Should Your Startup Outsource Customer Support?

When you’re running a startup, you’ve got thousands of tasks to perform. You’re probably running with a small staff complement, which is great when you need to adapt to changing market conditions. However, it becomes an issue when you need to provide outstanding support. When you get busy, customer queries might start piling up. You’ll […] The post Should Your Startup Outsource Customer Support? appeared first on Entrepreneurship Life.

Oct 29, 2024 - 00:00
Should Your Startup Outsource Customer Support?

When you’re running a startup, you’ve got thousands of tasks to perform. You’re probably running with a small staff complement, which is great when you need to adapt to changing market conditions.

However, it becomes an issue when you need to provide outstanding support. When you get busy, customer queries might start piling up. You’ll eventually get to a point where your team is battling to keep up.

If you’re at that point, you might wonder if it’s time to hire a support team. However, the expense of doing so may seem prohibitive. Therefore, in this article, we’ll look at whether it’s time to outsource this vital function.

The Benefits of Outsourcing Customer Support

Let’s consider the advantages of taking this step.

Cost Savings

Most companies choose this route because it’s less expensive. You don’t have to worry about:

  • Salaries
  • Benefits
  • Recruiting
  • Onboarding
  • Training
  • Equipping
  • Time off
  • Sick leave

The company that you partner with faces the same challenges. However, most of them work in countries with low cost of living.Therefore, they can afford to pay their employees reasonably and still be competitive.

Scalability and Flexibility

As your startup grows, you’ll get more queries. Therefore, you need a team that’s easy to scale. Help desk outsourcing gives you access to the skills you need in very short order. This makes it easier to meet growing demand quickly.

You can also ask about flexible scheduling. With this type of contract, you can increase your team during peak periods and slow things down during off-peak times. You might do this by sharing your team with other companies, for example.

24/7 Support Availability

Most customers today want to access support when it’s convenient for them. This is often outside of normal office hours. Customers can often access this kind of support from other companies. If you can’t offer the same, you risk being left behind.

You also have to consider whether or not you have clients in different time zones. Offering 24/7 support covers you in this area as well.

Focus on Core Competencies

When you outsource customer support, your team gets to do what they do best. If you’re running a lean team, this is one of the primary benefits of farming out customer support. While customer service is critical, you also need to spend time on income-generating activities.

Access to Expertise and Technology

When you have to watch your budget, you need to focus on the software and technology you need most. This often means that you have to scrimp when it comes to communication.

An outsourcer focusing on providing support invests heavily in these areas. They do so because it’s the focus of their business. You benefit by association.

The Drawbacks of Outsourcing Customer Support

Before you rush to sign up, let’s look at the downside of taking this step. We’ll explain the potential issues and how to overcome them.

Loss of Control

Why do companies put off outsourcing? Many companies fear losing control over the quality of service. You can manage this risk by choosing an established company. You can also ask to review calls and analytical data at will to monitor service levels.

Cultural and Language Barriers

If your provider works in a totally different country, you’ll have to make sure their communication style matches yours. There may be issues with language and cultural nuances.

To mitigate this risk, you should choose a provider with strong language skills. They should also have experience dealing with customers in your region. You should also carefully brief the team about your expectations.

Security and Confidentiality Risks

You’ll need to share your customer’s sensitive data. As a result, you must ensure that the provider treats data security as carefully as you do. You need to ask them how they protect system access physically and via the internet. Do employees use their own devices?

In addition, you’ll have to make sure that they adhere to all the data regulations in your region and theirs. If they’re not compliant, you’ll also face the repercussions. You’re putting your systems at risk of a breach.

Brand Identity and Customer Relationships

Many startups succeed by building strong customer relationships. It’s a pivotal point of developing brand loyalty. An in-house team lives and breathes your company culture. They work only with your products or services, meaning that they might be able to deliver a more personalized and authentic experience.

When you outsource support, the interactions become more transactional in nature. Most companies provide strict scripts and procedures to follow. Therefore, your clients might miss out on some of the more personalized aspects.

This isn’t an insurmountable obstacle. Your team just needs to take the time to reach out to loyal clients more often again.

Conclusion

Is it time to outsource customer support? Ultimately, this is a decision that every company must carefully consider. You ideally want to take this step before customer service levels drop. However, it can be challenging to work out when you should do that.

Your best option is to create a careful cost-benefit analysis. Then take a look at the outsourcing companies out there and see what they have to offer. You can then take things from there.

The post Should Your Startup Outsource Customer Support? appeared first on Entrepreneurship Life.

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