Guide to BPO Outsourcing
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1 Guide to BPO Outsourcing How a Service Partner Can Help You Focus, Discover Insights, and Grow Your Business, All While Delivering a Great Customer Experience By Heather D. Blease, CEO and Founder, SaviLinx
2 Customer Service is a Challenge for Emerging Businesses Managing a small or emerging business can be exhilarating, interesting, and rewarding. It also can be demanding, frustrating, and exhausting. Sometimes it s all of those things in the course of one day. The truth is, you started your company because you had a great idea for a product or service that you knew would resonate with your customers. So it s imperative to take care of them. Customer expectations are higher than ever, and they are only going up. People demand fast, personalized service at every touch point, and factor it into their buying decisions. Today 89% of companies expect to compete on service versus 36% just four years ago, according to a study by Harris Poll. Customer support likely needs more attention than your team can deliver while juggling the demands of the firm s core business. Maintaining adequate customer service levels is one reason to look for an outsourcing partner; using the outsourcing partnership to build your business brings the relationship to a new level. This guide offers insight into why companies partner with an outsourcing firm, the types of services that partners can provide today, and what to look for in a partner. SaviLinx.com Guide to BPO Outsourcing page 2
3 Why You Need to Care about Customer Service Taking care of customers is fundamental to business success because it is an investment that pays off both immediately and over time. Current customers not only provide current revenue, they are the most important source of additional revenue. Since you don t need to spend money or time finding and converting them, the margins are better. It s the reason why many companies calculate Customer Lifetime Value (CLTV) to determine marketing and service budgets these costs are an investment in building a relationship that delivers value over time. Good customer service also breeds word-of-mouth advertising, which is both impactful and cost effective. Those are all great financial reasons, but there s more to the benefits of delivering great customer service than that: employees feel great about being part of a company that treats its customers right. That reputation opens doors for partnerships and opportunities that can expand your company s horizons in new and valuable ways. Customer service is fundamental to business success because it is an investment that pays off both immediately and over time The bottom line is that customer service is more than good for the bottom line it s good for the health and longevity of your business. Many large enterprises have this figured out and make continual investments to stay on top of customer support. How can small and emerging businesses build a customer service culture? Customer Service in the Wheelhouse Managing a small and emerging business means dealing with a non-stop fire-hose of information, ideas, problems, and opportunities. So many things need your attention, and while running out of money dooms many emerging businesses, lack of focus is high on the list. For many, getting a handle on what you should do and what you should delegate can make the difference between success and failure. SaviLinx.com Guide to BPO Outsourcing page 3
4 There are some things that require your specific focus: securing capital, developing and innovating your product or service, and hiring the right key individuals to help your company grow and scale. However, there are non-core functions you can evaluate to determine the most efficient and cost-effective means to get the job done. Steve Case, the legendary founder of AOL and now head of investment firm Revolution LLC, says that partnering is his favorite innovation hack. In a recent story in the Wall Street Journal, Case says, In general I find people are trying to do too much internally. And while of course you want to have smart people doing smart things, there are more smart people not working for you as opposed to working for you. Startups and emerging businesses generally can t afford team members dedicated to only one area or task. In flat organizations, employees wear multiple hats, and not all of them are in their wheelhouse. This is particularly true of customer service. Product design, engineering, developers, and other technical talent find themselves responsible for handling customer inquiries from product usage to tech support. Yes, these people are the ones who have the most ability to make product changes, so it can be good for them to hear customer concerns first hand. But every hour spent manning the phones or chat lines is one less devoted to product iteration and development. And more important, the qualities that make for an exceptional developer or engineer don t always mesh with those that make an excellent customer service professional. SaviLinx.com Guide to BPO Outsourcing page 4
