The Ultimate Guide to Customer Service Outsourcing

Many businesses believe customer service outsourcing means sending their customers on a difficult journey with lots of frustration and few resolutions.

However, outsourced customer service doesn’t have to be that way. It can lead to improved service and a better customer experience. 

More and more businesses are turning towards outsourcing to save money and add expert customer care to their business model. The outsourced business market is expected to have a compound annual growth rate of 8.5% between 2021 and 2028.

Want to know if outsourcing your customer service is the right choice for your business? This blog will examine the benefits of outsourcing and explore some of the signs that your business should start outsourcing.

Key Takeaways

  • Outsourced customer service capabilities have improved dramatically in recent years with big gains in technology and quality.
  • Customer service outsourcing is a cost effective and scalable solution that can improve your overall customer satisfaction.
  • Businesses going through major changes or dealing with seasonal sales can benefit from an outsourced customer service solution.

What Is Customer Service Outsourcing?

Customer service outsourcing is when a business uses a third-party organization to handle its customer service. The third-party group typically includes agents that handle inbound and outbound calls and other forms of customer communication. Many outsourced customer service teams are part of a call center. Some outsourced service centers are called business process outsourcers (BPO) and handle customer service across multiple channels.

Benefits of Outsourcing Customer Service

Today’s outsourced customer service is not the same as it was even 10 years ago. Internet and phone technology has made huge gains recently. This has dramatically improved the quality of customer service outsourcing.

With the right outsourcing partner, your business can see dramatic results and benefits within a short timeframe. Here are some of the most important benefits of outsourcing customer service.

  • Cost Effective: The most common reason businesses choose outsourcing is to save money. Outsourcing is a cost-effective solution because third-party outsourcing groups have the infrastructure and personnel already in place to handle customer support needs. Establishing an in-house solution is going to cost a lot more.
  • Scalable: Another major benefit to outsourced customer service is the ability to adjust to your needs. If your sales ebb and flow with the seasons, an outsourced agency can quickly adjust staffing to meet your needs. With an in-house team, you would have to go through a laborious hiring and training process just for temporary employees.
  • Specialized: Agents in an outsourced customer service center have gone through extensive training processes to become experts in addressing customer needs. Their sole focus is to provide the best customer service they can. An in-house team might have other responsibilities that can decrease the quality of customer service provided.
  • High Quality: Customer expectations have never been higher. When customers have a problem, they expect businesses to respond quickly and effectively. The harder they work (customer effort) to get a satisfactory result, the less likely they will be to spend money with you again. Outsourced customer service teams use their expertise to deliver high-quality service and superior customer satisfaction. This can lead to stronger customer loyalty.

This video highlights more of the key benefits of choosing to outsource customer service.

Metrics from 2021 show that customers are spending more time talking to call center representatives, more time on hold, and abandoning their calls at a higher rate. To keep up with this pressure, you need a dedicated customer service team.

Customers are spending more time talking to customer service.

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Signs You Should Consider Outsourcing Your Customer Service

Outsourcing is not a one-size-fits-all solution. It may not be the right choice for your business. However, there are some important signs you should recognize that point toward considering an outsourcing solution.

1. Your Business Is Going Through Major Changes 

If your business is experiencing major changes or rapid growth, outsourced customer service can offer stability and high-quality care to your customers. As you figure out which direction your company is headed, you can at least feel reassured that your customers will be well taken care of.

2. You Have Seasonal Support Needs

Some businesses have seasonal sales cycles. When this happens, your customers’ needs are going to fluctuate throughout the year. An outsourced team makes it easy to adjust your support levels to match your needs. You don’t have to worry about hiring temporary workers or wasting money on short-term training.

3. You Don’t Have Customer Service Experience 

Did you recently start your business or move into a new industry? These changes can be exciting, but can also leave you feeling overwhelmed, especially when it comes to addressing customer concerns. Outsourced customer service agents have extensive training and experience that can quickly be adapted to your business needs.

4. Your Customer Service Is Lacking 

Even if you already have an in-house support team, adding an outsourced team can improve your overall customer service metrics. Perhaps there are certain days of the week or times of the day where your team is getting overloaded. An outsourced team can help fill in those service gaps to improve response times and overall customer satisfaction.

5. Your Costs Are Increasing 

An in-house customer service team is a valuable asset. Unfortunately, in-house teams are also expensive. If you have been spending a lot more to keep your team staffed and trained than you want to, you might need to switch to an outsourced team.

When done correctly, outsourcing can offer significant cost savings. This is most evident when you consider how much it costs to advertise a position, sort through resumes, interview candidates, hire an employee, and then train them. With outsourcing, you get to skip most of those steps and go directly to expert-level service without spending a fortune.

According to Deloitte, 70% of businesses choose outsourcing to reduce their costs.

Cost reduction is the primary reason businesses choose outsourcing.

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Explore the Possibilities of Customer Service Outsourcing with Televerde

While you understand the benefits of an outsourced customer service solution, making the switch is more challenging. If you are considering pivoting to outsourced customer service, Televerde can help.

We have decades of experience helping businesses of various sizes meet their customer care goals. Our teams are expertly trained to adapt to each unique business and can start working with your customers with little downtime.

Ready to explore your outsourced customer service strategy? Contact Televerde today to learn how to get started.

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