Keith Fenner, Vice-President of Strategic Sales at Softline Accpac, says tampering with your customers is very risky business, and handing them over to a third-party is one sure-fire way of finding this out the hard way. So why gamble with your biggest asset?
Customer experience management (CEM) is the name of the game today and there are alternatives to outsourcing to achieve an impeccable reputation in this regard.
Customer service and contact centres have been outsourced for years. Managers have turned to outsourcing partners to handle calls at a lower cost, to address staffing challenges or peak volume issues, or to provide specialised functions. Many companies even use outsourcers as customer contact “experts” to represent them over the phone, via e-mail, or on SMS, while the rest of the company sticks to its knitting. It has proven to be a good strategy for many companies.
Yet, research by Gartner has shown that there are significant risks associated with outsourcing customer service, because most companies don't approach outsourcing as a strategic enabler. They typically focus on service levels and cost metrics, but fail to make meaningful cost and benefit analyses. In addition to this, the contact centre is a vital part of the organisation. Companies don't want to hand over their contact centre operations to just any outsourcer - nor do many want to hand over the entire operation.
While Fenner fully appreciates the many schools of thought that are in favour of outsourcing contact centres, he stands firm that it is not a good idea! Yes, in today's highly competitive world, companies have to look at options that can help them save money, drive revenue, and deliver better service. Yes, staying in touch with customers, let alone keeping them happy, is an ongoing and expensive business. For many, this means maintaining a contact centre that supports multiple communication channel choices. Yes, this is pricey, so it ultimately gets shifted to an outsourcer, and yes, this has worked wonders for a lot of companies.
“What I'm saying is that you must accept that the risks start on day one of handing over to a third-party. You're essentially handing over your number one asset - your customers - in one foul swoop; giving up all contact with them. While your outsource partner might be a specialist at running a contact centre, how much do they really know about your business and your customers? The fact that one call could damage your relationship with your best customer, perhaps even beyond repair, is a real risk and one which you will have to accept if it happens.”
While Fenner won't argue that that customer contact is always necessarily best done in-house, he says the important thing to recognise is that customers have a choice. The reality is that the various aspects of running a contact centre can be purchased on-demand today, as a monthly service paid for on a usage basis. Fenner says one aspect that should not be compromised on is the CRM system: “The contact centre must use the customer's CRM package and not their own.” You still have to recruit and manage a pool of agents, but at least you stay in control, the systems and data stay in-house and you keep your finger on the pulse of how your customers are being treated.
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Softline Accpac
Softline Accpac is a provider of business management solutions, including financial, distribution, service management, retail, warehouse management, manufacturing and CRM to the mid-range market. Accpac solutions are delivered to 130 countries exclusively through a global network of solution providers, including over 150 throughout Africa. Softline Accpac's product line includes: Accpac ERP, Accpac CRM, Accpac RMS, Service Manager and Accpac Insight. Softline Accpac also distributes Sage ERP X3, a full-service enterprise management software system for mid-to-large businesses. With a choice of languages, currencies, enterprises, locations and legislations, Sage ERP X3 offers an efficient, multi-company solution.
Softline
Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium and large sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings provides Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large sized business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world.
The Sage Group
The Sage Group is a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 5.8 million customers and more than 14 500 employees worldwide. We operate in over 26 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit http://www.sage.com.
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