Today, outsourcing customer service has become a common practice for most companies. Many companies outsource ecommerce customer service projects.
Interestingly, there are many benefits of outsourcing work, including it as a way of streamlining operations, reducing costs, and gaining access to specialized expertise.
While outsourcing can be a great way to increase efficiency and cut costs, it’s not always the best solution for every situation.
In this article, we will discuss how to outsource ecommerce customer service and eight factors you should consider before outsourcing. Importantly, by considering each aspect, you can determine if outsourcing is worth it for your business or not.
Benefits of Outsourcing Ecommerce Customer Service
Outsourcing ecommerce customer service can provide several benefits for businesses that want to improve their customer experience and overall efficiency. Here are some of the top benefits of outsourcing ecommerce customer service:
- Cost Savings. One of the most significant benefits of outsourcing e-commerce customer service is cost savings. Outsourcing saves businesses money on staffing, infrastructure, and technology costs for running an in-house customer service team. Instead, businesses can pay a fixed fee to the outsourcing provider for their services, which is often more cost-effective than hiring and training an in-house team.
- Expertise. Outsourcing to a specialized ecommerce customer service provider can offer access to experienced professionals with specialized skills and knowledge. This expertise can improve the quality of customer service provided, leading to higher customer satisfaction rates.
- Scalability. Outsourcing allows businesses to quickly scale their customer service operations up or down based on their needs. As customer inquiries increase, outsourcing providers can quickly add more agents to handle the workload. This scalability helps businesses avoid hiring and training additional staff, which can be costly and time-consuming.
- 24/7 Availability. Outsourcing providers typically offer round-the-clock support, ensuring customers can always reach someone for help. This availability can improve customer satisfaction rates and increase sales and repeat business.
- Multilingual Support. Outsourcing providers often offer multilingual support, allowing businesses to serve customers in different languages and regions. This feature is precious for e-commerce businesses that sell to international customers.
- Improved Efficiency. Outsourcing can improve overall efficiency by allowing businesses to focus on their core competencies while leaving customer service to the experts. This focus leads to increased productivity and profitability for the business.
Factors to Consider When Outsourcing E-commerce Customer Service
When running ecommerce, profitability is one of the ultimate goals you should have in mind. Therefore, you can’t leave the essential aspects of your business to chance. One of the essential aspects you should scrutinize is customer service. Even when ‘outsourcing ”this crucial task is inevitable, you must go the extra mile to assess the company to which you want to outsource the task.
Therefore, the following are factors you should consider.
1. Cost Savings
One of the primary reasons companies outsource is to save money.
But, it’s important to remember that outsourcing doesn’t always guarantee cost savings. Before outsourcing, it’s essential to conduct a thorough cost analysis. Determine the cost of outsourcing vs. keeping the work in-house.
When performing the cost analysis, consider all the costs associated with outsourcing, including labor costs, equipment costs, and any additional fees or expenses. If the cost savings justify outsourcing, then it may be worth it.
2. Expertise
Another factor to consider when outsourcing is the expertise required to complete the job. By outsourcing, you can gain access to experts in the field who can perform the job efficiently.
For instance, if your company lacks the customer service skills or knowledge needed for a particular task, outsourcing to a specialized company or contractor is the best solution.
3. Quality Control
One of the biggest concerns with outsourcing is quality control. When outsourcing, you must ensure that the work meets your company’s standards and expectations.
Mainly, you must always ensure that the outsourced company or contractor has a track record of delivering quality work. To get a picture of the quality of work to expect, you should ask for references or samples of previous work.
4. Communication
Communication is critical when outsourcing. It’s essential to establish clear communication and expectations upfront and avoid misunderstandings with the outsourced company or contractor. Proper communication guarantees the project is progressing smoothly. Also, you will retain and grow your ecommerce customer base.
In Statistica 2020 survey report, 40% of customers stop doing business with an ecommerce company due to poor customer support. Therefore, it’s essential to establish communication channels where you ensure the customers’ complaints are adequately addressed promptly.
5. Time Management
Outsourcing can be a great way to save time and free up resources. However, it’s essential to ensure that the outsourced company can deliver the work on time. If the outsourced company or contractor cannot deliver the work on time, it can significantly impact your business operations.
Therefore, it’s essential to establish clear deadlines and milestones to ensure the customer support project is on track.
6. Risk Management
Outsourcing can pose certain risks to your business. For instance, if the outsourced company goes out of business, it can leave you without the resources you need to complete the project.
Therefore, it’s essential to conduct a risk assessment and establish contingency plans to mitigate any potential risks associated with outsourcing e-commerce customer service jobs.
