In today’s hypercompetitive business landscape, where customer experience (CX) is the ultimate differentiator, organizations are increasingly outsourcing their CX and contact centers to gain a competitive edge. But how do companies know if their outsourcing partnership is resulting in the success and ROI they expect?
In this article, we’ll explore the intricacies of measuring success and ROI in your CX and contact center outsourcing partnership, with expert advice on setting clear goals, managing financial and qualitative metrics, and striking the perfect balance between them. Along the way, we’ll reveal the secrets of maintaining a successful outsourcing partnership through effective communication, collaboration, and continuous improvement.
Set Clear Goals and Objectives
In the business world, the adage “what gets measured gets managed” rings true, especially in a CX outsourcing partnership. Establishing well-defined goals and objectives is crucial to ensure that the partnership yields the desired results and enhances the overall efficiency of your organization.
The first step to setting clear goals and objectives is identifying the key performance indicators (KPIs) that align with your organization’s strategic vision. These KPIs should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) so that both parties can effectively work towards realizing them. Standard CX KPIs include average handle time (AHT), first contact resolution (FCR), and customer satisfaction (CSAT) scores, all of which are vital to gaining a comprehensive understanding of your partner’s performance (more on these later).
Once the company identifies these KPIs, aligning them with your outsourcing partnership’s objectives is essential and allows for better communication and understanding between your organization and the outsourcing partner. For instance, if your primary goal is to improve customer satisfaction, you should ensure that your outsourcing partner is aware of this and has the necessary expertise and resources to achieve it.
It is also important to establish benchmarks that you can use to evaluate the success of your CX outsourcing partnership. These benchmarks can reflect industry standards or your organization’s performance before you start outsourcing. By setting realistic benchmarks, you can effectively measure the progress made by your outsourcing partner and make data-driven decisions to optimize your partnership further.
Evaluate Financial Metrics
Financial metrics play an indispensable role in measuring ROI, providing tangible evidence of the economic value your organization derives from the partnership and helping you make informed decisions about the future direction of your outsourcing strategy.
One of the primary financial metrics to consider is cost savings. Outsourcing CX often significantly reduces operational expenses, as the outsourcing partner is responsible for managing staff, infrastructure, and technology. In addition, outsourcing can lower overhead costs by eliminating the need for expensive office space, utilities, and other resources associated with in-house contact centers. Moreover, the economies of scale that outsourcing partners can achieve can further contribute to cost savings for your organization.
Another crucial financial metric is revenue growth. An effective outsourcing partnership should not only help your organization reduce costs but also contribute to increased revenue. Improved customer experience, driven by a professional and efficient CX outsourcing partner, can enhance sales, customer retention, and brand loyalty. Consequently, by closely monitoring revenue growth, you can gauge the direct impact of your outsourcing partnership on your organization’s bottom line.
To calculate the ROI of your outsourcing partnership, you need to consider cost savings and revenue growth; however, remember that the factors to consider when calculating ROI may vary depending on your organization’s unique circumstances and priorities. Whatever the financial impact of your outsourcing strategy, these metrics will help you make informed decisions to optimize the partnership for maximum returns.
Employee satisfaction and engagement significantly determine the quality of your CX outsourcing partnership. Engaged and satisfied employees will likely deliver exceptional customer service, improving overall CX.
Assess Qualitative Metrics
While financial metrics provide valuable insights into the economic impact of outsourcing CX and contact centers, it is equally essential to consider qualitative metrics that shed light on the overall effectiveness and quality of the partnership.
These non-financial indicators can help you better understand the value your outsourcing partner brings to your organization and guide you in making adjustments to optimize your partnership.
Customer satisfaction (CSAT) scores are an essential qualitative metric in evaluating the success of your outsourcing partnership. By measuring customer feedback and sentiment, CSAT scores offer valuable insights into how well your contact center is meeting the needs and expectations of your customers. High CSAT scores generally indicate that your outsourcing partner delivers exceptional customer service, an integral component of an effective CX strategy.
Another crucial qualitative metric is the Net Promoter Score (NPS), which measures the likelihood of customers recommending your business to others. NPS is a powerful litmus test of customer loyalty and satisfaction and can provide insights into the overall impact of your outsourcing partnership on customer experience. A high NPS indicates that your organization is consistently delivering exceptional customer service, which you can attribute to the performance of your CX outsourcing partner.
First contact resolution (FCR) rates measure the percentage of customer inquiries resolved during the first interaction without additional follow-ups. A high FCR rate suggests that your outsourcing partner handles customer issues efficiently and effectively, which can improve CSAT, NPS, and brand loyalty.
