28 Feb 2007
Posted by J. Angelo Racoma as Business, Economics, Philippines, outsourcing
One of my favorite writers and bloggers, Joel Spolsky writes an interesting piece on customer service. He says you won’t have to deal with irate customers, chargebacks, and bad reputations if you find solutions to problems early on, so you solve these at the root, and not when everyone and his uncle is already calling in to complain about lousy service. He also says that if you go to great lengths to please your customer, the return will be tenfold (or more).
We treat each tech support call like the NTSB treats airliner crashes. Every time a plane crashes, they send out investigators, figure out what happened, and then figure out a new policy to prevent that particular problem from ever happening again. It’s worked so well for aviation safety that the very, very rare airliner crashes we still get in the US are always very unusual, one-off situations.
One striking statement Joel makes is that in-house customer service is best, because outsourced customer relations management will not be able to adequately address issues at the source having no direct ties to whoever is developing the darn thing. Joel even specifically mentions the Philippines (along with Bangalore).
This perhaps will get negative feedback from those in the BPO industries, particularly those in my country. Believe me, I have several friends and relatives who work in call centers and other BPO firms, and I can say it’s been a boon, especially to people here looking for a decent living. They’re sort of the dream jobs of this generation.
However, I do agree with Joel that there’s something wrong with the concept of outsourcing customer relations. You’re basically letting someone else be the spokespeople of your company to the public. Never mind hiring PR firms for marketing. Never mind blogging about your stuff ‘til kingdom come. If you don’t handle customer concerns personally then you’re probably only able to address their concerns on a superficial level. Then the problem will keep on happening, again and again, like a weed that will keep on growing unless you grab it by the balls roots and burn it to ashes.
Take for instance this recent issue with HP support that Technosailor Aaron Brazell wrote about. What about the PLDT CSR swearing incident? These things give your company a bad rap. And even if it’s only one customer that you end up losing, it’s the loss of goodwill that will ultimately kill your business one way or another.
So what saves you more money? Being stingy with costs but losing a bit of customer trust? Or being all out with customer relations and gaining more clients because of goodwill? It depends, of course, but it matters when it comes to what image you want your company to project.
One good solution would be to offshore, but still keep development and customer relations teams within the same company. Or perhaps you can be selective with the concerns that can be handled by the offshore customer service centers (like billing or other minor, non-critical stuff).
I’m not against business process outsourcing. Believe me, I consider BPO as a Godsend, too. I’m in sort of an outsourced business myself, since I blog for foreign-own sites and blog networks (which is in a way different from outsourced customer relations). But it’s a reality that companies and BPO providers will have to contend with sometime.
There are more. Joel writes seven—no eight—steps to remarkably good customer service. Read on. I hope you enjoy.
Remember, greed will get you nowhere.
Tags: BPO, Business, call_centers, management, offshoring, outsourcing | Viewed 1819 times
2 Responses
Alex
February 28th, 2007 at 9:05 pm
1Hi Angelo,
I think it’s just the Pareto principle at work. Correct me if I’m wrong but I think many businesses still adhere to this. And it’s really a bother to be ignored by many of these businesses since you don’t fall in their A-grade customer base.
Sometimes establishments even discriminate against the “lower” colors of credit cards. Arrgrh! That makes me want to pay in (cold hard) cash at times (that is if you’re packing either oodles of the triplets or the moper in your wallet).
I just don’t know why providing excellent products and services have evaded the thoughts of top Pinoy businesses for so long. Maybe we just don’t see it but there’s probably money to be made from after sales.
Oh yeah, and there’s a Dilbert strip citing that bugs are intentionally put in software so that they could make money from upgrades and patches. Haha.
CRM starts from pre-sales. So dealing with idiotic CSRs are the icing on the sh*tcake. Needing to contact after sales support means that you’ve got a sh*tty product to start with. It’s a crazy world and the honest customers paying top hard-earned peso would always lose.
Yeo
June 21st, 2007 at 10:36 pm
2Dawg, I do wish that those US corporation would agree with you but as you know they really wanted to reduce the cost and as this develops several African countries are now atractting BPO companies. You know what, they may offer to do the BPO works for just a fraction of the cost, leaving us Filipinos with nothing. C’mon Dawg, what’s stooping them US corporate guys from looking elsewhere on which just for $5 is a big thing in Africa?
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