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Customer Service BPO Companies; Benefits, Limitations And More

Varun R Kodnani - Flowace

Varun Kodnani

Co-Founder
Customer Service BPO

A customer service BPO (business processing outsourcer) is a company that handles incoming and outgoing customer communication for other businesses.”

The fact that customer experience (CX) is the critical factor behind the growth of any business cannot be denied. Business process outsourcing (BPO) leverages the “customer satisfaction” aspect to advertise its goods and services.

Customer service refers to handling real-time customer queries via various channels, like text, phone, email, chatbots, and social media.

21st-century customers are more likely to return or refer their friends and family to your company when they regularly have meaningful contact with your staff. Indeed, 80 % of consumers believe a company’s customer experience is as significant as its goods or services.

Therefore, staying relevant in business is crucial. So, let’s get you some insights on the BPO customer service companies, their pros and cons, and what to look for when choosing one.

How do Customer Service BPO Companies work?

How do Customer Service BPO Companies work

Customer service BPO works on an outsourcing model.

A customer service representative can provide customer support services on the company’s behalf, handle incoming and outgoing customer communication, and more.

Today’s businesses need an agile customer support system to stand out in the marketplace. Outsourcing customer care to a high-quality service provider can increase your productivity and scalability while enhancing your brand.

BPO customer service provides customer support on behalf of the company, handling their queries and problems. They offer specialized services like inquiry handling, technical assistance, phone answering, customer surveys, and medical answering services.

Hence, opting for a well-planned BPO customer support service can directly solve the in-house quandary.

BPOs can carry out numerous CX tasks and responsibilities, including:

  • BPO Call Centers: These BPOs function as call centres. Their support agents handle inbound calls to address customer questions and outbound calls related to telesales or market research.
  • IT Help Desks: BPOs assist with the technical side of customer service. They familiarize themselves with a company’s offerings and help customers with product issues or bugs.
  • Omnichannel Customer Service: Businesses often interact with customers via chat, email, and social media. BPOs ensure a connected and consistent communication experience across these channels.

Benefits of working with a Customer Service BPO

  • Enhanced Expertise & Efficiency
  • Streamlined Operations & Reduced Costs
  • Improved Customer Satisfaction & Increased Loyalty
  • Global Reach & Brand Recognition
  • Focus on Core Business Activities

Benefits of working with a Customer Service BPO

Outsourcing customer service to a group of external customer service representatives is known as customer service BPO. Although outsourcing your customer service offers many advantages, let’s focus on the top five.

Enhanced Expertise & Efficiency

BPOs provide access to pre-trained specialists, eliminating the need for extensive in-house training. According to a study by Deloitte, 59% of companies outsource to gain access to specialized skills.

This allows you to leverage a wider talent pool with diverse skill sets, improving agent efficiency in handling all aspects of customer service, including inbound calls, technical support, and outbound outreach.

Streamlined Operations & Reduced Costs

Outsourcing can reduce HR costs by up to 40%. Outsourcing customer service frees your HR team from recruitment, training, and performance management, allowing them to focus on strategic initiatives.

Besides, BPOs often manage their own infrastructure and technology, potentially leading to significant cost savings compared to setting up an in-house team.

Improved Customer Satisfaction & Increased Loyalty

72% of customers expect a quick response when they contact customer support.

BPOs can offer 24/7 coverage, ensuring prompt and consistent customer support regardless of location or time zone. Customers are more likely to be satisfied, churn is reduced, and brand loyalty is potentially increased.

Global Reach & Brand Recognition

Partnering with a BPO with a global presence can cater to diverse customer demands across different time zones. It can bring broader reach, enhance brand recognition, and foster stronger customer relationships on a larger scale.

Focus on Core Business Activities

By outsourcing non-core functions like customer service, you can free up your internal team to focus on core competencies, such as product development, marketing, or strategic planning. They allow businesses to maximize their team’s potential and thrive for growth.

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Limitations of working with customer service BPO

  • Providing additional training
  • Prioritizing security concerns
  • Cultural gap
  • Productivity concern

Customer support management demands particular diligence to address and resolve user issues quickly. Here are some concerning limitations that require attention in a customer service BPO.

Providing additional training

When you outsource customer service, the agents handling your queries may initially be unfamiliar with your business culture, values, and specific products or services.

You should provide company-specific training to ensure the outsourced team understands your offerings thoroughly. However, call center agents are typically trained to pick up these details quickly to provide seamless service.

Prioritizing security concerns

Outsourcing involves sharing confidential customer information with a third-party company. This can lead to security and privacy breaches.

Because digital data is accessible through shared networks, it is vulnerable to threats like phishing, hacking, and malware.

Thus, it is important to prioritize implementing company-wide security solutions such as firewalls and blocked IP addresses. Also, carefully screen the outsourcing provider to ensure they meet your security and data privacy standards.