7. Cultural Differences and Language
Cultural compatibility and language are equally crucial when outsourcing ecommerce customer service. You must ensure the outsourcing partner has a team of agents who can speak your targeted customers’ language fluently.
Also, they should have a cultural understanding of your target audience to provide the best possible customer service experience.
8. Your Company Culture
What is your company culture? It’s essential to consider your company culture when outsourcing. If your company values collaboration and teamwork, outsourcing may not be the best solution.
On the other hand, if your company values flexibility and agility, outsourcing may be a great way to adapt to changing business needs.
Also, read 3 Important Tips To Outsourcing Like a Pro
Additional Aspects You Should Consider
Mainly, how you handle the customers will significantly impact the success and profitability of your ecommerce business. Therefore, there are tons of aspects you should consider to ensure outsourcing this crucial area of your business is the best decision.
Also, there are specific factors you should consider when assessing several potential outsourcing companies. Mainly, you want to hire and partner with the best-suited outsourcing company; hence you need to go into finer details when evaluating them. Therefore, on top of the above general factors, there are several additional factors to consider to ensure that the outsourcing process is smooth and successful.
The following are some of those additional essential factors to consider too.
- Experience and Expertise. The knowledge and expertise of the e-commerce customer service agency is another essential consideration. You should look for a partner who has experience working with ecommerce businesses, has the required skills and tools, and has a proven track record of delivering high-quality customer service.
- Availability and Flexibility. To outsource customer service for small business you should consider the availability of the partners. For instance, the e-commerce customer service agency should at least have a dedicated e-commerce call center that is available to provide customer service 24/7, as customers often expect immediate responses to their queries. Also, the company should be flexible enough to adapt to your changing business needs and customer service requirements whenever necessary.
- Cost-effectiveness. Outsourcing e-commerce customer service helps reduce costs, but it’s essential to ensure that outsourcing costs are cost-effective. You should look for an outsourcing partner who offers competitive pricing without compromising on the quality of service.
- Communication and Collaboration. Communication and collaboration are essential when outsourcing ecommerce customer service. You must ensure the outsourcing partner has effective communication channels, including email, chat, phone, and video conferencing. Importantly, they should be willing to collaborate with your in-house team to achieve your business goals.
- Security and Data Privacy. Data privacy and security are critical when outsourcing e-commerce customer service. You should ensure the outsourcing partner has robust security protocols to protect customer data. Some of the crucial data security measures include two-factor authentication, secure data storage, and performing regular data backups.
- Scalability. Your e-commerce business may experience periods of rapid growth, and you need to ensure that the outsourcing partner can scale up or down their services to meet your changing needs. This includes hiring additional agents, providing training, and adjusting workflows.
What are the Signs That it’s Time to Outsource Ecommerce Customer Service?
Ecommerce customer service is a crucial aspect of running an online store. It can be challenging to manage all customer queries and complaints while handling the business’s day-to-day operations. Although outsourcing is beneficial for ecommerce businesses, it’s always the best option at all times. There are specific circumstances that necessitate outsourcing. For instance, when the workload becomes overwhelming, or your team lacks the necessary expertise, it may be time to consider outsourcing your ecommerce customer service.
Now, the following are some signs that indicate it’s time to outsource e-commerce customer service.
- High Volume of Customer Queries. Outsourcing ecommerce customer service allows you to handle many customer inquiries and complaints more efficiently. Therefore, if your team is struggling to manage a high volume of customer queries, outsourcing can be a solution.
- Lack of Expertise. If your team lacks the expertise to handle specific queries or complaints, outsourcing to a specialized customer service provider may be the best solution. A specialized customer service provider offers you access to experienced professionals with specific expertise in your ecommerce industry.
- Time-consuming Tasks. Some customer service tasks can be time-consuming and repetitive, taking your team’s focus away from other essential tasks. Outsourcing these tasks will help your team to be more productive and efficient, allowing you to focus on growing your business.
- Difficulty in Scaling. If you’re finding it difficult to scale your customer service operations, outsourcing can be a cost-effective solution. Outsourcing will allow you to quickly scale your customer service operations up or down based on your business needs without worrying about hiring, laying off, or training additional staff.
- Limited Availability. If your team is not available 24/7 to respond to customer queries, outsourcing customer service can help. Outsourcing customer service to a provider offering round-the-clock support ensures customers can always reach someone for help.
Summary
Outsourcing ecommerce customer service can benefit your business, but you must consider various factors to ensure it’s the best option and you do it right for a successful partnership. Therefore, always take your time to assess your needs for outsourcing and the expected benefits, and you will enjoy the partnership. Your ecommerce business thrives as your customers get top-notch customer support from a specialized and highly experienced customer support team.
