Outsourcing has a reputation for being a “race to the bottom.” Outsourcing customers want to maximize productivity and efficiency without racking up costs. In turn, outsourcers are incentivized to keep costs low, extract maximum efficiency from their workforce, while maintaining a reasonable margin that keeps the business growing.
Unfortunately, this usually means outsourcers structure their company in a way that creates the smallest amount of overhead — low pay, minimal benefits and infrastructure, overleveraged shared services, etc. Not the best working conditions.
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This factory model of outsourcing can appear efficient and cost-effective on a spreadsheet, but it’s riskier and more costly than it seems. Treating your customer advocates as a commodity leads to low retention, and therefore costly retraining and lost expertise. Low engagement amounts to a loss of priceless customer insights and scores of missed opportunities.
Unhappy humans don’t provide wonderful experiences, creative solutions, and proactive insights, so optimizing for retention and ASAT (agent satisfaction) actually drives desired business outcomes more sustainably.
Alternatives to the factory model exist.
Your service providers should understand your brand and match your company’s values by seeking outsourcing partners that prioritize quality and culture. This way to gain the cost-saving and geo-expanding benefits of outsourcing, without sacrificing insights, quality, and performance. So, how do you know if you’re talking to a values-based outsourcer? Ask them about their workplace ethics and the benefits they offer employees. They should be providing a healthy mix of the following:
- Full-time employees versus contractors
- Above-market pay (if they don’t want want to share this, look somewhere else)
- Competitive and progressive benefits (such as paid family leave and health care that covers family including domestic partners)
- Personal and professional empowerment for employees
- Diversity, equity, inclusion, belonging, and justice (DEIBJ) policies
Choosing a values-based outsourcing partner isn’t just a moral call, it’s a financial one. Here’s how it can impact your bottom line:
Better retention and efficiency
It’s an obvious truth that the less soul-crushing the job, the longer employees will stay. If your outsourcing partner creates an environment that supports and values their employees, you can bet their retention rate is high — and that’s good news for you. The longer your outsourced teams stick around, the more experience they gain with common customer problems and product use cases. That makes them fast, efficient, and accurate. Plus, not only can they interpret and answer questions more quickly, they can also spot and resolve potential problems before they turn into massive disruptors.
Better customer experiences
When you reach out to a company with a customer service issue, would you prefer to be helped by someone who hates their job or someone who feels empowered, happy, and engaged with their work? The answer is easy. In general, people want to create good experiences for good companies. The people who create the best customer experiences are those who feel valued and supported in their job. Plus, good culture attracts the best talent, meaning values-based outsourcing companies tend to offer better service quality and more invested teams. For the companies in need of outsourcing, this is huge. In fact, 61% of customers have reported they’ve switched brands due to poor customer service. You can’t afford disgruntled or disengaged customer service teams.
Better insights
An outsourced team member that’s barely getting minimum wage won’t be inspired enough to go above and beyond for your company (or your customers). But when they feel valued and encouraged to explore their passions, you’ll be surprised by how much creativity they can bring to the table. Just as important as accurately answering a customer’s question is capturing valuable insights including customer feedback, workflow improvements, and revenue opportunities. An unengaged employee solves a ticket and moves on. An empowered customer advocate spots trends that can save you time and money.
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It may be tempting to chase the lowest price, but a values-based outsourcing partner will deliver better service quality, better customer experiences, and better bottom lines.
[To share your insights with us, please write to sghosh@martechseries.com]