How to Select an SMB Contact Center Outsourcing Partner
Outsourcing contact center services has become a popular strategy for small and medium-sized businesses (SMBs) looking to enhance customer service without stretching their resources. However, selecting the right outsourcing partner can be a complex decision.
This article will explore how SMB team leaders can choose the ideal contact center partner by focusing on expertise, scalability, cost-effectiveness, and other key factors.
The Value of Outsourcing for Small and Medium Businesses
For many SMBs, outsourcing contact center services is a business solution that delivers significant value. Outsourcing companies offer access to professional customer service teams, advanced technology, and operational efficiencies that might be cost-prohibitive to acquire in-house.
Outsourcing allows businesses to focus on core activities, reduce operational costs, and improve customer satisfaction by leveraging the specialized skills of an external call center. In essence, outsourcing helps SMBs enhance the customer experience while maintaining budget flexibility.
In a Forbes survey, 58% of contact center managers said they already outsourced some of their service capacity to a business process outsourcing (BPO) partner. The same survey respondents predicted this figure will rise to 64% in the next two years.
Common Challenges Faced by SMBs in Customer Service
Many SMBs share similar contact center challenges, including:
Limited Resources
Smaller call centers may struggle with high call volumes or extended service hours. For instance, a small e-commerce business might find it challenging to handle increased inquiries during holiday seasons or when covering international time zones without an outsourcing partner.
Skill Gaps
In-house call centers may lack the specialized skills required for effective customer interactions. For example, a tech startup may have experts in technical support who may lack the refined customer service skills of a flexible outsourcing partner.
Scalability Issues
As businesses grow, customer service demands on call centers can quickly outpace capacity. An SMB experiencing rapid growth may need additional support to handle a surge in sales inquiries, installation support for a new release, hotlines to manage warranty returns or other customer interactions.
Technology Constraints
Investing in the latest call center operations technology may be financially out of reach for many small businesses. Along with specialized knowledge and the latest communication technology, a capable partner can provide SMBs with valuable insights about the latest outsourcing trends.
Outsourcing can address these challenges by providing access to a larger pool of skilled agents and advanced technologies.
Is Your Business a Good Candidate for Call Center Outsourcing?
Most SMBs have support operations that are well-suited for outsourcing. Consider the following factors to determine if outsourcing is a good fit for your business:
Current Customer Service Needs
Outsourcing could be beneficial if your business is experiencing rapid growth or struggles to meet customer service demands with cost-effective solutions. When the demands of an in-house call center represent a distraction from the core business, or when the volume of customer calls begins to influence competitive advantage or market reputation, it is time to consider an outsourcing partner.
Budget Constraints
Evaluate the true cost to hire, train, and equip an in-house team. Compare that to a review of outsourcing costs with a capable and experienced partner. When the cost of outsourcing is measured against a long-term investment in human resources, training, and the most advanced phone system, an outsourcing partner may help you save money.
Strategic Goals
Consider if outsourcing aligns with your long-term business goals and customer service strategy. Writing in Outsourcing Strategy: Examples, Benefits and How to Build, the hiring experts at Indeed recommend a well-developed outsourcing strategy as "the way to help any organization reach its productivity and profit margin goals while improving product quality".
Key Qualities to Look for in a Call Center Service Provider
When selecting a contact center partner, focus on these essential qualities that leverage the power of outsourcing for call center services:
Expertise
Look for providers with a track record of helping SMBs. They will not know your exact business, but they know their business -- which is taking your customer interactions to a higher level. They should take the time to understand how to apply that expertise to your specific needs, brand voice, and customer expectations.
Customer Service Philosophy
Ensure that the overall approach of the outsourcing provider aligns with your company’s values and service standards. With a similar customer service philosophy, problems are easier to solve.
Communication Skills
Effective communication is crucial. Choose a partner with strong language skills and the ability to handle various customer interactions. With an offshore partner, look for a high level of training in English vocabulary and accent reduction. Your customers will not mind receiving help from the other side of the world, if it is easy to communicate with the helper.
