January 19, 2009

Call Centers Coming Back to the US

The well known battle between domestic and offshore call centers rages on as more companies have started focusing on customer satisfaction instead of just reducing costs. Are they finally starting to “get it?”

While companies can save 50 to 75 percent a year using offshore outsourcing providers, many don’t realize the potential risk to customer satisfaction and to their bottom line. A bad customer service experience may decrease repurchase rates and brand loyalty and dilute the company image leading to missed revenue. Everyone knows it costs less to retain customers than it is to attract new ones. Therefore, companies can’t afford to drop the ball on customer service especially during a recession.

Although research shows that call center location does not impact pre-encounter expectations for reputable firms, overall customer satisfaction scores for offshore call centers remain steadily lower than their domestic counterparts due to the real or perceived cultural differences between the representative and the caller. For the most part, customers are already upset when they call support hotlines. The last thing they want to do is struggle to understand the agent speaking to them. They want comfort and assurance not the unknown or further stress.

Companies are starting to “get it.” Major companies like Dell and Jitterbug are bringing call centers back to the United States. But at what cost?

Dell is charging its own customers for the guarantee that the representative they speak to will be American. At $12.95/month or $99/year with the purchase of a new computer, their pricing structure is not cheap especially in the middle of a recession. While I understand they are trying to recoup their costs, I really don’t think charging the customer for better service is the right way to increase customer satisfaction rankings. Most customers right now are looking for just the essentials; they don’t want to pay more for something that should be included from the start. When did “good” customer service become a premium?

Should companies charge their end customers for domestic call center services? Will Dell’s strategy increase customer satisfaction rankings?

Beatriz Alemar
beatriz.alemar@inktel.com