• Phone(636) 764 6607
  • Address12015 Manchester Road, Suite 120 St. Louis, Missouri 63131
  • Phone(636) 764 6607
  • Address12015 Manchester Road, Suite 120 St. Louis, Missouri 63131

What are the Pros and Cons of Outsourcing Customer Service?

Customer service is a vital component of any successful business. This is why the customer service industry is valued at more than $11 billion in the United States.

Good customer service agents can earn new consumers or retain existing ones. On the flip side, poor customer service leads to lost sales. It is not uncommon for customers to become angry and vow never to use a service again.

To reduce operating costs, some businesses are thinking about outsourcing customer service. Read on to learn about the pros and cons of outsourcing. Explore topics such as customer service challenges and tips for choosing an outsourcing partner.

What Are the Advantages of Outsourcing Customer Service?

There are many advantages to relying on a third party for customer service. The cost of outsourcing is one of the primary reasons why businesses make the change.

Your business can reduce operating costs by taking on less direct work. This is accomplished by eliminating or reducing overhead and employee benefit costs.

Choosing the right outsourcing partner is pivotal to achieving these cost reductions. There is an option to add a virtual or offsite customer service agent.

With fewer heads, your business does not need as much office space. A smaller physical footprint adds the potential for lower rent and utility bills.

Also, your business is not responsible for expensive benefits if the customer service agent is not on the direct payroll. Instead, the outsourced company is responsible for health care and retirement plan costs.

There are non-monetary advantages of outsourcing as well. For example, the arrangement makes for a more productive workforce.

Your artisans and technical specialists can focus on their primary job. They are no longer distracted by customer service tasking. At the same time, a sole focus on customer service is going to yield positive results as well.

Your business is likely to see improvements in response time and scheduling efficiency. Also, crew dispatching and handling customer calls will improve. You can implement 24/7 customer assistance as well.

What Are the Disadvantages?

Of course, there are challenges to outsourcing. Your customer service representative may no longer be available after hours. There may be communication and business-specific training challenges to overcome.

The good news is that you can easily resolve many of these issues. It all starts with hiring a reputable company with a good track record.

The best customer service companies work with their employer to overcome these obstacles. They set up effective communication channels. Also, they sign up for training courses as required so their employees learn the business.

Your Guide to Customer Service Outsourcing

You are now ready to make a decision on customer service and outsourcing options. There are advantages and disadvantages to think about before pulling the trigger.

It is wise to consult with a customer service company before hiring anyone. They can talk through your concerns and determine a plan to overcome challenges. If your business is thinking about outsourcing customer service, contact us today to speak with a Free2Grow professional.