How to Outsource Customer Service
Analyze your current customer service needs., Compute your current customer service expenditures., Vet reputable customer service options., Establish contractual obligations with a third party contractor., Consider incentives., Develop an exit plan.
Step-by-Step Guide
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Step 1: Analyze your current customer service needs.
You need to first define what is needed from and expected of your business's customer service department.
You have to understand why you have a customer service department and what sort of service they provide to customers.
Assess the volume of customer interaction, the subjects of interaction, and the outcomes of your service.
The key is to make sure that you're currently providing good customer service, before trying to outsource it to a third party.
Make sure that you never outsource a skill that you can't manage.
You should have clear metrics (measurable goals) for your customer service department before trying to outsource. -
Step 2: Compute your current customer service expenditures.
In order to effectively reduce customer service costs by outsourcing your customer services or customer service training, you also have to analyze how much time, money, and resources your business spends on training and/or employing customer service representatives and departments.
This will give you a place to start when comparing the cost of outsourcing. , Identify and contact reputable businesses that offer customer services or customer service training.
Speaking with the management or sales representatives of this third-party business that will handle or train your customer service representatives is essential to ensuring that the needs of your customer service department will be met.
Ask for metrics if they are willing to provide them.
Check to see if outsourcing brought measurable improvement to customer service. , Once you have determined that outsourcing your customer services or customer service training to a third-party will be cost-effective and will meet the needs of your business, make sure that both parties' obligations will be met by arranging a formal contract.
Include all arrangements regarding payment, incentives, business obligations, deadlines, oversight and termination conditions explicitly in a contract that will be signed and dated by both parties. , When outsourcing your customer service training or customer services to a third-party contractor, it can be beneficial to place incentives on certain goals as they are achieved.
Consider benchmarks for goals such as quality and consistency of services rendered, overall volume of services rendered, and end-user/customer satisfaction to decide on incentives that will promote a desired performance from the third-party contractor.
These incentives could include weekly or monthly bonuses, promotions in pay grade, or a restructuring of the initial agreement to reflect outstanding services performed by the third-party contractor.Be sure that any and all incentives are clearly defined and understood by both parties within the parameters of the initial contract to avoid miscommunication or a deterioration of the business relationship.Be sure that the bare-bones requirements are well understood before getting into discussions of incentives. , There may come a time when the cost of working with a third-party contractor outweighs the benefits of doing business with that contractor.
Poor performance, lacking volume, and bad customer reviews are all reasons to reconsider the existing business relationship.
Make sure that the initial contract you make with a third-party contractor allows you to terminate said contract with minimal expense and liability if and when it is deemed necessary by you.
A well-defined contingency plan must be prepared at the beginning of the relationship and must be updated periodically to ensure that your engagement with your customers can continue, uninterrupted, even if you have decided to terminate your business relationship with the third-party contractor. -
Step 3: Vet reputable customer service options.
-
Step 4: Establish contractual obligations with a third party contractor.
-
Step 5: Consider incentives.
-
Step 6: Develop an exit plan.
Detailed Guide
You need to first define what is needed from and expected of your business's customer service department.
You have to understand why you have a customer service department and what sort of service they provide to customers.
Assess the volume of customer interaction, the subjects of interaction, and the outcomes of your service.
The key is to make sure that you're currently providing good customer service, before trying to outsource it to a third party.
Make sure that you never outsource a skill that you can't manage.
You should have clear metrics (measurable goals) for your customer service department before trying to outsource.
In order to effectively reduce customer service costs by outsourcing your customer services or customer service training, you also have to analyze how much time, money, and resources your business spends on training and/or employing customer service representatives and departments.
This will give you a place to start when comparing the cost of outsourcing. , Identify and contact reputable businesses that offer customer services or customer service training.
Speaking with the management or sales representatives of this third-party business that will handle or train your customer service representatives is essential to ensuring that the needs of your customer service department will be met.
Ask for metrics if they are willing to provide them.
Check to see if outsourcing brought measurable improvement to customer service. , Once you have determined that outsourcing your customer services or customer service training to a third-party will be cost-effective and will meet the needs of your business, make sure that both parties' obligations will be met by arranging a formal contract.
Include all arrangements regarding payment, incentives, business obligations, deadlines, oversight and termination conditions explicitly in a contract that will be signed and dated by both parties. , When outsourcing your customer service training or customer services to a third-party contractor, it can be beneficial to place incentives on certain goals as they are achieved.
Consider benchmarks for goals such as quality and consistency of services rendered, overall volume of services rendered, and end-user/customer satisfaction to decide on incentives that will promote a desired performance from the third-party contractor.
These incentives could include weekly or monthly bonuses, promotions in pay grade, or a restructuring of the initial agreement to reflect outstanding services performed by the third-party contractor.Be sure that any and all incentives are clearly defined and understood by both parties within the parameters of the initial contract to avoid miscommunication or a deterioration of the business relationship.Be sure that the bare-bones requirements are well understood before getting into discussions of incentives. , There may come a time when the cost of working with a third-party contractor outweighs the benefits of doing business with that contractor.
Poor performance, lacking volume, and bad customer reviews are all reasons to reconsider the existing business relationship.
Make sure that the initial contract you make with a third-party contractor allows you to terminate said contract with minimal expense and liability if and when it is deemed necessary by you.
A well-defined contingency plan must be prepared at the beginning of the relationship and must be updated periodically to ensure that your engagement with your customers can continue, uninterrupted, even if you have decided to terminate your business relationship with the third-party contractor.
About the Author
Karen Morales
Writer and educator with a focus on practical home improvement knowledge.
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