The Complete Guide to Customer Service Outsourcing: What You Need to Know

Customer service plays a pivotal role in setting companies apart in today’s competitive business landscape. More than a department, it’s a bridge between businesses and clients.

Let’s take a look at what customer service entails and how it can benefit your organization.

What Is Customer Service?

Customer service encompasses all interactions and support mechanisms a company provides to its customers.

It involves resolving complaints, creating positive experiences, addressing inquiries, and building lasting relationships.

Customer service is done through various channels, including phone, email, chat, social media, or in-person interactions.

What Does A Customer Service Company Do?

A customer service company handles interactions on behalf of another business. They answer questions, resolve issues, address complaints, and provide guidance.

Their goal is to maintain customer satisfaction and establish a positive relationship between the business they represent and its customers.

What Is Customer Service Outsourcing?

Customer service outsourcing is when a company hires an external firm to manage its customer service. This is often done through Business Process Outsourcing (BPOs) that offer specialized call center services.

Why Do Companies Outsource Customer Service?

Companies outsource their customer service for different compelling reasons.

The first is cost. Outsourcing can significantly reduce overhead expenses such as utilities, rent, and infrastructure.

Another advantage is access to specialized expertise. Outsourcing firms are equipped with in-depth knowledge, best practices, and advanced technologies related to customer service.

Lastly, outsourcing brings flexibility and focus. Companies can focus on their core business functions while outsourced professionals handle their customer interactions.

Pros Of Outsourcing Customer Service

Outsourcing customer service has become a strategic move for many businesses, from startups to established e-commerce giants.

By partnering with Business Process Outsourcing (BPO) companies in the Philippines, U.S. businesses can have access to many advantages.

These include:

The Cost Savings

Outsourcing is a cost-effective solution, especially for small businesses. It helps companies save on hiring, training, and infrastructure.

More Coverage

Outsourcing to the Philippines can enable 24/7 support. The time difference ensures your contact center is always open, delivering real-time and round-the-clock customer care.

More Language Options

Outsourcing professionals from different countries broadens your language options, enabling you to serve global customers better.

It is also an omnichannel approach to ensure a seamless customer experience.

Less Headache

Managing a large in-house customer service team can be daunting.

By outsourcing, you delegate the onboarding, real-time monitoring, and quality assurance to professionals, leaving you more time for core business functions.

Potentially Shorter Response Times

Outsourced teams with streamlined metrics deliver faster responses.

This efficiency boosts customer satisfaction and sets a high standard for customer experience.

Better Technology And Resources

Outsourcing firms are updated with the latest tech, from omnichannel platforms to advanced CRM systems for top-notch customer service.

Build Customer Trust

Outsourced customer service teams are trained in quality assurance and customer care. This builds customer trust and encourages repeat customers.

Realize Brand-Safe Customer Service

Your brand’s reputation is paramount. Done right, outsourcing customer support can help uphold and enhance your brand’s standards.

Scale Customer Experience

Whether you’re a startup or an expanding business, the flexibility to scale is essential.

Outsourcing allows you to adjust the size of your support team based on demand for optimal customer satisfaction.

Use Your Outsourcing Partner To Level Up Your Own Business

BPOs do more than just handle customer questions; they also offer valuable expertise to help improve your business operations.

Cons Of Outsourcing Customer Service

Outsourcing customer service can be a strategic move for many businesses, but it isn’t without its challenges.

Here are some cons of outsourcing customer service and how Remote Staff can help you address them:

Disconnection From Brand

An outsourced team may not fully align with your brand’s voice.

How Remote Staff Can Help: Remote Staff provides professionals who value hard work and are dedicated to growing with your brand.

As such, they ensure that the remote workers you will work with care about your business as much as you do.

Rigid Call Center Contracts

Strict call center contracts mean long commitments, fixed terms, and set service levels. This is generally good, but it may cause a problem when the business needs to make certain changes.

How Remote Staff Can Help: Remote Staff works closely with businesses to come up with flexible contracts based on a company’s unique needs.

Whether you need to ramp up customer support during peak seasons or scale down during quieter periods, Remote Staff’s model allows for easy adjustments.

Quality Of Customer Care

Outsourcing can introduce a potential risk of compromised service quality.

How Remote Staff Can Help: Remote Staff connects you with skilled Filipino remote workers known for their strong work ethic, dedication, and high-quality work.

Partnering with experienced outsourcing providers like Remote Staff can turn these challenges into opportunities for growth and excellence.

What Companies Outsource Customer Service?

Companies are outsourcing customer service to enhance their operations and customer experience.

