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Exceptional customer service differentiates your business from competitors. But some struggle to keep up with the fast-paced market competition due to high operating expenses.
Thus, many organizations tap into business process outsourcing (BPO) to cost-effectively meet customer service needs. Service providers deploy skilled workers and advanced technologies to deliver high-quality consumer support.
As we go through 2023, you must understand the evolving trends, current conditions, and opportunities shaping customer care BPO. These customer service BPO reviews for 2023 will guide you in drafting a well-structured outsourcing investment plan.
Leverage the key statistics below to refine your customer service strategies.
2023 Consumer Trends
Customers are the heart of your business. Without them, who will purchase your goods and services? Who will tell you what your products lack or which areas you need to improve? Who will help keep your business afloat and sustain your industry’s reputation?
Hence, customer service BPO reviews in 2023 will help you understand ways to build strong consumer relationships. Such insights show significant changes in buyer preferences, behaviors, and expectations due to global issues.
Tailor your business offerings according to your target audience’s taste and current condition by taking note of the latest consumer trends.
- Based on Fidelity Investments’ Financial Resolutions Survey, 43% of consumers are worried about inflation’s impact on day-to-day expenses and savings. Hence, 28% say they will spend less money, while 35% will focus on what truly matters.
- To resolve the issue of insufficient funds, 19% of Bluedot’s surveyed customers use “buy now, pay later” services, especially during the holiday season.
- Insider Intelligence reported that customers prioritize value in their purchases. About two-thirds of global buyers who switched brands the previous year sought better deals. More than half were looking for better product quality.
- In its recent consumer expectations report, Emplifi warned that 64% of buyers abandon a brand due to poor product quality. Due to the inability to respond quickly or offer round-the-clock support, another 63% do the same.
- According to Freshworks, 54% of customers select brands that can quickly respond to their inquiries. Meanwhile, 51% include a type of asynchronous chat in their top three preferred brand communication channels.
- Salesforce highlighted in its State of the Connected Customer report that 56% of consumers choose a brand with a loyalty program. However, customers prefer such initiatives more if companies personalize rewards to better reflect their needs.
- Statistics indicate buyers are likely to use TikTok 1.5 times more as a source of product discovery than other platforms. The social networking app also became shoppable in 2022, monetizing the viral #TikTokMadeMeBuyIt trend.
- Despite social media’s crucial role in improving the customer experience, PwC noted that 47% of consumers remain highly concerned about personal data privacy when using social media.
- In MAGNA and Ketch’s survey, 82% of buyers expressed concerns over how companies collect and use their data. However, they understand that sharing such information with businesses leads to a personalized experience.
- Per Twilio’s State of Customer Engagement Report, 95% of consumers demand more control over their data. Concurrently, 98% trust brands less and want businesses to do more to ensure data privacy and usage transparency.
The ROI of Good Customer Service
Based on customer service BPO reviews in 2023, good customer service goes beyond simply resolving consumers’ problems. It encompasses the entire customer journey, from initial contact to post-purchase support. That is part of the call center job description and other of all other service positions.
Investing in customer experience yields various advantages for your business, especially when you keep up with the latest consumer trends. The numbers below demonstrate this fact.
- According to Forrester’s data, auto manufacturers can generate more than $1 billion in additional revenue by improving the customer experience by one point. Enhanced customer service encourages customers to buy their next car from the same brand.
- According to Forrester’s Adobe-commissioned research, 66% of businesses focusing on customer experience saw improved customer retention. Additionally, 60% achieved an increased customer lifetime value.
- Zendesk’s latest CX Trends report shows that 90% of buyers will purchase more from companies that personalize customer service. In addition, 93% will spend more on brands offering their preferred customer service channel. Some 89% will keep buying from businesses that give access to self-service options.
- Watermark Consulting revealed that customer experience leaders gained more than 307% in total cumulative returns (analyzed over 13 years) on their stock performance.
- Qualtrics XM Institute’s global consumer study discovered that customer satisfaction impacts significant loyalty behaviors. After a five-star experience, consumers are 3.6 times more likely to recommend, 3.3 times more likely to trust, and 2.6 times more likely to keep buying from the same brand.
