DOES OUTSOURCING PUT YOUR BRAND AT RISK?

Successful outsourcing can achieve cost savings of up to 30 percent according to some estimates.

No wonder then that outsourcing in all its various forms — on shore, near shore and off shore — has emerged as a popular strategy for companies seeking to contain contact center costs.

However, a poorly managed outsourcing relationship can reduce the quality of the customer experience and dilute a company's brand values.

The same cost-cutting pressures that drive the decision to outsource can force companies to cut corners on best practices and engage outsourcing partners without sufficient oversight and accountability. As a result, service quality can suffer, and by default, so can brand.

A company's brand is a powerful corporate asset that often eludes definition. Your brand is the emotional connection you form with your customers. It is the sum total of the ideals, values and experiences of your company, a kind of corporate DNA, transmitted from one generation to the next.

A brand can take years to develop and can be tarnished in a matter of seconds. One interaction over the phone, e-mail or Web can make all the difference between preserving and losing a customer. Every contact is an opportunity to reinforce your company's image.

An outsourcer can protect, preserve, and yes, even strengthen a brand if the relationship between it and the company it serves is created, developed, and nurtured judiciously.

AVOID COMMON PITFALLS

Companies may put their corporate brands at risk when working with outsourcers if they do not approach this key business process strategically.

Lacking the proper tools and information to make meaningful return-on-investment analyses, they may rely on the wrong metrics, like number of calls handled or percentage of calls dropped, for costs and service levels. Such narrow metrics fail to consider larger contextual questions like, "Was the customer happy with the interaction?"

Another typical mistake is to lock into long-term outsourcing deals before doing pilot testing to ensure that high service levels can be achieved and maintained.

Do not underestimate the up-front management time needed to make an outsourcing relationship work. Investing the time in a short-term customer trial is an ideal way to test the waters of a working relationship before inking a long-term deal.

To ensure a good fit between a third-party service firm and your organization, it is essential for the outsourcing services provider to understand and appreciate your corporate brand.

PROTECT YOUR BRAND

The first order of business is to evaluate the third-party service organization with an eye toward ensuring that its customer-facing processes conform to the highest quality standards and best practices.

Businesses should judge the supplier based on customer satisfaction studies or other qualitative metrics and leverage the same parameters to measure and motivate outsourcers over time, rather than on outdated operational metrics such as the number of calls handled per agent per hour.

Outsourcers should work with technology vendors that care as much as you do about brand identity. You should be comfortable with their choices. The product performance of the vendors used by your outsourcer will reflect on your corporate brand; therefore, they should be experienced and dependable.

It is also essential when selecting any service provider to look closely at the team of people who will be doing the actual work. You should evaluate them based on training levels and competency as well as performance ratings for customer satisfaction. Outsourcers can support this by installing portals and dashboards on the client side, so you can monitor campaigns and provide real-time input.

Doing the homework at the front end of your organization's solicitation and selection process to ensure the proper cultural fit of an outsourced service provider will help you avoid a lot of problems.

Start with the RFP (request for proposal). Ask the potential bidders to define their own corporate culture in the background section and to describe in the methodology section the process they use to blend the "three Ps" (personnel, policies and procedures) with those of their client companies.

If you and your outsourcing firm do not speak the same cultural language from the beginning, the relationship could be destined for failure. The RFP stage creates the first opportunity to establish the framework for that cultural fit.

Whenever possible, a site visit provides hard evidence of the service provider's claims. The on-site visit affords the chance to observe how the culture of the company is manifested in everything from printed material to how people interact in the halls, in break rooms and during meetings.

SET SERVICE LEVEL AGREEMENTS

Service level agreements (SLAs) can be instituted at any time to reduce disconnects between expectations and results.

SLAs should contain provisions allowing for modifications to requirements by the customer and the vendor. Agreement on these rules and regulations at the beginning of the service period establishes a clear blueprint for the way in which the provider-customer relationship unfolds.

A lack of surprises reduces stress and strain for both parties.

No SLA is complete until the service provider receives in-service training by your company in service standards and expectations. Beyond basic competency, the service provider needs to demonstrate awareness of your corporate culture, including norms, values, formal and informal communication channels, and other idiosyncrasies.

The real benefits of outsourcing take time to realize. For the relationship to develop fully, contact center executives need to get past the lure of quick cost savings and take deliberate steps, from the RFP to the signed SLA, to ensure that an investment in third-party service firms supports the corporate brand in a planned and measured way.

IT ALL DEPENDS ON YOU

Choosing to outsource contact center operations for cost savings alone can be short-sighted and risky. But enterprising companies are turning to outsourcing as a vehicle for both sales and customer retention activities. They have recognized that building brand loyalty presents one of the greatest opportunities for revenue preservation and growth.

An investment in outsourcing can be an investment that either supports or impedes your corporate brand, depending on how you initiate and manage the relationship.

When it comes to outsourcing and branding, remember this SIMPLE set of tips:

1. Select your outsourcing partner carefully.
2. Invest the right amount of time up front.
3. Measure factors other than numbers that affect your brand.
4. Present your outsourcing partner with every opportunity to communicate your brand effectively.
5. Let your brand promise lead the way.
6. Expect the same of your outsourcer as you expect of your internal contact center.

According to the 2005 Aspect Contact Center Satisfaction Index™, one in five consumers surveyed in North America said that they would definitely or probably switch companies in the near future. Take the right steps upfront to ensure that your outsourcer's contact center services contribute to brand loyalty, not defection.