One of, if not the most expensive line item on a budget when it comes to business operation costs is customer service. It isn’t just salary costs, of course. Other cost factors need to be taken into consideration, such as the cost of housing the representative, providing them with the training to do their job, ensuring up to date infrastructure is available, contributing towards their health insurance costs, all make up the total cost.
It is this cost reason why more and more companies are looking to outsource their customer service teams in a bid to lower their costs. And while this can provide immediate cost benefits, it’s important to realize that outsourcing doesn’t always ensure a quality of service or brand protection.
Lower Your Quality of Staff
This is a tricky one if you read the title correctly. This is the model used by on-shore outsourced customer service centers. It doesn’t at all mean that you should go ahead and hire low-quality staff, but it does mean that the staff performing their jobs in your company should be skill appropriate.
Simply put, there is little reason to pay somebody who can perform an amazing job when you can pay somebody a significantly lower rate for their lower ability to perform an acceptable job.
When the majority of CEOs are presented with this model, their initial reaction is to question how a third party company can provide the same service for a lower price than can be offered in-house.
On-shore outsourcing companies are trained at identifying the correct level of skill needed to adequately perform a task or role and can quickly and easily match this against their list of available candidates and centers.
These companies utilize proven reward models by encouraging staff to perform higher with free movie tickets and vouchers from the Groupon Coupons page for Finish Line, along with numerous other techniques and methods which they have adapted and created to ensure each client is provided with a satisfactory job.
Offshore Outsourcing Model
Easily the most popular outsourcing model is the one which operates at the lowest costs. And obviously, this is the going to be the option which is hosted offshore in a country where the living expenses and monthly wage are significantly lower than on home soil and English is prominently spoken throughout.
With this option, 100 percent of your customer service team is in another country. Outside of your direct supervision and control.
The biggest negative impact which this model has on a brand’s reputation isn’t caused by the quality of staff of the work performed, but by the accents which customers hear. It’s important to realize that the challenge has nothing to do with whether or not the agents can be understood, but simply that customers of an American company expect to hear an American accent when they call to speak with a representative.
Unfortunately, despite their stellar performance, the majority of customers immediately associate an accent with the inability to resolve their concerns, leading to a disruption in your brand’s image and reputation
Deciding which outsource model to use or even whether or not to use an outsource partner at all is a decision with many nuances and requirements. In addition to budget restraints, consider other elements of the move, such as the brand perception and reputation challenges mentioned in this article.