5 Customer service is one critical area where SMBs can successfully partner to achieve a better outcome than deploying this important task internally. A partner will bring years of customer interaction best practices experience to your business at lower cost than building it yourself. Ultimately, having access to the real jewels intel and analytics directly from your customers will provide you with a competitive edge. The 2016 Global Outsourcing Survey from Deloitte notes that the true value is in the innovation that partners provide to empower and contribute to business growth by bringing their comprehensive expertise of customer interaction platforms, processes, and procedures to help their partners thrive. Possibilities for Partnership Many people have an outdated image of contact centers as cut-rate providers with a poor grasp on the English language. That model was popular for a while, but it backfired once companies recognized that short-term savings equated to long-term losses in CLTV. Today s class of outsourced contact centers can lower the cost of service delivery, but the real benefit is their customer service expertise. They use the latest techniques and have invested in advanced technology. They constantly train agents on best practices, and track processes that help them boost performance. They can be very efficient at delivering excellent service because it is their core competency. Partnering with a BPO contact center can help emerging and small businesses meet a number of challenges: Scale and Agility: Small and emerging businesses have a narrow range around optimal employment levels too few employees and customer service suffers; too many and costs skyrocket. Outsourcing can help you meet demand until you can determine if growth or a downturn is temporary or lasting. They offer a nimble workforce that also can help you meet seasonal demands or other call peaks. The true value of outsourcing is the innovation that partners provide to empower and contribute to business growth by bringing their comprehensive expertise SaviLinx.com Guide to BPO Outsourcing page 5
6 Outsourcing partners help companies manage sudden shifts and relieve the pressure created by unpredictability. Tech Support and Customer Service: When customers have a problem with your product or service, they need help. Tech support and customer service are non-negotiable aspects of running a business - if you don t help your customers, they will run to your competitors. Outsourcing to a trained partner helps you focus your top technical talent on product iteration and design. Program and Product Support: Outsourcing partners also offer a range of business process support services. They can help customers understand how to use your product, how to navigate your service options, and how to make the right choices. Some examples of the kinds of work we do include the following: ü Help employees of a government agency navigate their healthcare insurance options. ü Guide applicants through the lending process and answer follow-on service queries. ü Select the right floral gifts, including shipping choices. ü Monitor usage of a fleet driver-tracking program. ü Match consumers with the right energy savings programs. These are just some of the examples of the diversity and value a partner can deliver beyond reactive service and support. SaviLinx.com Guide to BPO Outsourcing page 6
7 Calyx Flowers Partnering for Retention When the husband-and-wife team of Kap Wallingford and Mark Ranalletti purchased the online florist firm Calyx, they knew that customer retention had to become a priority. The company had multiple owners in its 30-year history, and was logging close to 20 percent yearover-year sales decline. We wanted a call center that would be with us on developing standard operating procedures, standards, and protocols, says Ranalletti. We wanted to focus on building relationships with our customers. They researched firms and chose SaviLinx for its unique culture, expertise, and flexibility. While much of the company s business is conducted online, Calyx partners with SaviLinx for phone-based orders along with managing customer requests and order inquiries. SaviLinx also identifies corporate sales prospects and has established a protocol for transferring them to Calyx for direct follow up. One caller who placed a very large order for a well-known public figure even asked Calyx if she could conclude her transaction with the SaviLinx CSR. That was a really good testimony to the quality of SaviLinx s customer service, says Ranalletti. SaviLinx also provides Calyx with daily reporting to help manage the business, including information on orders taken, types of questions, and even disposition of the callers. For Calyx, the partnership with SaviLinx has been a crucial element in its plan to turn the business around. It s all about getting the right players and culture mentality, says Ranalletti. SaviLinx has been really willing to work with us to help us point this ship in the right direction with a better customer experience. Gap Coverage and After-Hours Support: You may have a crack team for business-hour support, but can t afford to replicate it for afterhours and weekend coverage. Or you may need specific expertise on a sporadic basis. Finding a partner to fill these gaps can help you ensure service continuity. Retention: All businesses must manage churn, but Small/Medium Businesses ( SMBs ) and emerging businesses are particularly impacted by high turnover rates. They simply don t have the cushion that larger businesses have. Every customer interaction is important. When you need help boosting customer retention rates, an external partner can provide the goods. (See the story about Calyx Flowers on this page.) Identifying Inefficiencies. External partners have the advantage of seeing your business operations with fresh eyes. They can offer their insights to recommend new, more efficient processes. For example, one of our clients contracted us to direct customers to the right resource for a particular issue. Our Agents noticed that the process added more steps (e.g. transfers) for the customers, and also recognized that customers were actually SaviLinx.com Guide to BPO Outsourcing page 7