Here are the top five industries that outsource customer service:

1. Tech Companies and Startups: Many tech firms and startups are outsourcing their customer support.

This allows them to address product-related queries while focusing on core product development and business scaling.

2. E-commerce Platforms: The surge in online shopping has led e-commerce platforms to receive an influx of customer inquiries.

Outsourcing becomes a strategic move to manage order inquiries, address product-related questions, and facilitate returns.

3. Financial Institutions: Financial entities, including banks and insurance companies, are also outsourcing their customer service.

This strategy helps them manage a spectrum of tasks, from account inquiries and claims processing to other customer-centric operations.

4. Telecommunication Companies: As the backbone of the digital world, telecom giants are also flooded by customer queries.

Outsourcing their customer support helps them address connectivity, billing, and other issues effectively.

5. Airlines and Travel Companies: The travel industry also turns to outsourcing to handle its intricate web of bookings, flight inquiries, and cancellations.

This ensures that all travel-related questions are addressed promptly and efficiently.

In a nutshell, these industries outsource to optimize costs, access specialized expertise, and ensure round-the-clock customer support.

How To Outsource Customer Service The Right Way

Done right, customer service outsourcing can be a game-changer for your business.

Here’s a step-by-step guide to keep you on the right track:

Establish Clear Goals For Outsourcing

Outsourcing is a good strategy to save money and improve your customer service.

You can achieve this by setting well-defined goals from the start. This helps align your business’ vision with your outsourcing provider’s.

Know What You Need

Each business has unique needs when it comes to customer service. Thus, it’s important to make your goals clear.

For example, an e-commerce platform needs support for handling return requests, while a software company requires technical support for their products.

Integrate With Trustworthy Customer Support As A Service Software

Outsourcing customer service the right way requires leveraging the right tools.

One example is reliable customer support software. Here’s how it can help:

24/7 Support Flexibility

A customer support software enables round-the-clock service, accommodating customers across different time zones.

Smarter Call Deflection

Customer queries are swiftly routed to the appropriate agent or department, minimizing wait times for faster resolution and customer satisfaction.

Automated Customer Insights

The software can automatically track and analyze customer interaction. This helps understand customer behavior and preferences, allowing you to tailor your services accordingly.

Recurring issues can also be addressed proactively, resulting in improved customer experience.

Integrations With Other Tools

Business tools like CRM or marketing software show a customer’s transaction history, from past purchases to prior support interactions, enabling more personalized and efficient support.

Using reliable software also improves customer satisfaction and streamlines operations, making the process more efficient and effective.

Find Out Where Your Customers Can Contact You

It’s essential to provide various channels for customer support through social media, email, or direct messaging.

Create Your Brand Voice And Tone Guidelines

Provide your outsourced team clear branding guidelines for consistent communication across all channels.

These guidelines should cover responses, scenarios, and strategies for a unified brand voice and consistent customer experience.

Train For Quality And Measure Success

Training is crucial for outsourcing customer service since it maintains service quality and boosts customer satisfaction.

Additionally, a regular review system helps pinpoint areas for improvement. Some of the key performance indicators include:

Net Promoter Score (NPS)

NPS measures customer loyalty and satisfaction. It gauges how likely customers are to recommend your business to others.

A high NPS indicates satisfied customers, while a low score suggests areas for improvement.

Customer Satisfaction (CSAT)

Meanwhile, CSAT measures customer satisfaction through surveys. It usually asks customers to rate their satisfaction based on a scale.

Customer Effort Score (CES)

Lastly, CES evaluates how easy it is for customers to resolve their issues.

A low CES indicates that customers find it easy to get support, while a high score suggests that the process might be too complicated.

Overall, outsourcing customer service requires strategic planning, training, and regular reviews. This helps boost high-quality support and customer satisfaction.

How Much Does It Cost To Outsource Customer Service?

Outsourcing customer service to the Philippines has become a popular choice for U.S. businesses due to its cost-effectiveness and wide pool of English-speaking professionals.

The pricing of call center outsourcing would depend on the number of seats, contract length, agent expertise, operating days and hours, and specific KPIs.

For example, each call center provider in the Philippines has a unique fee structure. On average, they charge between US$8–$16 per hour.

Meanwhile, the following countries offer these rates:

Compared to these English-speaking countries, the Philippines offers the most affordable option for outsourcing.

What Do I Need To Know Before Hiring Customer Service Providers?

Before hiring one, assess what you need from a customer service provider.

Prioritize providers that already have customer metrics and transparent reporting. It’s also important to assess how they train and onboard their staff.

Lastly, weigh cost against flexibility. Their services should fit your budget and be adaptable to changing business needs.

By focusing on these areas, you can find the right provider that aligns with your objectives.

