5 steps to outsource customer service

Customer service has overtaken product and price as a key differentiator for businesses. Offering superior customer care helps your organization gain and retain more customers, leading to improved margins and profitability. However, with the customers of today expecting multi-channel, round-the-clock availability, it is becoming increasingly difficult to keep up with their demands while tending to the other needs of your organization.

Outsourcing is being used by more and more organizations across the globe as a cost-effective solution to this problem. Outsourcing can help you to scale up your business and lower expenses, all while maintaining a high standard of customer service.

What does it mean to outsource customer service?

Outsourcing customer service involves having a third party handle customer inquiries and responding to customers who need help or are reaching out to your brand. All facets of customer service can be outsourced, including support for contact centers, mobile and live chat, emails and social media.

Hiring local customer service staff can be expensive, requires time and investment, and is subject to high attrition. Outsourcing customer service to an offshore provider in a country such as the Philippines can save you up to 70% in labor costs while delivering the same high standard you would expect from a local team.

Five steps to outsource customer service

By following these five steps, you can ensure a smooth transition and maintain high-quality service standards when outsourcing customer service. Whether you’re looking to expand support channels, leverage specialized expertise or scale operations, these steps will guide you through the process of selecting and managing the right outsourcing partner for your needs.

Step 1: Define your customer service needs

Start by identifying the specific tasks, channels and support levels you need to outsource. Determine whether you need assistance with phone support, email responses, live chat, social media engagement or a combination of these channels. Assess the volume of inquiries you receive and the complexity of issues typically handled. Clearly outline your service expectations, response time goals and key performance indicators (KPIs) to ensure alignment with your business objectives. Understanding these needs will help you find a provider that matches your requirements and offers the best support for your customers.

Step 2: Research and select a reliable outsourcing provider

Choosing the right outsourcing partner is crucial to the success of your customer service operations. Evaluate potential providers based on their experience, expertise and track record. Consider factors such as cost, location, language proficiency and the technology they use. It’s essential to find a provider that can seamlessly integrate with your existing systems and offer scalable solutions as your business grows. Look for testimonials, case studies and client references to gauge their reliability and effectiveness. Conducting thorough due diligence will help you select a partner that aligns with your company's values and service standards.

Step 3: Establish effective communication channels

Effective communication is the backbone of a successful outsourcing relationship. Set up regular meetings or calls to discuss performance, address concerns and provide feedback for continuous improvement. Utilize project management tools, instant messaging apps and collaborative platforms to maintain clear and consistent communication. Establish protocols for escalation and ensure that there are designated points of contact on both sides. By fostering a transparent and open communication environment, you can quickly resolve issues, align on objectives and ensure that your outsourcing partner understands and adheres to your expectations.

Step 4: Provide comprehensive training and resources

Equip your outsourcing partner with the knowledge and tools they need to deliver exceptional customer service. Develop detailed training materials, including product or service information, FAQs and best practices. Conduct interactive training sessions and provide ongoing support to ensure that the outsourced team is well-versed in your brand’s voice, policies and procedures. Regularly update the training resources to reflect any changes in your offerings or customer service protocols. Investing in comprehensive training will empower your outsourcing partner to represent your brand effectively and maintain high-quality service standards.

Step 5: Monitor performance to maintain quality

Continuous monitoring and feedback are essential to maintaining high-quality customer service. Implement performance tracking mechanisms to evaluate your outsourcing partner’s efficiency and effectiveness. Review key metrics such as response times, resolution rates, customer satisfaction scores and adherence to service level agreements (SLAs). Provide timely feedback, addressing any areas for improvement and recognizing achievements. Conduct regular performance reviews and adjust strategies as needed to ensure that the outsourced team meets or exceeds your expectations. By maintaining a proactive approach to performance management, you can ensure consistent, high-quality customer service that enhances your brand reputation.

Why is investing in customer service outsourcing so important?

