Customer Service Leadership

In order to be considered successful, a company must grow.  In order to grow, a company needs to somehow differentiate itself from the competition.  Focusing on high quality customer service in order to deliver the best possible customer experience for consumers is a particularly effective strategy that many businesses are putting into action in order to set themselves apart from competitors.

But, if there has never been much of a focus on customer care in the past, how can a company suddenly become a customer service leader?

A commitment to customer service is not something that can simply be tacked onto a business as an afterthought.  Rather, it needs to be fully ingrained into the culture of a company, and really, the only way for that to happen is for senior management to buy into that philosophy and actually put the ideas into practice.  Only when upper management fully embraces this philosophical shift and starts to demand improvements in key customer service metrics will it trickle down through middle management to the front line workers.  After all, if the CEO of a company does not care about providing excellent customer service, why should the employees care?

One of the best (and easiest) ways to become a customer service leader is to outsource call center work to a firm that specializes in providing high quality customer care.  This usually means outsourcing to an onshore or nearshore customer service provider rather than going offshore.  While a business might be able to obtain a lower overall rate through an offshore call center, the quality of customer care may suffer.  Language barriers and cultural differences often come into play and detract from the overall customer experience.  Industry consultant David Filwood indicates that, “It’s not a racist issue; people relate over the phone to people they perceive as being from their region.”

According to a recent Globe & Mail article, many North American companies that initially outsourced their call centers offshore are now bringing them back due in large part to low customer satisfaction.  Sears Canada spokesman Vincent Power recently remarked, upon bringing the company’s repair service call center back to Canada, “There’s now a higher degree of satisfaction for calls related to parts and service than there were before.”

A leadership decision to outsource call center operations offshore to the lowest cost provider indicates that customer service is simply not a priority for the company, and that they are more concerned with cutting costs than delivering a great customer experience.  Conversely, finding the right nearshore or onshore outsourcing partner shows that customer care is a high priority for senior management, and that they are willing to forego the lowest possible rock bottom price in order to keep their customers happy.

Having upper management make the strategic decision to focus on improved customer care, and then actually taking steps to implement the strategy, is the first critical step that a company must take in order to become a true customer service leader in the industry.

Tacamor specializes in providing high quality inbound customer service and level 1 technical support.  Put us to work  for your company and see first hand how we can improve your overall customer satisfaction!

Building Loyalty Through Customer Service

Keeping customers happy is more important than ever before.

The logic is pretty simple.  Receiving exceptional customer service makes people feel good about a company, which in turn makes them more likely to be loyal to that company in the future.

In fact, in many cases a good customer service team can be even more powerful for building loyalty than continually delivering a good product or service.  A study by Marketing Metrics indicated that if a company consistently delivered its product or service without any problems, customer loyalty would be approximately 60-70%; that is, existing customers would be about 60-70% likely to keep buying their current brand of product or staying with their current service provider if nothing else changed.  However, if instead the company screwed up somehow (I.e. service interruption, defective product, etc.) but fixed its mistake through excellent customer service (I.e. immediately acknowledging the problem and quickly resolving the issue to the customer’s satisfaction), customer loyalty levels increased up to 95%!

People don’t expect companies to be perfect, but they really admire the ones that care enough about their customers to admit their mistakes and provide superior service to fix problems.

But why is customer loyalty so important?

One big reason is that people are simply becoming less and less tolerant of poor service these days.  The Harris Interactive Customer Experience Impact Report indicates that 86% of consumers have quit doing business with a company because of a bad customer experience, which is up from 59% just four years ago.  This is important because losing customers is expensive!  It has been estimated that it costs about five times as much to acquire a brand new customer than it takes to retain an existing one.

The deterioration of a company’s reputation due to poor customer service is another important consideration.  According to the White House Office of Consumer Affairs, a dissatisfied consumer will tell between 9 and 15 people about his or her experience.  Plus, with the proliferation of social media services such as Twitter, Facebook and Google+, this number can be even higher, causing more potential damage to a company’s brand.  This trend can also work in a company’s favor, however, as happy customers will generally tell 4 to 6 other people about their positive customer experiences.

The bottom line is that customer loyalty matters, especially in our modern economy where people have more choices than ever before.  People will not be shy about taking their business elsewhere, so companies must focus more and more on keeping their customers happy if they want to remain competitive.  Delivering great customer service is no longer the exception… it’s the rule.

Outsourcing your contact center operations to a highly qualified customer service provider like Tacamor can get you on the right track towards keeping your customers happy and building loyalty.  It might even save you money, too!  Request a quote today to find out how Tacamor can help your business.

Random Words of Kindness

Sometimes the simplest things in life are the things that are most appreciated.

It doesn’t always take something major to make a person feel good.  Little things like holding a door open, helping someone pick up a dropped coin, or even a simple smile can make a person feel on top of the world.

The same is true for customers.  Everyone likes to feel appreciated, and a kind remark here and there by a customer service agent can go a long way towards building a stronger relationship between a company and its customers.

Of course, delivering quick and effective customer service is usually the best way to keep callers happy, but a random word of kindness can be the icing on the cake that really strengthens the bond with the caller, and makes him or her feel special and appreciated.