The State of Customer Service Outsourcing in 2023
Many businesses struggle to maintain their competitive edge without overspending because of changing consumer demands, market trends, and global issues. They rely on BPO to ensure cost-effective, quick, and personalized customer support to address such gaps. Service providers employ skilled workers and advanced solutions to help them achieve those goals.
Due to such demands, customer support outsourcing has experienced continued expansion. Let us evaluate customer service BPO reviews in 2023 to see how much the industry has grown.
- Insight Partners reported that the customer care BPO market was valued at nearly $22.6 billion in 2022. The research firm expects the sector to expand to approximately $34.6 billion by 2028 at a compound annual growth rate (CAGR) of over 7%.
- According to Industry Research Biz, the contact and call center outsourcing market reached over $79.5 billion in 2022. The organization projects the industry to grow to over $113.1 billion by 2028 at a 6% CAGR.
- Deloitte found that 57% of executives outsource to cut costs. Some 51% want to do so to keep up with operating model shifts, while the other 49% aim to gain access to new capabilities.
Asia’s Rise as the Premier Outsourcing Location
With the continuous transformation of customer needs, buying behaviors, and related factors, businesses are exploring what BPO is and why outsourcing to Asia is more cost-effective than onshore solutions. Here are the major reasons many companies outsource their functions to the region:
- Asia has a significant cost advantage compared to Western countries due to lower labor expenses. Some Asian countries, such as the Philippines and India, have lower costs of living and wage rates.
- The continent houses many highly educated and skilled professionals across various industries. These experts are well-versed in communicating in English. Hence, they can interact with native speakers more naturally and effectively.
- Outsourcing to Asia lets organizations scale their operations up or down based on current demands. Providers can quickly ramp up resources or adjust staffing levels as needed. This capacity allows businesses to align their costs with actual requirements.
- Asian countries invest in robust infrastructure, technology, and telecommunications systems. These solutions enable service vendors to operate efficiently, ensuring uninterrupted service delivery at a lower cost.
- Governments in several Asian nations strongly support the BPO industry. They implement policies and incentive programs to attract foreign investments and encourage outsourcing. Such efforts include tax benefits, subsidies, or reduced regulatory burdens.
Because of such benefits, Kearney reported that seven of the top 10 countries in the Global Services Location Index are in Asia. India, China, Malaysia, Indonesia, Vietnam, the Philippines, and Thailand joined Brazil, the United States, and the United Kingdom in the ranking.
Customer Care BPO Trends to Watch Out For
As customer care BPO evolves regardless of geographical factors, staying informed about the latest trends is crucial. The insights help you adjust your investment strategies to ensure exceptional customer experiences. So while exploring what customer support outsourcing is, note these BPO trends and predictions.
- As data from Zendesk shows, consumers want more personalized interactions with customer service representatives across multiple channels. Hence, service providers adopt omnichannel support to increase customer satisfaction and retention.
- Artificial intelligence (AI) and automation constantly help speed up repetitive customer service tasks. These emerging solutions also power automated channels, such as chatbots, for quick customer responses. As such, Gartner predicts that chatbots will become the primary channel for roughly a quarter of organizations by 2027.
- The same Zendesk research reveals that 70% of buyers expect businesses to have a self-service portal. Companies thus incorporate self-service options such as virtual assistants and chatbots on their official websites. This capability allows support agents to focus on complex problems.
- The COVID-19 pandemic has driven increased demand for cloud-based services due to the abrupt shift to remote work. Per recent statistics from Owl Labs, 62% of employees feel more productive when doing tasks remotely. Therefore, service providers use cloud solutions to enable work-from-home or hybrid work setups.
- Service vendors implement data-driven customer service to ensure superior support services. They set metrics to monitor their team’s performance and identify whether they meet consumer needs and overall customer service goals.
The Bottom Line
The abundance of consumer support statistics and customer service BPO reviews relevant in 2023 provide valuable insights and food for thought. With different perspectives to consider and options to assess, two undeniable facts remain: consumer feedback and customer care outsourcing are crucial to success.
The data detailed in this article aims to guide you in refining your BPO plan. This way, you can ensure your customers receive exceptional support services that encourage them to stay loyal to your brand.
But if such information still puzzles you, let’s connect. Unity Communications employs experts who can help you understand customer service BPO simply and creatively. The award-winning provider also has readily available teams and solutions for customer support.