Cultural gap

Outsourcing customer service to a different country may result in communication challenges and language barriers. Agents and customers may have different accents, leading to misunderstandings. Sometimes, a lack of cultural context might affect interactions.

Recent technological advances have improved global communication. Most outsourcing companies today, therefore, hire multilingual agents who can cater to diverse markets.

Productivity concern

When your customer service team is in a different physical space, you may worry about their productivity and performance. For example, suppose you pay your outsourced team by the hour, and they need a reasonable explanation to meet targets. In that case, you cannot verify their productivity during those hours.

If the problem is persistent, then Flowace.ai might be the solution. Monitor and optimize your outsourced team’s productivity by utilizing a time-tracking tool.

Flowace.ai comes with enhanced and comprehensive features like:

  • Automated time tracking, which ensures accurate monitoring of work hours.
  • It is easy to identify productive and idle hours.
  • The screenshot feature provides insight into agents’ desktop activity during work hours.
  • Easy compiling of comprehensive productivity reports on real-time insights into team performance.
  • Online attendance reduces biometric hassle.
  • Automated call, GPS tracking, and geo-fencing to discover necessary whereabouts and activities.

Flowace also offers various customized features to manage remote teams effectively.

Revolutionize productivity:

Boost by 31% using the innovative solution by Flowace!

Free Trial

What Should You Look for in a Customer Service BPO Provider?

There are several factors to look at while choosing the right customer service BPO provider. But, here are the key points to consider;

Inbound and Outbound Call Center Services

Assess your requirements for inbound and outbound call center services and ensure the provider offers both to accommodate your current and future needs.

Availability of Necessary Technology

Verify that the provider offers essential technologies such as IVR, omnichannel solutions, AI solutions, CRM software, and advanced data security measures tailored to your business requirements.

Dedicated and Shared Support Agents

Determine whether you need dedicated agents for specialized attention or shared agents for general customer service, or opt for a blended model to balance cost-effectiveness and personalized service.

Reporting Capabilities

Look for robust reporting capabilities that track KPIs and metrics like CSAT, AHT, and FCR to ensure high-quality customer support and measure performance effectively.

Revolutionize productivity:

Boost by 31% using the innovative solution by Flowace!

Free Trial

24*7 Agent Availability

Ensure the availability of agents. If your business operates across different time zones, prioritize providers offering 24/7 coverage to meet the needs of customers efficiently.

Business Continuity Plan

A business continuity plan helps mitigate risks associated with downtime in customer service BPO companies. Most importantly, it ensures uninterrupted service delivery even during unforeseen circumstances.

Cost-compatibility

Comparing the pricing structures and contract terms is a must. This ensures cost-effectiveness and flexibility, allowing for scaling service needs and adapting to changing business requirements.

Multilingual Customer Support

Having a multilingual agent base is necessary. If your business serves international customers, multilingual support is a must. It ensures the target linguistic and demographic variants, enhancing your global reach.

Agent’s Competency

Competency also means the agent’s knowledge and capability. The agents who understand the company, its products, and its services deliver better customer support.

Different Types of Call Centers

Different Types of Call Centers

Call centers look into various service needs, be they tailored or specific. However, understanding their unique strengths is essential for selecting the one for your business. So, here is the gist of 6 call center categories that you need to know:

Inbound and Outbound

Inbound call centers handle incoming calls, whether from existing or prospective customers seeking assistance. Their services may include order processing, issue resolution and assistance, help desk support, call forwarding, and more.

Outbound call centers specialize in business customer service. They primarily focus on sales, lead generation, customer outreach, and market research to expand a company’s reach and drive sales.

Automated

Automated call centers utilize computer-based systems to manage caller interactions. They streamline operations and reduce staffing needs. Some of their common applications include voicemail management, location assistance, and interactive voice response systems.

Multichannel and Omnichannel

The duty of a multichannel call center extends beyond phone calls. So, they handle customers using emails, faxes, and order fulfilment to cater to modern customer preferences and enhance service offerings.

Omnichannel centers integrate communication channels for seamless coordination. They personalize interactions across departments, improving customer experiences and outcomes.

Virtual

Virtual call centers utilize technology by permitting agents to work from home or remotely. This, in turn, reduces operational costs and offers more flexibility while facilitating outbound marketing efforts.

Eventuality of Customer Services BPO Companies

Businesses looking to boost productivity by outsourcing their support operations might benefit greatly from BPO customer service.

Customers today are more aware than ever in all industries. So, arming your support team with the right tools, techniques, and training can help you win them over and maximize their lifetime worth.

However, it also presents some obstacles that necessitate proactive and imaginative responses. Effective resolution of these issues would enable companies to guarantee client happiness and loyalty.

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