Outsourcing Customer Service Is A Big Decision

Outsourcing customer service is an important decision that should not be taken lightly. This is even more true for startups and small businesses.

Thus, it’s crucial to research and evaluate potential providers who can help you with customer service.

What Matters When Outsourcing?

Quality of service should always be at the forefront of your criteria.

Hence, seek out outsource providers that have a track record of excellence, demonstrated through tangible metrics and positive feedback.

Although budget is a factor, quality should still be the priority. Investing in excellent customer service can boost customer retention and positively affect your bottom line.

Tricks Of The Trade For Customer Satisfaction

Offering support across multiple channels is a necessity.

A competent outsourced team should be adept at managing inquiries across various platforms, from traditional phone calls and emails to modern channels like social media. However, effective customer service goes beyond answering inquiries.

It’s also about providing customers with a consistent, seamless, and positive experience every time they interact with your brand.

Outsourcing Support Vs. In-house Support

Choosing between an in-house staff or an outsourced team is a big decision.

While each has its benefits, outsourcing is more advantageous if you want to delegate non-core tasks to focus on running your business.

Here are some examples of how Remote Staff can help:

You’re Not Ready

Having an external team can feel overwhelming, especially if you’ve always managed things in-house.

Remote Staff understands this hesitation by offering a flexible approach. This allows you to start small and grow your outsourced team whenever needed.

It’s Not Really A Customer Support Team

When you hear the word “outsourcing,” you may think of a team that functions outside of your business.

Remote Staff addresses this by handpicking a team of professionals according to your needs, ensuring you receive genuine customer support and not just a makeshift solution.

Your Industry Is Highly Regulated

Compliance is non-negotiable for businesses in highly regulated industries.

Fortunately, Remote Staff matches its clients with professionals who are knowledgeable about different industry practices and regulations.

You Rely On Government Grants

Receiving grants can be a game-changer for many businesses. But often, it also limits your hiring options.

Remote Staff is aware of these challenges. They can adjust their services as needed, allowing you to benefit from outsourcing without risking your funding.

Small Business Customer Service Outsourcing Pitfalls To Avoid

Outsourcing to a customer service provider can be a cost-effective solution but it isn’t without challenges.

Here are some common pitfalls to avoid:

Failing To Take Into Account A Solid Management Layer

Without proper management, an outsourced team may not be aligned with a company’s goals and standards.

The Solution

Partner with a provider who understands your business and can communicate your expectations clearly. It also helps if they can monitor performance effectively.

Failing To Create Onboarding And Training Plans

Integrating outsourced teams into customer service operations can be daunting.

Without proper onboarding and training, there’s a risk of misaligned service delivery and a disconnect from the brand’s values.

The Solution

Remote Staff provides tailored onboarding for a smooth integration of your outsourced team.

They focus on aligning the team with your brand values for authentic customer interactions. Beyond onboarding, Remote Staff also offers training and monitoring.

Not Having A Handle On Key Metrics

Without clear metrics, service quality may decline, leading to customer dissatisfaction.

The Solution

By partnering with Remote Staff, businesses can have a dedicated team that understands the role they play in achieving customer satisfaction.

Failing To Build A Scalable Quality Assurance Program

For small businesses outsourcing customer support, consistent service quality is paramount.

However, upholding business standards becomes challenging without a solid quality assurance foundation.

The Solution

Remote Staff implements a scalable quality assurance program such as regular audits, consistent feedback, and continuous improvements.

Outsource Customer Support to Remote Staff

With over 15 years of experience, Remote Staff connects remote workers from the Philippines to U.S. businesses, offering quality and real-time customer service teams.

Winning Omnichannel Strategy

Outsourcing customer support to Remote Staff is a winning omnichannel strategy to connect with your customers on their preferred platforms.

Chat

Remote Staff’s dedicated team effectively engages your customers, whether they seek product information or troubleshooting assistance.

In-app

By partnering with Remote Staff, you can achieve seamless in-app assistance.

Their expert team adeptly navigates your app, helping users with onboarding, troubleshooting, and inquiries for a user-friendly experience.

Email

Email remains a favored channel for customer inquiries, and Remote Staff can provide employees who are adept at email support.

Their focus on delivering timely, informative responses contributes to higher customer satisfaction and retention.

Phone Support

There are also professionals that can handle inbound calls, providing real-time solutions and strengthening your commitment to exceptional customer service.

Video Support

In today’s tech-savvy world, video support adds a personal touch to customer interactions.

Remote Staff’s team connects with your customers via video calls, elevating engagement and support.

Social Media

Small businesses need an active social media presence.

Remote Staff, with its trained talents in social media, effectively manages online channels to keep your brand visible and accessible.

