American call centers, Canadian call centers, and your customers

A call center can be a profit center rather than a cost center

A call center can be a profit center rather than a cost center

Taking care of business ultimately means taking care of both your customers and your profits. If you can make people happy while also generating a healthy profit margin, you’ll be just fine. Of course, one of the big challenges is that it almost always costs more to care more. Customer service and profit margins don’t always walk hand in hand, so if you try to increase one, it can often drive down the other. As your high-school math teacher would have said, customer care and profit margins are inversely proportional.

That’s an oversimplification, of course, since increased customer service levels should actually lead to increased customer satisfaction ratings, which will in turn lead to more business and, eventually, higher profits. But there’s no denying that more money has to be invested in the first step well before the rewards are seen at the end. As a result, customer service investments such as call centers are often treated as cost centers rather than profit centers, and many companies have done whatever they could to drive those costs lower and lower. Hours of service were reduced. Staff training was cut back. Phone numbers were made less visible, and users were instead directed to Internet sites with prepackaged Frequently Asked Questions (FAQs). And in the case of many larger companies, North American call centers were shut down, with the work being outsourced instead to some far-flung location. [Read more...]

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