- Eng Tan
November 1, 2017

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How Much Does Quality Customer Service Cost? (Outsourced and In-house)

When it comes to customer service, big businesses seem to be the only ones enjoying outstanding cost performance.

As usual, small businesses are often stuck sacrificing quality service for low cost, and vice versa. Even though machine learning and artificial intelligence are making strides via chatbots and such, the human touch is still critical — especially for small businesses and their loyal customer bases.

Customer Service Costs (Outsourced and In-house)

How much are big companies currently paying to provide quality, around-the-clock customer service? Short answer: a lot less than what small businesses can swing. Fully-loaded customer service costs for small businesses can run $2–3 (per resolution) more than a large business.

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Obviously, large companies can achieve superior cost benchmarks because they’ve got scale on their side: Large investments, long-term outsourced contracts, and ample set up time always translate into drastically lower customer service costs.

A flawed delivery model

Luckily for small business owners, there’s a lot more to the story. A closer look at a typical big business’s customer service delivery model reveals major efficiency gaps — whether its in-house or outsourced:

  • The typical call center operation is highly labor intensive with over 70% of costs going towards paying customer service representatives and their supervisors.
  • Hourly employees spend good chunks of their time waiting for calls, taking breaks, and attending briefings. Inherent in this model is at least 30% inefficiency. Those companies are paying for “butts-in-seats” even when they aren’t working.
  • Training a large workforce can take up to 10 days or more. Trust us –there are speedier ways to train representatives, and the big companies haven’t discovered them yet.
  • Even after all that effort to onboard and train, most call centers experience about 37% attrition of reps within the first 6-months
  • Voice contacts are inefficient by nature. Skilled representatives can handle 2–3 live chats concurrently without compromising the customer experience. With a generational shift in customer expectations, more businesses are re-considering phone-based customer service in favor of more desired and efficient channels like live chat, SMS, direct messaging, and email.

So, is there a way for small businesses to bypass the messy constraints put forth by an inefficient model? Yes! Simplr offers a completely new customer service outsourcing solution designed exclusively for small businesses, letting you focus on what matters the most: what drives your business.

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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