In our day-to-day lives, most of us as consumers have had exposure in some degree to outsourced customer support. Whilst most certainly our experiences with outsourced customer support differs, there is a strongly resounding consensus that a positive customer experience plays a primary role in increasing customer engagement, upping conversions, and developing brand loyalty (all of which is supported by research and data).
Before we get into the reasons why you should consider outsourcing your customer support to the Philippines, let's first take a look at some data driven insights on the importance of a good customer support function (for all businesses).
Customer Acquisition Cost ('CAC')
CAC is a financial metric that identifies the cost to your business of acquiring a customer. How do you calculate CAC? Simply put, you define a measurement period (eg. financial year), you pool all your costs associated with winning customers (i.e. marketing spend, sales costs etc.) and then divide that dollar amount by the total number of new customers you acquired during that same period. You will then be left with a dollar figure equal to the cost of acquiring every new customer.
In data provided by marketing and advertising agency, Invesp, the majority of businesses place a greater emphasis on acquiring new customers than retaining existing ones (44% vs.18%). This is despite the fact that it costs a whopping five times more to win a customer than it does to ensure you keep an existing one (also known as retention)!
It costs your business five times more to win a customer, than it does to retain an existing one.
Price Premium
Who would of thought? Customers will pay more for a product or service when they receive a better level of customer support. In fact, according to Truelist, as many as 86% of customers would pay more for a better service. More specifically, happy and engaged customers are responsible for more than 2.5X the revenue for businesses than those customers who are only somewhat satisfied.
Customers buy and pay more for better service.
Brand Image and Reputation
Who doesn't want their business and brand to have a great image in the minds of customers? The level and quality of customer support you provide to your customers is a key pillar in building a positive brand image and reputation and understanding the connection between building loyalty and how you manage your customers through every touch point is critical.
What are the leading factors that consumers identify with a positive customer support experience? According to Zendesk , the top four metrics that consumers identify as being most important to their experience with a brand are:
In the same report, Zendesk identify that 3 out of 5 consumers respond that good customer support and service is required to feel commitment toward a brand.
Good experiences are the fuel for customer loyalty, bad experiences drain the tank.
How can working with Platinum Outsourcing help provide your customers better support and enhance their experience with your business?
We have listed and expanded upon some common ways outsourcing your customer support to the Philippines can improve the customer experience.
Add Additional Customer Support Channels
Customers want support at their finger tips. Gone are the days where customers will happily wait for minutes in long phone queues for minutes to get support or resolve their enquiry. Additional customer support channels (such as live chat) give your customers access to real time support. And, with 79% of customers indicating that live chat is their preferred method of receiving support, if your business is lacking this support channel, you are missing a key opportunity to improve your level of customer support.
Remember - real time customer support is not only important for your existing customers, but arguably, more important for potential customers who may be in the midst of making a purchasing decision (prior to checkout as an example). Customers are three times more likely to make a purchase from you when interacting with a live chat support agent, yet according to Capterra, only a third of businesses in Australia are currently leveraging live chat as a customer support channel!
Give your business a competitive advantage! Provide a higher level of customer support in real time, drive improved revenue through higher conversions and deliver an all round better experience for your customers by leveraging offshore and outsourced customer support teams.
Additional Customer Support Resources
Adding more customer facing resources gives your customers access to a greater level of support. Outsourcing gives you full control of your resourcing levels and minimises risk - we do not lock you into long term agreements. During times when margins are being squeezed, and CAC is rising, leveraging a partnership with a trusted BPO provider will allow you to maintain an appropriate level of customer support resourcing without the damage to your P&L that comes with onshore hiring.
Platinum Outsourcing gives you access to trained, qualified, full time (and dedicated) customer support resources via our modern offices here in Metro Manila.
Increase Customer Support Hours of Availability
Platinum Outsourcing operates 24 hours a day, 7 days a week. Your business can increase its hours of customer support availability without the need for additional investment in keeping your onshore facilities open for longer. Additionally, you avoid paying employee overtime or risking the burn out of your onshore customer facing teams by having them working longer hours.
Customer support outsourcing is a tried, tested and proven strategy for both improving the customer experience and saving money. Our customers are currently realising savings of 70% vs. onshore employment and associated costs.
Outsourcing your customer support improves the customer experience and saves you money.
Larger Talent Pool
The talent pool in the Philippines is enormous, and it has a long and storied history as the premier outsourcing location in world. This is why some of the most recognisable brands in the world (such as Microsoft and Amazon) are currently leveraging teams here. Nearly 750,000 Filipinos complete a university degree every year, so that they are prepped and ready to enter the workforce. This means that the Philippines has more than 45 million trained and qualified people able and ready to work for your business right now.
We love nothing more than chatting with Australian companies about how we are improving the customer experience for our partners, as well as saving them money. You can reach out to us here via our contact form or email info@platinumoutsourcing.com.au for further information or to setup a time to chat.
