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INDONESIA – KERJAINDO BALI Customer service is lifeblood of any company. There have been many studies and articles discussing how bad customer service could be the bane of any business. Customer who have dealt with bad customer services form your business will lose trust. So much so that an estimated 71-91% of customer with bad customer services experience wouldn’t return. Instead, 61% of those customers would take their needs and business to another company, very likely to be your competitor. So not only you’re losing business, your competitors are taking those businesses from you.

And it gets worse. A customer with bad customer services experience is likely to tell share this bad experience with 16 of their friends and acquaintances, giving you the reverse version of mouth-to-mouth advertisement. Compare that to 9 friends and acquaintances usually reached out by customer with positive customer services experience. So even with only 50% of your customer have a negative customer services experience, you’re looking at a negative seven people with good impression of your business and multiply that with the number of customers you have. In conclusion, bad customer service not only cause you to lose customer, it also give more customer to your competitors, allowing them to outpace you in developing your business, and also give negative mouth-to-mouth reviews, preventing new customer from reaching you out in the first place.

The importance of good customer services can’t be overstated. They are literally the face and voice of your company. Business owners, board members, CEOs, and managers don’t usually interact with day-to-day customers. They make policy with numbers and data collected by countless underlings and detached from the actual experiences of the customers they are serving. Customer services, however, are there to talk and listen to the customer’s woes and problems regarding your company. For all the customer care, the customer service person is your company.

However, for such an important part of the business, customer service is actually one of the most difficult department to run in-house. First difficulty would be the up-front investment. As like any outsourced customer services, in-house customer services have to be ready to invest in the equipment of call center. You should also hire the people to run those telephones, prepare the workspace for them to work in, and hiring management to manage this department for you. It means money and time, which is also money, that needs to be invested.

The difficulty actually lies on predicting the capacity in which you need to invest for this department. You have to predict the traffic this call center of an in-house customer service needs to handle. Invest to little and you’ll have an overly crowded call center traffic, which translate to longer holding time, overworked staffs, and bad customer service experiences by your customers. You, of course, don’t want this. However, if you invest too much, you will lose money with little to show for it. Instead you’ll have underworked staffs and underutilized equipment. You will also lose money on a regular basis for the upkeep of this department, money that you could have used to develop your core business.

Now let’s compare the case if you outsource this service for you, that is hiring a company specializing in customer service to do it for your company.

Save money from an up-front investment

Outsourced customer services usually charge on a per-call basis. It means you will have to pay only for the services you use. If your business has huge customer service traffic, you would not need to worry because these outsourcing companies usually have huge capacity and can easily take hundreds or thousands of calls at any given time. At the same time, you will eliminate the risk of over-investing as you will pay exactly the traffic your business would need, no more, no less.

Acquire top-notch skilled and experienced customer services

Not only you save funds that would have been used to invest in in-house customer services, human resources available at customer services outsourcing companies might very well be better than the ones trained in-house. Like any other job, especially ones that need communication skill, training and experience are of the most importance. These experienced and skilled human resource can be obtained by training and experience, both of which would require investment from the employer, which would be you if you run in-house customer services. If you outsource it, these investments would be made by the outsourcing companies, giving you ready-made highly skilled and experienced human resource with little to no up-front investment.

Dedicated customer service companies are also more likely to have better equipment and multilingual staff. Customer services being their core business, they have the incentive to invest in state-of-the-art equipment and hire a more diverse staff with different technical background and languages. This versatility in the language would be especially important if you have a diverse customer base, which would be the case if you operate in a tourist-heavy region such as Bali.

Focus on core business

At the same time, you could put that funds you saved from developing in-house customer service into use. You could invest those funds in your core business instead: invest in better equipment, more efficient production, staff training, or simply hire more people for understaffed departments. If you play your funds correctly, this increased investment would easily translate into better products for your customer. Now, not only they will be more pleased with the customer service experiences, but they would also be more satisfied with your products, the actual thing they are shopping for.

Steal your competitors market share

The better-skilled employee would also translate into another thing: better customer services and better customer experience. Remember those hazards of having bad customer service? Now that you have good customer service you can turn those hazards into advantages. With your customer service being better and offering better customer experience you could start stealing customers away from your competitors instead of having them stolen from you. And, as any sane business person would know, more customers mean more revenue. Ultimate win!

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