Evaluating Service Scalability and Flexibility
Scalability is a crucial factor in outsourcing. Your contact center partner should be able to adjust their services based on your needs. Consider the following questions:
- Volume Management: Can they handle fluctuations in call volume effectively? Do you know your high or low volume seasons and market segments?
- Flexibility: Are they able to adapt to changes in your business requirements or customer expectations? Are some of your products for premium buyers, while other products are for buyers who want basic economy? If a natural disaster disrupts the supply chain, can they set up quickly to provide a focal point for recovery information?
- Expansion Capabilities: When you release a new product or take over the market from a competitor, will your outsourcing partner be able to scale up operations quickly?
A partner that offers scalable and flexible solutions ensures you will not outgrow their services as your business evolves.
Technology and Innovation: A Must-Have in Your Partner
When a customer calls, information technology services drive every aspect of customer satisfaction. Your contact center partner should invest in:
Omnichannel Support
Call center operations must be able to integrate customer-preferred communication channels, including voice, text, email, chat, and social media.
Advanced Analytics
Look for advanced tools that provide insights into customer contact and performance metrics.
AI and Automation
Chatbots and automated workflows can enhance efficiency and provide a smooth, orderly customer experience. In a published study entitled "Digital Customer Care in the Age of AI", IBM reported that AI-powered customer service cuts response times by up to 90%. Fast and accurate answers are essential to customer satisfaction and retention.
A tech-savvy partner will help you gain access to the latest innovations for better service delivery.
Cost Considerations: Balancing Budget and Quality
While cost is a significant consideration, it should not be the sole deciding factor. Consider the following when evaluating costs:
Pricing Models
Understand the pricing structure—whether it is per call, per agent, or a flat fee.
Value for Money
Evaluate the services offered relative to the price. A lower cost may not always equate to better value if it compromises service quality. An ideal outsourcing partner will bring specialized expertise to call center operations, enhancing the customer experience and supporting the company's market success.
Long-Term Costs
Factor in potential hidden costs or the need for additional services in the future.
Balance your budget with the quality of service to ensure you are getting the best value for your investment.
Ensuring Compliance and Data Security
Data security and compliance are critical, especially if you handle sensitive customer information. Ensure that your outsourcing partner adheres to compliance and security best practices.
Industry Standards
Depending on your industry, outsourcing solutions must include compliance with standards such as GDPR in Europe, HIPAA for safeguarding customer health information, or PCI-DSS protections for credit card information and payment history.
Data Protection Policies
Call center services must provide robust measures to protect customer data from breaches or unauthorized access.
Regular Audits
Services must be willing to accommodate regular security audits and updates to maintain compliance.
A partner with strong data security practices will help protect your business and customer information.
Assessing Performance Metrics and Reporting
Effective performance monitoring is essential to ensure high service standards. Your contact center partner should provide:
Key Performance Indicators (KPIs)
Metrics such as Average Handle Time (AHT), First Call Resolution (FCR), and Customer Satisfaction Score (CSAT).
Regular Reports
Detailed reports on performance metrics, service quality, and customer feedback.
Continuous Improvement
Mechanisms for ongoing improvement based on performance data.
Regular assessment of these metrics will help you gauge the effectiveness of your outsourcing partner.
Steps to Onboarding Your New Outsourcing Partner
Once you have selected the right outsourcing partner, follow these steps to ensure a smooth transition:
Define Objectives
Clearly outline your expectations, goals, and key performance metrics.
Training and Integration
Work with the outsourcing partner to train their team on your products, services, and company culture.
Set Up Communication Channels
Establish preferred communication channels and required reporting procedures.
Monitor Performance
Initially, closely monitor performance to address any startup issues promptly.
Provide Feedback
Offer frequent, constructive feedback and collaborate on improvements.
A structured onboarding process will help integrate the new outsourcing partner into your business operations smoothly.
Ready to Choose Your Outsourcing Partner?
For any small to medium business, choosing the right contact center outsourcing partner involves careful consideration of several factors. By focusing on specialized expertise, scalability, technology, cost savings, security, and performance metrics, you can find the ideal outsourcing partner to enhance your customer service and help you generate business growth.
