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The real cost of poor quality

The real cost of poor quality

When companies consider offshoring customer support functions, the conversation is usually driven by the desire to reduce costs. With highly trained English-speaking agents to net Costs 30-50% less than the onshore operations are available, the savings makes sense, also for companies with modest-sized call center.

It would be cliche for an offshore BPO © simply to say that cost alone should not be the only offshore factor in a business decision or in the final selection of an offshore partner. It sounds like a convenient way for the BPO to a higher rate than its competitors to justify, or at best a hollow sales pitch.

I propose a different way of looking at the problem. Cost savings is the single most important factor in offshoring, but all drivers of costs in relation to the offshoring program also have the simple savings, considering that a lower hourly rate. The difficulty is that many of the key elements of the

cost equation can be measured not often ignore the customers, if you plan your offshoring projects out. This is particularly true for the quality, "ie, every measure of the actual quality of contacts provided by the offshore partner. While quality counted more likely to be key indicators as a threshold must be met by the partner, it is rarely quantified in the analysis leading to the decision to offshore, and select an offshoring partner. - In first place, and that's a mistake

The challenge then is how to keep costs of poor quality, and to quantify the true financial benefit of quality improvement there are several elements taken into account.

· vendor management and escalations - clients whose BPOs struggle with quality, are found often burdened with unexpected overhead and management costs for example. additional, unplanned management personnel be required to track and manage vendor quality

problems. This rating system may also be necessary to employ the manufacturer internal management escalations resulting from quality problems, failures or improper treatment. Depending on the extent of quality problems and the size of the customer support operation, the cost of these additional resources quickly move in the expected savings from offshore food.

· Training costs - In theory, all quality problems are addressed quickly and efficiently from a BPO's internal quality assurance team. However, if a supplier not excel to QA, clients connect persistent, uncorrected quality problems that will ultimately require more practical training. As a result, unplanned hard costs associated with international travel and even hiring additional staff training.

• Customer satisfaction - a surprising number of large and successful companies do not explicitly satisfaction of your customers (and its major components, such as agent satisfaction, overall satisfaction, follow

and first-timer resolution) to support interactions with customers. However, it is not difficult to see the direct impact that a change could have in customer satisfaction to the company bottom line. Customers who believe they were treated badly, he will walk with a negative opinion of the company, allowing you to Transact less likely in the future again, and also more likely to share negative experiences with your friends and colleagues. increase for the same reason, a pleasant customer interaction support to help cement loyalty and future revenue-generating activities. Traditionally, the direct bottom-line impact of changes in customer satisfaction was difficult to measure, but it can be done. For example, the Net Promoter methodology Customers as promoters "d.h. bereit, ein Geschäft zu einem Freund oder Kollegen empfehlen" klassifiziert (siehe www.netpromoter.com) oder Verleumder "d.h. diejenigen, die für den Wettbewerb und aktiv zu wechseln andere davor warnen mit einem bestimmten Service.