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- Julia Luce
June 19, 2020

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Enterprise CFOs: How to Reduce The Costs of Customer Service Training and Onboarding

Training and onboarding of customer service and customer experience staff can be costly and time-consuming. When you add the unpredictability of a pandemic, the financial risks of overstaffing and turnover are even greater. 

As more businesses cut fixed costs wherever possible, especially with CS, it presents challenging questions. Can you reduce customer service costs without sacrificing the quality of your customer’s experience? And would the cost savings be offset by a potential negative impact on brand loyalty and revenue? 

The Cost of Customer Service Training and Onboarding

Annually, onboarding costs alone can cost upwards of $40,000 (or $400 per employee) for the average small to medium business that onboards 100 new employees each year. This number doesn’t even broach the average cost per hire after taking recruitment and training costs into consideration. Glassdoor pegged the average cost per hire for U.S. employers at $4,000 once recruitment, onboarding, and training are all said and done. 

The worst part? Investing in new employees doesn’t always pay off. The Work Institute predicted that in 2020, 47 million people, or 1 in 3 workers, would voluntarily quit their jobs. The conservative estimate cost of losing an employee in the U.S. today is $15,000. 

Turnover rates have consistently trended upward since 2010 (especially in customer service and call center type roles) and the costs associated with voluntary employee turnover has nearly doubled. Based on the current trend, turnover costs could hit $800 billion by 2023. 

“Employers compensate for turnover by adding expenses, further compromising profit and growth.” - The Work Institute


customer service voluntary turnover costs blue-1

Credit: The Work Institute

In an environment where the risk of cost and revenue mismatch is at an all-time high, cutting unnecessary expenses is quite important.  

The Power of Good Customer Experiences

Given the almost impossible task of forecasting revenues in this environment, companies are reducing fixed cost wherever possible, especially with their customer service teams. But what’s the “right” amount of cost reduction? How long will the downturn last, and by cutting cost to the bone will it harm customer retention efforts and further reduce revenue?

Digital experiences and the responses customers receive are more critical than ever before. Today’s customers expect speed, empathy, and precision in every single digital interaction they have with your company... no matter the channel, no matter the time of day. And whether it’s a question, or whether it’s a comment. It’s been shown that a moderate increase in customer experience generates an average revenue increase of $823 million over three years for a company with $1 billion in annual revenue. 

on-site conversions blue chart cx

Improving customer experiences doesn’t just drive brand loyalty and awareness, it’s a proven method of driving revenue for your business. Loyal customers are created by exemplary online service and customer support delivered with speed, empathy, and precision. Creating and retaining loyal customers is incredibly beneficial for a multitude of reasons:

  • Increasing customer retention rates by 5% increases profits anywhere from 25% to 95%.
  • It’s 5 to 25 times more expensive to acquire a new customer than it is to keep an existing one.
  • U.S. consumers are willing to spend 17% more to do business with companies that deliver excellent service.

Today’s statistics underscore just how important customer experience and customer satisfaction really is. 


Scalable CX That Moves With Your Revenue Line

Cutting costs with customer support shouldn’t mean you sacrifice the quality of experiences your company can deliver. What you want is a CS cost that moves perfectly with your revenue line-- however unpredictable that line will be. That’s why we built Simplr’s flexible, variable customer service outsourcing solution–so you only pay for what you need without the overhead.

Simplr partners with many large consumer brands with high standards for brand tone and voice and we’re proud that we deliver high-quality service.

“The cost for us to get started with Simplr was nothing, and that was a very big shock. It was like we saved money... we always know where we stand every month and how much it costs. That’s a great product to us.” - Peggy Baker, Consumer Experience Lead, ‘47

Simplr’s pricing structure is completely transparent—with no startup costs or hidden fees, long-term cost commitments, or downtime expenses. 

Our network of on-demand, U.S. based specialists ensure you’re perfectly staffed and can answer every customer question with speed, empathy, and precision.

as seen on forbes


About Simplr

Simplr was incubated and funded by Asurion, the largest technology protection and support provider in the world. Serving more than 300 million customers today, Asurion gives Simplr the secure financial backing and access to a broad range of customer service capabilities developed over its 23-year old heritage of customer experience excellence. Where enterprise-level solutions are costly and restrictive, Simplr can provide world-class customer support tailored specifically to the needs (and budgets) of high growth startups.


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