What is Customer Experience?
What is customer experience?Customer experience (CX) is often defined as the overall interaction of the customer and organization for a certain period of time. This interaction constitutes the following: customer involvement, customer journey, and the environment.
Having a positive review on each point of contact means that the customer experience is pleasant.
Customers’ involvement may range from emotions, whether rational or irrational, to physical needs, or psychological needs. Moreover, it can extend from the simple act of talking with customers up to the product packaging, features, reliability, and affordability.
Overall, a positive customer experience is an excellent competitive edge that your company should provide in order to stay competent and successful in the market.
Why is customer experience important?Providing an excellent customer experience is important for any business. The better CX you deliver, the more customers you will gain and retain.
Additionally, service representatives would have to deal with lesser customer complaints and product returns.
A company with a great CX is projected to earn:
More loyal customers
Increased customer satisfaction Positive reviews and recommendations Customer experience outsourcingOutsource Accelerator provides you with information about what to look for in outsourcing companies that can help you create a platform that encourages a positive customer experience.
It is important to work with someone who can help your customers have a memorable journey with you, which is essential in achieving customer loyalty. After all, customer loyalty is the foundation of brand recognition and credibility in the market.
Outsourcing helps you work with professionals who are well-versed with the right skills and experience to implement customer service strategies that work.
What is Customer Churn?
What is customer churn?Customer churn refers to the cessation of the customer’s relationship with the company. Companies determine customer churns upon establishing a predetermined time wherein the customer should re-engage with the company but did not.
Online businesses encounter many customer churns, which are evident in decline in the number of site visits and the purchase of services.
In combating customer churn, businesses should take care of their customers through proactive communication, constant updates, and friendly representatives who can always provide a positive customer experience. Having the best methods to build a long-standing relationship is more comfortable with the right people helping you.
Outsourcing can help you work with competent people in this area while focusing on innovation and growing your business.
Why does customer churn happen?There are a lot of reasons why customer churn happens. Here are some specific reasons and how you can prevent it.
You're not attracting the right customersFrom the very beginning, your marketing team should target the right prospect. Attracting the wrong people will turn into customer churn. When consumers learn that your product doesn't meet their needs, they'll probably move to a competitor.
Detailed and well-planned strategy implementation is vital to attract the right customers. Also, your products and services must fit their needs.
Customers believe that your competitors are more reliableNo matter how good your products are, if buyers don't think it's the best fit for their needs, there's no point in producing them. This is primarily the problem of new small businesses.
Provide excellent service to your customers. Customer service is one of the most effective ways for businesses to build trust and confidence.
Your buyers doubt your pricingMost customers depend on pricing. Customers tend to leave if they find your product too expensive. But it is not always about “which is more affordable” because some customers might also doubt if your pricing is too low.
For example, if customers think your product is too expensive, they're more inclined to go with a lower-cost competitor.
On the other hand, a customer may doubt your ability to solve their problem if they believe your solution is too cheap for the value you're providing.
Failure to provide customer assistanceCustomer service is not only a small part of customer success. It is important to note that customer success demands more proactive assistance.
There are a lot of practices to improve your customer service. You can deploy new technologies, hold training for your staff, or improve internal communications.
Customer churn preventionDecreasing the possibility of customer churn can be crucial to business growth. Outsource Accelerator helps you battle customer churn by providing practical, proven, and research-based ways to maintain a good relationship with your customers and stay relevant and wanted by your customer circle.
Outsourcing your marketing and customer service functions can help you focus on your long-term goals.
What is What is business process outsourcing?
What is Business Process Outsourcing BPO?Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.
Some of the usual outsourced business functions are the following.
Payroll
Accounting
Human resources
Customer service
Sales
MarketingIn the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.
With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.
Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.
How does Business Process Outsourcing work?Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.
It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.
Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.
What are the benefits of business process outsourcing?There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:
Cost savingsCompanies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.
Global marketBusinesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.
Global presenceAt the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.
Flexible workforceBPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.
Leverage skillCompanies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.
FocusLastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.
Business process outsourcing examplesThe business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.
BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:
Big enterpriseFacebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber
Medium-size businessesA medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.
Small business and entrepreneurIt is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.
What are the different types of BPO?The type of business process outsourcing can be characterised by their specialisation, location, and size.
Generalist or specialist BPOsBusiness process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.
Meanwhile, some specialise in certain verticals such as the following.
Legal process outsourcingLegal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.
Knowledge process outsourcing
Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.
LocationBusiness process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.
Size of BPOThe bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.
Functions of business process outsourcingCollectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:
Finance and accountingOutsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.
HealthcareHealthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.
Creative and contentCreative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.
Tech, IT and developmentIT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.
Sales & customer supportSome BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.
MarketingBPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.
Talent and HRBusinesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.
AdministrationGeneralist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.
Supply chain managementLastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.
Top BPO companies in the world’s top outsourcing hubsA wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.
Check out the top BPO companies in several outsourcing destinations below.
Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) servicesWith the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.
Good thing advisory services such as Outsource Accelerator is there to help them.
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.
Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.
Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!
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