What is a Net Promoter Score (NPS)? What is a net promoter score?
The Net Promoter Score (NPS) measures customers in terms of their willingness to help promote or recommend a particular product, which may include other services as well. This gauges customer satisfaction as well as loyalty to a company’s product.
The customers are given surveys that ask how they would rate a particular product or service to their friends or colleagues. They may choose between a scale of zero to ten.
According to the ratings given by the respondents, they will be classified into three categories. These are the promoters, passives, and detractors. NPS in call centers
The ultimate goal for call centers is to provide a positive experience for every customer. However, improving efficiency and productivity and retaining customers is impossible without quality assurance (QA).
Revenues and ROIs cannot be boosted without evaluating first how contact centers are successful in helping their clients.
NPS is critical for businesses both operationally, tactically, and strategically. Beyond telling what callers think of a business, it also has a direct impact on how well a company performs.
A company’s net promoter score can predict growth, revenues, the life of the company, and the overall state of the customer-company relationship.
NPS leaders tend to outgrow their competitors as patrons act as brand promoters for their families, friends, and colleagues. Net promoter score for companies
The NPS is calculated by deducting the detractors’ percentage from the promoter’s percentage, which is the generated result or score in between negative one hundred and one hundred.
The detractors are those whose scores are six and below. They may not find the products and services to be useful may not buy from the brand again.
Passives are those customers who gave a seven or an eight, and maybe quite happy about the product, but they do not find it to be excellent. These are the people who may have the possibility of switching to another company or brand if the other company may produce something better.
Finally, the promoters are those customers who have either a nine or a ten about the product or services offered. These people are fans and could be purchasing from the same company repeatedly.
Outsource Accelerator has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn more about managing an outsourcing team and ensuring that NPS is consistently high.
What is Customer Satisfaction Rating (CSAT)? What is customer satisfaction (CSAT)?
Customer Satisfaction Score (CSAT) is a popular key performance indicator that tracks customer satisfaction. The process involves a survey question or a set of questions.
The customers answer by indicating their level of satisfaction. The most popular scale is 1 to 10, with 1 being the least satisfied and 10 as the most satisfying level.
The result gives a business the necessary output whether or not to improve customer service right there and then. However, the possible ambiguity might be a disadvantage, especially if a customer is dissatisfied with the service. Why is CSAT important
CSAT tells a business about how satisfied their customers are with their services. From this, they can also understand the needs of their customers through feedback and comments they give in each survey.
The best timing to use this methodology is after-sales, before the renewal of subscription, and after customer support. These times are crucial especially for repeat customers.
With this, a business should have first-hand knowledge of its customer satisfaction. A simple interview or a feedback form after a sale would do. How to calculate CSAT?
Calculating a CSAT score is pretty straightforward.
All you have to do is add the positive responses together, divide them by the total number of responses collected, then multiplied by 100. The outcome leaves you with the overall percentage of customer satisfaction in your business.
For example, if 50 people took part in your survey and 30 of them gave positive feedback — your CSAT score would then be 60%
(30 positive responses / 50 total responses = .60 x 100 = 60%).
This indicates that while the majority of your clients are satisfied with your service, you can still improve it to better serve your customers. CSAT in outsourcing
Customer satisfaction score might be the simplest metric but it’s a powerful tool for all businesses. It closes the loop on first customer interaction and helps businesses move on to the next level.
Computation is quick and easy. You add up all the ratings and divide the total score by the number of respondents. Most likely, you’ll get a percentage.
Get your customer satisfaction score a notch higher by outsourcing your customer service team. Check out Outsource Accelerator’s extensive list of outsourcing companies in the Philippines.
Full-time employee definition Full-time employee definition
A full-time employee (FTE) is used to describe someone who is exclusively employed by a company. This employee may work for forty hours a week or more, which could be equivalent to day-time business hours.
A full-time employee (FTE) is also privileged with statutory benefits that are provided by the employer.
The Philippines is one of the countries where the BPO industry flourished greatly. It has since opened many job opportunities for the people, employing about 1 million alone within the outsourcing industry.
In the outsourcing industry, a full-time employee can have varying working shifts to accommodate the clients’ timezone. Importance of designating FTE status
Distinguishing employees between “full-time” and “part-time” is important because part-time staffers typically do not receive the following: Paid time off for holidays or vacations
Employer retirement plans.
Designating full-time and part-time status to your staff can also affect whether your workers are considered as salaried or hourly, and exempt from taxes or not. This can also determine how you pay your workers for their overtime shifts.
This is why it’s crucial to understand the difference——and how many hours part-time and full-time employees typically work—before hiring employees at your small business.
However, as a business owner, you have to be careful not to discriminate by making some workers in similar jobs part-time while others in the same job are full-time.
Denying benefits to part-time employees who work in the same range and hours as your full-time staff can have consequences depending on your local laws.
Outsource Accelerator provides you access to great full-time dedicated remote staff that you can outsource from the Philippines starting from $6 per hour, where you can save up to 70% on staffing costs.
We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing.
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
In 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 savings
Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India. Global market
Businesses 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 presence
At 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 workforce
BPO 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 skill
Companies 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. Focus
Lastly, 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 examples
The 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 enterprise
Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber Medium-size businesses
A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines. Small business and entrepreneur
It 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 BPOs
Business 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 outsourcing
Legal 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. Location
Business 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 BPO
The 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 outsourcing
Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include: Finance and accounting
Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss. Healthcare
Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries. Creative and content
Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content. Tech, IT and development
IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries. Sales & customer support
Some 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. Marketing
BPOs 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 HR
Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management. Administration
Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions. Supply chain management
Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes. Top BPO companies in the world’s top outsourcing hubs
A 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) services
With 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!