The Future of Customer Experience: How Outsourcing CX is Changing the Game
Updated November 2023 for the holiday selling season.
10 questions we’ll address in this article
What is customer experience?
What are the benefits of outsourcing customer experience?
What are some of the challenges of outsourcing customer experience?
How can outsourcing customer experience help businesses save money?
What are some of the best practices for outsourcing customer experience?
How can businesses improve their overall customer experience, regardless of inhouse versus outsourced?
What are some of the trends in customer experience management?
How will outsourcing customer experience change the way e-commerce businesses operate?
Getting Started: Why Outsourcing CX Makes Sense
In today's growing e-commerce based world, providing an excellent digitally enabled customer experience is more important than ever. Customers expect quick and efficient service, and they want to feel valued and appreciated.
Companies that don't meet these expectations risk losing business to their competitors. It's also critical e-commerce brands deliver on these expectations in a cost-efficient manner, to avoid any risk of declining profits. In fact, digitally enabled CX should include enough automation to both delight customers and reduce costs to your business at the same time.
One way that businesses are rising to meet this challenge is by outsourcing their customer experience management. Outsourcing customer experience, or CX, is the process of hiring a third-party company to handle customer interactions and support. This can include tasks such as answering phone calls, responding to emails, handling live chat sessions, and managing social media comments and direct messages.
There are several benefits to outsourcing customer experience, including cost savings, improved efficiency, and access to specialized expertise. Here are just a few of the ways that outsourcing is changing the game for e-commerce customer experience:
CX Cost Savings
Outsourcing customer experience can be more cost-effective than hiring an in-house team. When a company hires an in-house team to handle customer interactions, they are responsible for paying for the team's salaries, benefits, and training. This can be a significant expense, especially for small businesses.
On the other hand, outsourcing customer experience allows businesses to pay only for the services they need. They can choose the number of agents they need, the hours of operation, and the specific services they require. This flexibility allows businesses to control their costs and save money. Additionally, outsourced customer experience teams often have lower overhead costs, which can result in even more savings for the business.
Another way outsourcing can save cost is by reducing the need for businesses to invest in customer service technology. Outsourced teams often have access to the latest customer service technologies, such as AI-powered chatbots, which can significantly improve the customer experience. This means that businesses don't have to invest in these technologies themselves, saving them a considerable amount of money.
In summary, outsourcing customer experience can lead to cost savings for businesses by giving them more control over their expenses and reducing the need for them to invest in customer service technologies. By outsourcing, companies can focus on their core competencies while providing excellent customer service at the same time.
CX Efficiency
Outsourced customer experience teams are typically highly trained and experienced in handling customer interactions. This means they can provide faster and more efficient service than an in-house team.
An outsourced team is typically focused on providing customer service, this is their core competency and they have a better understanding of the best practices and tools to provide efficient service. They have the right tools, technology, and processes in place to handle customer queries and complaints in a timely and efficient manner.
Additionally, outsourced customer experience teams often operate 24/7, which means that customers can receive assistance at any time. This can be especially valuable for businesses that operate in multiple time zones or have customers from around the world. It also means that the business can handle higher volume of customer interactions, and can respond to the customer needs more quickly.
In summary, outsourcing customer experience can lead to improved efficiency for businesses. Outsourced teams are typically highly trained and experienced in handling customer interactions, they have the right tools, technology and processes in place to provide efficient service, they operate 24/7 and can handle a high volume of customer interactions. This can result in faster response times and improved customer satisfaction.
Specialized CX Expertise
Outsourced customer experience teams often have specialized knowledge in specific industries or areas of customer service. This can be especially valuable for businesses that have unique customer service needs.
Outsourced cx teams have experience working with multiple clients across different industries, which means they have acquired a wealth of knowledge and expertise in a range of areas. They have a better understanding of the challenges and best practices specific to different industries and can bring that expertise to your business. This can help businesses to improve the customer experience and increase customer satisfaction.
For example, an outsourced customer experience team that specializes in the consumer electronics industry will have a deep understanding of the specific customer service needs and pain points of high tech hardware products. You won't waste time training agents on what a firmware update is or how to conduct a proper technical troubleshooting workflow. In this example, your agents will be able to provide tailored solutions that address these needs and help the business to improve the customer experience.
Furthermore, outsourced customer experience teams often have specialized knowledge in areas such as multilingual support, social media management, and analytics. This means that businesses can access expertise in these areas without having to hire additional in-house staff.
In summary, outsourcing customer experience can provide businesses with access to specialized expertise. Outsourced CX teams have experience working with multiple clients across different industries and have a wealth of knowledge and expertise in a range of areas. This can help businesses to improve the customer experience and increase customer satisfaction.
CX Flexibility
Outsourcing customer experience can provide businesses with flexibility. Outsourced cx teams can be easily scaled up or down depending on the needs of the business. This allows companies to quickly respond to changes in customer demand.
For example, if a business experiences a sudden increase in customer demand, an outsourced customer experience team can quickly add additional agents to handle the increased volume of customer interactions. This allows the business to continue providing excellent customer service without missing a beat. On the other hand, if a business experiences a decrease in customer demand, an outsourced team can reduce the number of agents and save the business money.
Additionally, Outsourced customer experience teams can handle a wide range of customer interactions, such as phone calls, email, and social media. This "omnichannel support" model allows you to meet your customers in the channels they prefer. Reducing this friction can drastically improve CX outcomes and drive objectively higher CSAT metrics. This also allows e-commerce businesses to choose the specific services they need, and can change their needs as their business evolves.
Access to New CX Technologies
Outsourcing customer experience can provide businesses with access to newer and better technologies. For example, outsourced CX teams often have access to the latest customer service technologies such as AI-powered chatbots, which can significantly improve the customer experience. Proactive outreach in certain event-driven situations can also be automated and drive higher levels of customer engagement and satisfaction.
Additionally, outsourced customer experience teams often have access to other advanced technologies such as automation, speech recognition, and sentiment analysis. These technologies can be used to analyze customer interactions and provide businesses with valuable insights into customer behavior and preferences.
These digitally enabled CX initiatives can free up human customer service representatives to handle more complex interactions, resulting in more efficient service. This can help e-commerce brands improve their customer service, increase customer satisfaction, and drive higher profits.
Parting Thoughts
Outsourcing customer experience is a strategic move that can benefit e-commerce companies of all sizes. It allows e-comm brands to focus on their core competencies while providing excellent customer service at the same time. As the customer experience becomes an increasingly important differentiator, we can expect to see more companies outsourcing this function in the future.
To learn more about Rush Order’s outsourced CX solutions, please contact us. Consultations are always free. We also invite you to keep up to speed with tips, tricks, and best practices in the evolving CX landscape by joining our monthly newsletter.