Poor customer service is proving costly for businesses, with U.S. companies losing an outstanding $62 billion to subpar customer interactions. This problem is made worse by companies often using a do-it-yourself approach to save on costs. Additionally, a study by a recruitment specialist discovered that 61% of firms have hired someone who wasn't quite right for the job, which ended up slowing their growth and costing them more money.
Considering these costs, it's clear that businesses must prioritize excellent customer service and make sure that the right team of experts is in place to do the job well. This article will discuss why brands like yours, should abandon the DIY approach and start exploring outsourced customer service solutions.
Understanding the Customer Service Challenge for Online Retail Brands
Online shops are up against tough customer service challenges, trying to keep up with lots of calls and high expectations in a fierce online market. Here's a look at why handling it all on their own might not be the best move for these businesses.
The Rising Demand for Customer Support
According to a customer service study, retail stands out as the industry with the most customer support calls. Customers reach out for various reasons, from questions about potential purchases to feedback on the service they've experienced. Yet, one of the common mistakes in customer service that most businesses make is responding to these inquiries poorly.
Below are the three primary reasons customers would rather make a phone call than send an email or use a live chat software service.
Thinking about making a purchase
When customers are on the verge of buying something from your shop, they might give you a call. They often want to clear up a couple of things before they're ready to buy, and a good chat with someone can help seal the deal.
Unhappy with a product or service
Customers also reach out by phone if they're unhappy or if something with your product or service didn't go as planned. Handling these calls can be tough because customers can be upset about what happened, and sometimes they take it out on the customer service rep.
Struggling with the website
If customers run into issues on your website, they're unlikely to use it to reach out for help. They're more inclined to pick up the phone and talk directly to someone who can assist them right away.
The Limitations of DIY Customer Service
Operating your business requires confidence, but overconfidence can lead to managing more than you should. Even though you might have succeeded, your time is precious, and handling everything within your team might not be the most efficient choice. Here are three typical challenges that business owners often encounter when opting for a do-it-yourself (DIY) approach.
Managing Ongoing Maintenance and Support
Handling round-the-clock customer support with your own team or in-house can come with constraints. One significant constraint is the need for ongoing maintenance and support with on-premise solutions. This can be a time-consuming and costly endeavor for businesses. Additionally, they must invest in hiring and training call center staff, which further adds to their operational costs.
Addressing Scalability Challenges
Another constraint that businesses encounter with on-premise solutions is scalability. These solutions lack flexibility, making it difficult for businesses to adjust to changes in customer support demand, especially when trying to solve customer support staffing issues during peak season. This can pose significant challenges for companies that experience seasonal fluctuations in customer support volume.
Overcoming Expertise Limitations
DIY or team-based customer service may have limitations when it comes to accessing a pool of expertise, which can impact the quality of support. To address this limitation, businesses need to invest in training and development to ensure their call center staff are equipped to handle customer support operations effectively.
Exploring Outsourced Customer Service Solutions as a Strategic Solution
Why is good customer service important for businesses? Because it's more than just helping customers — it's about making a good impression that can turn into great advertising. But it's not easy. Below is an overview of the major challenges of modern customer service and how turning to outsource might just be the solution businesses need.
The Challenges of Modern Customer Service
Onboarding and Training Customer Support Talent
The average stay for customer service staff is typically less than a year, making retention a persistent challenge. Finding individuals who not only communicate well but also embody your company's values is demanding. Training them to understand and represent your brand intensifies this challenge.
Providing Round-the-Clock Support
Customers expect help at any hour, and without 24/7 support, you might start the day with a backlog of requests. Handling continuous inquiries day and night is a significant challenge, especially for businesses that lack overnight staff.
Surpassing Customer Expectations
Simply satisfying customers isn't enough in today's competitive environment; the goal is to surpass their expectations. However, determining the best ways to consistently deliver more than what's expected remains a key challenge. Ensuring you only make promises that your company can keep is essential to this effort.
The Benefits of Leveraging External Expertise
Accessing Trained Customer Support Teams
Unlike DIY approaches that require extensive training for new employees, outsourcing allows immediate access to experienced customer service professionals who are well-versed in the complexities of technical aspects, including the use of the best customer service software. These experts are ready to represent your brand effectively right from the start, providing personal and inviting interactions that DIY can rarely achieve.
Offering Constant Customer Assistance
Customers expect support whenever they need it. Outsourcing support team guarantees this round-the-clock availability, building trust and loyalty. In contrast, DIY approaches face challenges in staffing for 24/7 in-house support, making them less reliable in meeting customer demands.
Guaranteeing High-Quality Service
Outsourced customer support comes with a commitment to quality that DIY methods often struggle to achieve. Service providers invest in thorough training and knowledge systems to ensure their agents are up-to-date and effective. Continuous monitoring and refinement of services maintain the highest quality standards, something DIY may not have the resources or expertise to match.
Enhancing Business Flexibility and Scalability
Business needs can change rapidly, and outsourcing partners can swiftly adapt. They respond to shifts in customer demand, manage seasonal spikes, and employ automation tools like chatbots for responsive, personalized service. This adaptability helps your business stay competitive, a benefit that DIY solutions often fall short of providing.
