Choosing to outsource your customer experience delivery to a Business Process Outsourcing (BPO) partner is a critical decision for any business. Get it right and your organization will enjoy significant improvements in efficiency, innovation and overall customer relations. But if you get it wrong, while you might realize some initial cost savings, there is no guarantee that your CX will continue to align with customer needs or continue to add value to your brand that drives satisfaction and loyalty.
And that’s why whether you’re contemplating outsourcing for the first time, as a means of supplementing existing operations, or are returning to the market to identify a new partner or access an innovation or CX capability, it’s essential to approach the process with comprehensive knowledge and careful planning.
Relinquishing the customer relationship
In essence, partnering with an outsourcer means entrusting another entity to deliver, manage and improve the individual elements that shape the relationship customers have with your brand. When the right partner is chosen, this strategy allows your organization to devote more energy and resources to optimizing core competencies, confident that the outsourcer is focused on its own core strengths. This should include deploying best practices, tools and solutions that enhance the customer experience.
Cost control
One well-known advantage of outsourcing is the ability to better predict and manage costs associated with customer service. Recruitment, training, and employee management can strain finances and in-house resources. By outsourcing customer service, businesses can scale operations according to real-time needs, resulting in improved cost control and allowing internal teams to concentrate on their primary responsibilities.
In addition to cost benefits, selecting the right BPO grants access to tools, solutions and best practices that may otherwise be unattainable. Whether these solutions are geared towards real-time capture and analysis of customer data, intelligent automation to reduce live contact volumes and enhance agent productivity, or integrating omnichannel capabilities to engage customers through their preferred channels, the outsourcing partnership can significantly elevate the customer experience.
Establishing a baseline
Before your organization can fully leverage these outsourcing advantages, it is crucial to understand the current state of your customer experience. This is critical in establishing a performance baseline against which a BPO’s efforts can be evaluated and is also integral to defining the objectives for the future CX strategy and, therefore, the ultimate goals of any outsourcing partnership.
Understanding performance
Conducting a comprehensive CX audit is the most effective way to obtain a precise view of the current state of in-house (or currently outsourced) operations. This audit should incorporate both quantitative insights — such as standard performance metrics like CSAT, NPS, AHT, and FCR, and their trends over the past six months — and qualitative data, including direct customer feedback captured through online reviews, focus groups or voice of the customer programs. Additionally, benchmarking findings against the CX performance of direct competitors and average CSAT and NPS scores within your industry ensures you have a clear perspective on where you stand.
Collaborative insights
While engaging directly with customers is vital, it is equally important to collaborate with internal stakeholders, particularly teams currently providing customer support. Their input can illuminate existing delivery challenges. Involving members from other departments, such as sales and marketing, contributes to a broader understanding of current performance and fosters alignment in defining objectives or agreeing on future strategies.
Defining objectives
Based on the results of the CX audit, each organization will have different challenges to overcome and different objectives to meet. However, the path to defining those objectives should be universal — by applying a proven methodology such as the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals framework. This will ensure that objectives are realistic, can be objectively measured and assessed, and achievable over the lifetime of the outsourcing partnership.
Selecting the right CX partner
Once your organization comprehensively understands its current CX performance levels, along with potential areas for improvement and agreed-upon objectives, you can use these insights to begin searching for potential delivery partners.
1. Reputation
Start by exploring the industry reputation of various BPO providers. This involves investigating their track records through client testimonials, case studies that demonstrate successful client partnerships, and any awards or certifications relevant to customer experience management that potential partners may possess. Recognitions from reputable industry bodies validate a BPO’s competence and indicate a commitment to maintaining high service standards.
2. Expertise
In conjunction with reputation, prioritize selecting a BPO with a strong and proven track record in customer experience design and delivery. A comprehensive evaluation should focus on their understanding of customer journey mapping as well as their ability to leverage technology, such as customer relationship management (CRM) systems and AI solutions. An effective BPO should be proficient in employing advanced technology to enhance communication and streamline processes.
3. Cultural fit
Cultural alignment between your organization and potential BPO partners is critical for a successful partnership. The ideal partner should embody similar values and customer service philosophies. This alignment creates a mutual understanding that enhances collaboration and promotes a more harmonious working relationship. Furthermore, the BPO must have a deep understanding of your brand identity and target audience, ensuring they can deliver experiences that resonate with your customers while maintaining brand consistency.
4. Communication
Transparency is essential, so assess how potential partners approach communication and relationship building. There should be designated points of contact to ensure seamless communication, complemented by regular check-ins and established processes for reporting performance, addressing issues, capturing feedback, and sharing insights with the relevant teams.
5. Technological capabilities
Ensure potential BPO partners possess robust data analytics capabilities. They should not only collect and manage customer data but also analyze it to derive actionable insights that can drive business improvements. Additionally, assess whether they demonstrate flexibility in adapting to new technologies. Given the rapid pace of innovation, your BPO should be prepared to evolve alongside technological advancements to maintain high-quality service. Finally, confirm that the BPO implements strong data management practices to safeguard sensitive customer information and comply with applicable regulations.
6. Scalability
It is vital to select a BPO that can scale operations in alignment with your business growth. Inquire about the capacity to manage increased workloads during peak seasons. A reliable BPO should have strategies and resources in place to respond to surges in demand effectively. Additionally, discuss their approaches to expanding into new markets or service offerings. A scalable BPO must support your growth initiatives without sacrificing quality, regardless of whether they involve launching new products, entering new geographical areas or deploying additional customer support channels.
7. Training and development
Understanding the onboarding and training procedures of your BPO partner is crucial for ensuring their staff can effectively represent your brand. Inquire about their structured training program for new hires, which should be comprehensive and aligned with your company’s goals. An effective BPO should provide tailored training on your products and services, ensuring customer service agents possess the necessary knowledge to offer accurate support.
8. Flexibility
Lastly, it is paramount to ensure that any potential BPO partner is both agile and flexible. As your business evolves, service requirements, budgets and even contract terms may need to change. Look for organizations that can adapt their offerings accordingly and are open to outcome-based engagements.
Outsourcing customer experience can fundamentally transform your business operations and drive efficiency and innovation while enhancing customer satisfaction. By meticulously selecting the right partner and strategically managing the relationship, you can unlock long-term growth and success.
Discover how leading brands are redefining CX in “The new customer care playbook” — your guide to delivering care that meets today’s customer expectations.