Finally, employee satisfaction and engagement significantly determine the quality of your CX outsourcing partnership. Engaged and satisfied employees will likely deliver exceptional customer service, improving overall CX. By monitoring the outsourced team’s performance, engagement, and satisfaction, you can ensure that your partnership fosters a positive work environment that promotes success.
Balance Quantitative and Qualitative Metrics
To truly grasp the success and ROI of your CX outsourcing partnership, adopting a comprehensive evaluation approach that incorporates both quantitative and qualitative metrics is essential. Solely relying on financial metrics or qualitative measures may lead to a skewed perception of your partnership’s impact on your organization.
By embracing a balanced strategy, you can paint a vivid, holistic picture of the value your CX outsourcing partner brings, ensuring that you leave every stone unturned in your assessment.
An excellent way to achieve this balance is the Balanced Scorecard Methodology. This strategic management approach aligns your performance measurement system with your goals and objectives, integrating a diverse mix of financial and non-financial metrics. The Balanced Scorecard evaluates your outsourcing partnerships through financial, customer, internal processes, learning, and growth perspectives to ensure a well-rounded assessment.
By tracking cost savings, revenue growth, CSAT scores, employee engagement, and process efficiency, it’s easier to identify areas for improvement, optimize the partnership, and ultimately provide better CX.
Remember, one size does not fit all when evaluating the success of your CX outsourcing partnership. Each organization has unique needs and goals—some may prioritize cost savings and efficiency, while others emphasize customer satisfaction and loyalty. By tailoring your evaluation criteria, you can ensure that your assessment aligns with your organization’s strategic priorities and delivers actionable insights for optimizing your partnership.
By tracking performance against the established benchmarks, you can identify areas for improvement to implement strategies and optimize performance. This proactive approach helps ensure that your outsourcing partner remains accountable for delivering results.
Maintaining a Successful Outsourcing Partnership
Once you have established a system for measuring the success and ROI of your CX outsourcing partnership, it is vital to maintain and nurture the relationship for long-term success.
Regular communication and collaboration with your outsourcing partner are essential for success. Open lines of communication enable you to address any issues, share feedback on performance, and ensure that both parties align on goals and expectations. Regular meetings, progress reports, and performance reviews can help you stay informed and adjust as needed.
Continuous monitoring and improvement of KPIs are crucial. By tracking performance against the established benchmarks, you can identify areas for improvement and work with your outsourcing partner to implement strategies to optimize performance. This proactive approach helps ensure that your organization continues to benefit from the partnership and that your outsourcing partner remains accountable for delivering results.
As your organization evolves and grows, your goals and requirements may change, so periodic reviews and adjustments in the outsourcing strategy are also essential. Reviewing the partnership’s performance and aligning it with your organization’s objectives helps ensure that your CX partner remains a valuable contributor to your overall success.
Emphasizing the importance of mutual trust and transparency is fundamental to building a strong and lasting outsourcing partnership. Trust fosters a collaborative environment where both parties can work together to achieve common goals. By maintaining open communication and promoting transparency in all aspects of the partnership, you can build a solid trust foundation that benefits everyone in the long term.
Key Takeaways
As we’ve covered in this article, measuring the success and ROI of your CX outsourcing partnership is critical to ensuring the effectiveness and value of your outsourcing strategy. Here are the ten most prominent takeaways to ensure your organization effectively tracks the progress of your CX partnerships.
- Set clear goals and objectives for your CX and contact center outsourcing partnership.
- Identify and align KPIs with the goals of your partnership.
- Establish benchmarks for evaluating success.
- Consider both financial and qualitative metrics for a holistic understanding.
- Adopt a balanced scorecard approach to incorporate quantitative and qualitative metrics.
- Tailor your assessment to reflect your organization’s unique needs and goals.
- Maintain regular communication and collaboration with your outsourcing partner.
- Focus on continuous improvement and optimization.
- Build a robust and lasting relationship based on mutual trust and transparency.
- Use a comprehensive approach to drive long-term success for your organization and enhance customer experience.
By sticking to these principles and adopting a comprehensive approach to evaluating your outsourcing partnership, you can make informed decisions, improve performance, and, ultimately, enhance your organization’s overall customer experience.
About Inspiro
Inspiro empowers smart, secure, seamless, scalable, and satisfying customer experience (CX). Through 38,000 digital-native customer champions, across 51 strategic locations, we connect companies with customers, any time, everywhere, just about effortlessly. Owned by Relia—a member of Japan’s Mitsui Group—Inspiro is the CX outsourcing leader, with decades of experience and decades- long client partnerships. We design and deliver customized, transformative digital CX, enabling established and disruptive brands attain, retain, and sustain lasting customer bonds.