There are many different things you can say to customers to make them feel good.  Some possibilities could be:

“I notice that you have been a customer of ours for ____ years.  I would just like to thank you for your business.  We really appreciate it!”

This indicates that the company does not take the customer’s business for granted, making him or her feel valued.

“I see that you also called us last month about another issue.  How did that go?  Did everything get resolved okay?”

This comment demonstrates a level of caring and concern on behalf of the company for its customers, and a commitment to high quality service.

“You have been one of the nicest callers I’ve had all day.  It has been an absolute pleasure dealing with you.”

This type of comment singles out the person in a good way, making him or her feel special compared to everyone else.

“I see that you’re on the __________ plan.  That’s a great choice.  I love that plan because _______________________.”

This statement indicates that the caller made a good decision, making him or her feel smart about that choice.  A personal endorsement by the agent also helps to further promote the company’s offerings.

In each case, these types of remarks help to build upon the overall customer service experience for a caller.  Sometimes it doesn’t take much to delight a person, and little statements like these can help to create (and maintain) customer loyalty, which should be a primary goal for any business.

Tacamor customer service agents can increase customer loyalty for your company.  Get in touch today to find out what we can do for you!

The Hidden Costs of Operating a Call Center

Many companies struggle with the decision of whether to keep their call center operation in house, or outsource it to a professional customer service provider.  Although improved quality of service is a major reason why many companies are choosing to outsource, the issue of cost remains a huge factor in the decision making process.

So, how do you compare the cost of running an in house call center against the cost of outsourcing it to a professional?

At first glance, it would seem to be an easy question to answer.  You calculate how much you are paying your current team of agents, whether per minute or per hour, and then compare it with a quoted rate from a call center outsourcer.

That’s all there is to it, right?

Well, in a word, no.

The reality is that there are a multitude of other costs that should be taken into account when properly weighing an outsourcer’s quoted rate against your own expenses.  Some of these costs are much more obvious than others.

Here are some essential costs, many of which are “hidden,” which should be factored into the equation when comparing outsourced versus in house call center expenses.

  • Payroll – This is the most obvious cost, and in some cases is the only one taken into account by many companies when deciding whether or not to outsource.  Strictly speaking, this is what you pay out to your call center staff in the form of wages and employee benefits.
  • Facilities – Your call center has to be located somewhere.  What is the cost of the building or office space?  If you outsourced your call center operations, could you put this newly vacated space to better use, or save additional money by closing it off completely?
  • Equipment – A good call center requires many different types of equipment, including computers, phone systems, wiring, furniture, etc.  In addition to a substantial up front investment to initially acquire these items, there is also a need for continual maintenance and upkeep for equipment.  Desks and chairs will wear out and need to be repaired, while computer systems will eventually become obsolete as technology improves, and need to be upgraded or replaced.  If you outsource, your company will not have to worry about these maintenance costs, since they would be borne by the outsourcer.
  • Technology – Similar to ongoing maintenance costs for physical equipment, there are also substantial costs related to keeping the level of required technology up to date.  Operating systems and software applications will need to be constantly upgraded to newer versions, and networks will need to be improved to keep up with the constant demand to be better and faster.  A good contact management platform and/or CRM system can be very costly, and often requires a certain level of technical expertise to operate effectively.  What is the cost of acquiring and implementing the necessary call center technology yourself versus letting a professional outsourcing company handle it?
  • HR Costs – In addition to payroll, there are other costs associated with maintaining a staff of workers.  How much does it cost to hire and train agents?  What about the cost of employee turnover?  Attrition rates in the call center industry are usually very high, and there can be a substantial cost associated with having to recruit, hire and train new customer service agents on a continual basis.  The cost of sick leave, employee motivation and other day-to-day HR issues should also be factored into the overall cost equation.
  • Operating Fees – Nobody likes paying expensive monthly bills.  Call centers are notorious power drainers.  How much would you save on your monthly electric bill by outsourcing your call center operation?  What about toll-free and/or long distance charges?  Do you have the appropriate insurance required for a call center operation?  How about on-site security and remote monitoring of the premises?  Janitorial expenses?  All of these things are not free, and the expenses can quickly add up.
  • Time – This is a very important cost that can be easily overlooked.  Running an in house call center requires a great deal of time and energy from upper and middle management on a daily basis.  If customer service is not your core business, and a substantial chunk of time is being diverted towards keeping your in house call center running smoothly, what is the opportunity cost associated with this lost or wasted time?  Outsourcing your customer service immediately eliminates most of the day-to-day hassle associated with call center operation, freeing up time for your star employees and managers to focus on more profitable activities that can make your business grow.
  • Customer Satisfaction – How effective is your in house call center?  Are your customers happy with the level of service they receive from your agents?  Outsourcing to a customer service professional can lead to better service levels, which can improve a company’s overall reputation and drive more sales.  This potential for increased revenue should be considered when measuring the costs of outsourcing.

The choice between outsourcing a call center and keeping it in house is a critical one for many companies.  When making the final decision, it is important that all of the relevant costs are taken into account, including the many non-obvious, hidden ones.  Only then can you get an accurate idea as to whether or not call center outsourcing makes sense for your business, and make a truly informed decision.

Does call center outsourcing make sense for your business?  Once you have calculated your total costs, get in touch with Tacamor today to request a quote, and see if we are the right call center for you!

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