Did you know that over 50% of companies worldwide outsource their customer service to some extent?
In fact, the outsourced customer care industry was valued at $71839.25 million in 2022. It is expected to reach $93798.75 million by 2031.
Saving money is one of the key drivers for virtual customer service solutions. There’s also a significant time saving aspect, too. When a company is unable to provide excellent customer service in-house, outsourcing customer support comes in.
Here, we explore customer service outsourcing in depth. We examine its definition, the different types of outsourcing, and what to consider before investing.
Understanding customer service outsourcing.
Outsourcing customer service means contracting with an external customer service company to handle your customer service needs. This typically includes live chat support, telephone answering, and social media support.
Using external customer support providers is a strategic move. One that allows businesses to offer expert support to their customers without expanding their in-house teams.
Which brings us to our next question…
How does customer service outsourcing work?
The process begins with identifying the right outsourcing partner. It’s important to find a partner that aligns with your company’s values, target market, and service expectations. Once you’ve chosen a partner, you’ll work together to create a detailed plan.
The plan should outline the scope of services, performance metrics, and communication protocols. This approach enables the outsourced customer care team to operate as an extension of the business. One key objective is to provide seamless service to customers. Through virtual customer service solutions, external teams can manage inquiries, feedback, and support tickets. This can often take place across multiple time zones to ensure they can address customer needs promptly and efficiently.
Outsourcing providers bring specialized expertise to the table. This takes the form of customer service management, including access to the latest technology. Outsourced contact center services offer a range of services and tailor their approach to the business.
Their round-the-clock remote support ensures customers receive immediate and skilled help anytime. And because these providers continuously invest in training and development, they deliver a high-quality service.
Types of customer service outsourcing.
Customer service outsourcing can take various forms, each suited to different business needs and customer interaction styles. The primary types include call centers, contact centers, and answering services.
You can also think of them as voice and non-voice services:
Voice support: Including traditional inbound/outbound call center services for order processing, technical troubleshooting, complaint, and query handling.
Non-voice support: Customer service via email, website tickets, social media channels, and live chat. This category also includes self-service FAQs and support via AI chatbots.
Let’s explore the main types of customer service outsourcing in more detail.
Call centers.
Call centers focus mainly on voice calls as the medium for customer service. They handle inbound queries – such as product support, or outbound calls, like customer satisfaction surveys.
An example is a software company outsourcing a call center to handle tech support calls. This method ensures customers receive expert help for technical issues quickly.
Contact centers.
Contact centers offer a more comprehensive range of services. These include not just voice calls but also email, live chat, social media, and sometimes even video calls. An e-commerce platform might use a contact center to manage returns, order inquiries, and live chat support. The result is a seamless omnichannel experience.
Answering services.
Answering services are often more specialized and personalized. They can provide after-hours support, appointment scheduling, or even emergency response coordination.
A medical practice would employ an answering service to take after-hours patient calls. This means that urgent inquiries are escalated to the appropriate on-call doctor.
Answering services play a pivotal role in customer support outsourcing. Unlike call and contact centers handling high inquiry volumes, answering services focus on tailored responses per call.
This can be crucial for businesses that prioritize building customer trust or need to provide specialized information directly.
These types of answering services can also act as a first line of response. From filtering inquiries and directing them to the right department, they improve efficiency and customer satisfaction.
The benefits of outsourced customer service care.
1. Cost efficiency.
Outsourcing customer service reduces overhead. Companies save on hiring, training, and infrastructure. It turns fixed costs into variable costs, freeing up capital for other areas.
This transition from fixed to variable costs not only frees up capital but also allows businesses to allocate their resources to core activities that drive revenue and growth. There’s also less financial risk by aligning expenses directly with service demands because companies only pay for the customer service they need.
2. Scalability.
Customer service outsourcing enables businesses can adjust their customer service size quickly. During peak times, scaling up is seamless. In slower periods, they can scale down without the hassle of rehiring or layoffs.
This scalability ensures your customer service is cost-effective and consistently aligned with current needs. And that’s a vital advantage in today’s fast-paced market environment.
3. Virtual customer service solutions.
Third-party support outsourcing offers both flexibility and innovation. Companies access the latest in communication technology without hefty investments.
This access enhances the efficiency of customer service delivery and enables you to introduce innovative service methods. These methods can differentiate a business in a crowded market. Virtual solutions enable the provision of a seamless, omnichannel customer experience. Bridging traditional and digital communication platforms meets customers where they are and delivers the convenience and speed customers expect.
