Should Software-as-a-Service (SaaS) Companies Outsource their Customer Support Functions?
By: Chat GPT 4.0!
So, I simply couldn't resist creating this blog post today. Our company, Emerging Global Services (EGS), is a leading customer support and business process outsourcing (BPO) provider delivering innovative support and business automation services nearshore in Northern Mexico. For over 10 years, we've been servicing the Software and SaaS industry.
I'd have to say, that for this question above, Chat GPT got it right! (Pasted below). And this only took me 4 seconds to write!
However, leveraging Chat GPT does requires a base of knowledge and experience of the subject matter to start with. All information must be validated. So, if I was Chat GPT, and could type as fast as it does, I would have added the following:
1. Leverage an outsourcing provider to reduce Churn. Churn is normal for all businesses, and especially a SaaS Busienss. But, too high of churn can be a real problem, i.e., 7% to 10%. Customers need and want to be engaged, they want to communicate, they want to know you value their business. Deploying real people in customer outreach is important. But, find a partner who is much less cost than what it will cost you to do this yourself.
2. Running a contact center requires tremendous experience in contact center management. There is a reason why the contact center industry is an "industry"! It is hard work, expensive and time consuming. Not to mention a lot of HR issues. Outsourcing will reduce your stress and improve your margins.
3. Use a mix of automation and human beings. In our age of automation, I am seeing (and hearing from) more and more people who are sick of robots. In fact, I have a group of clients that want nothing more than to delete the phrase "Ai and Machine Learning." However, there is room for both to co-exists, as long as you "think through" the customer journey (CX). Use your own website and app tools, and decide for yourself if what you are offering your customers will make them happy, and answer their questions. If you make it too hard to get ALL of their answers quickly, they will churn. Technology automation and humans, working together, should meet their needs quickly. But, you have to go through the journey yourself, with your own SaaS app, and determine for yourself what you should deploy, how much, and when a human being needs to get involved.
Steve Shefveland, CEO, EGS Global, Inc. dba Emerging Global Services
There are several reasons why a SaaS (Software as a Service) company may choose to outsource its customer support function. Here are a few potential benefits:
1. Cost savings: Outsourcing customer support can often be more cost-effective compared to building an in-house team. By outsourcing, the company can avoid the expenses associated with hiring, training, managing, and providing infrastructure for a dedicated support team.
2. Scalability and flexibility: Outsourcing allows for greater scalability, especially during peak periods or when expanding into new markets. External customer support providers can quickly allocate resources and adjust staffing levels to accommodate fluctuating customer demands.
3. Access to specialized expertise: Outsourcing enables SaaS companies to tap into the expertise of professional customer support providers. These companies often have dedicated teams with experience in handling customer inquiries, troubleshooting technical issues, and providing timely resolutions.
4. Enhanced focus on core competencies: By outsourcing customer support, the SaaS company can focus more on its core competencies, such as software development, innovation, and marketing. It allows the company's internal teams to concentrate on their primary responsibilities, leading to improved product development and overall business growth.
5. 24/7 support coverage: Many outsourced customer support providers offer round-the-clock support, including weekends and holidays. This ensures that customers receive assistance at any time, leading to increased customer satisfaction and loyalty.
6. Multilingual support: If a SaaS company operates in global markets, outsourcing customer support can provide access to multilingual support agents. This allows for effective communication and assistance in different languages, catering to a diverse customer base.
7. Technology and infrastructure: Outsourced customer support providers often have access to advanced customer service technologies and infrastructure, such as ticketing systems, live chat platforms, call center software, and knowledge bases. Leveraging these tools can enhance the efficiency and effectiveness of customer support operations.
While outsourcing customer support can offer numerous advantages, it's important for SaaS companies to carefully evaluate potential providers, establish clear communication channels, and maintain a strong partnership to ensure the outsourced support aligns with the company's brand values and customer expectations.