Customer service and customer experience (CX) are closely linked. Here are key stats demonstrating the importance of good customer service:

• A positive customer experience or great customer service can result in higher customer retention rates and profits increasing by 25%¹
• 64% of people find customer experience more important than price when making a purchase²
• Organizations that invest in improving their customer experience can see revenue increases from 10% to 15%³
• Only 34% of customers rate an organization as having good customer service and are more likely to purchase again⁴
• 37% of consumers are likely to recommend an organization as a result of a positive customer experience⁴
• 86% of customers would pay more for a better customer experience⁵
• 56% of consumers will stay loyal to organizations that ‘understand their needs’⁶
• 40% of customers start buying from a competitor because they offer better customer service⁷
• In America alone, poor customer service loses equal over $62 billion annually⁸
• Around 54% of organizations use outsourcing support teams to help connect with consumers⁹
• Over 50% of organizations already use outsourced customer service support to improve their customer experience¹⁰.

When should you outsource customer service?

If any of these scenarios apply to your business, it might be time to consider outsourcing:

You need to commit more time to growing your business

If basic customer service tasks are taking up a lot of your team’s time when they could be performing more revenue-generating tasks and focusing on growing the business, it could be time to outsource.

Peak season is approaching

Holidays are busy times for customer service staff, so bringing on an outsourced team will help your business keep up with increased call volumes and other demands. Hiring permanent staff can be time consuming - finding candidates, conducting interviews and onboarding. Outsourced support teams allow you to rapidly scale up (and down) as needed.

Even after the holidays are over, customer service related enquiries may remain elevated for some time. Having an outsourced team to deal with things like product returns will leave your local team free to focus on new business goals.

You need to scale your business, fast

If you need to grow your business but don’t want to make a big upfront investment in things like infrastructure, recruiting, software and office fit-outs, outsourcing can help.

It must be noted that outsourcing shouldn’t be used as a way to avoid having to think about customer service altogether - you will still need to work closely with your outsourcing partner to ensure your customer care goals are being met.

Choosing the right customer service outsourcing provider

When it comes to selecting an outsourcing provider, it’s important to make your choice based not only on the quality of the provider, but also on their ability to meet your business’ unique needs.

Establish clear goals and expectations

Why are you outsourcing your customer service function? Think about what you want to achieve by outsourcing, and what you expect from your outsourcing partner.

Is your main goal to cut costs? If so, have a cost saving target in mind before you enter negotiations. Are you aiming to free up your local staff so they can spend more time on complex, high-value tasks? Then make sure the outsourced team can perform the roles your local team was doing before. Are you seeking an increased level of customer service carried out by trained professionals? Focus on finding the best possible team.

Once you have clear goals for your organization, define what you want from your outsourced team. Establish what you want their main goals to be - to provide technical support to existing clients, for example, or to increase customer retention.

What to ask prospective outsourcing providers

Consider their experience, geographic location and the skills their staff can offer. Are their staff proficient in your language of choice? Do they work remotely or from an office? Ask how they manage things like staff productivity and performance, which public holiday schedule they adhere to, and whether they will be available to you 24/7.

Outsourced staff will only be engaged and enthusiastic about work if the provider treats them fairly, so be sure to ask about employee satisfaction and staff retention. Find out about their recruitment processes, such as how they choose the best candidate for the role, what testing is performed on applicants, and what happens if a team member turns out to be unsuitable.

Think about your customer

Consider how your customers operate - do they prefer to interact through a call center, with live chat on your website, or through Facebook Messenger, Instagram or Twitter? Knowing your customers will help you decide which services to outsource and who to partner with.

Recruiting, training and working with your offshore customer service team

To ensure you have a selection of high quality talent to choose from, your outsourcing partner should be running a rigorous recruitment process, including conducting skills and language testing. You will then have an opportunity to interview each short-listed candidate to review their skills and ensure they will be a good fit for your company culture. Providing feedback to your provider on why each candidate passed or failed will help your recruitment team filter future candidates.

A reputable outsourcing company will provide highly-trained customer support agents with experience handling different situations. However, you still need to ensure that your new staff understand your business culture, your customer demographics, and how they like to interact with your brand. Online communication tools such as Zoom and Skype allow you to train an offshore team in much the same way as you would train your local team.