According to brand loyalty studies, many customers are not loyal to a particular product or service. In fact, more than 45% of consumers are not loyal to a single brand. Just 8% of consumers are loyal to more than 10 brands.
Any negative interaction between a customer and a company is likely to result in a loss of business. You can eliminate this risk with a renewed focus on customer service.
Read on to learn about the effectiveness of customer service outsourcing. Explore topics such as customer service strategy and retooling your business operations through outsourcing.
What Is the Value of Good Customer Service?
Effective customer service is critical to landing new customers and retaining existing ones. Customer service representatives help convert leads to sales.
They interact directly with the customer and help them find the right product. Customer service reps answer customers’ questions and guide them through the sale or return process.
If a customer is satisfied with the product and service that they receive, they are more likely to return. Retaining existing customers is essential to growing the business.
Why Are Companies Outsourcing Services?
Many companies are considering whether to outsource customer service. There are many reasons driving businesses to choose outsourced services.
For starters, inflation is cutting into profit margins. Companies are looking for ways to reduce their operating expenses.
Outsourcing work is one effective way to do this. Your company can significantly lower its direct and indirect labor expenses this way.
By outsourcing work, you are lowering your in-house headcount. This results in lower payroll expenses.
Also, you no longer have to provide benefits like retirement savings or health insurance. Additionally, office space and furniture are no longer required. This leads to a reduction in overhead expenses.
Companies are also stretched thin by a tight labor market. There is an ongoing labor shortage in the United States. There are 3 million fewer workers nationwide than there were in February 2020.
At the working level, this means fewer workers for a growing amount of work. What typically happens next is employees without adequate customer service experience are asked to do this type of work. Customer satisfaction typically declines when this occurs.
By outsourcing the work, you no longer have to worry about quality suffering. Instead, you are getting an experienced customer service team to communicate with consumers. They also have experts standing by to support them in the event of a complex problem.
Outsourced services do not go on vacation or call out sick. Instead, there are additional customer service representatives ready to backfill absent workers.
Your Guide to Customer Service Outsourcing
Clearly, there are many benefits to outsourcing customer service. Your business can reduce operating expenses while growing the revenue base at the same time.
With an experienced customer service team, you can expect positive interactions with consumers. This positive experience is certain to lead to higher sales and the retention of existing customers.
If you are interested in customer service outsourcing, contact us today to speak with an experienced professional.