3 in 4 Americans say customer experience is the primary factor when choosing between brands. It’s not just about what they’re buying. It’s about how they’re treated and how their questions are answered.
93% of customers will return to brands that gave them a positive experience. They’ll also tell an average of nine people about it, providing word-of-mouth advertising.
It only takes a few poor experiences to ruin it all. 91% of customers will switch companies after a negative experience. They’ll tell an average of 16 people about it.
How can you manage these experiences? Read on to compare in-house and outsourced customer service.
Defining In-House vs. Outsourced Support
In-house customer service is set up within a business. They provide the necessary resources, and all representatives are employees.
Outsourced customer service refers to sending all customer inquiries to a third-party provider. They provide the resources and representatives.
In-House Customer Service Benefits
There are many in-house customer service benefits. It’s a simple way to control what your customers experience.
Industry and Product Knowledge
An outsourced team has experts in customer service. An in-house team is full of experts on your brand and its product. They’ve known it since the beginning.
This knowledge gets passed on to your customers. Agents are better able to answer questions about a product they understand. You’ll also have better brand consistency and identity.
Instant Acess
An in-house team can gather customer data directly. You’ll use it to make immediate changes to improve their experience.
You’ll also have instant access to every member of the team. That leads to easier communication.
More Control
Having an in-house team allows for control throughout the entire process.
You have the choice of how and where it’s run. If there’s a policy you want changed, you can do it right away. It’s your customer service team, and you can run it however you think best serves your business.
In-House Customer Service Disadvantages
There’s a rise of outsourcing in many industries. In terms of customer service, the change is primarily due to the many disadvantages in-house teams come with. They’re expensive and difficult to create and scale.
High Cost
Doing a cost comparison of customer service makes it easier to see which one is more affordable.
In-house costs include:
- Hiring
- Training
- Salary
- Infrasturcutre and operational costs
- Management costs
Outsourced costs include:
- Service provider fees
- Transition costs
- Additional unforeseen fees
There are fewer bills to pay for outsourced customer service. The individual costs also tend to be lower, making it the more affordable option.
Limited Scalability
Scaling an in-house team is difficult. Do you need to find and train new employees? Do you need to upgrade to the latest technology?
It’ll be all on you to find the time and money to make that happen. Not being able to grow can leave you in the dust.
Time Zone and Mapping Problems
A customer service team needs to be available 24/7 to meet all customer demands. This is difficult for an in-house team, especially when they work with international customers.
What if they’re not in the same time zone or map? That delay could lead to a lost customer.
Problems Finding, Training, and Retaining Talent
The biggest problem with having an in-house team is maintaining it. You have to find the right talent and train them to do their jobs.
It’s also difficult to keep them from moving on to another company. 78% of companies believe their service agents play an essential role in their business’s growth. Only 15% of agents are content with their workload. Only 30% feel empowered to do their job.
Outsourced Customer Service Benefits
Outsourced customer service has several advantages over in-house teams. They’re more affordable, scaleable, and efficient.
Expertise
Outsourced customer services include a team of experts. They know everything about customer service.
That makes them more effective than even the best-trained in-house team. They’ve seen every issue under the sun and know how to respond to it.
More Cost and Time-Efficient
Outsourcing is more cost-effective in the long run, but that’s not all.
Outsourcing also improves customer service efficiency. You’ll be saving time as well as money.
Scalability
Outsourced teams have the resources for your current needs and your future ones.
You may have to pay more to upgrade, but it’ll be worth it. You won’t be left behind like you would with an in-house team.
Outsourced Customer Service Disadvantages
Despite their benefits, there are several disadvantages to outsourced customer service. They can be difficult to find and manage. Hiring a quality outsourced customer service company like Centris can prevent many of these issues.
Procurement Problems
Finding the right service is like hiring a new employee. You have to do your research, comparing in-house vs. outsourced support and vetting all your options.
This can be a time-consuming process. You have to start all over again if your contract goes wrong. Centris is devoted to quality, so you won’t have to worry about switching.
Less Control and Communication
Choosing an outsourced customer service requires a certain level of trust. Once you’ve found the right one, you have to trust that they can handle your business as best as possible.
When there is an issue, it’s harder to communicate with them about it than with an in-house team. They may also not understand local customs.
Centris reduces this problem. Our locations are close and convenient. Our bilingual operators are easy to reach and communicate with.
Privacy Issues
Outsourcing your customer service also means outsourcing your customer data. That can also mean exposing it to data breaches.
You’ll have to set up a regiment of data security standards to prevent this. A reputable outsourcing service like Centris can help you.
Centris Provides the Best Outsourced Customer Service
Customer service is too essential to leave to the wrong team. Outsourced customer service is a cost-effective, efficient alternative to an in-house team. You may have problems with control or privacy if you choose the wrong one.
Centris has been delivering high-quality customer service for over 30 years. Our bilingual agents enhance customer satisfaction and loyalty. Contact us to replace your outdated in-house team today.
