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CUSTOMER SUCCESS

 

 

 

 

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Lee Murphy

Vice President, Customer Technical Services

When and why not to outsource your customer support

3 min read · August 30, 2024

 

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When is the right time for a business to outsource their customer service?

As someone who’s worked in customer experience for over 25 years, I’ve seen companies struggle over whether to keep their customer service in-house with their own team or outsource to a customer service vendor. In some cases, if they utilize white label products, they also have the option of outsourcing customer service to their white label partner.



Every company faces distinct challenges and circumstances, making decisions unique to each. It's not a simple, one-size-fits-all choice. Yet, I've observed that businesses tackling specific scenarios and opting to outsource their customer service tend to excel. Conversely, those grappling with the issue and retaining customer service in-house may see less favorable outcomes.



What are these situations? Let’s dive in.

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Launching a new product or service? Consider outsourcing customer support

 

Launching a new product or service can be a fun, exciting yet stressful time for your team. Just like your sales colleagues are learning about how to best position the new product with customers, your customer support team needs time to learn how to service the new product. In general, rolling out a new product or expanding its operations can cause the demand for customer support to skyrocket.



Instead of immediately having your customer support team take on the new product, consider working with a vendor on easing into the support care. For Merchant Cloud, we will routinely take on the customer support for new banks that are launching a payment gateway service. This gives the bank’s customer support teams an opportunity to get familiar with the services, understand common support needs and ensure the product launch goes smoothly.



It can also help with staff planning by testing if the company can handle the increased volume of inquiries and issues without overwhelming its internal team.

Delegating customer service to manage seasonal spikes

 

Many businesses experience seasonal fluctuations in customer support needs. Take retail for example; they may get inundated with customer support queries during the peak holiday shopping season.

Outsourcing customer service during peak times, when you know there will be an increase in demand, can help manage the temporary increase in workload without the need for long-term hires, thereby keeping operational costs in check while maintaining high service standards.

Improve customer satisfaction with third-party customer care

 

A noticeable drop in customer satisfaction can be a red flag indicating that your current customer support strategy is not meeting expectations. Examine your key performance indicators to determine if your staff needs support.

Nearly 90% of customers

 

would switch to a different company if it could provide better customer experience.

Optimize your sales conversions, checkout

 

Outsourcing to a specialized customer support provider can bring in fresh perspectives and expertize, potentially transforming your customer interactions and improving your customers’ satisfaction rates.

Long wait times



Long wait times, unanswered calls and ignored tickets? Outsource your customer support.
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Inconsistency



Inconsistent customer service is a sign you may need to supplement your service desk.
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Satisfaction ratings



A decline in customer service satisfaction scores is another indication.
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Backlog keeps growing



A backlog of unresolved tickets can cause a reputational nightmare for companies.
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Facing resource constraints? Consider partnering for customer support

 

Staffing a customer support desk can be challenging.



High turnover rates within the customer service team can disrupt continuity and degrade service quality. Additionally, some companies might face difficulties in recruiting and retaining qualified customer service representatives due to various reasons such as location, industry competition, or budget constraints.



If recruiting, training, and retaining an in-house team becomes increasingly challenging or distracting from core business functions, it may be time to look at outsourcing your customer support. Outsourcing can alleviate these challenges by tapping into a broader talent pool and leveraging the expertise of providers who specialize in customer service. This allows businesses to maintain a high level of service without being constrained by local staffing market conditions. It also ensures that customer service remains consistent and reliable, even during periods of internal staffing challenges.

Effective scaling with managed customer support when facing rapid growth

 

Business growth is exciting and stressful. Whether you’ve launched into new markets, or your products and services are taking off, it can be hard to scale your customer support desk in line with your company’s growth.



When you outsource, you can immediately take advantage of a customer support team that can scale and grow as your company expands.



It’s crucial to acknowledge that outsourcing is not a universal remedy. The success of this strategy is based on selecting the right partner, establishing clear communication channels, and maintaining clear guidelines on the partnership.



While outsourcing customer service can offer significant advantages, it requires careful planning and execution. By doing so, businesses can harness the benefits of this approach, driving growth and enhancing their competitive edge in an increasingly dynamic industry.

Lee Murphy

Vice President, Customer Technical Services

Lee Murphy provides global Technical Customer Support, understanding regional differences, focusing on Merchants, their specific needs and how CX is the central platform to success. With over 25 years’ experience of payment expertise, Lee supports all career levels, engaging with customers of all sizes and geographic locations.

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