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Call Center Outsourcing: Your Essential Guide in 2023

Call center outsourcing or customer service outsourcing is the “handing off” of your call center services to a third party so you can focus on the core aspects of your business. Call center outsourcing companies are typically in a separate location or country to help minimize costs and maximize profit. This entails establishing a working partnership with an outsourcing company to help you make your operations more efficient and productive.

In a typical call center outsourcing arrangement, the outsourcing company hires employees and provides relevant training and equipment. The goal of this venture is to improve the overall customer experience by optimizing communication channels and optimizing other business functionality in key areas. BPO call center services can also include technical support, helpdesk support, sales support, telemarketing, and telehealth, to name a few.

This article will cover the following topics (click the link to jump to topic):

Why is Customer Service Important?

Good customer service is a key factor in customer retention. Investing in customer service lowers the cost of customer acquisition; customer acquisition cost (CAC) is always higher than the cost of retaining customers, and it’s always a good idea to provide service that will make customers come back and be loyal to your brand. Loyal customers are your best advocates and source of referrals.

Churn rate is also reduced if you invest in providing excellent customer service, in turn also minimizing CAC. Ultimately, it’s more profitable to retain current customers than acquiring new ones. More than 60% of sales come from existing customers, and considering the lower cost of retaining them, it’s a sound business approach to focus on minimizing churn rate. A recent study also shows that 73% of customers consider experience as a crucial factor in their purchasing decisions.

Why Outsource Customer Service?

Outsourced customer service rating

Investing in an outsourced call center is investing in your customers because a dedicated contact center shows how you value the customer experience. Today’s customers not only look for a customer service department; they’ve come to expect it. Businesses can turn this expectation into a competitive advantage by ensuring that they provide excellent customer service.

Fortunately, companies can save on costs by building an outsourced BPO call center team. Regardless of where you decide to outsource, working with an outsourcing company will be cheaper than hiring your own full-time employees.

There are many benefits to outsourcing customer service, including cost savings, improved efficiency, and access to a larger pool of skilled agents.

Cost Savings

One of the biggest benefits of outsourcing customer service is cost savings. By outsourcing, businesses can save on the costs of hiring, training, and maintaining a large in-house customer service team. Outsourcing companies typically offer lower rates for customer service and can provide a talent pool that’s experienced and proficient for the tasks most businesses require.

Improved Efficiency

Customer service outsourcing also leads to improved efficiency because BPO call center companies typically have a large pool of skilled agents who are trained to handle a variety of customer service issues. This means that businesses can provide faster and more effective customer service, which can lead to increased customer satisfaction. Research shows that a positive customer service experience leads 89% of consumers to make another purchase from the same company.

Access to a Larger Pool of Skilled Agents

Customer service outsourcing gives businesses access to a larger pool of skilled agents. This is important because businesses need customer service agents who have a wide range of skills, including excellent communication skills, technical knowledge, and problem-solving abilities. By outsourcing your call center, you get access to a pool of world-class agents who have the skills needed to provide excellent customer service.

Specialized Skills

Not everyone is built to become a customer service representative; as someone constantly exposed to customer communications, there are some skills that will benefit call center agents and help them provide the best service possible, including active listening, empathy, adaptability, a positive attitude, and the willingness to go the extra mile if necessary.

Outsourcing customer service allows you to create a team that’s dedicated to taking care of your customers and maximizing your resources to provide the best customer experience possible.

The Pros and Cons of Call Center Outsourcing

Pros and cons of call center outsourcing

Call center outsourcing has become an increasingly popular option for businesses looking to streamline their operations and reduce costs. Outsourcing customer service can offer several benefits, such as access to specialized skills and resources, 24/7 availability, and reduced overhead costs. However, there are also some potential drawbacks that businesses need to consider before making the decision to outsource their customer service. Knowing the pros and cons of call center outsourcing will help you determine if it’s the right choice for your business.

The Pros

Access to specialized skills and resources

One of the biggest advantages of outsourcing customer service is that it allows businesses to tap into a pool of specialized skills and resources. Outsourced customer service providers typically employ experienced and knowledgeable customer service agents who are trained to handle a wide range of customer inquiries and concerns. This helps ensure that customers receive high-quality service, and that their needs are addressed quickly and efficiently.

24/7 availability

Another key advantage of outsourcing customer service is that it can offer 24/7 availability. This is especially important for businesses that operate globally, or that have customers in different time zones. By outsourcing customer service, businesses can ensure that their customers have access to support whenever they need it, regardless of the time or day.

Reduced overhead costs

Call center outsourcing can also help businesses reduce their overhead costs. By transferring customer service responsibilities to an external provider, businesses can avoid the costs associated with hiring, training, and managing in-house customer service teams. This can help businesses save money and focus their resources on core business activities.

The Cons

Lack of control and flexibility

One of the biggest drawbacks of call center outsourcing is the lack of control and flexibility that businesses have over the process. Outsourced customer service providers typically have their own processes and procedures, which may not align with a business's specific needs or requirements. This can lead to inconsistent quality of service and make it difficult for businesses to make changes to their customer service operations as needed.

