5 Most Costly Aspects of Building Customer Support

5 Most Costly Aspects of Building Customer Support

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5 Most Costly Aspects of Building Customer Support

how much is support service

5 Points that Influence the Cost of Support Services: How to Go about It

  • The 5 main points that cost most when building support services are payroll processes, onboarding, technology & office supplies, scalable solutions, and refresher training.
  • Below, you will find a detailed cost comparison of hiring an in-house support team in the US vs. outsourcing customer support to another country.
  • Outsourcing a customer support agent allows cutting costs on creating a support solution for a business in 6.9 times
  • The bigger the support team a company needs, the more cost-effective it is to outsource support services to a reliable provider.

 

At some stage of development and growth, every business identifies a need for building a support solution to address customer requests quickly and professionally, ensure customer satisfaction, and maintain a positive image of the company. 

But what aspects does a company need to note before, during, and after hiring support agents? For any business, the cost of building support services matters a lot, and it’s okay to seek advice on the subject.

Here are the 5 main things a company needs to take into account and the costs involved:

Resources needed

First of all, figure out how many customer support agents the business needs. If one support agent can deal with customer requests, that’s great. Or maybe you need a support team working 24/7/365. 

Resources cost (on average in the US)

  • $48,368 a year for 1 support agent + recruiting services at an additional cost
  • $100,000+ for a support team of 2+ members + recruiting services at an additional cost 

Onboarding & Training

Onboarding and training of the support team is a must. It is possible to either take care of it by yourself or hire a manager/ team lead for onboarding and systematic training. If there’s a support team needed and not one agent, it is worth hiring an experienced team lead to manage support resources. 

Training cost (on average in the US):

  • $3,761 a month / $45,134 a year for a customer support trainer
  • $64,994 a year for a customer support manager

Hardware/ Software / Office / Office Supplies

An in-house support team? They need an office. Obviously, it is also needed to supply support agents with computers, phones, internet access, software needed for work, etc. Don’t forget that a kitchen and office supplies are also necessities. All these, of course, come at an additional cost.

support outsourcing calculation

Then, one can hire a remote team, you may say. Awesome, this will allow for saving costs on the office rental. Still, you will inevitably spend money on software and internet access needed, as well as time-tracking apps and data security tools. Apart from the fact that it is more complicated to manage a remote support team compared to an in-house one, it costs some bucks, too.

Office rental cost (on average in the US): $4,194+ per employee per year

Technology costs (on average in the US): $1,750+ per employee per year

Office supplies (on average in the US): $200+ per employee annually

Scalability

Every business grows, and so the support team will do. Thus, there’s a need for planning a budget for scaling up. If it is a seasonal business, think about scaling up and down. Besides human resources, it includes office space optimization, additional hardware, software. 

If you already know that the company will need scalable support resources, build the support team accordingly from the very beginning.

Additional recruiting cost (on average in the US): 

  • $4,030 a month / $48,368 a year for plus one support agent
  • $8,060 a month / $100,000+ a year for 2+ support agents  
  • Improvements

When analyzing the performance of the in-house or remote support team, there will always be areas that need improvements. Refresher courses come at an additional cost. Still, investing in human capital is more profitable than recruiting and training a new worker.

Refresher training (on average in the US): 

  • $1,995+ for an online training session
  • $2,095+ for a classroom session

Total (on average in the US):

  • $60,068+ for hiring one support agent in-house
  • $114,380+ for hiring a support team of 2+ members in-house

In-House Vs. Outsourced Support Team

As you can see, hiring a support agent or team comes at a cost and a lot of effort. However, there’s a solution to all the worries, namely outsourcing support services to a reliable company. 

Here are the costs of hiring one customer support agent in-house vs. outsourcing them to another country with more affordable rates to compare:

Salary rates
Recruiting services
Onboarding & training
Office rental
Hardware & software
Refresher training
Total
In-house support agent
$48.368
0 if hire directly
$200 if through a staffing
agency
$3.761+
$4.194+
$1.750
$1.995+
$60.068+
Outsourced support agent
$6.670
Only industry-specific
software if needed
$1,995+
$8.665+
(6.9 times lower)
In-house support agent
Salary rates
Recruiting services
Onboarding & training
Office rental
Hardware & software
Refresher training
Total
$48.368
0 if hire directly $200 if through a staffing agency
$3.761+
$4.194+
$1.750
$1.995+
$60.068+
Outsourced support agent
Salary rates
Recruiting services
Onboarding & training
Office rental
Hardware & software
Refresher training
Total
$6.670
Only industry-specific software if needed
$1,995+
$8.665+
(6.9 times lower)

The bigger the support team a business needs, the more cost-effective it is to outsource support services to a reliable provider:

2 support agents
3 support agents (24/5)
5 support agents (24/7)
10 support agents (high load and scaling-up)
In-house support agent
$114.380+
$168.692+
$227.316+
$1.995+ training
Outsourced support agent
$15.335+
$22.005+
$35.345+
$68.695
In-house support agent
2 support agents
3 support agents (24/5)
5 support agents (24/7)
10 support agents (high load and scaling-up)
$114.380+
$168.692+
$227.316+
$1.995+ training
Outsourced support agent
2 support agents
3 support agents (24/5)
5 support agents (24/7)
10 support agents (high load and scaling-up)
$15.335+
$22.005+
$35.345+
$68.695

Therefore, whether a company needs a support agent working business hours or a customer care team available 24/7/365, it is definitely worth considering outsourcing support resources. 

 

Check Wow24-7 professional support services to get a customized support solution for your business!

 

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