The Impact of On-Shore Technical Support on Customer Satisfaction
In today's digital age, customers have extremely high expectations for high-quality technical support for the products and services they use. For example, in a survey conducted by Hubspot, they found that 58% of those surveyed said that they have higher standards for customer service now compared to a year ago.
However, this is not necessarily a bad thing.
For businesses, providing top-notch technical support can be a key differentiator in the on-going battle to stand out in a crowded marketplace. In recent years, there has been a growing trend towards outsourcing technical support to offshore locations, but what impact does this have on customer satisfaction?
In this article, we will explore the impact of on-shore technical support on customer satisfaction and how businesses can optimize their technical support to improve customer experience.
Introduction
Technical support can come in many forms, including phone support, email support, live chat, and in-person support. A well-executed technical support strategy can lead to increased customer satisfaction, loyalty, and retention.
Technical support is a critical aspect of the customer experience, as customers reach out when they are experiencing problems with the products or services they have purchased. This becomes especially important because customers engage with technical support when they are already frustrated, so anything but a seamless experience is likely to escalate those negative feelings. A study conducted by Arizona State University found that 66% of American households experienced at least one problem with products and services they purchased during the past 12 months, and nearly two-thirds of everyone with a problem experienced customer rage.
The intricacies that go into customer experience spread wide, but in this article, we will explore the impact of on-shore technical support on customer satisfaction. Specifically, we will examine the benefits of on-shore support, the drawbacks of off-shore support, and best practices for implementing on-shore support.
The Benefits of On-Shore Technical Support
Improved communication
One of the primary benefits of on-shore technical support is the improved communication and language skills that agents possess. With on-shore technical support, agents are typically fluent in the language of the customer, which can lead to clearer communication and quicker issue resolution. This can help to avoid misunderstandings and provide a more satisfying customer experience.
Cultural Familiarity and Understanding
On-shore technical support agents who are based in the same country as the customer are likely to have a better understanding of the customer's culture and norms. This can help to avoid misunderstandings and create a more comfortable and empathetic experience for the customer.
Quicker Resolution of Technical Issues
On-shore technical support can lead to quicker resolution of technical issues because agents are typically based in the same time zone as the customer, which means that they can provide support during the customer's normal business hours. This can lead to faster resolution times and improved customer satisfaction. According to a study by Hubspot, 90% of customers consider an "immediate" response to customer service questions essential or very important, with 60% defining "immediate" as a response time of 10 minutes or less.
The Drawbacks of Off-Shore Technical Support
Language Barriers
When technical support agents are located in a different country, there may be language barriers that can make communication difficult and frustrating for customers. Business owners have little control over the quality of agents if they decide to outsource, and including language as a factor only increases the chance of producing negative experiences.
Cultural Differences
Cultural differences can also be a drawback of off-shore technical support. Off-shore agents may not have a good understanding of the customer's culture and norms, which can lead to misunderstandings and a less satisfying customer experience. An example of this is that certain cultures express themselves with louder volumes of speech or directness which can be construed differently depending on the listener. What may be considered rude in one culture may be neutral in others.
On-Shore vs. Off-Shore Technical Support: A Comparison
When it comes to technical support, businesses must weigh the benefits and drawbacks of on-shore and off-shore support. On-shore technical support tends to be more expensive than off-shore support due to higher labor costs. However, the benefits of on-shore support can outweigh the costs for many businesses.
In terms of communication, on-shore technical support has a clear advantage. With fewer language barriers and cultural differences, communication is more effective and efficient. In addition, the higher quality of service provided by on-shore technical support teams can lead to a better overall customer experience.
To compare the quality of on-shore and off-shore technical support, let's take a look at a case study. A software company based in the United States decided to move its technical support team to India to save on labor costs. However, after several months, the company noticed a decline in customer satisfaction ratings. Customers were complaining about long wait times, language barriers, and a lack of empathy from the technical support team. The company decided to move its technical support team back to the United States, and customer satisfaction ratings improved.
The main takeaway from this is that businesses spend a lot of money on acquiring customers, but then some of them cut costs on the experiences that nurture the relationships. According to the Harvard Business Review, acquiring a new customer can be five to 25 times more expensive than retaining an existing one. Additionally, a study conducted by Bain & Company shows that increasing customer retention rates by 5% can increase profits by 25% to 95%.
The job isn’t finished when customer buy the product. In order to increase the LTV of the customers it is essential to give them the best possible customer experience through on-shore technical support.
Best Practices for On-Shore Technical Support
Implementing on-shore technical support is not enough to ensure customer satisfaction. Businesses must also follow best practices to maximize the benefits of on-shore support.
Hiring Practices
Hiring practices are critical for building an effective on-shore technical support team. Businesses should look for technical support agents who have excellent communication skills, language proficiency, and cultural understanding. Technical support falls under the umbrella of customer service, so finding talent who has these soft skills is an important consideration. In addition, technical support agents should have experience in the industry and with the products or services they will be supporting.
Training
Training and development are also essential for building an effective on-shore technical support team. Technical support agents should receive ongoing training to keep their skills up to date and learn about new products and services. This falls on the shoulders of the business as it is their responsibility to give the agents the proper tools in order to represent the brand to their fullest ability. Having agents on-shore allows businesses to schedule training sessions in the same time-zone, and ensure that they have the necessary language ability.
Process
Process improvement is another critical factor in maximizing the benefits of on-shore technical support. Businesses should continually evaluate their technical support processes and identify areas for improvement. For example, businesses may find that changing the call routing process can lead to faster resolution times and higher customer satisfaction ratings.
Analytics
Metrics and analytics can also help businesses track the performance of their technical support teams. By tracking key performance indicators such as first call resolution rate and customer satisfaction ratings, businesses can identify areas for improvement and make data-driven decisions to improve the customer experience.
Conclusion
It is becoming more and more important for businesses to provide high-quality technical support. On-shore technical support can provide many benefits, including improved communication, cultural understanding, and a higher quality of service. Off-shore technical support has its share of drawbacks, including language barriers and time zone differences.
When choosing a technical support location, businesses must consider several factors, including cost, language proficiency, cultural understanding, time zone differences, and quality of service. By following best practices such as hiring the right people, providing ongoing training, and continually evaluating processes, businesses can maximize the benefits of on-shore technical support and improve customer satisfaction ratings.
Providing high-quality technical support is an essential aspect of the customer experience. While off-shore technical support may be cheaper, on-shore technical support can provide many benefits that outweigh the costs. By choosing the right location and following best practices, businesses can improve customer satisfaction ratings and differentiate themselves from their competitors.