SMS

Concise communication is crucial.

Remote Staff’s trained talents connect via SMS, sending brief updates, appointment reminders, or answers for constant customer engagement.

Data-driven & Customer-driven Experiences

With Remote Staff, you’re not just outsourcing customer service — you’re also gaining access to rich data and insights.

As such, you can identify customer preferences and areas for improvement using feedback and analytics.

An Integrated & Ethical Company

Remote Staff actively integrates with your company’s values and goals.

They uphold strong ethics and treat everyone with respect – from their staff in the Philippines to their business partners in different countries.

The Remote Staff Advantage

Here’s why Remote Staff stands out as the go-to choice for businesses:

Agents

The backbone of any effective customer service provider is its agents. They represent the face and voice of the service.

Human In The Loop

At Remote Staff, real people drive solutions, ensuring genuine interactions in every customer encounter.

Empathy

Remote Staff’s talents are trained to connect with customers, recognizing emotions and understanding concerns for more personalized interactions.

Resolution Time

Remote Staff prioritizes immediate issue resolution, making sure customers spend less time waiting and more time being satisfied.

Effective Support Tools

Remote Staff provides their team with cutting-edge tools and trains them for optimal use, ensuring elevated customer experiences.

Productivity

Productivity is more than speed; it’s also about impactful results.

Higher productivity allows companies to meet customer needs, showcasing commitment to excellence and quality service.

24/7 Staffing

Remote Staff can provide you with the right people on demand. For instance, if you need to provide 24/7 service, they have a roster of skilled professionals ready to assist you.

Enjoy The Service Of High Quality And Low-cost

Customer service is more than just resolving queries; it’s also about building lasting relationships while ensuring satisfaction and quality.

However, achieving this balance cost-effectively can be daunting, especially for small businesses.

Outsourcing to the Philippines provides a cost-effective, quality solution. With teams like Remote Staff, you gain expert onboarding, real-time metrics, and a seamless omnichannel experience.

Scale Your Business

Outsourcing offers a flexible solution, allowing businesses to scale as needed.

Whether you’re launching a new product, expecting a seasonal surge, or even scaling down, having an outsourced customer service provider gives you the needed flexibility.

Build Trust

Trust is fundamental to customer retention.

With Remote Staff, you can have a team that understands the importance of every customer interaction and prioritizes building and maintaining trust.

What’s New In Customer Support Outsourcing?

Understanding the latest trends in customer service outsourcing, especially for the U.S. market, is crucial. Here are the current trends:

Personalization Is A Winning Strategy

Outsourcing companies utilize advanced tech to provide personalized customer experiences. This way, customers no longer need to reiterate the same details.

Return On Experience Vs Return On Investment

Businesses are shifting focus from ROI to ROX (Return on Experience).

Outsourcing helps with real-time responses, emphasizing the importance of ROX over traditional returns.

Making Self-Service Easy

Modern consumers want quick solutions. Outsourcing companies are adopting user-friendly, self-service platforms, allowing customers to get answers swiftly and independently.

Customer Service Driven By Data

Outsourcing companies harness data analytics to gain deeper insights into customer behavior. This approach fine-tunes customer service strategies, meeting evolving client needs.

Social Media Is On The Rise

With the growing relevance of social media, outsourcing ensures online channels are managed effectively, transforming complaints into commendations.

Harmonizing AI And Human Interaction

While chatbots address basic concerns, intricate problems still require human touch. Hence, customer service outsourcing means balancing AI tools with human insight.

Rise Of Cloud Computing

Cloud computing allows remote customer service teams to access data anytime for quicker responses and consistent service delivery.

Frequently Asked Questions

Here are the frequently asked questions about customer service outsourcing.

What Are The 4 Types Of Outsourcing?

Outsourcing has four types: professional, manufacturing, process-specific, and operational.

1. Professional Outsourcing – Businesses hire external providers for legal advice, writing, or IT support, among others.
2. Manufacturing Outsourcing – This happens when you have your products made overseas.
3. Process-specific Outsourcing – A company delegates tasks like customer service or accounting to a service provider.
4. Operational Outsourcing – This involves delegating certain parts of your company’s operations to a third-party company.

Should Customer Service Be Outsourced?

Outsourcing customer service helps businesses save costs and gain access to specialized skills and round-the-clock support.

Thus, companies need to have the right outsourcing services provider. Fortunately, Remote Staff has been around for more than 15 years, helping U.S. companies find the right remote workers for their different business needs.

Whether you’re looking to scale your support team or improve your customer service, Remote Staff is ready to partner with you.

Together, we can revolutionize your customer service operations and boost your business’s success. Contact Remote Staff today or schedule a call back.