Businesses are always looking for ways to streamline operations, minimize overhead costs, and enhance customer satisfaction. One of the methods to accomplish all of these, and more, is to outsource customer service to a third party. There are several benefits to this practice, but there are also some considerations that should be taken into account before moving to this model. We’ll explore the pros and cons of outsourcing customer service to help you make the best decision for your business.
Pros of Outsourcing Customer Service
Every company needs to excel in customer satisfaction — and some businesses, like those in the service industry or professional services that book appointments, lean heavily on their customer service department. No matter how big your customer care needs are, your company can benefit from outsourcing these needs.
Cost Savings
Outsourcing their customer service allows companies access to a pool of skilled agents at a fraction of the cost of hiring and training in-person staff. Managers, supervisors, and other employees that aren’t tasked with training customer service personnel are able to maintain their workload, and fewer employees on the business payroll improves bottom lines. And, with customer service representatives, fewer leads are missed and more opportunities are converted into sales.
More Support Hours
When you choose a customer service company that offers extended hours, your phone will never go unanswered. This round-the-clock support will set your business apart from the rest. The ability to address issues or questions any time of the day or night leads to increased customer loyalty and satisfaction.
Scalability
Your customer service offerings can expand or contract along with your company as needed when you choose to outsource this department. The number of customer service representatives can be increased for peak seasons, or during periods of rapid growth, or shrink down during slower periods. Your payroll won’t suffer from excess staff during these times when you choose to outsource your customer service.
Specialized Expertise
Customer service representatives should be skilled in their specific industries or technologies. By outsourcing this need, the pool of candidates becomes much larger, enhancing your business’s knowledge and reputation as an industry expert.
Enhanced Focus
With a third-party taking care of your customer service needs like client satisfaction, call handling, and appointment scheduling, your in-house staff can focus their time and resources on core business activities and strategies. Product development, marketing, and face-to-face customer relations can all benefit from fewer phone calls and correspondence from customers being received internally.
Cons of Outsourcing Customer Service
There are a few challenges to consider when outsourcing your customer service department. Most of these can be easily remedied, but they are worth considering before making any final decisions.
Relinquishing Conversations
One of the biggest concerns about outsourcing customer service is the loss of control over the customer experience. When someone else is handling your customers, there’s a potential for callers to experience inconsistencies in their experiences with your business. It’s important to choose a customer service company that pledges to adhere to your company’s policies and procedures and that acts as an extension of your in-house staff.
Communication Challenges
that pledges to adhere to your company’s policies and procedures and that acts as an extension of your in-house staff. A reputable answering service will have customer service representatives with clear and consistent phone lines and internet connections and will have matched each employee to fit the unique needs of your business.
Risk of Data Breaches
This risk exists in any business that deals with client information, but the risk can potentially be higher if secure connections are not maintained with a third-party service.
