Outsourcing Customer Services: Advantages and Disadvantages of CRM

Outsourcing Customer Services: Advantages and Disadvantages of CRM


Outsourcing Customer Services: Advantages and Disadvantages of CRM

Outsourcing Customer Services: Advantages and Disadvantages of CRM

10 Pros and Cons of CRM Outsourcing Customer Services for Your Company

Previous year shows that overall customer relationship management (CRM) usage increased up to 74%, showing an 18% growth annually. Almost 90% of corporations with more than 10 workers on board are actively using CRM nowadays.

Almost 75% of these businesses report that CRM tools have significantly improved access to client information, and, as a result, helped to expand and retain the customer base. In its turn, more than half of those respondents admitted the significant role of outsourcing customer services to improve CRM.

These statistics alone should be enough to try the CRM approach to developing business. A customer is always the heart, but many companies set their priorities in the wrong way. Sometimes, hiring an external expert may solve issues with costs and resources as well as improve customer relationship management. CRM, in its turn, assists with controlling and maintaining sales.

The goal of this article is to list the advantages and disadvantages of implementing CRM for your business. After analyzing it, you can decide whether you would benefit from this practice or not.

Outsourcing Customer Services: Advantages and Disadvantages of CRM

Brief Facts about Customer Relationship Management

Before we move to the arguments for and against, we should answer the question, “What does CRM stand for in business?” This term stands for the computer software developed to compile client data (e.g., contact info, preferences, industry, website) from different sources and store only those pieces related to your business in one location so that it is easy to access and analyze at any time. Such an approach helps to improve customer retention rates.

By outsourcing CRM, you obtain only benefits in most cases. Indeed, many companies are out there, claiming that their services are the best. Based on the feedback of small businesses and start-ups, during the last few years, some of the outsourcing customer services have shown their best in terms of CRM and client support. If you have not tried CRM solutions before, it is better to hire external experts than take all the risks on your own. Anyway, have a look at the pros and cons of such solutions first.

The Benefits of Using CRM for Support


We would like to start by listing the advantages of using outsourced customer support. They are more obvious than cons. In any case, a proper CRM allows generating sales and expanding customer base. You should be well informed about the various types of customer relationship management to make the right choice. Here are the reasons to pick CRM for your business.

  • Auto data entry.

CRM outsourcing solutions include automatic data entry. Entering big amounts of data manually can be both time-consuming and tiring. While having other core business activities, it makes no sense to waste valuable resources on secondary tasks like this. One that can be delegated to outsourced staff — a great variety of top-of-field CRMs developed from existing on the web today. Instead of research and data monitoring, you may dedicate more time to selling.

  • Increased profitability.

Right, custom Relationship management costs money. You will need special tools and labor. However, CRM is directed on boosting revenue. If you outsource CRM specialists, you save money on both labor and resources. Equipment and tools then become the responsibility of the chosen outsourcing agency. According to the official statistics, for each dollar invested in this type of management, a company can gain something around $5-6 RoI.

  • Hurray for automation.

Not only the data entry process can be automated through implementing CRM and support outsourcing. Almost every secondary task and even some core activities can be automated. It will help to generate greater revenues during a shorter period. For example, one can log phone calls, save message templates, respond to emails, schedule meetings, and special events, and do more automatically. What is more important, the team then can auto-prioritize leads.

  • Opportunity to scale.

The fact remains the same: customer relationship management is scalable. Along with business development, CRM increases as well. The customer base keeps on expanding when implementing CRM. While in the game, this approach allows for adding new users/customers and opportunities.

  • Improved collaboration.

So, you have used customer relationship management to have client info stored in one place. Now, it is way simpler to keep in touch and up-to-date with everything going on in your company. Moreover, businesses may save various marketing data in a single library. It makes it possible to enable sales through quality content.

  • Effective dashboard streamlines sales.

One more reason to think about the best CRM for SAAS companies the boosted sales activities. Customer relationship management makes it possible to organize and monitor the order in which data shows up. The system will prioritize the information necessary for your business. It will also point to the role of sales representative in processing that data. CRM makes many assignments simpler and quicker to accomplish thanks to reports, dashboards, and more. In other words, CRM assists both sales reps and managers.

  • The faster conversion process.

Companies who deal with e-Commerce especially benefit from this one. Nowadays, most of the clients prefer gathering as much information as possible about the company before becoming its customer. With the help of customer relationship management solutions, the process of such research becomes easier. As a result, when the time comes to contact the sales rep, a client possesses already 90% of the necessary info to make a final decision.

The pros of CRM for support are time-proven. More and more businesses benefit from using various types of approach. Still, there are always two sides of a coin.

Outsourcing Customer Services: Advantages and Disadvantages of CRM

Cons of Implementing CRM Solutions

The importance of CRM in sales has no doubt, but there are some things that a business should be aware of before selecting the right approach and implementing it. If you know these obstacles, you will not fall into the trap.

  • Replaces the human element.

As the activities become automatic, the demand for human labor goes down. It is bad for overall economics, but it is good for the company itself. Besides, people are still needed to manage the data. The lack of personalized help might be a problem, though.

  • Tech support dominates.

It is possible to recruit experts to handle the apps and basic programs or get outsourced support. Obtaining third-party support may come at a higher price than you’ve expected. Some businesses tend to ignore the ongoing support expenses, but, in most cases, such investments are covered pretty fast.

  • Security problems.

You should not worry much about this point, but it is still better to be warned. The info stored at a centralized location may create a certain risk for a company. One thing that may happen is a worker who will add inaccurate data. When the database obtains all the power, there are some threats to pop out. However, if you deal with an outsourced company, it will guarantee encryption safeguards and take care of the safety in general. Just make sure the service offers reliable supervision systems and covers its costs.

Why Choose the Best CRM for Small Business

Some may say that other disadvantages include the necessity to go through a learning curve, potential loss of data, and some other pitfalls. That is why one should better find the best CRM for small business. If you pay to the outsourcing agency to create a team of CRM experts for you, you automatically avoid most of the cons mentioned above.


Maya Momotok

Reviewed by Maya Momotok
CEO and cofounder of Wow24-7

1 Star2 Stars3 Stars4 Stars5 Stars
(1 votes, average: 5.00 out of 5)
Get in touch We can solve problems
Subscribe To Blog Updates
Thank You!

More questions? We have answers!

Get in touch with our consultant today!