Need to know about the Pros and Cons of Outsourcing Customer Service?

Here is all you need to know.

Outsourcing customer service is all about doing the best to fulfill the customer service needs of your customer. Hence, leaving them with a positive experience.

At Ibmi Media, we transparently take care of the support operations of hundreds of web hosts and digital marketers.

We regularly provide outsourced customer services to our customers.

Here, we will look into the pros and cons of Outsourcing Customer Service.

Outsourcing Customer Service

Consider we have a surge of new customers. If we fail to manage all of their queries, we will definitely miss out on opportunities to capitalize on demand. This will eventually hinder the growth of the business.

Here comes the role of Customer Support. It is a service, implying that these solutions are scalable and with no significant upfront investment or minimum volume requirements. The ultimate factor that will make or break a business is the way we treat our customers.

Here at Ibmi Media, we anticipate that our customers might need burst coverage at short notice, or will need to expand support capacity with a few weeks notice.

That is why we always maintain spare capacity for our managed support services like Phone Support, Help Desk Support, and Live chat support.

Moving ahead, let us take a look at the biggest pros and cons of outsourcing customer support.

PROS of Outsourcing Customer Service

1. Cost-effective

Outsourcing customer service usually saves a considerable amount of money. It is also a less expensive alternative to hiring full-time customer service staff.

Businesses that outsource customer service can see financial relief in utilization, SG&A, and the costs of agent attrition. At Ibmi Media, we offer flexible and affordable staffing options, along with a price structure that charges per resolution, not per hour.

2. More coverage

It's an opportunity to "out service" our competitors since it offers extended after-hour and weekend support.

3. Different language options

Broadening the customer base by adding more language options than just English is a big advantage. Make sure to make use of and advertise this benefit so potential customers know about it.

4. Less headache

Leave your customers in safe hands. Not having to deal with endless customer issues helps to focus on other core tasks.

5. Potentially shorter response times

A first-hand assurance gives customers a secure feeling. More hands-on-deck mean a significant reduction in response times, which is the main driver of customer satisfaction.

6. Better technology and resources

With a link with a customer service agent or team, we get access to the latest technology and a pool of resources we might not otherwise be able to invest in.

7. Increase productivity

Customer experience is important. Providing solid customer service is no small feat. It is a huge undertaking for most businesses to set up an effective customer service infrastructure.

However, outsourcing allows us to focus on other activities by handling our customers for us.

8. More flexibility

Generally, we may come across peaks in work volume as a result of unexpected events. However, outsourcing enables businesses to scale-up customer service support without having to train, hire, and then lay off workers.

9. Expertise in customer support

Although most customers have a great idea about their product or service, it is rare for them to have great customer support. It takes a lot of resources to keep up-to-date with the latest in the CX industry.

With outsourcing support, we don’t need to be a customer experience market-leader to be able to provide market-leading customer support to our customers.

Cons of Outsourcing Customer Service

i. Disconnection from brand and strategy

It is not always necessary that they may be well-versed with the company’s overarching strategy and brand when handling requests. Hence, it is necessary to have a strategic partner and not just an order taker or a complaint taker.

Resolutions with a positive experience are the key, not the number of close tickets.

ii. Rigid contracts

On one hand, outsourcing customer service is most beneficial. However, most require long-term contacts and minimum requirements, which hampers flexibility and can become a financial burden.

iii. The quality of customer care

It is not mandatory that what we define as 'good' customer care may align with the outsourcing company's definition. This can alleviate if the outsourcer is a strategic partner who has a good knowledge of the company’s mission and commitment to good service.

iv. Lack Of Control

Even though we can provide direction in regard to what we need to accomplish, we might give up while outsourcing. This may occur because we hire a contractor instead of an employee. Usually, if the person is not working on-site, it can be difficult to maintain the level of control.

v. Communication Issues

This does not always come into play, but it is one of the biggest potential drawbacks. The time zone, business hours, method of communication, internet facilities, etc. can lead to this issue.

vi. Cultural barriers

The agency with the customer out servicing maybe somewhere Offshore. Similarly, the call center may not have the right cultural knowledge and communication fluency.

vii. Privacy concerns

The company’s confidential and sensitive data is of utmost importance. However, negligence and the transfer of such data can cause issues.