s a common practice among big companies, and it’s great for any company that wants to lighten its load and reach its goals.