Top Retail Companies That Embrace Third-Party Customer Support
Providing excellent customer service is vital for a company's success. While some companies choose to do DIY customer service, many major retail businesses have realized the benefits of outsourcing this function. Below are the top three retail businesses that choose to outsource their customer service to the Philippines and their respective strategies to ensure success in this area.
Amazon
One of the biggest e-commerce giants globally, Amazon chooses to outsource its customer service to the Philippines instead of opting for a DIY or in-house approach to efficiently manage its large-scale operations. Through partnerships with outsourcing providers, Amazon can provide quick responses and effective solutions to customer queries.
Amazon's outsourcing strategy involves working with external service providers located in different countries like the Philippines, Costa Rica, and India. This approach allows Amazon to tap into a diverse pool of skilled professionals to deliver top-notch customer support.
Target
Target, a major player in the retail industry, chooses to outsource its customer service operations to external call center agencies rather than managing them in-house. This strategic decision enables Target to provide its customers with quick and effective support, especially considering the extensive range of products they offer.
Target's outsourcing strategy involves partnering with external call center agencies located in countries such as the Philippines and India. By doing so, Target can tap into a global talent pool, ensuring that customer inquiries, concerns, complaints, and order support are handled efficiently.
Best Buy
Best Buy, a leading American consumer electronics retailer, incorporates offshore outsourcing as a vital strategy to effectively manage its expansive customer service needs across various regions.
Best Buy turns to offshore outsourcing primarily for its customer support operations. Instead of solely relying on in-house teams, Best Buy outsources some of its customer service functions to specialized agencies in the Philippines. This strategic decision allows Best Buy to provide prompt and efficient customer service, crucial for maintaining its reputation in the highly competitive retail electronics market. This outsourcing approach highlights Best Buy's shift from a traditional in-house model to a more dynamic, globally integrated customer service strategy.
Key Considerations When Choosing A Trusted Customer Service Partner
Picking the right service provider is a big deal, especially when DIY solutions just aren't cutting it for customer service anymore. The guide below lays out the five key considerations when choosing a trusted customer service partner including how to identify your unique customer service needs, to help you make a choice that boosts your operations.
Identifying Your Unique Customer Service Needs
Swapping DIY customer service for an outsourced team requires clear identification of your specific needs. Key questions to consider include the roles and tasks for the new team compared to your current in-house team, essential skill sets, required equipment, customer service level agreements (SLAs), escalation processes for complex issues, support variations for different customer segments, and language requirements or time zone coverage.
Answering these questions shapes your requirements, guiding the selection of a vendor and agents aligned with your unique customer service goals.
Selecting the Right Outsourcing Partner
As more brands shift from DIY or team-based operations to outsourcing customer service, selecting the right outsourcing partner becomes crucial for business efficiency. Consider five key factors when choosing a partner: provider expertise and track record, extensive service options, quality assurance and customer support, scalability and service adaptability, and cost efficiency and service value.
One of the top reasons to outsource customer service to a reliable service provider is improved customer experience. Choosing a trusted partner ensures that your business receives high-quality service, adapts to growth, and maximizes value as you transition away from DIY or team-based operations.
Implementing a Streamlined Customer Service Model
Implementing a streamlined and exceptional customer service model for your online brand is a crucial step in achieving efficient operations and maintaining high customer satisfaction. Here's a breakdown of how you can do this.
Develop a Clear Outsourcing Plan
Create a comprehensive outsourcing plan that outlines your goals, expectations, and the scope of services for your customer service provider. This plan serves as your roadmap to a successful outsourcing partnership. If you don't have the resources for in-house customer service, finding an outsourcing partner like ManilaPros who can do it for you is the best way to avoid the DIY approach.
Select the Right Provider
Choose a customer service provider with a proven track record in delivering quality solutions. Consider factors like industry experience, scalability, reputation, and client feedback and check out these steps to selecting the best customer service outsourcing company.
Train for Quality Service
Collaborate with your provider to ensure their agents receive training aligned with your brand's standards. This ensures consistent, quality service reflecting your brand's identity.
Transition Smoothly
Plan a seamless transition from in-house to outsourced customer service to maintain service quality and avoid disruptions.
Regularly Assess Quality
Implement regular performance reviews and track your KPIs to assess your provider's effectiveness, identify areas for improvement, and ensure your brand's growth.
Streamline Your Customer Service For Business Success With ManilaPros
Managing the overwhelming customer service needs within your team is possible, but this does not guarantee success. As your business grows, you need more than just people to answer calls; you need reliable customer care partner that can handle your retail business' growing volume of customer inquiries, resolve conflict, and provide insights on your products and services for continuous improvement.
ManilaPros can do all of these for your retail business! As your partner, we will provide you with a full-service, five-star customer care service. We have Pros that went through rigorous on-brand training and a thorough vetting process to ensure you have dedicated customer care experts aligned with your brand. Plus, you will get valuable customer service insights to streamline your business operations and improve your products and services, all starting at just $9/hour!
Want to know more about our customer care services? Contact us today!