8 eligible for more than one program. When we presented the information to our client, they authorized us to handle calls directly instead of transferring to other departments, and to provide the callers with other helpful information. That not only boosted customer satisfaction, it saved our client money. Training Internal Team: Outsourcing partners can be the sole provider of customer service, or an extension of the client s internal customer support team. Information sharing should be a regular part of the relationship. For example, we often post better efficiency metrics than internal teams because this is our focus. We often work with our clients teams to share ideas and even conduct training as needed. These are just some of the new ideas about customer service partnerships that are designed to help small and emerging businesses grow and thrive. Where almost anything is possible, the key step is to find the right partnership for your company. SaviLinx.com Guide to BPO Outsourcing page 8
9 How to Pick a Customer Service Partner Partnerships are successful when both companies benefit this happens when needs, capabilities, and philosophies are aligned. Choose one or more areas where your business could benefit from a partner, and find providers that can meet your capabilities. From there, measure the following to find the right fit: Technology: Technical compatibility is a baseline, including ability to manage volumes, maintain security, capture data and deliver business continuity. Beyond that, look at the tools and platforms they use. Do their technologies complement yours? Or will the BPO adapt to your system? Options: It s great to have a dedicated team for customer service, but not every business has the call volume or budget to justify the expense. Look for a provider with flexible options such as shared queues to support your needs. Make sure they have tiers, flexibility, and capacity along the way to support you as you grow. People: How does the partner choose and train its people? What ongoing training programs does it offer, and how does it promote excellence? These are key questions to ask the people answering the phone will be connecting directly with your customers. Make sure they can deliver a positive interaction with skill, efficiency, and genuine empathy. Geography: Few companies need to visit their partner s center on a frequent basis, so location might not be essential. If it is, find a provider with the agility to establish and manage a remote workforce. Work-from-home programs can be an exceptionally cost-effective way to get top talent as long as your partner has the skill and knowledge to run an effective remote program. Look for an outsourcing partner that has flexible options such as shared queues, tiers, and flexibility to support your needs as you grow SaviLinx.com Guide to BPO Outsourcing page 9
10 Look Beyond Hourly Rate to Determine the Best Provider You ve reviewed your business needs and have sent RFPs out to a handful of BPO contact centers for customer support services. How do you evaluate the terms to make sure you re getting the best deal? Most firms will submit a bid with an hourly agent rate, but that s just the beginning of the story. The real number to look at is the efficiency of the agents. Here s an example comparing five BPO contact centers. At first glance, BPO #1 looks to be the clear winner, with a bid for an hourly rate of $ But when you factor in efficiency, BPO #2 comes out significantly ahead of the competition. As you evaluate your bids, ask the centers to provide efficiency data. That s the only way to be sure that the lowest bid doesn t end up costing you money. Agent Hourly Rate Number of contacts per hour Cost per Contact BPO #1 $ $5.01 BPO #2 $ $4.01 BPO #3 $ $4.94 BPO #4 $ $6.19 BPO #5 $ $4.66 Metrics and Reporting: Customer service partners can track just about everything find a partner who can help you identify what metrics are important to you and generate the reporting to help you run your business. Keeping track of call time might not be as important to you as understanding what types of questions your callers are asking. Your partner should be able to dig deeper than traditional metrics to find information that is of true value. Above and Beyond: Once you ve established the basics, look at the heart of the partnership: will this company treat your customers as its own and are your core values and culture a match? You want a partner who will constantly innovate, make suggestions, and be willing to go the extra mile for you. Finding the right customer service outsourcing partnership can help your business thrive and grow to new levels. Find a partner that understands the needs of small and emerging businesses, including the crazy ups and downs, the pivots, and the need for agility. Not every BPO firm wants to go on that ride, and not all can handle it. But when you find the right one, you ll be able to focus on the factors that are important to your success and you ll grow together. SaviLinx.com Guide to BPO Outsourcing page 10
11 SaviLinx is a business process outsourcing partner for commercial businesses and government entities. It delivers a wide range of customer service solutions via a unique mix of brick-and-mortar centers and work-from-home agents to deliver flexible and scalable solutions. The company uses robust, secure cloud-based technology solutions. SaviLinx is proud of its company culture that values respect, integrity, and excellence. A stellar workforce with an exceptionally low turnover rate has supported the company s growth. Can we help you? Contact us at info@savilinx.com SaviLinx.com Guide to BPO Outsourcing page 11
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