A rapidly changing digital world makes it quite challenging for businesses to keep up with quality customer support. Clearly, live chat support has gained its ground as one of the most desired channels of support by customers, mainly because of its impressive speed and ease of use.
Poor customer support has a direct impact on brand loyalty and revenue, with 63% of customers willing to abandon a brand due to poor experiences. In the past year alone, 49% have switched brands for this reason, and one in six shoppers will walk away from a purchase because of it. With nearly 60% of previously loyal customers willing to stop shopping with a brand after multiple negative interactions, poor service contributes to an estimated $75 billion annual loss for companies.
This article explores why live chat support services are vital, and it delves into the role of cost analysis in making well-informed decisions for your business.
In-house Live Chat Support
In-house live chat support means forming a dedicated customer service team within your organization to handle live interactions. This team functions under your company's direct management, adhering to its specific standards and guidelines.
Building an In-house Live Chat Support Team
Creating an in-house live chat team? It’s no small task. It demands careful selection and training of individuals skilled in handling customer concerns with grace. Empathy and effective communication aren’t mere traits—they’re the essential toolkit features for this team.
Necessary Skill Sets and Training
Multitasking, deep product knowledge, empathy, and expertise in the company’s services: these skills define a successful live chat support agent. Comprehensive training is essential to prepare the team to navigate diverse customer scenarios seamlessly.
Cost Factors in In-house Live Chat Support
Employee Salaries and Benefits
The largest expense in setting up in-house live chat support? Employee salaries and benefits. Hiring skilled support talent isn’t cheap, as they often require competitive compensation.
Infrastructure and Technology Expenses
Creating a smooth live chat experience requires investing in reliable technology: chat software, the right hardware, and a network that can handle it all.
Management and Supervision Costs
An in-house team also needs supervision—costs for managers, team leads, and support personnel add to the financial picture.
Pros of In-house Live Chat Support
Complete Control and Customization
With an in-house team, the company holds all reins, allowing the support process to align perfectly with specific business objectives.
Direct Interaction with the Support Team
When the support team is right there, they gain a closer understanding of customer needs, creating enhanced collaboration across departments.
Security and Data Privacy
Managing customer interactions internally may offer an extra layer of security, ensuring tighter compliance with data privacy requirements.
Cons of In-house Live Chat Support
High Initial Setup Costs
The initial expense of establishing an internal live chat support team can be significant—particularly for smaller companies.
Staffing Challenges and Turnover
Finding high-quality support staff is not easy and retaining them within the company is even harder. When employees leave, there is a huge gap to cover; from operational inefficiencies and disruption of workflow to higher costs of hiring fresh faces.
Limited Support Coverage Hours
An in-house team, as good as it might be, often functions within the constraints of regular office hours. But the modern world works in multiple time zones, and for global businesses, limited hours mean customers who crave assistance around the clock might be left in waiting.
Outsourcing Live Chat Support
When firms outsource chat support, they tap into the services of providers to handle customer interactions on behalf of the business. Companies can pick from various choices here: onshore, offshore, or nearshore. They study the unique advantages each option offers and choose one that aligns with their needs and preferences
Types of Outsourcing Options (Onshore, Offshore, Nearshore)
Onshore outsourcing taps into providers within the same country, offering cultural alignment and, often, ease of communication. Then, we have offshore outsourcing—a bolder leap that engages suppliers across distant lands, tapping into regions with varied costs and time zone benefits. Between the two lies nearshore outsourcing: service providers in neighboring nations, often sharing similar time zones and cultural vibes.
Cost Factors in Outsourcing Live Chat Support
Service Provider Fees and Models (Per Hour, Per Chat, etc.)
When a business decides to outsource chat support, they’re looking at a cost structure that’s often far leaner than building an in-house team. Yet, every option comes with its own investment requirements—from setup costs to ongoing fees that depend on whether you’re paying per chat, per hour, or by some other metric.
Setup and Integration Costs
Setting up and integrating an outsourced team into your company’s systems may require upfront expenses.
Language and Cultural Considerations
Smooth customer communication demands fluency and cultural sensitivity, especially for international outsourced teams.
Pros of Outsourced Live Chat Support
Cost Savings and Predictable Budgeting
One advantage you get when you outsource chat support is the potential cost savings, avoiding the continuous expenses associated with an in-house team. Outsourcing chat support also simplifies budgeting.
24/7 Support Availability
Outsource chat support to providers who work in different time zones, and you will be able to offer round-the-clock support to customers across the globe.
Access to Specialized Expertise
When you outsource chat support, the teams often bring expertise from handling a broad range of customer issues.
Cons of Outsourced Live Chat Support
Less Control and Customization
Outsource chat support, and you give up some control over the process—an approach that might not always align with your specific business vision.
Communication Challenges
Language or cultural differences can lead to misunderstandings, potentially affecting the quality of support.
Data Security Concerns
When you outsource chat support to a different provider, it would need sharing of customer data with third parties. Hence, there should be an assurance of data security and privacy.
5 Factors to Consider When Making the Decision
1. Company Size and Scale
Larger companies may find it feasible to sustain in-house teams, while smaller businesses often benefit when they outsource chat support.
2. Support Volume and Complexity
For businesses handling complex queries or high volumes, outsourced chat support may be the answer.
3. Budget Constraints
When there are budget limitations, companies often lean toward outsourcing as a financially viable option.
4. Long-term vs. Short-term Needs
The duration of your support needs may dictate whether in-house or outsourced chat support makes more sense.
5. Industry and Customer Base
A company’s industry and customer preferences can strongly influence the choice between in-house or a provider to outsource chat support.
Conclusion
Selecting the ideal live chat support framework is crucial for companies aiming to provide exceptional customer service. Both internal and external chat support options have their own distinct advantages and disadvantages. Businesses must perform a comprehensive cost evaluation with attention to specific requirements. This information can assist them in making the best decision suited to their needs.
Are you looking for the best live chat service providers? Wow Customer Support is here for you. We at WOW aim to help your business grow through our services. We provide excellent live chat support services for customer support. With over ten years of customer service experience under our belt, we proudly say we are one of the industry's best live chat service providers. Contact us today to learn more!