4. Access to expertise.
Outsourcing connects businesses with specialized service providers. These experts bring proven strategies and insights. This expertise translates into more effective customer interaction strategies and optimized service processes. That optimization enables you to successfully anticipate and meet customer needs proactively.
5. 24/7 availability
Customers get support anytime, boosting satisfaction. This round-the-clock availability is crucial for competing globally. It ensures no customer query goes unanswered, regardless of the time zone.
Jasbina Ahluwalia, founder of Intersections Match, chose to outsource her company’s customer service to complement her staff’s work. The business’s primary goal is one of matchmaking and online dating support. Jasbina explains, “Given we want to focus our team’s time on providing exceptional service to our clients, we wanted to outsource high-quality phone support for inquiries from prospective clients.
Key considerations before outsourcing.
Outsourcing customer service is a tactical move that can significantly benefit your business. However, choosing the right partner involves careful consideration of several critical factors.
Here’s how you can navigate these considerations effectively:
Reputation and reliability.
To determine this factor, search for reviews, testimonials, and case studies from the outsourcing company.
Talk to their current or former clients to get a feel for their experiences. Check industry forums or platforms like Trustpilot for impartial feedback. The way a provider has managed clients in your sector can give you important clues about their reliability.
Communication channels.
Look into the variety of communication channels the service provider uses – such as phone, email, chat, and social media. Request demos on how they handle these channels to make sure they match your customers’ needs. Examine their technology and ability to integrate with your systems for a smooth customer experience.
Cultural fit.
It’s essential that your outsourced team and customers interact smoothly. Have conversations with potential providers to see if they grasp your business’s values, mission, and approach to customer service. Trying a pilot project could show how well they can represent your brand.
Data security.
Ask about the outsourcing provider’s data protection measures. This includes their certifications and how they comply with privacy laws. Request specifics on how they manage data, train their staff on data security, and their process for dealing with data breaches. A trustworthy provider will be open and detailed in their responses.
Flexibility and customization.
Check if the external customer service provider is open to customizing its services to meet your particular needs. Discuss different scenarios or changes in service requirements, such as how they handle workload or service adjustments. They should be flexible and capable of evolving with your business, all while maintaining high service standards.
Implementing customer service outsourcing successfully.
Follow these steps to introduce external customer service to your organization:
1. Clearly define expectations.
Start by documenting specific, measurable objectives you expect from your outsourcing partnership. Include service level agreements (SLAs), quality standards, and customer satisfaction metrics. Share these with your provider during initial meetings and make sure they understand and agree to these expectations.
2. Provide comprehensive training.
Even though your outsourcing partner will have their training program, ensure they fully understand your products, services, and brand voice. Supply them with detailed manuals, FAQs, and product samples if possible. Consider conducting joint training sessions where your in-house team shares insights and expectations with the outsourced team.
3. Foster open communication.
Establish regular check-ins and review meetings to discuss performance, challenges, and feedback. Use collaborative tools like Slack or Microsoft Teams to facilitate daily communication. Creating a shared online workspace containing resources and updates ensures everyone is on the same page.
4. Monitor performance.
Implement a system to regularly monitor the outsourced team’s performance against the SLAs and key performance indicators (KPIs) set at the outset. Use customer feedback, call recordings, and performance reports to assess their work. This data will be crucial for identifying areas of improvement.
5. Continuously evaluate and adjust.
Customer service needs can evolve, so it’s important to remain flexible and open to adjusting your strategy. Based on performance data and customer feedback, work with your outsourcing partner to refine processes, training, and even objectives as needed.
Regular strategy sessions can help align both teams with any new goals or changes in direction.
By following these steps, you can ensure a smooth transition to outsourced customer service and maintain high-quality support that aligns with your brand’s values and customer expectations.
Wrapping up.
Successful customer service outsourcing hinges on meticulous planning, clear communication, and ongoing collaboration. By setting clear expectations, providing in-depth training, and creating open communication, you can work with your outsourcing partner efficiently.
The overarching goal of outsourced customer care is to create a partnership that not only meets but exceeds customer expectations. Done right, it can drive satisfaction and loyalty while allowing your business to scale and thrive.
Isn’t it time you embraced outsourcing for improved customer service and to grow your business?
