Why Will Outsourcing Customer Service Cost You Less Than Your Own Team?

Why Will Outsourcing Customer Service Cost You Less Than Your Own Team?

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Why Will Outsourcing Customer Service Cost You Less Than Your Own Team?

Why Will Outsourcing Customer Service Cost You Less Than Your Own Team

Before we give you the reasons and answer the question that you see in the topic of this article, let’s take a close look at what a customer service is and what you can expect from it. It can check and answer emails, chats, calls, website inquiries, Viber messages and so on. Moreover, support operators can do it day and night.

Can you imagine a group of people working in the office non-stop? Who will manage their activities round the clock or at night? If you think that you can solve any customer-related issue, imagine your business growing. When you have thousands of customers around the world, how will you deal with all of them?

Your best choice is cooperating with the outsourced call center companies. These people know their job, and they can do it masterfully. You do your business, make money and provide customers with your products. Moreover, the customer service gives you feedback on your products and solves all of the issues connected with them.

Outsourced Call Center Pricing

Business is all about making and spending money. If you spend it the right way, you will surely raise your income.

The final call center cost depends on many factors like:

  • The number of customers
  • The number of ways of communication
  • The working schedule of the customer service
  • The number of people engaged in the process
  • Other factors that can be negotiated

The amount of money that you will have to pay will vary from $5 to $30 per hour, and it can vary. However, it’s much more affordable than hiring a customer service team in your office. You will spend much time and money on the initial education and training while you will save money if you order outsourcing customer service.

The final call center rates are very flexible, and they depend on many factors. The easiest and fastest way to achieve your business goals is defining a monthly budget that you are ready to pay for the customer service. You order this service, and the process starts right in a moment. It’s expensive to rent a call center, so your path leads right to the outsourcing service.

No more tiring and exhausting interviews with the candidates for a new position. No more hired employees who just come and sleep at work. No more monotonous routine with checking the performance of the team. No more pain. You do your business, and the outsourced team does their job at a high level.

Components of the Call Center Outsourcing Cost

The costs of hiring an outsourced call center include:

  • Recruitment costs + payments;
  • Onboarding and training;
  • Software license purchase;
  • Performance monitoring software;
  • Analytical tools;
  • Payments to support agents;
  • Costs of administrative processes;
  • Office rent and hardware supply (depends on the call center). 

The costs also depend on whether the call center is available for your business needs, or a team of dedicated agents will be hired as per your business requirements? In the latter case, an additional preparation phase is needed for recruiters to hire skilled call center staff to work on your company.

This recruitment activity can take from two weeks to a month, and you will have to pay the recruiter for the time and number of call center agents hired. Also, outsourced call center costs may include administrative or other resources that are not available in the existing call center but required by your business.

Usually, companies need to spend up to two weeks on customer support training, guiding call center agents on the company’s vision, tone of voice, approach to responding to clients, and so on. So, to sum up, it may take one to two months for a call center to start working in a full mode.

How Many Support Agents Does Your Business Require?

Is there a way to identify how many customer support agents your business needs? The answer to this question mainly depends on the daily workload (emails, calls, chats) and the approximate duration of one conversation with the customers. 

Here is a basic formula: you need to take the number of contacts in your contact base and multiply this number by the average duration of a call, then add approx intervals between calls/chats to the received number. This will give you an approximate number of man-hours that you may expect.

Next, you need to divide this number by the workday duration to find out the needed number of support agents. If you plan to arrange 24/7 customer support, you will require more than one support team for covering all the hours, so consider this point, as well.

It’s worth noting that if you hire fewer support agents that will be able to deal with a workload greater than the calculated one, the wages of such employees will be higher compared to customer support representatives that work within the expected workload and don’t go the extra mile.

Also, such an analysis should be made separately for a shared and dedicated support team if you are considering both options. For instance, if you expect customer support to answer incoming calls only, it’s worth going with a shared support team that can engage in other projects while there are no incoming calls for your business. This way, you will be able to pay only for the actual work hours or even minutes.

Call Center Payment Offers

The costs of hiring an outsourced services provider are often influenced by charging for the real work time of the support agents who were taking or making calls. The pricing is usually rated per full hours of conversations over the phone or in chat, but there are companies that offer per-second or per-minute billing options. However, hour-based payments are the most common ones and are beneficial for both parties.

It’s important to note that an hour is not an abstract time spent by a person in the office but the hour of real work. Moreover, some call center outsourcing companies hire remotely-working customer support agents, thus, allowing businesses to cut on costs on office and administrative expenses.

Types of Pricing Structures

There are different types of pricing structures in an inbound environment. In the first scenario, a customer support agent makes work on calls for two to four different businesses. Such a shared environment works great for companies with a low workload. However, per-minute charges of such agents are usually higher than average, starting from 75-85 cents per minute.

Another option is a dedicated call center environment that includes longer onboarding, high-end programs, strategic approaches, etc. Support agents are then focused on your business only and provide more in-depth assistance to the customers. Dedicated teams are usually paid on the per hour basis, rarely per minute one.

Also, some outsourcing call center providers may offer a monthly charge, based on the workload and the number of support agents involved. It’s more common for foreign companies than the US ones.

And lastly, there are also outbound call centers that charge for the outbound hours, respectively. It’s also worth noting service providers that charge based on performance or earn from commissions. 

Why Should You Choose the Offshoring Call Centers?

Don’t worry about how people name this type of customer service. It’s all the same with one little difference. The team of people that will work for your business is located outside the territory of the U.S. The call center costs structure here includes the same points as the same team from the U.S. with the difference in price. The call center outsourcing cost is the major advantage of using it.

Other advantages are:

  • You don’t have to find enough space in your office for a group of people
  • You can hire people with various native languages
  • You can hire people from different countries around the world
  • You don’t have to manage their work

You buy the service, and you get the result. You don’t have to regulate every step of the service center as you would have to do in case you had your team. The offshore call center pricing usually starts from $3 or even $2 per hour with the same level of quality that you could get from hiring a team of the U.S. residents.

The offshoring call centers will help you deal with a little number of incoming calls and with non-stop conversations about any problems or questions about your product or service. The team can receive calls and make them depending on your goals and budget. If you have a limited sum of money, you can always find the right solution for you.

How Much Does It Cost to Hire Outsourced Call Center?

Before you set the budget for the customer service, you should define your marketing strategy. If you own a small company, you may need one or two people who will manage the calls from your clients. You will need more people working for your business when you grow and develop. The outsourcing customer service cost depends on the number of people involved and their schedule. You can decide to pay call center costs per call or per working hour of a team.

If you have a very specific business that requires prior education and training, you have a great benefit from hiring the outsourced specialist. If you want to make the outsourced call center pricing very low, you can order a service of a sharing agent. It means that one person will answer calls from time to time. It’s very helpful for small companies or the ones with a little budget.

Don’t think that you can cope with everything yourself. A proper delegation of duties together with optimizing the expenses will raise the customer loyalty towards your business. Focus on developing your ideas and let the outsourced customer service provide you with low price and great performance.

Maya Momotok

Written by Maya Momotok
CEO and cofounder of Wow24-7

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