Language and Cultural Barriers

Another potential drawback of outsourcing customer service is the language and cultural barriers that can arise. Outsourcing companies may not be familiar with the language, culture, or business practices of a business's target market, which can make it difficult for them to effectively communicate with customers. This can result in misunderstandings, miscommunication, and dissatisfaction among customers.

Sharing of customer data

Call center outsourcing can also pose a risk to a business's customer data. Outsourced customer service providers may have access to sensitive customer information, such as account numbers, personal details, and payment information. Businesses need to ensure that their outsourcing partners have strong security measures in place to protect customer data, and that they are in compliance with data protection laws and regulations.

5 Ways Call Center Outsourcing Can Benefit Your Business

Customer service benefits

Call centers have been a staple of customer service for decades, providing businesses with a way to interact with their customers and address their inquiries and concerns. However, managing an in-house call center can be a daunting task, which is why many businesses choose to outsource their call center operations.

Below are the top 5 ways call center outsourcing can help optimize your business operations.

It allows you to leverage the latest technology.

BPO call centers invest in the latest tools and technology to provide topnotch services to their clients’ customers. Artificial intelligence (AI) and machine learning (ML) tools are now also available, which can help outsourced teams automate repetitive tasks and optimize workflows. Seamless customer conversations lead to increased satisfaction and improved conversion rates in the long run.

You can take the omnichannel approach.

Customers expect to communicate with brands on their preferred platforms—and they don’t stick to one. To reach your customers and prospects, you must be visible on the channels they use. You can gain a competitive advantage by working with an outsourcing company that can provide 24/7 customer support via phone, live chat, social media, and other platforms.

You work with customer service professionals.

Trust is a vital component of customer service. An omnichannel approach should aid in building trust in your brand through constant communication via social media, phone, live, chat, and other platforms. This will allow you to share information about your brand and products in real-time and to a potentially wider audience. Customer service professionals know how to leverage “social customer service” to increase customer acquisition and retention rates. They help spread the word and build a positive brand image through good customer experiences.

An outsourced team is easily scalable.

For some companies, the need for an outsourced call center team is seasonal; there may be regular sales surges at specific times of the year or peak and off-peak seasons for specific products and services. Whatever the reason, outsourcing customer service will allow you to scale services accordingly, whether you’re looking to expand or downsize. The right outsourcing partner will personalize their service offerings to cater to your specific requirements.

You minimize operational costs.

Because you’re not hiring full-time in-house staff, you are effectively minimizing your operational costs because you don’t have to worry about office rental, equipment maintenance, and other utility fees. This is especially useful when you need to adjust you processes to address changing customer needs.

How to Successfully Outsource Customer Service

Successful customer service outsourcing

Outsourcing customer service is a viable strategy if you’re looking to level up your customer service and improve overall customer satisfaction. It’s a win-win situation for both you and your customers because you get to save on operational costs while they get better personalized service. Choosing the right outsourcing partner and setting clear, measurable goals will help your business increase efficiency and productivity while also ensuring that your customer service function remains at a high level. To ensure the success and sustainability of your call center outsourcing venture for the long term, there are best practices you can follow.

Set clear customer service goals and requirements.

Setting specific requirements and goals will help you measure the progress of your project and the efficiency of your outsourced team. Define clearly what functions you wish to outsource and what you expect to achieve within a certain period.

Choose an outsourcing partner that resonates with you.

When selecting an outsourcing company, choose one that understands your business and shares your vision about its future. Of course, you should also ensure that they can provide the services you require and can deliver on what was agreed upon at the onset of the project.

Ensure clear lines of communication—always.

Clear communication and support ensures that you and your outsourcing partner are on the same page throughout the project. By providing the appropriate support to the outsourcing company, they can also provide the same quality of service to your customers.

Monitor performance regularly.

Monitor and measure performance milestones regularly to see if you are hitting your goals and deadlines. This will help you determine if your outsourcing partner isn’t meeting your requirements or if you need to make changes to your set goals.

Foster a positive working relationship.

Building trust between you and the outsourcing company is vital if you’re planning on a long-term working relationship. Align your expectations and ensure that you set feasible goals; you can always revisit these goals if they need to be modified later on. Even if the outsourcing company fails to deliver on their promise, it’s a good idea to maintain your relationship. You can never tell if you may need their services again in the future.

Call Center Outsourcing Done Right

Whether you choose to outsource temporarily or for the long term, the key is in ensuring that there’s no disruption in your operations and that your outsourcing venture doesn’t affect your customers’ perception of the service you provide. There will be challenges along the way if you jump into outsourcing without a clear plan, especially if it’s your first time to outsource customer service.

Before outsourcing your customer service function, you should find an outsourcing company that meets your requirements or one that can create a tailor-fit solution for your business. Schedule your free consultation today to see how outsourcing can help you scale your business and save money while doing so. Building a team in the Philippines will help you maximize profits, minimize operational costs, and give you access to a growing pool of Filipino world-class talent.

How Can We Help You?

Not sure about outsourcing yet? Leave us a message and we’ll send you a sample costing calculation and answer any questions you might have. Let’s make outsourcing as easy as possible for you!

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