Customer Service Outsourcing: Is It Important For SMEs?

Customer Service Outsourcing: Is It Important For SMEs?

Customer Service Outsourcing: Is It Important For SMEs?

The Importance of Customer Service Outsourcing for SMEs

There are a lot of advantages when going for customer service outsourcing. Several big corporations rely a lot on BPO companies. They made a great fortune out of the contact support service.


But, is it the same outcome for small and medium enterprises? Unlike the Fortune 500, most of the SMEs don’t have the luxury to spend much for their customer service. They’d rather take a risk in improving their product than outsourcing. After all, they are not expecting too much customer service inquiries.


With this in mind, let us take a look at the importance of outsourcing customer service for SMEs. We will run by some numbers to support the benefits of the service.

Why Should You Go For Outsourced Customer Support Services

Before diving down with the actual benefits, you should set your expectations first. For starters, not all customer support services are equal. Of course, every successful customer service operation depends on different aspects


One thing to consider is the quality of your customer service representatives (CSR). It doesn’t matter if you have a lot of CSR in your arsenal. A lousy contact support team will pull your business down.


Furthermore, a great BPO company will add more leverage for your business. There are only a few BPO companies for SMEs. Majority of call centers focus on large corporations. You must look for a third-party service provider that will help you in business development.


Assuming that you found the best third-party service provider for your start-up business, here are some of the benefits that you can get:

Product Retention

A customer who knows your product is easier to convince than introducing it to a new prospect. 67% of global customers will be more likely to buy from you again if you have great customer service. This is a perfect opportunity if you want to gain more profit. Moreover, you will have sure buyers in the future should decide to launch more products.


Repeat customers are also cheaper to maintain than doing a lead generation campaign. The customer acquisition costs (CAC) is more expensive if you don’t have an existing customer service team. All in all, customer support will save you more money while gaining profit.

Your Reputation is at Stake

When starting a business, the first thing you have to do is to build your reputation. This will help you get more customers and recommendations. Customer service plays a critical part in creating a good product branding for your business. According to a study, you can easily convince 73% of your customers to buy your product if you have good branding.


However, creating a good reputation for your business is a difficult task. You need to back it up with an excellent customer service team. Bad customer service will negatively affect your operation. Make sure to get a BPO company with skilled call center agents.

First Impression Lasts

Maintaining your reputation is one thing. However, setting the customers’ expectations for your product is another task. It is important to make a good first impression to your new customer. This will help you gain more customers and more sales. 


Besides that, a customer’s intuition towards a product is a driving force for them to purchase it. An excellent customer service will greatly boost the marketability of your business. The BPO industry will likely improve your business model. On top of that, some of them have personnel to help you fully utilize your operations.

The Power of Recommendation

A lot of businesses’ popularity are due to word of mouth. They will most likely recommend you if they feel that your product is exceptional. In fact, 77% of people would likely share their good experience with your company to their close friends. That is a lot of additional customers especially for a start-up business.


One key factor for customers’ satisfaction is excellent customer service. Your ability to solve your client’s issue is a commendable attribute for your business. They will remember your effort and put a good word for your service. On top of that, they care about their loved one so they only recommend the best product they know.

Brand Loyalty

If you have a solid customer service then brand loyalty is just easy to achieve. If they experience a great customer service then they will trust your company to do this every time. It says a lot especially with the tons of other products available in the market. Brand loyalists are important for SMEs as they are just starting to build their brand to the public.


You need to invest a lot of effort to achieve your customers’ loyalty towards your brand. Good thing there are a lot of BPO companies that will help you to achieve it. Call center agents undergo training to carefully analyze every customers’ needs. Your customer will surely appreciate this kind of effort to personalize your service.

Customers Are Willing To Pay More

Sure customer service outsourcing is an additional expense for your start-up business. However, what’s a little sacrifice if a great result is a guarantee. When you outsource, you will improve the status of your business as a trustworthy company. This will bring you more customers and eventually more profit.


Aside from more customers, it is also good for your future marketing campaigns. A loyal customer patiently waits with every improvement you can do with your product. Even if it means they’ll have to pay you more. In fact, half of your customers are willing to spend 31% more if you have great customer service.

CSRs Can Give More Insights Base on Interacting with Customers

You need to listen to your customers’ request to improve your service. However, you can’t do it on your own. That is why it is important that you have a team of contact support. They will give you feedback about your customer’s FAQs and issues. That way, you can improve your product and your customer will remain faithful to your product.


BPO companies can give you reports about your customer service operations. They can analyze the situation and give you suggestions on what you can do next. It is very efficient especially if you are running a small business. You no longer need to hire additional people to analyze and give recommendations for your company.

Proactive Customer Service is a Great Marketing Campaign

Aside from inbound customer service, outbound call center is also an effective contact support. Your consumers will appreciate your effort to proactively contact them. Reactive customer service can only do so much. If you want additional customer satisfaction then you should try proactive customer service.


In addition, you save tons of time in resolving future issues using outbound client support. Some customers don’t have time to call your business to discuss their issue. They will just look for another company that will satisfy their needs. You can avoid it by calling them to ask about their product experience.

Fierce Competition Means Higher Expectations from Customers

This is another example of how important brand loyalty is. There is always a new company who will try to compete with yours. Some of them might have a better product than you have. They might have a very convincing marketing campaign. However, your customer will remain with your product because of familiarity.


Customer service will get your customer familiar with your product too. On top of that, customer’s comparison of products goes beyond the quality of the item. They are also considering the after sales service. Some don’t want to risk going to another business and risk the convenience that they experience from your customer service.

Omni-Channel is the New Trend

This is a simple premise, you have to follow where your customer is going. It is not enough that you have a physical store or you’re active on your own website. You need to make more effort and create pages in every platform available. Otherwise, your visibility is only limited and customers might not prioritize you.


Omni-channel is the new strategy for businesses to get recognized. If your company is “searchable” on many websites then your customer can get as much information as possible. Additionally, omni-channel customer service will instantly answer all your prospects’ inquiries about your product. It is easier to convert them into sales.


Industries Using Customer Care Outsourcing

If you are still not sure whether you need to outsource your start-up business, here are some of the usual industries offshoring:


  • Healthcare
  • Legal Firms
  • Real Estate
  • Insurance Companies
  • Retail Businesses
  • eCommerce Sector
  • Information Technology/Web Developers
  • Back-Office Service
  • Travel Agencies
  • Telecom Companies
  • Education Processes


These sectors usually have a need for customer service. However, since they are a start-up business and can’t create an in-house team they are relying on BPO companies. It is far more affordable and more convenient. You can focus on more pressing matters like business development and possible expansion.


Customer Support Outsourcing in the Philippines for SMEs

Your customers deserve the best customer service available. If you are an SMEs owner looking customer service outsourcing then try Magellan Solutions. 


We have 17+ years of BPO experience with more than 100 clients all over the world. Our mission is to help SMEs to grow their business. We have a full force Implementation Managers to assist you with your development. 


They can help you in setting up your key performance indicators (KPI). KPIs will help you monitor the progress of your business with us.


We also offer guaranteed flexible pricing options based. Magellan Solutions understands that start-up business need has limited funds in outsourcing services.


Our security is also world class because of different standard certifications. Magellan Solutions also has an ISO/IEC 27001:2013 Certification. It ensures your company’s sensitive data is safe in our system. Our expert team provides security measures against phishing and data breach.


Contact us today and get a free 60-minute business consultation. Please fill out the contact form below.


Contact us today for more information.